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Friday 31 January 2014
Fort Myers Man Charged with Possession of Child PornographyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Kevin Charles Kaszynski (48, Fort Myers) with possession of child pornography. If convicted, Kaszynski faces a maximum penalty of 10 years in federal prison.
According to the criminal complaint, from on or about April 2009 through June 2012, Kaszynski possessed child pornography. While going through boxes that had been stored in a leased storage unit, Kaszynski’s wife found a computer hard drive among other items belonging to her husband. On August 27, 2013, Kaszynski’s wife accessed the hard drive and opened a file which depicted a prepubescent girl in a sexual pose. The hard drive was turned over to law enforcement for further investigation. On September 5, 2013, agents obtained a search warrant for the external hard drive. A forensic analysis of the external drive revealed more than 7,000 images and more than 400 videos depicting child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Fort Myers Police Department. It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Fort Myers Couple Pleads Guilty to Producing Child PornographyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that North Fort Myers residents Alan Robert Johnson (35) and Jennifer A. Sparks (39) pleaded guilty earlier this week to production of child pornography. Johnson faces a mandatory minimum penalty of 25 years, up to a maximum penalty of 50 years in federal prison. Sparks faces a mandatory minimum penalty of 15 years, up to a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on or about May 12, 2012, in Lee County, Johnson and his girlfriend Jennifer Sparks knowingly used a 4 year-old girl to engage in sexually explicit conduct for the purpose of producing child pornography. On June 4, 2012, a private citizen turned the cellular telephone that Johnson and Sparks had used to produce the child pornography over law enforcement. The cell phone had been found in a shopping cart at a Lee County Wal-Mart, on or about June 2, 2012.
Further investigation revealed that Johnson was a registered sex offender. A subsequent search warrant was obtained for his residence, and another cellular phone was located in the bedroom shared by Sparks and Johnson. That cellular phone also contained sexually explicit images of the minor.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Task Force, which includes the Cape Coral Police Department and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former President and Vice President of Diamond Electric Agree to Plead <br /> Guilty to Participating in Auto Parts Price-fixing ConspiracyRead the Press Release
The former president and vice president of Osaka, Japan-based Diamond Electric Mfg. Co. Ltd. have agreed to plead guilty for their participation in a global conspiracy to fix prices of ignition coils installed in cars sold in the United States and elsewhere, the Department of Justice announced today. Ignition coils are part of a car’s fuel ignition system and release electric energy suddenly to ignite a fuel mixture.
Separate felony charges were filed today in U.S. District Court for the Eastern District of Michigan in Detroit against Shigehiko Ikenaga and Tatsuo Ikenaga. According to court documents, from at least as early as July 2003 until at least February 2010, the former executives participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of ignition coils sold to automotive manufacturers for installation in vehicles manufactured in the United States and elsewhere. The automotive manufacturers included Ford Motor Co., Toyota Motor Corp. and Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries.
Shigehiko Ikenaga, president of Diamond Electric during the relevant period, agreed to serve 16 months in a U.S. prison. Tatsuo Ikenaga, Diamond Electric’s managing director, and then vice president beginning in 2008, agreed to serve 13 months in a U.S. prison. Tatsuo Ikenaga also simultaneously served as president of Diamond Electric’s U.S. subsidiary during the relevant period. Additionally, the former executives have each agreed to pay a $5,000 criminal fine and to cooperate with the department’s ongoing investigation. Each of the Ikenaga’s plea agreements is subject to court approval. On Sept. 10, 2013, Diamond Electric pleaded guilty for its involvement in the conspiracy and was fined $19 million.
“The two former executives charged today once again demonstrate the Antitrust Division’s vigorous commitment to hold individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal, auto parts conspiracies.”Diamond Electric is a manufacturer of ignition coils and was engaged in the sale of ignition coils in the United States and elsewhere. According to the charges, the Diamond Electric executives and their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and communications to coordinate bids submitted to automobile manufacturers.
Each executive is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 28 individuals and 24 companies have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.
Today’s charges arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s pleas are the result of the National Criminal Enforcement Section with the assistance of the Detroit Field Office of the FBI. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html , or call the Detroit Field Office of the FBI at 313-965-2323.
Former Employee of Forty Fort GM Foodmart Store Charged with Distributing Synthetic MarijuanaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has charged a 26-year-old New Jersey resident who worked at a GM Foodmart store in Kingston, Pennsylvania, with conspiracy to distribute synthetic marijuana.
According to United States Attorney Peter J. Smith, his office filed a criminal Information in U.S. District Court in Scranton today against Manjinder Singh, charging him with participating in a conspiracy to sell synthetic marijuana from the store during January 2012 and July 2012.
The Information alleges that Singh and/or his co-conspirators obtained synthetic marