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21 March 2014
Billings Man Draws Prison Sentence for Methamphetamine PossessionRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, KURT LEE WHITLING, 52, of Billings, was ordered to serve a term of 60 months in prison followed by 4 years supervised by U.S. District Judge Susan Watters. The sentence is a result of Whitling's October 2013 guilty plea to possession with intent to distribute methamphetamine.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Joe Thaggard states Tomas Alvarado and Eliseo Lopez Martinez were two drug dealers involved in the distribution of methamphetamine. In October 2012, they began to distribute methamphetamine in Billings, Montana.
Alvarado and Martinez acted as wholesale distributors through a series of subordinate drug dealers. Those lower-level dealers included Walter White and the Defendant.
Alvarado estimates he provided to the Defendant for distribution two to three pounds of a substance containing a detectable amount of methamphetamine. White has informed the authorities that he also provided more than 50 grams of a substance containing a detectable amount of methamphetamine to the Defendant for distribution.
An associate of White, Alvarado, and the Defendant has informed the authorities that the Defendant distributed methamphetamine for White to people in Billings and the surrounding areas.
John Doe (an unindicted coconspirator) has informed the authorities the Defendant distributed methamphetamine to users in the Billings area.
Bedford County Man Stole 31 Firearms, Transported Them to MarylandRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa., pleaded guilty in federal court to charges of theft of firearms and interstate transportation of stolen firearms, United States Attorney David J. Hickton announced today.
Garrett G. Sherlock, 26, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 28, 2013, Sherlock stole 31 firearms from Saxton Outdoor Supply, Inc., which is a business licensed to deal in firearms. On the same day he transported the stolen firearms from Pennsylvania to Maryland.
Judge Gibson scheduled sentencing for August 5, 2014, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks conducted the investigation that led to the prosecution of Sherlock.
According to Mr. Hickton, Sherlock is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Bank Director Charged with Embezzling $336K in Bank FundsRead the Press Release
PITTSBURGH - A former bank director has been indicted by a federal grand jury in Pittsburgh on a charge of theft, embezzlement and misappropriation by a bank officer or employee, United States Attorney David J. Hickton announced today.
The nine-count indictment, returned on March 19, named Michael P. Bernick, 50, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, Bernick, a Director of Metropolitan Savings Bank, the deposits of which were insured by the FDIC, from April 19, 2005 through March 27, 2006, embezzled and misapplied bank monies and funds on nine occasions, totaling approximately $336,000. The indictment alleges that the monetary disbursements were made in the form of checks and wire transfers.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Deposit Insurance Corporation and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baldwin Man Sentenced for Child Pornography OffensesRead the Press Release
Follow @SDILNewsA Baldwin, Illinois, man was sentenced in federal district court 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), Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 2), and Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 3), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Michael A. Nieweglowski, Jr., a/k/a “Tony,” 45, was sentenced to a term of 180 months in federal prison on all counts, to run concurrently, to be followed by a lifetime term of supervised release on all counts, again to run concurrently, ordered to pay $632.71 in restitution, fined $500, and ordered to pay a $300 special assessment. In addition, upon his release from prison, Nieweglowski must register as a sex offender as a condition of supervised release. Nieweglowski has been detained by the United States Marshals Service since his arraignment on May 1, 2013.
“Predators, like this person, must face long sentences if we are to protect our children from them. If anyone doubts that these individuals are a danger, that person should look at this case. My office will continue to seek appropriate sentences for those who would prey on the most vulnerable in our communities.” said United States Attorney Wigginton.
The investigation began on January 14, 2011, when Nieweglowski, who had been on mandatory supervised release since at least September 10, 2010, for a Predatory Criminal Sexual Assault conviction which was the result of Nieweglowski molesting a five (5) year old relative, was turned over to his parole officer after suspected child pornography was found on a printer in Nieweglowski’s parents’ home on December 30, 2011. On January 15, 2011, a Special Federal Officer with the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force seized numerous media devices from Nieweglowski’s camper trailer which was parked next to his parents’ home, as well as the laptop computer that Nieweglowski could access in his parents’ home. Among the items seized from the defendant’s camper trailer was a PNY thumb drive.
A forensic review of the seized laptop home revealed approximately 79 visual depictions of minors engaged in sexually explicit conduct that had been downloaded via the internet. The PNY thumb drive was found to contain approximately 80 visual depictions of minors engaged in sexually explicit conduct that had been transferred to the thumb drive from the laptop computer. Several of the visual depictions possessed by Nieweglowski contained images of prepubescent minors engaged in sexually explicit conduct as well as images of minors that depicted sadistic behavior.
Evidence introduced at the Nieweglowski’s sentencing showed that another relative came forward after Nieweglowski was charged with the molestation of the first relative, and reported that Nieweglowski began molesting him/her since he/she was five years old and that it lasted for years. He/she did not, however, want to discuss it with the police, thus no formal charges were filed against Nieweglowski for this alleged molestation. In addition, while being transported back to an Illinois prison after violating the terms of his mandatory supervised release by viewing and downloading child pornography, Nieweglowski told his parole officer that he began looking at pornography because he was lonely, and that he was “doing some of the same things he did before he was charged the first time,” with the molestation of his five year old niece.
Furthermore, during an interview by a FBI Special Federal Officer, Nieweglowski admitted that, once he found child pornography on the internet, he could not stop himself from searching for and viewing child pornography. He said that he bought a thumb drive to use to save the images of child pornography because he was not always able to find it on the internet. He would then take the images to his camper where he was able to view them through his television. Nieweglowski stated that he had an interest in pedophilia and incest.
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 Illinois Department of Corrections and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Aurora Man Indicted for Sending Three Threatening Letters Containing White PowderRead the Press Release
DENVER –Tim Schwartz, of Aurora, Colorado, appeared before a U.S. Magistrate Judge this afternoon and was advised that on March 11, 2014, a federal grand jury in Denver, returned a one count indictment, charging him with mailing threatening communications, the United States Attorney’s Office, the U.S. Postal Inspector’s Office, the Federal Bureau of Investigation, the Aurora Police Department and the Denver Police Department announced. Schwartz was originally charged by Criminal Complaint on March 5, 2014 with sending threatening letters containing white powder to three separate addresses using the U.S. Mails. Schwartz will next appear in court on March 26th for arraignment.
According to court documents, including the affidavit in support of the criminal complaint, and the indictment, Schwartz was in a romantic relationship with an Aurora woman that ended disagreeably. He had recently spent 60 days in the Adams County Jail for domestic violence related charges involving the Aurora woman. The woman was living with her children in Schwartz’s home. When he got out of jail he learned that she had sold a fair number of his tools, which allegedly angered him.
On March 2, 2014, Schwartz brought an unopened letter into the lobby of the Denver Police Department’s headquarters building. He told the officer he was fearful of what might be in the envelope, and asked the officer to open it. The officer refused, so Schwartz opened it in the officer’s presence. Inside the envelope was a threatening letter and a light powder substance. The Denver Police Department immediately called a Hazardous Materials Unit to handle the letter and powder, which was ultimately collected, bagged and held. The letter was address to Schwartz, and had a return address of the ex-girlfriend.
On March 3, 2014, authorities learned that a second envelope containing a threatening letter and light colored powder was found at the ex-girlfriend’s address. That letter was addressed to the Adams County Detention Facility, with her return address. Writing on the envelope “return to sender – addressee no longer at this address.” This letter had similar characteristics to the letter opened at the Denver Police Department. Aurora Fire Department’s Hazardous Materials Unit and the FBI responded, screened and secured the envelope and its contents.
On March 4, 2014, a third letter was discovered at the Aurora Police Department. The third letter had similar characteristics to the other two. This letter was addressed to the Aurora Police Department with the ex-girlfriend’s return address. A hazardous materials unit responded to handle the letter and powder. All three letters had been sent via U.S. Mail.
The night of March 3, 2014, agents and officers talked with Schwartz at the Denver Police Department. During the course of the investigation, and as confirmed during the conversation, it was determined that Schwartz assembled the letters in an attempt to get back at his ex-girlfriend. Also, his handwriting matched the three letters. Schwartz was ultimately arrested by the Aurora Police Department on a violation of an order of protection.
“When someone threatens others using white powder in mailed envelopes, they will be prosecuted, as law enforcement and public safety officials have to respond as if the contents are harmful,” said U.S. Attorney John Walsh. “In this case, the defendant was trying to use threatening letters to get his ex-girlfriend in trouble. Clearly that tactic has backfired.”
“Securing the nation’s mail system and ensuring public trust in the mail is a priority for the U.S. Postal Inspection Service,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “We take threats and hoaxes via the U.S. Mail seriously and will continue to work diligently to hold those responsible accountable for their actions.”
“The FBI and our law enforcement partners treat all threats seriously, even false threats, because they terrorize the victims and divert first responder resources from other public safety needs,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle. “The FBI's determination to pursue justice and our dedication to work in full cooperation with local, state, and federal partners are reflected in this investigation.”
If convicted, the defendant faces not more than 10 years in federal prison, and a fine of up to $250,000.
This case was investigated by the U.S. Postal Inspection Service, the FBI, the Aurora Police Department and the Denver Police Department. Hazardous Material Units from the Aurora and Denver Fire Departments assisted authorities as well.
This case is being prosecuted by Assistant U.S. Attorney Greg Holloway.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Art Exhibit Helps Sexual Assault Victims with Healing ProcessRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistOutgoing SAHC Director announces “Art Heals” in Centre Market
WHEELING, WEST VIRGINIA – A unique art exhibit designed to help victims of sexual assault will be on display in Wheeling’s Centre Market for the rest of month.
United States Attorney William J. Ihlenfeld, II, was joined today by officials from the Upper Ohio Valley Sexual Assault Help Center (SAHC) to announce “Art Heals”, an exhibit that is made up of art work from current and former clients of the SAHC. Much of the display was created by victims of sexual assault ranging in age from 3 to 15 years who are also part of a SAHC support group. Adult survivors of sexual assault also submitted art work, and were given the opportunity to discuss their efforts in a counseling session as part of the healing process. “Art Heals” will be available for the public to view at no cost at Artworks Around Town inside the Upper Market House in Centre Market until March 31.
“The intent of the exhibit is to give our clients another means of expressing their feelings related to their abuse history and healing journey,” said Linda Reeves, outgoing director of the Sexual Assault Help Center. “Many times trauma survivors either don’t have words or can’t put into words what they are feeling or experiencing and using the arts is a wonderful medium to express these often hidden and sometimes overwhelming emotions.”
According to Reeves, clients of the SAHC are encouraged to submit their creative pieces in the form of drawings, paintings, photos, sketches, and writings. Past displays have included a quilt made by teen survivors of sexual violence and a quilt made by a women’s survivors group. This year the exhibit includes glass etchings from an adult survivor.
Ihlenfeld and Reeves were accompanied by Helen Wilhelm, President of the SAHC’s Board of Directors, as well as Board member William “Bud” Dalrymple, in making the announcement.
“The art that has been submitted by survivors of sexual assault of all ages makes for a very powerful display,” said Ihlenfeld. “The exhibit portrays the struggles and challenges as well as the healing and growth of survivors of sexual violence. The process of creating the art provides an avenue for victims to express feelings and emotions that often are difficult to put into words.”
Reeves also took the opportunity to announce her departure from the SAHC and her new position at the Child Care Resource Center (CCRC). Reeves will serve as the early childhood specialist at the CCRC and be responsible for providing training and technical assistance to child care providers throughout the Northern Panhandle of West Virginia as well as North Central West Virginia. Lori Kinney, Director of the CCRC, was also on hand for today’s announcement.
Wilhelm is sad to see Reeves leave after two decades of service to the SAHC.
“Thanks to the efforts of Linda Reeves the response to sexual assault in the Ohio Valley has improved tremendously,” said Wilhelm. “She has shown great passion for helping victims to begin the road to recovery. Her departure is a big loss for our agency but I’m glad that she will continue to serve our community.”
“No one has been as dedicated as Linda Reeves in helping survivors of sexual assault to heal, and to begin to move on from the trauma that they’ve suffered,” said Dalrymple, who will serve as the Acting Director of the SAHC until a permanent director is named.
The Upper Ohio Valley Sexual Assault Help Center is a non-profit organization dedicated to providing assistance to the community in dealing with the crime of sexual assault. Services include crisis intervention, advocacy, support services, individual and group counseling, and community education. The SAHC primarily serves Wetzel, Brooke, Marshall, Ohio and Hancock counties in West Virginia. In Ohio, Jefferson and Belmont counties are served. The SAHC does not refuse services to anyone regardless of where they reside. All victim services are provided free of charge. Anyone who needs the services of the Center may call 1-800-884-7242. Phones are answered 24 hours a day, seven days a week.
Amherst Man Sentenced for Filing Fraudulent Tax ReturnsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Marc Walker, 53, of Amherst, N.Y., who was convicted of filing a false claim against the United States, was sentenced to two years probation by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay restitution to the Internal Revenue Service in the amount of $23,694.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that the defendant, who is employed by American Airlines, filed federal tax returns for the tax years 2007 through 2011, in which he fraudulently overstated the amount of tax payments withheld from his wages. As a result, Walker claimed that he was entitled to tax refunds totaling $46,278 for those years, $23,694 of which was received by the defendant.
Walker’s criminal conduct was uncovered during the course of a civil audit of a business venture the defendant operated which was unrelated to his employment with American Airlines. The auditor observed that Walker’s tax returns claimed American Airlines had withheld several thousand dollars each year for federal taxes while IRS records showed only minimal amounts of withhold because Walker had claimed 99 exemptions on his W-4 form. When the auditor asked the defendant to verify the withholding amounts, Walker submitted fake W-2 statements to the civil auditor that claimed that American Airlines had withheld a significant portion of his earnings. Once the civil auditor reviewed the true W-2 forms submitted by American Airlines, which stated that only minimal amounts had been withheld from Walker’s pay for taxes, the case was referred to the IRS criminal division.
The sentencing is the result of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Alaska Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kenai, Alaska, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on March 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Falk was immediately turned over to the custody of the U.S. Marshals Service.
Scott Falk, age 29, was sentenced to 7 years of imprisonment, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Falk will be required to register as a sex offender.
On August 5, 2013, as part of a sex-trafficking undercover operation during the Sturgis Bike Rally, Falk was arrested for attempting to obtain sex with a 13-year old girl. Falk responded to a law enforcement-generated Internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Falk then met with an undercover agent posing as someone who could provide a young girl and was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s Office and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
20 March 2014
Woman Sentenced to 42 Months for Fraudulent Tax SchemeRead the Press Release
RICHMOND, Va. –Virginia Parks-Bert, 41, of Parkville, Md., was sentenced today to 42 months in prison, followed by 3 years of supervised release, and required to pay $135,835.09 in restitution to the Internal Revenue Service, for participating in a scheme to defraud the United States by filing fraudulent tax returns.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service, Criminal Investigation; and Kathryn Keneally, Assistant Attorney General of the Justice Department's Tax Division, made the announcement after sentencing by United States District Judge John A. Gibney.
Parks-Bert pled guilty on October 23, 2013, to conspiracy to defraud the government with respect to claims and aggravated identity theft. According to court documents, from February 2010 to May 2011, Parks-Bert conspired to obtain false tax return refunds by submitting false claims for herself and other to the IRS. Parks-Bert included false W-2 employer, wages, and tax withholding amount information on these returns. She and her co-conspirators then directed the false refunds to be deposited into bank accounts that they controlled. Generally, Parks-Bert purposefully kept the falsely claimed refund amounts below a certain threshold to avoid detection by the IRS. In total, Parks-Bert filed at least 57 false federal tax returns claiming $260,270 in refunds that the named taxpayers were not entitled to claim. Moreover, on March 31, 2010, Parks-Bert filed a tax return using the name and Social Security number of an individual whom she knew was deceased. She directed that the falsely claimed refund of $5,404 be deposited into a bank account that she controlled.
This case was investigated by the Internal Revenue Service and Chesterfield County Police Department. Assistant United States Attorney Erik S. Siebert and Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney Rebecca Perlmutter prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Western Slope Man Pleads Guilty to Defrauding the IRS and for Possession of A FireamRead the Press Release
DENVER –Michael L. Roy, age 50, of Clifton, Colorado, pled guilty before U.S. District Court Judge Raymond P. Moore on March 17, 2014, to conspiracy to defraud the United States and being a felon in possession of a firearm, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Roy, who is free on a bond, is scheduled to be sentenced by Judge Moore on June 16, 2014. Roy waived his right to be indicted by a federal grand jury and was charged by an Information on January 28, 2014. On September 19, 2013, Special Agents with IRS Criminal Investigation executed a search warrant on Roy’s home in Clifton, Colorado.
According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, in July 2013, the United States Postal Service intercepted eleven envelopes containing U.S. Treasury checks (IRS refund checks) and addressed to the home address of Michael and Kandiann Roy in Clifton, CO. Each of the envelopes were addressed to a different individual, and each check had a processing date of July 2013. Postal employees had also noticed Roy received letters from individuals within the Arizona State prison system. The mail carrier found a typed list with eleven names taped inside Roy’s mail box. The list appeared to serve as notification that the owner of the box would be receiving mail for these individuals.
IRS records showed that the list included eleven names for individuals who purported to file IRS Forms 1040EZ , U.S. Individual Income Tax Return, using Roy’s address. A total of 30 IRS Form 1040EZ returns, submitted for the 2012 tax year, were filed using either Roy’s current or former home address. All of the returns requested tax refunds. Twenty-six of the returns each list an identical income of $37,429, withholdings of $12,976 and refund amounts of $9,260 and were filed by mail; the refunds of eight of those returns were deposited into Roy’s bank account. The loss to the government to date is calculated at $65,263.
Twenty of the returns filed using one of the Roy's addresses purported to be from taxpayers who are incarcerated prisoners. Eighteen of these prisoners are incarcerated in the Arizona State prison, located in Eyman, Arizona. Roy, previously known as Michael Demes, was convicted in Arizona of the felonies of robbery and aggravated assault and incarcerated under that name in the Arizona prison system beginning in 1999. He was sentenced to a seven-year prison term.
During the search warrant, IRS Special Agents found documentary evidence that Roy had filed the bogus tax returns. They also found Moneygram receipts and letters to and from an inmate in the Arizona State prison, which included details of the conspiracy to file false income tax returns using the identity of other inmates. In addition, agents found a firearm, a Hi-Point .380 caliber handgun.
Conspiracy to defraud the United States and felon in possession of a firearm, both carry a penalty of not more than 10 years in federal prison, and a fine of up to $250,000, per count.
This case was investigated by IRS-Criminal Investigation, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.Two Men Sentenced for $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were sentenced in federal court today for their roles in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Bob True Beisly, III, 40, of Nevada, Mo., and Ronald Bunn,45, of Deerfield, Mo., were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Beisly was sentenced to two years and 11 months in federal prison without parole (to run consecutively to his state criminal cases) and ordered to pay $559,616 in restitution to Cargill. Bunn was sentenced to two years and three months in federal prison without parole and ordered to pay $754,564 in restitution to Cargill. In a separate but related case, Jeffrey Hobbs, 41, of Exeter, Mo., was sentenced on Nov. 21, 2013, to two years and eight months in federal prison without parole and ordered to pay $2,334,180 in restitution to Cargill. Each of the three defendants will be held jointly and severally liable for the restitution payments.
Beisly pleaded guilty on Aug. 6, 2013, to one count of wire fraud and one count of mail fraud. Bunn pleaded guilty on Nov. 12, 2013, to two counts of mail fraud. Hobbs pleaded guilty on May 20, 2013, to one count of wire fraud.
Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and Bunn approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and Bunn for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Bunn owned and operating RB Grain. Bunn was contracted through The Scoular Company to transport shipments of wheat, corn and grain to the Cargill feed mill in Butterfield. Bunn also admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Once Scoular received a payment from Cargill based on the submission of a fictitious scale ticket, Scoular issued a check to Bunn based on the delivery of wheat, corn or feed that was never delivered.
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and the Missouri State Highway Patrol.Two Indicted in 20,000-Victim Credit Card FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 23-count indictment today against Mihran Melkonyan, 33, of Sacramento, and Androuslan Akhmerov, 39, of Los Angeles, for wire fraud and mail fraud in a scheme to defraud American Express account holders, United States Attorney Benjamin B. Wagner announced.
According to court documents, Melkonyan and Akhmerov were involved in a scheme to defraud more than 20,000 credit card holders by making false charges on their accounts. To do this, Melkonyan and Akhmerov created fictitious businesses with legitimate sounding names and then charged the victims’ accounts small amounts in the range of $15-30. By using many small charges the defendants made it less likely that the credit card holders or the credit card companies would discover the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Michael D. Anderson is prosecuting the case.
Akhmerov was arrested on March 5, 2014, and is currently released on bail. Melkonyan remains at large.
If convicted, Melkonyan and Akhmerov face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Associates of La Cosa Nostra Convicted on All Counts by Jury in the July 2010 Robbery and Murder of A Brooklyn BusinessmanRead the Press Release
BROOKLYN, N.Y. —U.S. Attorney Loretta E. Lynch announced today that following a two-week trial, a federal jury convicted Richard Riccardi, 41, of Manalapan, N.J., and Louis Grasso, 46, of Staten Island, N.Y., of the robbery and murder of James Donovan on July 2, 2010. The defendants face a minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of over $250,000 when they are sentenced in August.
“The defendants plotted this brazen robbery and took the life of James Donovan because of their unrelenting greed. After lying in wait for Donovan, the defendants coldly robbed him, shot him, and left him to die in the street. The jury saw through their attempts to shift responsibility for their actions and held them accountable for Mr. Donovan’s senseless death,” said U.S. Attorney Lynch.
According to the Government’s trial evidence, the defendants plotted to rob Donovan, who operated a check cashing business in Brooklyn, believing he would be carrying large amounts of cash. The defendants, together with several of their associates, followed Donovan in the weeks leading up to the robbery to learn his daily routines. Riccardi agreed to supply the guns that everyone in robbery team planned to carry for the robbery.
On July 2, 2010, the robbery team, armed with revolvers and semi-automatic firearms, headed to a shop in Gravesend, Brooklyn, where they expected Donovan. At approximately 2:15 p.m., James Donovan arrived at the shop, and the robbery team sprang into action. During the course of the robbery, one of the defendants’ coconspirators shot him. Donovan, who was hit in the leg, shortly thereafter collapsed in the street, where he lay slowly bleeding to death. Grasso stole a bag of cash from Donovan’s car, and the team fled. Donovan, whose femoral artery was severed by the bullet, died as a result of his wound.
The robbery team divided up the approximately $200,000 in cash they had stolen from Donovan. Grasso took the guns used in the robbery and said he was going to have them melted down at a friend’s auto body shop. On November 3, 2011, law enforcement searched Riccardi’s car and New Jersey residence, and recovered a .38 caliber revolver and a 9 millimeter pistol.
Ms. Lynch thanked the Drug Enforcement Administration, the New York City Police Department, the Business Integrity Commission and the Kings County District Attorney’s Office for their outstanding investigative efforts. The government’s case is being prosecuted by Assistant United States Attorneys Nicole M. Argentieri and Darren LaVerne.
The Defendants:
RICHARD RICCARDI
Age: 41
LOUIS GRASSO
Age: 46
Town Hall Meeting in Troy on Protecting Seniors from FraudRead the Press Release
The United States Attorney’s Office and the Oakland County Prosecutor’s Office, along with Friends of Troy Seniors, AARP and the Troy Police Department will come together to increase public awareness about crimes targeting seniors in our community and to offer advice on how seniors can protect themselves from financial loss.
Financial exploitation against seniors, also known as Elder Fraud, is a crime which targets older adults in an attempt to deceive them with promises of goods, services or financial benefits that don’t exist. To bring attention to these crimes, a town hall meeting has been planned for Friday, April 11, 2014 from 9:00 am until noon at the Troy Community Center. Highlighted speakers will include U.S. Attorney Barbara L. McQuade, and Oakland County Prosecutor Jessica Cooper.
“We want to empower our seniors to recognize identity fraud and investor fraud,” United States Attorney Barbara L. McQuade said. “We hope that this town hall will arm our seniors with the information they need to protect themselves.”
Oakland County Prosecutor Jessica R. Cooper stated, "Identity theft is a multi-billion dollar crime that impacts all of us. Annually more money is stolen at the point of a pen or the click of a computer key than any other type of crime. We hope that this town hall meeting will help our citizens to learn how to protect themselves against identity theft and other types of fraud."
Chief Gary G. Mayer, Troy Police Department stated, “It is important to the Troy Police Department to make our senior citizens aware of the latest scams so they can protect themselves. We consistently see thieves on-line, on the phone or at the front door attempting to defraud our seniors and we are concerned. This town hall will help to equip the seniors and their families by becoming aware of these thieves.”
Diane Alati, Board Secretary for Friends of Troy Seniors stated, “Troy area residents have been targets of identity theft in recent weeks so it is vitally important that we get the word out on how seniors can protect themselves. If you are a senior, you should attend this town hall meeting to become an informed senior about identity theft and other types of crime that target seniors.”
While many different financial fraud schemes are perpetrated against seniors, the town hall meeting will focus on the most common – investor fraud and identity theft.Making investments, whether in stocks, real estate, commodities or mutual funds, can be financially rewarding, but some investment opportunities are a scam, and can have a devastating effect on personal savings. Examples of fraudulent investment schemes that will be discussed include advance fee schemes, affinity fraud, Ponzi and pyramid schemes and Internet fraud.
- Advance Fee Schemes are schemes designed to obtain money in advance for services the promoter has no intention of providing.
- Affinity Fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The promoters of this type of fraud frequently are - or pretend to be - members of the group.
- Ponzi or Pyramid Schemes are schemes where new investor money is used to make payments to earlier investors to give the illusion that the investment is successful.
- Internet Fraud involves use of tools such as a website, online messages or a social media site to reach a mass audience without spending a lot of time or money. Online messaging is an easy way for promoters to make their messages look real and credible, and it is sometimes difficult for investors to tell the difference between fact and fiction.
Identity theft is the unauthorized use of someone’s personal identifying and financial information for the purpose of stealing money and good credit. Identity theft has become one of the most costly crimes in the United States. Each year thousands of people lose millions of dollars to identity theft. Seniors are often vulnerable targets for identity thieves because many live alone and apart from family members and friends, have equity interests in their homes, receive Social Security checks and have excellent credit. With so many sources of personal information available, it is nearly impossible to completely prevent the theft of one’s identity, however steps can be taken to minimize the risk.
Being a victim of a financial fraud can have serious and long-term consequences, not only financially but emotionally as well. Individuals who experience financial crimes report feeling isolated, hopeless, and betrayed. Some feel embarrassed or blame themselves for what happened. Oftentimes the person committing the fraud has some type of relationship with the victim, making it less likely the victim will report the crime to law enforcement. The town hall will provide the opportunity to hear from victims of financial fraud and learn the steps they took to cope with and adjust to their situations. In addition, law enforcement and community members will be on hand to provide tips on how to protect yourself from becoming the victim of a financial fraud.
The town hall is open to the public and media as well. Registration for this event is required. Please contact Friends of Troy Seniors at (248) 526-2608 by Wednesday, April 9. Space is limited so please register early to secure your spot at this very important event.Todd County, Kentucky Man Charged with Coercing Minors to Engage in Sexually Explicit Conduct and Receiving Child PornographyRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky man was charged in a three count indictment this week, with persuading, inducing and coercing two minor females to engage in sexually explicit conduct and with receiving child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jesse Sanford Williams, age 34, was arrested on March 7, 2014, by federal agents in Kentucky, following an investigation that began in the state of Washington on March 28, 2013. According to an Affidavit attached to a criminal complaint, Williams allegedly blackmailed, by threat, at least two minor, teen girls, in order to receive sexually explicit images of them, by means of multiple Gmail and Yahoo internet accounts. The alleged activities took place between June 2011 and March 2013. Victim-1 lived in Washington, and was 13 years of age at the onset of the Internet threats. Victim-2 lived in Todd County, and was approximately the same age. At all times, Williams concealed his age and identity from the victims. A subpoena of email accounts determined all email accounts shared the same Internet Protocol (IP) address from an account located at Logan Aluminum, a large manufacturing facility located near Russellville, Kentucky. Logan Aluminum officials assisted federal agents in identifying Williams, an employee, as the email account holder, through a comparison of computer login times to company work schedules and attendance records, and by reviewing footage from a video camera located inside the plant and near the computer that Williams used. Williams also faces one count of knowingly receiving child pornography between June 2011 and March 2013.
If convicted at trial, Williams faces no more than a combined 60 year term in prison, a fine of $750,000 and a term of supervised release including up to life.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) Louisville and Seattle Divisions and police in Washington State.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Texas Chemical Plant Agrees to Cut Harmful Air Pollution in Overburdened CommunityRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Flint Hills Resources of Port Arthur has agreed to implement innovative technologies to control harmful air pollution from industrial flares and leaking equipment at the company’s chemical plant in Port Arthur, Texas. This settlement is part of EPA’s national effort to advance environmental justice by protecting communities such as Port Arthur that have been disproportionately impacted by pollution. The company is also required to pay a $350,000 penalty for Clean Air Act violations.
Once fully implemented, EPA estimates that the settlement will reduce emissions of volatile organic compounds (VOCs), including benzene and other hazardous air pollutants (HAPs), by an estimated 1,880 tons per year, and will reduce emissions of greenhouse gases by approximately 69,000 tons per year.
“This agreement reflects the Justice Department’s and the EPA’s commitment to alleviate the environmental and human health challenges faced by vulnerable communities,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This settlement will mean cleaner, healthier air for residents of the Port Arthur area who continue to bear a disproportionate burden from the impacts of industrial pollution.”
“Communities like Port Arthur are a focus of our enforcement efforts as they have been hit hard by air pollution,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “ By working with EPA, Flint Hills has advanced new air pollution controls that will help EPA bring similar air quality improvements to other American communities. EPA will continue to focus on tough pollution controls and cutting edge technologies in order to reduce the burden of air pollution on Americans who need it most.”
The settlement requires Flint Hills to operate state‑of‑the‑art equipment to recover and recycle waste gases and to ensure that gases sent to flares are burned with 98 percent efficiency. The company has spent approximately $16 million to implement these required controls on industrial flares.
When the agreement is fully implemented, the company estimates it will spend $28 million to reduce “fugitive” pollutant emissions that may leak from valves, pumps, and other equipment. The company must monitor leaks more frequently, implement more aggressive repair practices, adopt innovative new practices designed to prevent leaks and replace valves with new “low emissions” valves or use packing material to reduce leaks.
To further mitigate pollution impacting the community, the company will spend $2 million on a diesel retrofit or replacement project that is estimated to reduce nitrogen oxides and particulate matter by a combined 85 tons, in addition to 39 tons of carbon monoxide, over the next 15 years. The company will also spend $350,000 to purchase and install technologies to reduce energy demand in low income homes.
For the past several years, Flint Hills has operated a system to monitor the ambient levels of the hazardous air pollutants benzene and 1,3-butadiene at the boundaries of the facility, also known as the “fence line.” The company has used the information collected to identify and reduce potential pollutant sources for communities living near the facility. In this settlement, Flint Hills has agreed to make its fence line monitoring data available online to the public.
The complaint, filed by DOJ on behalf of EPA at the same time as the settlement, alleges that the company improperly operated its steam-assisted flaring devices in a way that emitted excess amounts of VOCs, including benzene and other hazardous air pollutants. It also alleges violations of EPA regulations designed to limit emissions from leaking equipment.
The measures required by the settlement will cut emissions of pollutants that can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Today’s settlement is part of EPA’s national effort to reduce emissions of toxic air pollutants, with a particular focus on industrial flares and leaks from equipment. Improper operation of an industrial flare can emit hundreds of tons of hazardous pollutants into the air. EPA encourages companies to flare less, and when they do flare, to fully burn the harmful chemicals found in the waste gas.
Flint Hills’ plant in Port Arthur manufactures chemicals that are used in a variety of products, including medical devices, automotive parts and appliance components. The Port Arthur facility has the capacity to produce nearly 1.4 billion pounds of ethylene and 700 million pounds of propylene annually.
The consent decree, lodged in U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html .
More information about the settlement: www2.epa.gov/enforcement/flint-hills-resources-port-arthur-clean-air-act-settlement
For more on recent settlements related to flaring: http://www2.epa.gov/enforcement/national-enforcement-initiatives
###Texas Chemical Plant Agrees to Cut Harmful Air Pollution in Overburdened CommunityRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON - The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Flint Hills Resources of Port Arthur has agreed to implement innovative technologies to control harmful air pollution from industrial flares and leaking equipment at the company’s chemical plant in Port Arthur, Texas. This settlement is part of EPA’s national effort to advance environmental justice by protecting communities such as Port Arthur that have been disproportionately impacted by pollution. The company is also required to pay a $350,000 penalty for Clean Air Act violations.
Once fully implemented, EPA estimates that the settlement will reduce emissions of volatile organic compounds (VOCs), including benzene and other hazardous air pollutants (HAPs), by an estimated 1,880 tons per year, and will reduce emissions of greenhouse gases by approximately 69,000 tons per year.
“This agreement reflects the Justice Department’s and the EPA’s commitment to alleviate the environmental and human health challenges faced by vulnerable communities,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This settlement will mean cleaner, healthier air for residents of the Port Arthur area who continue to bear a disproportionate burden from the impacts of industrial pollution.”“Communities like Port Arthur are a focus of our enforcement efforts as they have been hit hard by air pollution,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By working with EPA, Flint Hills has advanced new air pollution controls that will help EPA bring similar air quality improvements to other American communities. EPA will continue to focus on tough pollution controls and cutting edge technologies in order to reduce the burden of air pollution on Americans who need it most.”
The settlement requires Flint Hills to operate state‑of‑the‑art equipment to recover and recycle waste gases and to ensure that gases sent to flares are burned with 98 percent efficiency. The company has spent approximately $16 million to implement these required controls on industrial flares.
When the agreement is fully implemented, the company estimates it will spend $28 million to reduce “fugitive” pollutant emissions that may leak from valves, pumps, and other equipment. The company must monitor leaks more frequently, implement more aggressive repair practices, adopt innovative new practices designed to prevent leaks and replace valves with new “low emissions” valves or use packing material to reduce leaks.
To further mitigate pollution impacting the community, the company will spend $2 million on a diesel retrofit or replacement project that is estimated to reduce nitrogen oxides and particulate matter by a combined 85 tons, in addition to 39 tons of carbon monoxide, over the next 15 years. The company will also spend $350,000 to purchase and install technologies to reduce energy demand in low income homes.
For the past several years, Flint Hills has operated a system to monitor the ambient levels of the hazardous air pollutants benzene and 1,3-butadiene at the boundaries of the facility, also known as the “fence line.” The company has used the information collected to identify and reduce potential pollutant sources for communities living near the facility. In this settlement, Flint Hills has agreed to make its fence line monitoring data available online to the public.
The complaint, filed by DOJ on behalf of EPA at the same time as the settlement, alleges that the company improperly operated its steam-assisted flaring devices in a way that emitted excess amounts of VOCs, including benzene and other hazardous air pollutants. It also alleges violations of EPA regulations designed to limit emissions from leaking equipment.
The measures required by the settlement will cut emissions of pollutants that can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Today’s settlement is part of EPA’s national effort to reduce emissions of toxic air pollutants, with a particular focus on industrial flares and leaks from equipment. Improper operation of an industrial flare can emit hundreds of tons of hazardous pollutants into the air. EPA encourages companies to flare less, and when they do flare, to fully burn the harmful chemicals found in the waste gas.
Flint Hills’ plant in Port Arthur manufactures chemicals that are used in a variety of products, including medical devices, automotive parts and appliance components. The Port Arthur facility has the capacity to produce nearly 1.4 billion pounds of ethylene and 700 million pounds of propylene annually.
The consent decree, lodged in U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.More information about the settlement: www2.epa.gov/enforcement/flint-hills-resources-port-arthur-clean-air-act-settlement
For more on recent settlements related to flaring: www2.epa.gov/enforcement/national-enforcement-initiatives
####St. Thomas Man Sentenced to 5 Months for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez today sentenced Melroy Burgan, 25, to five months in prison for possession with intent to distribute marijuana, to be followed by three years of supervised release, announced United States Attorney Ronald W. Sharpe and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Angel M. Melendez.
On November 5, 2013, Burgan pleaded guilty to possession with intent to distribute marijuana. According to the plea documents filed in court, on August 17, 2013, Burgan traveled from the Ft. Lauderdale- Hollywood International Airport to the Cyril E. King Airport in St. Thomas with three kilograms of marijuana in his suitcase. After Customs and Border Protection (CBP) detected the marijuana in Burgan’s suitcase, they allowed the suitcase to continue through the normal luggage procedures. Burgan, who lives on St. Thomas, was arrested after he retrieved the suitcase from the luggage carousel. During questioning, Burgan admitted ownership of the suitcase and all of its contents.
The case was investigated by CBP and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
Springfield Man Indicted on Charges of Child PornographyRead the Press Release
BOSTON – A Springfield man was charged today in U.S. District Court in Springfield with child pornography charges.
Daniel P. Lorenz, 44, was indicted with two counts of distributing child pornography, three counts of receiving child pornography and possessing child pornography files.
If convicted, Lorenz faces a statutory mandatory minimum of five years and a maximum of 20 years in prison, a minimum mandatory of five years and a maximum lifetime of supervised release, and a maximum fine of $250,000 on the charges of distribution and receipt of child pornography. If convicted on the charge of possession of child pornography, Lorenz faces a statutory maximum of 20 years in prison, a minimum mandatory of five years and a maximum lifetime of supervised release, and a maximum fine of $250,000.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated by the FBI with assistance from the Springfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sonar Club Owner Who Helped Supervise A Baltimore Drug Organization Sentenced to 10 Years in PrisonRead the Press Release
Tally Sheets Showed Sales of $14.5 Million of Marijuana; Documents Seized Regarding Purchase of a Plane by Co-Conspirators for $450,000
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Daniel Gerard McIntosh, age 38, of Sparks, Maryland today to 10 years in prison followed by eight years of supervised release for conspiring to distribute between 100 and 1,000 kilograms of marijuana, conspiring to engage in money laundering and interstate travel to further drug trafficking activities.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.According to evidence presented at his seven week trial, McIntosh was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $30,000 in cash, 30 cell phones, documents regarding a plane purchased for $450,000 by other co-conspirators, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.
Trial testimony established that from at least 2006, McIntosh received large shipments of marijuana and distributed them to local dealers in the Baltimore metropolitan area.
According to trial testimony, in June 2008 McIntosh recruited Philip Parker to pick up marijuana in California and transport the marijuana to Maryland in Parker’s tractor trailer. McIntosh directed Parker to make multiple trips to California. One witness estimated that between September and December 2008, Parker made two trips a month, with loads ranging from 300-600 pounds of marijuana. On one occasion, McIntosh asked a co-conspirator to deliver
$1 million to Parker to transport to California to pay for the marijuana.From 2006 to early 2008, McIntosh used another individual to deliver hundreds of pounds of marijuana to his customers and to collect their payments.
McIntosh also furthered the drug organization’s business through money laundering. According to trial testimony, McIntosh was the manager, and as of June 2007, the majority owner of the Sonar Club in Baltimore. During the previous year, the business had lost $400,000. Once McIntosh took over the business, the leader of the drug organization became a silent partner who funded the business, which continued to lose thousands of dollars each year. McIntosh also provided employment verification for a co-conspirator who was on parole in 2008.
A total of 12 defendants have been convicted in this case, and sentenced to up to 121 months in prison.
Charges are still pending against the alleged leaders of the organization, David D’Amico, age 49, of Baltimore, Matthew Nicka, age 43, of Baltimore and his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, all of whom were fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico is pending extradition from Colombia, South America.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.Sibling Sentenced to 6 Months in Jail for Theft of Welfare BenefitsRead the Press Release
PORTLAND, Ore. – A Portland man was sentenced to 6 months in jail for stealing more than $8,000 in benefits intended for his disabled sister. Jason I. Boutros, 49, appeared in federal court for sentencing yesterday after previously pleading guilty to Social Security fraud in December.
According to court records and Boutros’ admissions in court, Boutros became his sister’s Representative Payee in February 2009, which enabled him to receive his sister’s Supplemental Security Income (SSI), a needs-based benefit administered by the Social Security Administration (SSA). As the Representative Payee, Boutros was required to report to SSA if his sister left the United States for more than 30 days. While his sister and other family members were outside the United States for months at a time, Boutros failed to report to SSA as he repeatedly withdrew her benefits. In addition to his sister’s SSI, Boutros withdrew the SSI benefits being paid to his parents, Zakia and Iskander Boutros, who have also been indicted and are currently fugitives living outside the United States.
Telling Boutros that he had a “moral obligation” to repay the funds, the Honorable Michael H. Simon ordered Boutros to pay more than $220,000 in restitution to SSA and the Oregon Department of Human Services for the SSI and Medicaid benefits his family received. He further ordered that $1,900 in currency found in defendant’s residence be applied towards the restitution. Judge Simon found Boutros’ guideline range to be 0-6 months, stating that despite the government’s “well-marshalled evidence of falsehoods,” the government had not proven that Boutros deserved a higher guideline range for being an organizer, manager, or supervisor of his family’s fraud scheme. He further stated that he believed a 12-month prison term was justified, but that he did not believe the record supported an upward departure to a higher guideline range.
Boutros was ordered to begin his jail sentence on May 19, 2014. Boutros’ sister Killda Boutros is scheduled for sentencing April 17, 2014, at 2:00 p.m.
This case was investigated by agents for the Medicaid Fraud Unit, the Department of Health and Human Services, and the Social Security Administration, Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Helen L. Cooper as part of a partnership venture between the U.S. Attorney’s Office in Portland, Oregon, and the Seattle Region of the Social Security Administration, Office of the General Counsel.
Sentencing for March 18 - 20, 2014Read the Press Release
Daniel Lee Hutchinson, 54, of Douglas, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 20, 2014, for being a felon in possession of a firearm. Hutchinson was arrested in Douglas, Wyoming. He received 18 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Gillette Police Department, the U.S. Probation Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives
.
Dallas Todd Jacobs, 19, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 19, 2014, for conspiracy to possess stolen firearms. Jacobs was arrested in Casper, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,710.00. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Christopher Rose, 32, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for conspiracy to possess with intent to distribute, and to distributing 50 grams or less of a mixture or substance containing a detectable amount of methamphetamine. Rose was arrested in Cheyenne, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joshua Anderson, 19, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for possession of child pornography. Anderson was arrested in Casper, Wyoming. He received 120 months imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. The case was investigated by the Casper Police Department and the Federal Bureau of Investigation.
Cody W. O’Bryan, 42, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for conspiracy to possess with intent to distribute between 200-350 grams of methamphetamine. O’Bryan was arrested in Laramie, Wyoming. He received 63 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office, the Laramie Police Department and the Wyoming Division of Criminal Investigation.
Joseph Allen Jackson, 31, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for conspiracy to possess with intent to distribute between 200-350 grams of methamphetamine. Jackson was arrested in Laramie, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office, the Laramie Police Department and the Wyoming Division of Criminal Investigation.
Andrew Montoya, 29, of Rawlins, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 18, 2014, for conspiracy to possess with intent to distribute, and to distributing between 50-200 grams of a mixture or substance containing a detectable amount of methamphetamine. Montoya was arrested in Albany County, Wyoming. He received 18 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Richmond Man Sentenced to 115 Months for Defrauding InvestorsRead the Press Release
RICHMOND, Va. –Stephen Maurice Burks, 65, of Richmond, Va., was sentenced today to 115 months in prison, followed by three years of supervised release, for mail fraud. He also was ordered to pay $1,338,971.52 in restitution to his victims as well as forfeiture.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by Senior United States District Judge Robert E. Payne.
Burks pled guilty on November 20, 2013. According to court documents, Burks was the Chief Executive Officer of Chelsea Financial Group, LLC (CFG), which operated from locations in Maryland and Richmond, Virginia. Burks admitted that from at least as early as January 2008 through January 2013, he offered and sold, both individually and through CFG, investments in several different investment schemes both individually and through CFG. These schemes included, but were not limited to: Forex (foreign currency exchange) trading; stock market investments; oil investments; payday lending franchises; and group homes. Burks admitted that he made material misrepresentations and omissions to investors about his background, including false claims that he was an investment professional, registered investment advisor, and commodities trading advisory. Burks also failed to disclose to investors that he was a convicted felon. Throughout all of the various schemes, Burks obtained at least $1.2 million in investor funds and failed to disclose that he retained at least 25% of funds for personal and/or non-investment-related use.
This case was investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigative Division, with significant assistance from the Commodity Futures Trading Commission, the U.S. Department of State, Diplomatic Security Service, and the Virginia State Corporation Commission. Assistant United States Attorney Jessica D. Aber prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pennsylvania Man Charged with Running A Prostitution BusinessRead the Press Release
NEWARK, N.J. – An Allentown, Pa., man previously charged with sex trafficking of a minor was indicted today on additional charges of conspiracy to use an interstate facility in aid of prostitution business, transportation of a minor to engage in prostitution, coercion and enticement to engage in prostitution, and obstruction, U.S. Attorney Paul J. Fishman announced.
The 10-count superseding indictment returned by a federal grand jury against Francisco Torrellas, a/k/a “Francisco Fordham Jr.,” “Dream,” “Daddy,” and “Pretty,” includes one count of conspiracy in connection with the defendant’s operation of a prostitution business; five counts of violating the Travel Act, i.e., using an interstate facility to carry on his prostitution business; one count of transporting a minor to engage in prostitution; one count of coercion and enticement to engage in prostitution; and one count of obstruction of justice. The original count of sex trafficking of a minor on which the defendant was indicted on June 27, 2012, remains in place.
According to the superseding indictment and other documents filed in court:
From November 2010 to February 2013, Torrellas allegedly conspired with others to operate a prostitution business in New Jersey, Pennsylvania and elsewhere. Torrellas managed the business, traveled, and caused prostitute employees, including a minor, to travel interstate for the purpose of engaging in sex acts in exchange for money.
Torrellas used the Internet to post advertisements for sexual services on the website Backpage.com. Torrellas also developed rules for the prostitutes, booked hotel rooms, and, while incarcerated, used the phone to manage, promote, and carry on his prostitution business, specifically causing his conspirators and others to direct the proceeds of the business to his commissary account at the Essex County Correctional Facility. Torrellas also attempted to influence, delay or prevent the testimony of another person or persons in connection with the case against him.
The conspiracy count carries a maximum potential penalty of five years in prison. The Travel Act counts each carry a maximum potential penalty of five years in prison. The counts relating to trafficking and transportation of a minor carry a mandatory minimum penalty of ten years in prison and a maximum penalty of life imprisonment. The count relating to coercion and enticement to engage in prostitution carries a maximum potential penalty of 20 years in prison and the count charging obstruction of justice carries the maximum term that could have been imposed for the offenses charged. The defendant also faces a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the Secaucus, Jersey City, and the Allentown, Pa., police departments with the investigation leading to today’s superseding indictment.
The government is represented by Assistant U.S. Attorneys Danielle Corcione and Jenny Kramer of the U.S. Attorney’s Office Criminal Division in Newark.The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
14-097Defense counsel: Michael N. Pedicini Esq., Chatham, N.J.
Torrellas, Francisco SIndictment
Pair Charged in Federal Indictment with Armed Robbery of Smith’s Store in PriceRead the Press Release
SALT LAKE CITY - A grand jury returned an indictment Wednesday afternoon charging Dominic Matthew Martinez, age 28, of Salt Lake City, and Jennifer Meradee Tryon, age 43, of Price, with a Nov. 26, 2013, armed robbery of Smith’s Food and Drug located at 1075 East Main Street in Price.
The indictment also alleges they used a firearm during a crime of violence. Martinez is charged in the final count of the indictment with possession of a firearm and ammunition following a felony conviction.
Martinez and Tryon are in state custody. A federal arrest warrant has been issued in the case.
The potential maximum penalty for robbery under the federal Hobbs Act is 20 years in prison. Brandishing a firearm during a crime of violence carries a potential life sentence with a seven-year mandatory minimum sentence. Possession of a firearm by a restricted person has a potential 10-year sentence.
The robbery occurred about 11 a.m. on Nov. 26. Surveillance footage of the robbery was obtained from the store along with other evidence. Martinez and Tryon were identified as suspects in the case after an investigation by the Price Police Department, the Utah Department of Public Safety, the ATF and the U.S. Marshals Service.
Owner of Mortgage Modification Company Sentenced in Manhattan Federal Court to Nine Years in Prison for Defrauding Hundreds of Distressed HomeownersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ISAAK KHAFIZOV, a former owner of American Home Recovery (“AHR”), a mortgage loan modification business, was sentenced yesterday in Manhattan federal court to nine years in prison in connection with a scheme to defraud distressed homeowners and lenders. KHAFIZOV was convicted in May 2012 of one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and two counts of wire fraud, after a ten-day jury trial presided over by U.S. District Judge George B. Daniels, who also imposed the sentence.
Manhattan U.S. Attorney Preet Bharara said: “Isaak Khafizov victimized desperate homeowners who were struggling to make their mortgage payments. He preyed on their fears of losing their homes by lying about miracle cures for their financial problems. Khafizov pretended it was all made possible by government programs that did not exist, by special, powerful relationships with banks that he did not have, and by expertise and experience that he never possessed.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents, and statements made during court proceedings:
In the spring of 2008, ISAAK KHAFIZOV, Jaime Cassuto, and David Cassuto founded American Home Recovery (“AHR”), a mortgage modification business that operated in Manhattan. From the spring of 2008 through the summer of 2009, KHAFIZOV used AHR to commit a systematic fraud that preyed on distressed homeowners. KHAFIZOV and AHR’s salespeople fraudulently induced distressed homeowners all over the United States to pay AHR thousands of dollars in up-front fees, by falsely promising the homeowners that: (1) AHR could get them better interest rates and lower monthly fees, all within a short timeframe; (2) AHR would return the up-front fees if it did not succeed in getting the homeowners the mortgage modifications they desired; (3) the homeowners had been “pre-approved” for mortgage modifications by their lenders; (4) AHR was affiliated with government agencies and programs established by the Economic Stimulus Act of 2008; (5) AHR possessed special expertise in mortgage modifications, and (6) AHR had special relationships with lenders. After receiving up-front fees from the distressed homeowners, KHAFIZOV and AHR did little or no work to try to renegotiate the homeowners’ mortgages. And on those rare occasions when KHAFIZOV succeeded in getting a homeowner a mortgage modification, he typically did so by coaching the homeowner to lie about his or her income and assets on forms submitted to the mortgage lender.
All told, KHAFIZOV and AHR defrauded financially struggling customers across the country out of over half a million dollars in fees. Furthermore, because KHAFIZOV and AHR did not do the work they had promised, and because KHAFIZOV specifically directed the distressed homeowners to stop paying their mortgages and to pay AHR its fees instead, many of AHR’s customers wound up in foreclosure as a result of the scheme.
In addition to his prison term, KHAFIZOV, 27, of Queens, New York, was sentenced to three years of supervised release.
In sentencing KHAFIZOV, Judge Daniels remarked that victims who feared “being thrown out of their homes” were “desperately seeking help” from Khafizov because he “promised to solve what, for most of these people, was the most serious problem that they had ever encountered in their lives.” But Khafizov “took advantage of every one” of them, and “… showed a callous disregard for the consequences of his criminal conduct on the victims he swindled.”
Jaime Cassuto and David Cassuto each pled guilty to multiple counts of fraud in April 2012. They await sentencing.
Mr. Bharara praised the Federal Bureau of Investigation and the Special Inspector General of the Troubled Asset Relief Program for their work on this case.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Niketh Velamoor and Nicole Friedlander are in charge of this prosecution.
Oakland Crew Charged in RICO Indictment Involving String of Armed Robberies, Home Invasions, and Credit Card ConspiracyRead the Press Release
OAKLAND – The Grand Jury returned a 21-count Superseding Indictment on Tuesday, March 18, 2014, against seven people for their participation in a case involving a spree of armed robberies of commercial businesses in and around the Bay Area and the subsequent attempted cover-up of those robberies, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the Indictment, The Landry Crew is an enterprise based in Oakland, Calif. It is affiliated with the larger “Money Team” gang that also operates in and around Oakland, as well as with other groups. The Landry Crew’s members operate in the greater bay area including Richmond, Antioch, Vallejo, Fairfield, the North Bay, the East Bay, the Peninsula, and Sacramento.
Beginning at the latest in 2012, The Landry Crew allegedly engaged in numerous armed robberies of Rite Aid, Safe Way, and Walmart stores, during which they brandished firearms and stole cash, checks, and merchandise while the store was full of customers. They also engaged in armed home invasion-style robberies, credit card fraud, identity theft, as well as obstruction of justice. Much of the stolen merchandise was sold to third parties or “fences.”
The Indictment further alleges that the Landry Crew broadcast and boasted about their criminal activities on Facebook, Twitter, Instagram, and YouTube. Members of the crew took pictures of themselves in the aftermath of their crimes, literally rolling around in large amounts of cash and stolen items. They also documented themselves on spending sprees with the proceeds from their robberies. The group is notable for its use of female accomplices, who transported members of the group to the scene of crimes, held and concealed evidence, stole credit cards and identities, and rented or stole vehicles in which to commit crimes.
The Indictment alleges that following his arrest, the group’s ringleader, Melvin Landry, Jr. offered cash and goods to FBI agents, if they would allow him to escape.
Defendant
Charges
Melvin Landry Jr., a/k/a “New Hefner,”
22, of OaklandRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (Five Counts), Use/Possession of Firearm During and in Relation to Crime of Violence (Five Counts), Money Laundering, Attempting to Bribe a Federal Official, and Obstruction of Justice.
Dominique Marquis Martin, a/k/a “Domo,”
23, of OaklandRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (Four Counts), Use/Possession of Firearm During and in Relation to Crime of Violence (Four Counts), and Money Laundering.
Rudolpho Antoine James, a/k/a “Youngnrichdolpho,”
20, of VallejoRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (Two Counts), Use/Possession of Firearm During and in Relation to Crime of Violence (Two Counts), Access Device Fraud (Two Counts), and Access Device Making Equipment.
Eric Carlisle, a/k/a “Pimpinassero,”
24, of BerkeleyRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (One Count), and Use/Possession of Firearm During and in Relation to Crime of Violence (One Counts).
Veante Williams, a/k/a “V,” 22, of Oakland
Obstruction of Justice.
Desier Williams, 20, of Oakland
Access Device Fraud.
Reina Rodriguez, 23, of Vallejo
Access Device Fraud and Possession of Accessing Device Making Equipment.
The maximum statutory penalty for racketeering and racketeering conspiracy, in violation of 18 U.S.C. Section 1962(c) and 1962(d), are life imprisonment, maximum fine of the greatest of either $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary gain loss inflicted on another. The maximum statutory penalties for Hobbs Act robbery and conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. Section 1951(a), and for obstruction of justice, in violation of 18 U.S.C. Section 1512(c)(1), is 20 years in prison and a fine of $250,000. The maximum statutory penalty for use/possession of a firearm in furtherance of the Hobbs Act robbery, a crime of violence, in violation of 18 U.S.C. Section 924(c), is life imprisonment, a $250,000 fine, but carries a mandatory minimum consecutive prison term of 7 years for the first Section 924(c) conviction if the firearm was brandished, and a 25-year mandatory minimum consecutive term in prison for each second or successive 924(c) conviction. The maximum statutory penalty for money laundering, in violation of 18 U.S.C. Section 1956(a)(1)(b)(i), is 20 years imprisonment, a $500,000 fine, or twice the value of the property involved in the transactions. The maximum statutory penalty for attempting to bribe a federal official, in violation of 18 U.S.C. Section 201(b), is 15 years imprisonment, and a $250,000 fine. The maximum statutory penalty for Access Device Fraud, in violation of 18 U.S.C. section 1029(a)(1) & (2), is 10 years imprisonment, and a $250,000 fine or twice the gross pecuniary gain or loss from the offense. The maximum statutory penalty for Access Device Making Equipment, in violation of 18 U.S.C. section 1029(a)(4) & (2) is 15 years imprisonment, 3 years of supervised release, maximum fine of $250,000 or twice the gross pecuniary gain or loss from the offense. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Please note, indictments and complaints contain only allegations and, as with all defendants, the defendants named herein must be presumed innocent unless and until proven guilty.
Kathryn Haun and Kimberly Hopkins are the Assistant United States Attorneys who are prosecuting the case with the assistance of Kevin Costello and Daniel Charlier-Smith, and with Assistant United States Attorney Olusere Olowoyeye of the Eastern District of California. The prosecution is the result of an investigation by the FBI, IRS Criminal Investigation, the California Highway Patrol, the Fremont Police Department, the Alameda County Sheriff’s Department, the Alameda County DA’s Office, the San Leandro Police Department, the San Mateo Police Department, the San Mateo District Attorney’s Office, the Oakland Police Department, the Pinole Police Department, the San Rafael Police Department, the Antioch Police Department, the Richmond Police Department, the Vallejo Police Department, and the Sacramento Police Department.
(The Landry Crew second superseding indictment )
Oakdale Youth Pastor, Registered Sex Offender from Escalon, and Bishop Man Charged in Separate Child Exploitation CasesRead the Press Release
FRESNO, Calif. — A grand jury in Fresno returned three separate indictments today alleging offenses involving the sexual exploitation of minors, United States Attorney Benjamin B. Wagner announced.
In the first indictment, Tyler Bliss, 26, of Oakdale, was charged with one count of receiving and distributing child pornography from October 2013 through February 2014. According to a previously filed criminal complaint, Google reported to the National Center for Missing & Exploited Children (NCMEC) that on December 3, 2013, an image of suspected child pornography had been uploaded to a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the same Google account had been connected with the transmission of hundreds of other images of suspected child pornography. Additional investigation revealed that the account had been accessed from a residence in Oakdale as well as from a church in Oakdale. Computers and a cellphone were obtained through search warrants for both locations, and investigators found images related to the sexual exploitation of minors on these items. Bliss had been serving as Supervisor of Student Ministries at the church.
Bliss has been in custody since his arrest by FBI agents Wednesday. He is scheduled for arraignment today at 1:30 p.m. before U.S. Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime of supervised release. (Docket # 1:14-CR-052 LJO)
This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with initial assistance from the Sacramento County Sheriff’s Office. Anyone with information relevant to the investigation is encouraged to contact the Modesto office of the FBI at 209-543-7846.
In the second indictment, Allen Kendrick, 47, of Escalon, was charged with one count of receiving and distributing child pornography from June 2013 through December 2013. According to a previously filed criminal complaint, Google reported to NCMEC that on December 10, 2013, six images of suspected child pornography were associated with a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the Google account had been accessed from residences in Modesto and Escalon. Additional investigation revealed that Kendrick was a registered sex offender on GPS location monitoring, and the GPS records confirmed that Kendrick was at the residences in Modesto and Escalon when the child pornography had been accessed. This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with assistance from the California Department of Corrections and Rehabilitation Division of Adult Parole Operations.
Kendrick has been ordered detained as a danger to the community and a flight risk. He will be arraigned on March 25, 2014, at 1:30 p.m. by Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum potential prison sentence of 40 years, a fine of up to $250,000, and a lifetime term of supervised release. (Docket # 1:14-CR-055-LJO)
In the third indictment, Lorenzo Hernandez Martinez, 37, of Bishop, was charged with one count of attempted transfer of obscene material to a minor. According to a criminal complaint, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14-year-old girl in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted lewd images. In fact, Martinez was communicating with an undercover detective in Corvallis, Oregon. The Corvallis Police Department worked with the Bishop Police Department and the Bakersfield FBI office to identify the defendant. When a search warrant was executed at his residence in Bishop on March 11, 2014, agents seized a cellphone that contained communications with the detective in Oregon and sexually explicit.
Martinez has been ordered detained as a danger to the community and a flight risk. If convicted, he faces a maximum prison term of 10 years, a potential fine of $250,000, and a three-year term of supervised release. He will be arraigned on March 24, 2014, at 1:30 p.m. by U.S. Magistrate Judge Barbara A. McAuliffe. (Docket # 1:14-CR-053 LJO)
Assistant United States Attorney David Gappa is prosecuting all three cases. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If the defendants are convicted, their sentence 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.
They have been brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Naytahwaush Man Sentenced for Failure to Report to PrisonRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 20, 2014, Jason Thomas Bellanger, 37, Naytahwaush, Minn., was sentenced before U.S. District Judge Ralph R. Erickson to 12 months in prison for Failure to Appear to the Bureau of Prisons facility to begin a term of incarceration.
On June 10, 2013, Bellanger was sentenced before Judge Erickson to a term of incarceration for aiding and abetting the distribution of a controlled substance. Judge Erickson allowed Bellanger to self-report to the designated Bureau of Prison facility no later than 2:00 p.m. on August 19, 2013. Bellanger failed to report and was eventually apprehended by the U.S. Marshal Service on October 11, 2013. The sentence imposed on the Failure to Appear is consecutive to the underlying sentence imposed on June 10, 2013 for the aiding and abetting conviction. Bellanger was also ordered to pay a $100 special assessment to the Crime Victims Fund.
The case was investigated by the United States Marshals Service.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Moorhead Husband and Wife Each Receive 18 Year Sentence for Drug Trafficking ConspiracyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 20, 2014, Al Owen Johnson, 45, and Cassandra Anne Kasowski, 39, both from Moorhead, Minn. were sentenced before U.S. District Judge Ralph R. Erickson to serve 18 years in prison for conspiracy to possess with intent to distribute and distribution of a controlled substances. Judge Erickson also ordered both of them to five years supervised release as well as paying $100 special assessment to the Crime Victims Fund.
The conspiracy involved the transportation of kilogram quantities of methamphetamine from Texas that were distributed in the Fargo-Moorhead area. Co-conspirators also obtained large quantities of marijuana from the Minneapolis area and distributed throughout the local area. Other members of the conspiracy already sentenced include Juan Cerna 18 ½ years in prison, Steven Schmidt, five years in prison, Brandon Elsenpeter and Jonathan Lewis three years’ supervised probation and Allison Hunter 24 months’ supervised probation. David Cerna Jr., pleaded guilty during trial and will be sentenced on April 14, at 10:00 a.m. U.S. District Court.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, North Dakota Bureau of Criminal Investigations, Fargo and Moorhead Police Departments, Cass County Drug Task Force and Grand Forks Narcotics Task Force.
First Assistant U.S. Attorney Chris Myers and Assistant U.S. Attorney Brett Shasky prosecuted the cases.
Montgomery County Man Convicted in Violent Sex Trafficking ConspiracyRead the Press Release
Greenbelt, Maryland – A federal jury convicted Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, late yesterday of conspiracy to commit sex trafficking by force, fraud and coercion, three counts of interstate transportation for prostitution, and witness and evidence tampering.
The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
"This defendant preyed on vulnerable young women and exploited them for prostitution,” stated Acting Assistant Attorney General Samuels. “The Civil Rights Division is committed to seeking justice on behalf of victims of human trafficking."
“Protecting our communities from those who engage in human trafficking is a top priority for HSI,” said William Winter, special agent in charge of HSI Baltimore. “As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to evidence presented during the two week trial, between August and September 2012 Roy transported a victim across state lines to engage in prostitution. He also took the victim’s identity documents, kept all of the victim’s money, and bragged to her about beating murder charges.
In November 2012 Roy recruited co-defendant Brittney Creason to engage in prostitution at Roy's direction. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. Roy conspired to force the women to engage in prostitution by again bragging about beating murder charges, taking their identity documents and taking their money.
Trial evidence also showed that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy faces a maximum sentence of life in prison for conspiracy to commit sex trafficking; a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. U.S. District Judge Paul W. Grimm scheduled sentencing for July 16, 2014 at 9:30 a.m.The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.
Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, previously pleaded guilty of using a facility in interstate commerce for an illegal activity, and awaits sentencing.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.Mississippi Man Sentenced for Wire FraudRead the Press Release
Gulfport, Miss. – Vester Ray Bassham, 46, of Gautier, Mississippi, was sentenced by U.S. District Judge Louis Guirola, Jr. to serve five months in federal prison followed by five months home confinement with electronic monitoring and three years of supervised release for wire fraud in connection with the Deepwater Horizon Oil Spill, announced U.S. Attorney Gregory K. Davis. Bassham was also ordered to pay restitution in the amount of $26,000.
Bassham knowingly devised and carried out a scheme to defraud the Gulf Coast Claims Facility established by BP Exploration and Production, Inc. to administer, process, and settle certain claims of individuals and businesses that had been impacted by the Deepwater Horizon Oil Spill. The investigation revealed that Bassham made false representations in his claim for damages by alleging that he lost earnings and profits and work hours as an electrician providing services for Torguson Contruction, LLC, in Jackson County, Mississippi, as a result of the Deepwater Horizon Oil Spill. As a result of his scheme, Bassham caused $26,000.00 to be wired and deposited into his bank account in Biloxi, Mississippi.
The case was investigated by agents of the United States Secret Service, and prosecuted by Assistant U.S. Attorney Andrea Jones.
This case was also brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.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:
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Mechanicsburg Doctor and Owner of Two Medical Facilities Sentenced to 15 Months ImprisonmentRead the Press Release
The United States Attorney for the Middle District of Pennsylvania announced that today, Chief United States District Court Judge Christopher Conner sentenced a Mechanicsburg doctor, Timothy Clark, age 47 to 15 months imprisonment for health care fraud and pension fraud.
Clark was also ordered to pay restitution of $130,535.05 and forfeiture of $105,518.46.
According to United States Attorney Peter Smith, on April 22, 2013, Clark pleaded guilty to two indictments. In June 2012, Clark was indicted on charges that from July 2010 through December 2011, as the owner of Central Pennsylvania Pulmonary Associates (“CPPA”) and Sleep Disorder Centers of Central Pennsylvania, Clark withheld employee 401(k) contributions and failed to deposit the withheld funds into their 401(k) plan. Clark’s employees lost approximately $25,000.
In July 2012, Clark was indicted on charges that from December 2007 through September 2008, Clark who provided critical care services to patients of Holy Spirit Hospital, intentionally inflated the amount of time the health care providers he employed spent with each patient, thereby fraudulently inflating the claims he submitted to Medicare, Highmark, Inc. and Capital Blue Cross.
The case involving the health care fraud and money laundering was investigated by the Pennsylvania Office of the Attorney General Insurance Fraud Section; the U.S. Department of Health and Human Services Office of Inspector General, the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigations.
The case involving the employee plan embezzlement was investigated by the U.S. Department of Labor, Office of Inspector General and the U.S. Department of Labor Employee Benefits Security Administration.
Both cases were prosecuted by Assistant United States Attorney Joseph J. Terz.
McAlester Man Sentenced to 188 Months for Pseudoephedrine Possession/Distribution and RacketeeringRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that LARRY EUGENE PIRPICH, JR., age 53, of McAlester was sentenced to 188 months imprisonment, followed by 3 years of supervised release for Conspiracy to Possess and Distribute Pseudoephedrine, a List I Chemical, Used to Manufacture a Controlled Substance in violation of Title 21, United States Code, Sections 846, and 841(c)(2) and 10 counts of Interstate Travel in Aid of Racketeering Enterprises in violation of Title 18, United States Code, Section 1952(a)(3).
PIRPICH was Indicted in December 2012, along with SHILA ANN PARKER, age 32, of McAlester, Oklahoma. Both defendants pled guilty in March 2013.
Charges arose from an investigation by the Drug Enforcement Administration, Oklahoma Bureau of Narcotics, Bureau of Indian Affairs, McAlester Police Department, Oklahoma District Attorney District 18 Drug Task Force, Pittsburg County Sheriff’s Office, Choctaw Nation Tribal Police, Krebs Police Department, Stillwater Police Department, Shawnee Police Department, Tulsa Police Department, Broken Arrow Police Department, Kiowa Police Department, Lamar County Texas Sheriff’s Office, and Sherman, Texas Police Department.
The Indictment, alleged that beginning in or about January 2010, and continuing until in or about July 2012, the defendant conspired with others to possess and distribute a list I chemical, pseudoephedrine, knowing and having reasonable cause to believe the pseudoephedrine would be used to manufacture methamphetamine.
While residing in McAlester, Oklahoma, PIRPICH would purchase Pseudoephedrine from locations within Oklahoma, Texas, Colorado, and New Mexico for the purpose of manufacturing methamphetamine within the Eastern District of Oklahoma and elsewhere. PIRPICH possessed Oklahoma, Texas, Colorado, and Ohio state identification which enabled him to make pseudoephedrine purchases in multiple states. The defendant was aware of the pseudoephedrine purchase limits in Oklahoma and would travel to other states to make pseudoephedrine purchases when his purchase limits had been met in Oklahoma. It is a violation of Title 21 U.S.C. Section 844(a) for a person to knowingly or intentionally purchase at retail during a 30 day period more than 9 grams of pseudoephedrine.
The investigation further revealed that PIRPICH purchased in excess of 9 grams of pseudoephedrine in a single day. During the course of the conspiracy, PIRPICH individually purchased 1.82 kilograms of pseudoephedrine. At times throughout the conspiracy, PIRPICH would steal, attempt to steal or purchase items utilized in the manufacture of methamphetamine, in addition to pseudoephedrine, such as lithium batteries, camp fuel, denatured alcohol, and acetone.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Mark F. Green, United States Attorney for the Eastern District of Oklahoma, stated, “Purchasing pseudoephedrine for the manufacture of methamphetamine has become such an endemic problem within this district and throughout the country, that many states have enacted laws restricting its purchase. Oklahoma was in the forefront of states imposing these restrictions. In spite of these laws, criminals attempt to find ways to circumvent them. This case should be a powerful indication that efforts to get around these laws will not be tolerated. When efforts to evade these laws are discovered, violators will be vigorously prosecuted resulting in lengthy prison sentences.”
The investigation was a combined effort and operation coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led in and coordinated by the Office of the United States Attorney.
Assistant United States Attorney Shannon L. Henson represented the United States.
Maui Businessman Pleads Guilty to Tax FeloniesRead the Press Release
HONOLULU – On March 20, 2014, Charles Loewen (“Loewen”), age 57, the owner of Paradise Stone & Tile and resident of Maui, today pled guilty to conspiring to defraud the United States and filing a false claim for tax refund before United States District Judge Derrick K. Watson. Loewen faces a maximum term of imprisonment of five years on each of the two charges when he is sentenced on July 3, 2014 at 9:30 a.m.
United States Attorney Florence T. Nakakuni said that, according to the First Superseding Indictment, Loewen conspired to use a scheme in which he and his wife falsely claimed tax refunds from the Internal Revenue Service (“IRS”) totaling $2,353,173.22. He created fake supporting tax documentation, specifically phony 1099-OID Forms to make it appear as if the IRS owed him a large tax refund, when in fact the IRS did not.
According to information produced in court, Loewen further conspired to conceal his Paradise Stone & Tile business income from the IRS. After the State of Hawaii Department of Taxation levied two of Loewen’s Territorial Savings Bank accounts, he closed these accounts. Loewen’s wife opened an Arizona bank account, and Loewen began depositing his Paradise Stone & Tile business income into this Arizona account. Loewen later submitted false federal tax returns to the IRS claiming that he earned zero net income for three tax years, when in fact he had earned net income for those years.
The case was investigated by the Internal Revenue Service -- Criminal Investigation. The prosecution was handled by Assistant United States Attorney Cynthia Lie.
Massapequa, N.Y., Man Pleads Guilty to Rolling Back Odometers in Scheme That Defrauded Dozens of Car BuyersRead the Press Release
A Massapequa, N.Y., man pleaded guilty today in U.S. District Court in Allentown, Pa., to conspiracy to commit odometer tampering, the Department of Justice announced. The defendant, Edward Capicchioni, 53, pleaded guilty to one count of conspiracy to tamper with odometers and make false odometer certifications. Capicchioni rolled back odometers on used cars and trucks to make the vehicles appear more valuable. Doing business under the company name of The General’s Auto Sales, Capicchioni sold more than 50 vehicles with rolled back odometers.
“Tampering with a car’s odometer in order to trick a would-be buyer is not only pernicious, it is a federal crime,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “A car is an expensive purchase – indeed, for many of us, the most expensive purchase of our lives – and we have a right to know that the car we are buying is what it appears to be. The Department of Justice will continue to take action against those who seek to defraud consumers.”
Capicchioni admitted to purchasing high-mileage cars, sport-utility vehicles and trucks from individual sellers in New York, Pennsylvania, Rhode Island and Maryland. Capicchioni then worked with a co-conspirator to roll back and alter the odometers and resold the vehicles at a wholesale auto auction in Pennsylvania. Capicchioni also took steps to hide his odometer fraud scheme. He checked the Carfax public database to see if it included a mileage entry that was higher than the false, lower mileage to which he reset the odometer. When Carfax included a higher mileage, Capicchioni submitted to Carfax fraudulent documentation in the name of the vehicle’s prior owner, in order to have the higher mileage reading removed.
After Carfax discovered Capicchioni’s fraud scheme through an internal investigation, Carfax personnel alerted the Office of Odometer Fraud Investigation at the National Highway Traffic Safety Administration (NHTSA). NHTSA conducted additional investigation into the full scope of Capicchioni’s criminal activities, and Carfax continued to provide information and assistance throughout NHTSA’s investigation.
This case is being prosecuted by Trial Attorney John W. Burke with the Consumer Protection Branch of the U.S. Department of Justice.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or(202) 366-4761. Tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf . More information on odometer fraud is available at http://www.nhtsa.gov/Odometer-Fraud .
Maryland Man Convicted in Violent Sex Trafficking ConspiracyRead the Press Release
A federal jury convicted Jean Claude Roy, aka Dredd the Don and Dreddy, age 31, of Germantown, Md., late yesterday of conspiracy to commit sex trafficking by force, fraud or coercion, three counts of interstate transportation for prostitution and witness and evidence tampering.
The verdict was announced by Acting Assistant Attorney General Jocelyn Samuels for the Department of Justice Civil Rights Division, U.S. Attorney Rod J. Rosenstein for the District of Maryland, Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Chief J. Thomas Manger of the Montgomery County Police Department.
“This defendant preyed on vulnerable young women and exploited them for prostitution,” said Acting Assistant Attorney General Samuels. “The Civil Rights Division is committed to seeking justice on behalf of victims of human trafficking.”
“Protecting our communities from those who engage in human trafficking is a top priority for HSI,” said Special Agent in Charge Winter. “As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to evidence presented during the two week trial, between August and September 2012, Roy transported a victim across state lines to engage in prostitution and forced the victim to engage in prostitution by taking the victim’s identity documents, keeping all of the victim’s money and bragging about beating murder charges.
In November 2012, Roy recruited co-defendant Brittney Creason to engage in prostitution at his direction. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. He continued to force women to engage in prostitution by bragging about beating murder charges, taking their identity documents and taking their money.
Trial evidence also showed that from Jan. 1 through Jan. 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy faces a statutory maximum sentenced of life in prison for conspiracy to commit sex trafficking by force, fraud or coercion; a statutory maximum of 10 years in prison for each of three counts of interstate transportation for prostitution; and a statutory maximum of 20 years in prison for witness and evidence tampering. U.S. District Judge Paul W. Grimm scheduled sentencing for July 16, 2014.
The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.
Creason, aka Kitty Amor, age 19, of Decatur, Ill., previously pleaded guilty to using a facility in interstate commerce for an illegal activity and awaits sentencing.
This case was investigated by the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit this website.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting Assistant Attorney General Samuels and U.S. Attorney Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. They also thanked Assistant U.S. Attorney Kristi N. O’Malley and Trial Attorney William E. Nolan of the Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
Maryland Man Charged with Stealing Bank Cards from Reading Mail Distributino CenterRead the Press Release
John Smith, 45, of Belcamp, Maryland, was charged today by Information with bank fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the information, between January 2011 and January 2013, the defendant was employed at the Pitney-Bowes mail distribution center in Reading, Pennsylvania, and he stole hundreds of Bank of America bank cards and sold them to other persons, knowing that the stolen cards would be used to make fraudulent purchases.
If convicted the defendant faces a maximum possible sentence of 32 years in prison, five years of supervised release, a fine of $1.25 million, and a $200 special assessment.
The case was investigated by the U.S. Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Margate Resident Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Louis A. Francois, 44, of Margate, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for June 5, 2014 at 11:30 a.m. before U.S. District Judge Donald M. Middlebrooks.
According to court documents, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals’ names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois’ “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
From July 2010 through June 2011, the total amount of U.S. Treasury checks cashed by Francois and the total amount of fraudulent refunds requested by Francois is approximately $355,000. The number of victims involved is greater than ten, but fewer than fifty.
Francois faces a maximum sentence of twenty years in prison for the wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Major Drug Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Curtis Bernard Donaldson, aged 33, of Camilla, Georgia, was sentenced on Wednesday, March 19, 2014, to serve 27 years in federal prison for conspiracy to possess with the intent to distribute marijuana, cocaine and cocaine base. The sentence was handed down by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.Mr. Donaldson entered a guilty plea to the charges on September 25, 2013. In his plea agreement, Mr. Donaldson admitted that he was a major distributor of cocaine, crack cocaine and marijuana in Southwest Georgia. His organization maintained drug ties with Mexican nationals who were importing illegal drugs into the United States. After a hearing, the Court held Mr. Donaldson responsible for distributing over 2.5 kilograms of crack cocaine, one-half kilogram of powder cocaine, 272 kilograms of marijuana and 6.8 grams of MDMA.
U.S. Attorney Michael Moore said, "It is obvious from the quantities and diversity of the drugs Mr. Donaldson was distributing that he was essentially a 'one man crime wave' in Southwest Georgia. It was the effective cooperation and collaboration between federal, state and local law enforcement in this case that resulted in bringing to an end his trade in illicit drugs."
The case was investigated by agents from the U.S. Drug Enforcement Administration, Pelham Police Department, Thomas County Sheriffs Office Vice and Narcotics Squad, Georgia State Patrol and Webster County Sheriffs Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Leader of Newburgh Bloods Sentenced in Manhattan Federal Court to Life Plus 32 Years in Prison for Murder and Other OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTHONY BOYKIN and JUSTIN SIMMONS were sentenced Tuesday in Manhattan federal court for various racketeering, murder, attempted murder, narcotics conspiracy, and firearms offenses. BOYKIN was sentenced to life plus 32 years in prison, and SIMMONS was sentenced to 50 years in prison. In June 2013, after a four-week jury trial before United States District Judge Colleen McMahon, the jury convicted BOYKIN and SIMMONS of charges arising out of their involvement, from 2006 through 2013, in the criminal activities of the Bloods gang (the “Newburgh Bloods”) – a violent street gang that was involved in drug trafficking and multiple acts of violence, including murders and attempted murders, in Newburgh, New York. In particular, BOYKIN was found guilty of participating in a racketeering enterprise, participating in a racketeering conspiracy, participating in various racketeering offenses, including murder, participating in a crack-cocaine distribution conspiracy, and possessing, using, and carrying firearms, and SIMMONS was found guilty of participating in a racketeering conspiracy, participating in a crack-cocaine distribution conspiracy, and possessing, using, and carrying firearms. They were both sentenced in Manhattan federal court by Judge McMahon.
Manhattan U.S. Attorney Preet Bharara said: “The Newburgh Bloods have made victims not only of those they shot, stabbed, and killed, but also of every Newburgh resident who has had to live with the terror wrought by the gang’s legacy of drugs and violence. Anthony Boykin and Justin Simmons perpetuated the plague of violence. The sentences handed down show that if you choose to engage in drug-dealing and gang violence, you will be held accountable for your actions and deprived of your liberty.”
According to the Superseding Indictment and evidence admitted at trial:
From 2006 through 2013, BOYKIN was a member, and then leader, of a racketeering enterprise – the Newburgh Bloods. As part of his participation in that enterprise, BOYKIN conspired to murder Lamont Young, a local marijuana dealer, which culminated in Young’s murder on March 4, 2009. He participated in two additional conspiracies to commit murder, which culminated in the vicious attacks of Ishmael Gillian and David Freeman on August 24, 2008 and September 20, 2008, respectively. BOYKIN also robbed a suspected narcotics dealer in August 2009.
From 2007 through 2011, BOYKIN and SIMMONS, a soldier in the Newburgh Bloods, participated in a conspiracy to distribute crack cocaine on Landers Street in Newburgh, New York, and throughout the city. They also possessed firearms in connection with their drug trafficking and racketeering activities with the Newburgh Bloods gang.
In addition to the prison terms, Judge McMahon sentenced BOYKIN to five years of supervised release and a $25,000 fine and ordered him to pay a special assessment of $1,100, and SIMMONS to ten years of supervised release and a $10,000 fine and ordered him to pay a special assessment of $400.
Mr. Bharara praised the outstanding efforts of the Hudson Valley Safe Streets Task Force, including the FBI, the City of Newburgh Police Department, the Orange County Sheriff’s Office, and the New York State Police, in connection with this investigation.
Assistant United States Attorneys Michael D. Maimin, Amie N. Ely, and Emil J. Bove III are in charge of the prosecution.
Las Cruces Man Pleads Guilty to Making Threats Against the PresidentRead the Press Release
ALBUQUERQUE – Tracy York White, of Las Cruces, N.M., pleaded guilty this morning in Las Cruces federal court to making threats against the President of the United States under a plea agreement with the U.S. Attorney’s Office.
White was arrested on Oct. 28, 2013, on a criminal complaint alleging that he threatened the President during a telephone conversation with an employee of the Social Security Administration in Cleveland, Ohio.
During today’s proceedings, White entered a guilty plea to a felony information charging him with threatening the President on Oct. 24, 2013, in Doña Ana County, N.M. According to the information, White threatened to get a firearm, go to the White House, and kill the President. In his plea agreement, White stated that he made the threat in frustration and knew what he was doing was wrong.
White is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, White faces a maximum penalty of five years in prison.
This case was investigated by the Albuquerque office of the U.S. Secret Service with assistance from the Las Cruces Police Department, and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.Kirbyville Man Pleads Guilty to $1.3 Million K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kirbyville, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Michael J. Saguto, 43, of Kirbyville, pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to commit mail fraud and to participating in a conspiracy to commit money laundering. Under the terms of today’s plea agreement, Saguto must forfeit to the government $1,354,034, which represents the proceeds of the mail fraud conspiracy and for which Saguto is jointly and severally liable with his co-defendants.
By pleading guilty today, Saguto admitted that he conspired with others between March 1, 2011, and June 24, 2013, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were “incense” or “potpourri” and “not for human consumption.” In reality, Saguto admitted, these substances contained compounds that were intended for human consumption as a drug.
Based upon the invoices, ledgers, and product seizures by law enforcement, this conspiracy was responsible for the manufacture and/or distribution of at least 188.14038 kilograms of synthetic cannabinoid products.
Co-defendants Travis E. Butchee, also known as “Donkey,” 38, of Springfield, and Christian L. Turner, 46, of Kirbyville, have also pleaded guilty. Butchee pleaded guilty to the same two conspiracy charges; Turner pleaded guilty to possession with intent to distribute a controlled substance analogue and to being a felon in possession of firearms. Travis Butchee’s wife, Victoria A. Butchee, also known as Victoria A. Wohlin, 29, of Springfield, also has pleaded guilty to her role in the mail fraud conspiracy.
Travis Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Travis Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
Today’s plea agreement cites a number of transactions in which materials used to manufacture and distribute synthetic cannabinoids were shipped via UPS or FedEx to members of the conspiracy – including controlled substance analogues (synthetic chemical compounds similar to THC, the psychoactive ingredient in marijuana), green leafy substances which served as carrier media, labels that were affixed to packages of “Donkey Punch,” “Jolly Grape Giant,” “South of the Tracks,” “Baby Face,” “Scarface,” “Hillbilly Hay,” and other synthetic cannabinoid products, and foil and plastic packaging bags.
Travis Butchee and Saguto also admitted that they conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy. They conspired to wire funds to the People’s Republic of China in order to carry out the conspiracy.
Turner, who has been convicted of a felony, admitted that he was in possession of a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle. Taney County sheriff’s deputies seized those firearms when they responded to an assault call on March 15, 2013. Turner was arrested and a search warrant was served on his residence. The following items were seized: the seven long guns and associated ammunition, drug paraphernalia, including 242 smoking pipes, and three bags of synthetic cannabinoids.
Under federal statutes, Saguto and Travis Butchee are each subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $750,000. Turner is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1,250,000. Victoria Butchee is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.
Jefferson City Man Indicted for Distributing HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been indicted by a federal grand jury for distributing heroin.
Xavier Deprey Johnson, 31, of Jefferson City, was charged in a two-count indictment returned by a federal grand jury in Jefferson City on Wednesday, March 19,2014.
The federal indictment indictment charges Johnson with one count of distributing heroin in Cole County, Mo., on July 30, 2013, and one count of possessing heroin with the intent to distribute in Cole County on Aug. 27, 2013.
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 Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Herrin Man Sentenced for Bank FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Mark P. Troehler, 39, of Herrin, Illinois, was sentenced in United States District Court in Benton, Illinois on one count of Bank Fraud.
Troehler was sentenced to two months in federal prison followed by two months of home confinement, three years supervised released, and ordered to pay $80,190 in restitution to the Bank of Marion, the victim of the fraud. Troehler previously pled guilty to submitting false lien waivers to the Bank of Marion where he had taken out a construction loan. Troehler, who was at the time a contractor, took out a loan from the bank to build a home in Herrin, Illinois, and then utilized the funds for personal and unrelated business expenses, while supplying false documents to the bank indicating the funds were being used to build the home.
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Ranley R. Killian.
Hazardous Waste Transporter SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert Lewis, aged 42, of Atlanta, Georgia, was sentenced on Thursday, March 20, 2014, to serve 10 months in federal prison for unlawful storage of hazardous waste. The sentence was handed down by the Honorable C. Ashley Royal, United States District Court Judge, in Macon, Georgia.Mr. Lewis entered a guilty plea to the charges on September 26, 2013. In his plea agreement, Mr. Lewis admitted that he owned and operated a waste hauling business under the name of Simple Solutions, Inc. From about May 2007 until April 2008, Mr. Lewis transported hazardous waste, generated by a local manufacturing plant, to a licensed disposal facility.
On February 26, 2009, forty 55-gallon drums and sixteen 275-gallon totes of this hazardous waste material were found to be improperly stored at a self-storage facility in Macon, Georgia. The units had been rented by Mr. Lewis in July 2007. Mr. Lewis rented four additional units in August 2007. It was also determined that Mr. Lewis had improperly stored hazardous waste ,.including highly flammable solvents and highly toxic cyanide wastes, in Rex, Georgia and at his home in Albany, Georgia.
U.S. Attorney Michael Moore said, "The improper and illegal storage of these extremely dangerous materials in areas where members of the public could unsuspectingly be placed in great danger is a matter of particular concern in this case."
"The defendant knowingly stored highly flammable hazardous waste without regard to the dangers it posed," said Maureen O'Mara, Special Agent in Charge of EPA's criminal program in Georgia. "Handling and storing hazardous waste illegally can put public health at serious risk, threaten groundwater supplies, and run the destructive risk of fire. Today's sentencing demonstrates that violators who disregard our nation's environmental laws will be prosecuted."
The case was investigated by agents from the U.S. Environmental Protection Agency. Assistant United States Attorney Paul C. McCommon III prosecuted the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Grand Junction Resident Sentenced to Lengthy Prison Term for Distribution of Child PornographyRead the Press Release
DENVER – James Boblett, age 34, of Grand Junction, Colorado, was sentenced last week by U.S. District Court Judge Raymond P. Moore to serve 204 months (17 years) in federal prison for the distribution of child pornography, U.S. Attorney John Walsh and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Special Agent in Charge Kumar Kibble announced. Following his 17 year prison sentence, Judge Moore ordered Boblett to serve 10 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Boblett was charged by Information on October 2, 2013. He pled guilty before Judge Moore on December 19, 2013. He was sentenced on March 13, 2014.
According to the stipulated facts contained in the defendant’s plea agreement, on July 8, 2011, a police officer with the Kenton County (Kentucky) Police Department Internet Crimes Against Children Task Force accessed the Internet using the undercover persona of a divorced mother with minor daughters. Between July 2011 and February 2012 James Boblett engaged the undercover officer in multiple Internet chats. The defendant distributed more than 50 images and 20 videos depicting child pornography to the undercover officer, including a video of child pornography depicting a 3-year-old child. In addition to distributing child pornography during the communications, Boblett showed himself on a webcam chatting and masturbating.
During the chats Boblett sent the undercover officer a sexually explicit image of a 13-year-old minor child, who authorities were later able to identify. Investigators determined that Boblett had been chatting with the minor child over the course of approximately one year, encouraging her to take sexually exploitive pictures of herself and send them to him. Boblett also sent the minor child images of child pornography and images and videos of his penis. At the change of plea hearing, Boblett admitted to distributing child pornography.
“The defendant distributed child pornography to countless others which is reason enough for this lengthy sentence,” said U.S. Attorney John Walsh. “As a result of the defendant’s conduct, the innocent children portrayed in those images were systematically victimized.”
“This significant federal prison sentence removes from the streets another child sexual predator for a long time,” said Kumar C. Kibble, special agent in charge of HSI Denver. “HSI routinely works with other law enforcement agencies to identify, locate and pursue prosecution against predators like Boblett who target the most vulnerable members of our society – our children.”
The investigation was conducted by Kenton County, Kentucky Police Department and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Boblett is being prosecuted by Assistant U.S. Attorneys Alecia Riewerts Wolak and Michelle Heldmyer.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Fugitive Gets Forty-One Month Sentence for Transporting Drug ProceedsRead the Press Release
SAN FRANCISCO – Ruben Rivera was sentenced on March 13, 2014, to 41 months in prison for attempting to transport monetary instruments for the purpose of laundering proceeds of heroin distribution, announced United States Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and FBI Special Agent in Charge David J. Johnson.
Rivera pleaded guilty on Oct. 4, 2013, to violation of 18 U.S.C. § 1956(a)(2)(B). According to the plea agreement, Rivera admitted that on May 11, 2001, he attempted to smuggle $43,658, which he knew to be proceeds of heroin sales in the United States, across the border to Mexico. Rivera was given the money by co-defendant Luis Manuel Garcia Hernandez, a/k/a “Piojo,” previously sentenced to 135 months of imprisonment for conspiracy to distribution heroin in violation of 21 U.S.C. § 846, whom Rivera knew to be a heroin dealer, to deliver to Garcia Hernandez’s contacts in Mexico. Rivera was stopped at the U.S.-Mexican border at Nogales, Arizona, by United States border agents, and the $43,658 was seized from him at that time. Rivera had intended to transport the money through the border and into Mexico, and he knew that the money represented the proceeds of a conspiracy to distribute heroin. Moreover, he knew the transportation was designed to avoid the reporting requirement for transporting that amount of money.
On June 18, 2001, Rivera was charged by Criminal Complaint in the United States District Court for the District of Arizona with a violation of 31 U.S.C. §§ 5316(a)(1)(A) and 5332, attempting to transport U.S. currency of more than $10,000 at one time out of the United States into Mexico, without filing a report, in Case No. CR 01-2737M. Rivera was released on a bond pending trial in Arizona, and he soon thereafter became a fugitive. Rivera was charged in the Northern District of California on Nov. 6, 2001, with participating in the conspiracy to distribute heroin. He remained a fugitive as to both cases until Jan. 17, 2013, when he was arrested in Illinois by deputies of the U.S. Marshal’s Service.
“A 41-month sentence sends a strong and important message that becoming and remaining a fugitive will have serious consequences,” said U.S. Attorney Melinda Haag. “Rivera knowingly remained a fugitive for 11 years, 3 months, and 8 days. He was apprehended through the hard work of the U.S. Marshal’s Service, as well as the Drug Enforcement Administration and Federal Bureau of Investigation, which originally investigated the heroin distribution conspiracy. Although Rivera’s offense conduct was based on a single event of attempt to transport heroin proceeds to Mexico, this act was directly and knowingly intended to facilitate a large heroin distribution network.”
The sentence was handed down by The Honorable Jeffrey S. White, United States District Court Judge, following a guilty plea to one count of attempting to transport monetary instruments for the purpose of laundering, in violation of 18 U.S.C. § 1956(a)(2)(B). Judge White also sentenced the defendant to a three-year period of supervised release. The Court imposed a sentencing enhancement for obstruction of justice, based on Rivera’s fugitive status. The defendant has remained in custody since his apprehension on Jan. 17, 2013.
The prosecution is the result of an investigation by the Drug Enforcement Administration and Federal Bureau of Investigation, with assistance from the U.S. Marshal’s Service.
(Rivera superseding information )
Fourth Defendant Sentenced in Murder of U.S. Border Patrol Agent Robert RosasRead the Press Release
SAN DIEGO – Emilio Samyn Gonzales-Arenazas was sentenced today to 40 years in prison for his participation in the July 2009 robbery and murder of United States Border Patrol Agent Robert Rosas, Jr.
Gonzales, a 25-year-old Mexican national, pleaded guilty on July 25, 2011, admitting he was one of five armed individuals who conspired to rob a Border Patrol agent of his night vision device, which resulted in Agent Rosas being fatally shot during a struggle. He pleaded guilty to murder of a federal officer committed in perpetration of a robbery and unlawful confinement.
Court filings indicate that in July 2009, Gonzales and four others plotted to rob a Border Patrol agent of his night vision device. On July 23, 2009, the group, bearing firearms, traveled by car and foot to the international border near Campo, California. Gonzales entered into the United States at night and waited for a Border Patrol agent to arrive in the area while two co-conspirators stood watch on the Mexican side of the border. After Agent Rosas arrived in the area and exited his vehicle, he was detained at gunpoint. Agent Rosas resisted and, during the ensuing struggle, Gonzales and his co-conspirators shot Agent Rosas multiple times, killing him. Gonzales and his co-conspirators then stole the agent’s firearm, night vision device, and other equipment and fled back to Mexico.
In August 2010, Mexican officials arrested Gonzales at the request of the United States. Gonzales was extradited to the United States in March 2011.
Gonzales is the fourth defendant to be sentenced for Agent Rosas’s murder. In April 2010, United States District Judge M. James Lorenz sentenced Christian Daniel Castro-Alvarez to 40 years of imprisonment. On November 14, 2013, he sentenced Marcos Rodriguez-Perez to 56 years to run consecutive to a two-year sentence Rodriguez is currently serving for violating his supervised release from a prior alien smuggling conviction. On December 19, 2013, Jose Luis Ramirez-Dorantes was sentenced to 55 years in custody. The last defendant, Jose Juan Chacon-Morales, remains a fugitive, and there is a reward of up to $100,000 for information leading to his arrest or location.
After Gonzales’ sentencing, United States Attorney Laura E. Duffy expressed her condolences to Agent Rosas’s family and colleagues at the Border Patrol: “For over four and a half years, the Rosas family and Border Patrol have waited for justice to be completed against the individuals who brutally ended the life of a dedicated husband, father, son, brother, colleague, and friend. While I know there is nothing that can be done to bring Agent Rosas home again, I hope the sentences in this case provide some comfort and demonstrate that Agent Rosas and his sacrifice for his country will never be forgotten.”
Chief Patrol Agent Paul Beeson, of the U.S. Border Patrol’s San Diego Sector, said: “Border Patrol Agent Robert Rosas was a sincere professional dedicated to securing and defending our nation’s borders. He lost his life in defense of all he held dear: His country, his family and his friends. On behalf of the men and women of the U.S. Border Patrol I want to express our sincere gratitude to everyone who contributed countless hours to the investigation and prosecution of this case. Thanks to the cooperation of law enforcement agencies on both sides of the border and to the U.S. Attorney’s Office, those responsible for Robert’s murder have been brought to justice.”
FBI Special Agent in Charge Daphne Hearn commented, “Today’s sentencing demonstrates the FBI's continued commitment to hold those responsible for the death of U.S. Border Patrol Agent Robert Rosas. Agent Rosas served his country with dedication, honor, and courage. The FBI recognizes that no punishment will lessen Agent Rosas' death, but we hope today’s sentencing will help bring some closure to the family.”
At the sentencing, Judge Lorenz praised all federal law enforcement involved in the case for their thorough and professional investigation. Duffy also expressed her gratitude to the Federal Bureau of Investigation and Homeland Security Investigations for their tenacity and dedication. “The investigating agents from FBI and HSI worked tirelessly for many years to solve this crime and bring those responsible to justice. It was their incredible investigative efforts that made these convictions and sentences possible. They are owed much gratitude for their unwavering devotion and dedication to this investigation.”
DEFENDANT Criminal Case No. 10CR3487 Emilio Samyn Gonzales-Arenazas Age: 25 Mexico CHARGESCount 4: Title 18, United States Code, Sections 1114 and 2: Murder of a federal officer committed in perpetration of a robbery and unlawful confinement, aiding and abetting
INVESTIGATING AGENCYFederal 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.
Four Sentenced for Roles in $10 Million Tax Fraud and Structuring SchemeRead the Press Release
ABINGDON, VIRGINIA – Four defendants, who were part of a cash selling scheme designed to defraud the Internal Revenue Service, were sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
United States District Judge James P. Jones sentenced J.D. “Dot” McReynolds, 77, of Tazewell, Va., to home confinement for a term of six months, based on McReynolds’ terminal cancer and substantial assistance to the government. In addition, McReynolds forfeited $500,000 to the government. Charles Edward “C.E.” McReynolds II, 44, of Vallscreek, W.Va., was sentenced to imprisonment for a term of three months. Timothy Gregory Allen, 43, of Hurley, Va., and Kermit Clayton Wiley, 64, of Princeton, W.Va., were each sentenced to imprisonment for a term of six months. Wiley forfeited $50,000 to the government.
The defendants were cash providers in a check cashing scheme that was designed to hide the withdrawal of cash from various coal and coal related companies by the companies’ operators. Each of the defendants who were sentenced today had pled guilty and cooperated in the investigation.
“Every United States citizen must fulfill his or her federal tax obligation," United States Attorney Timothy J. Heaphy said today. "When people like these defendants seek to evade that responsibility, we will aggressively pursue them with a coordinated effort. I congratulate all of the dedicated investigators and prosecutors who produced this result, which has recovered tax revenue for our communities.”
“No matter how the income is received, cash, check, etc., the obligations of the federal tax laws apply,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Conspiring to defraud the government with a scheme to structure financial transactions in order to evade the payment of taxes is unlawful. The sentencing of those involved with this scheme are important reminders that IRS-CI is committed to bringing to justice those who shirk their federal income tax responsibilities.”
J.D. “Dot” McReynolds, Eddie McReynolds (deceased) and Eddie’s son, C.E. McReynolds provided cash and fraudulent invoices to the coal operators. In return, the coal operators paid the McReynoldses a ten percent fee, which they included in the check they made payable to the McReynoldses or one of their businesses. Many of the ten percent transactions involved fraudulent invoices. The transactions were designed to appear to be legitimate purchases of mine supplies. More than $10 million in cash was distributed as part of the scheme. To obtain the necessary cash to provide to the coal operators, the McReynoldses structured over $10 million in cash out of financial institutions in Virginia and West Virginia to evade currency transaction reporting requirements by making multiple withdrawals of $10,000 in cash or less. By federal law, all transactions with financial institutions involving more than $10,000 in cash are required to be reported to the government. Kermit Wiley and Timothy Gregory Allen also sold cash and disguised the transactions as sales of mine supplies, but on a smaller scale.
The investigation and prosecution resulted in the conviction of 25 defendants on felony charges in the Western District of Virginia. Twenty-three of those defendants pled guilty pursuant to plea agreements and two were convicted at trial.
The following defendants pled guilty to one felony count of conspiracy and agreed to cooperate in the prosecution. They received sentences ranging from probation to imprisonment for a term of 18 months and forfeited amounts as set forth below:
Name City Age Forfeiture Paid Sandra Marahlee Addair War, W.Va. 45 $ 50,000.00 Henry Lee Barnett Tazewell, Va. 63 $ 200,000.00 Carl Demas Blevins Tazewell, Va. 60 $ 10,000.00 David Lee Cordill Doran, Va. 57 $ 45,000.00 Billy Ray Dotson Meadowview, Va. 59 $ 45,000.00 Michael Wayne Dunlap Sumerco, W.Va. 64 $ 50,000.00 Jeffrey Kennis Justus Pounding Mill, Va. 62 $ 300,000.00 Truong “Hoppy” Van Nguyen Tazewell, Va. 56 $ 200,000.00 Hung “Sang” Quoc Nguyen Iaeger, W.Va. 39 $ 200,000.00 Angela Denise Payne War, W.Va. 42 $ 1,000.00 Michael Dwaine Poskas III North Tazewell, Va. 62 $ 30,000.00 David Raber Tazewell, Va. 53 $ 200,000.00 Clinton Lester Ramey Abingdon, Va. 57 $ 10,000.00The following defendants, who pled guilty to one felony count of conspiracy, have yet to be sentenced. They have already forfeited a total of $1,282,850 to the government.
Name City Age Sentencing Date Darrell Wayne Felts Ballard, W.Va. 64 May 6, 2014 Elmer Fuller Bristol, Va. 58 To Be Scheduled Melvin Parsley Williamson, W.Va. 47 May 5, 2014 Rosie Diane Ritchie War, W.Va. 39 April 7, 2014 John Duane Tolliver Iaeger, W.Va. 57 April 7, 2014 Allen Henry Workman Huddy, Ky. 56 May 5, 2014Sentencing dates have not yet been scheduled for the following defendants who were convicted after a two week jury trial:
Name City Age William "Bill" F. Adams, Jr. Yukon, W.Va. 55 John B. Ward War, W.Va. 42Adams was convicted of thirteen counts of structuring monetary transactions and one count of conspiracy. Ward was convicted of 24 counts of structuring monetary transactions and one count of conspiracy. At sentencing, they each face imprisonment of up to five years on the conspiracy count and up to 10 years on each structuring count. Also, they each face forfeitures of more than one million dollars.
So far, the defendants involved in the conspiracy have paid $3,476,682 in evaded taxes, $3,173,850 in forfeitures and $100,000 in delinquent Mine Safety and Health Administration penalties. In addition, information obtained during the investigation has led to several federal convictions in U.S. District Court in Beckley, WV.
Assistant United States Attorney Randy Ramseyer is prosecuting the case on behalf of the United States. The case was investigated by the Bristol, Virginia, Office of the Internal Revenue Service – Criminal Investigation. The Charleston, West Virginia, offices of the United States Attorney’s Office and the Internal Revenue Service – Criminal Investigation assisted in the investigation and prosecutions.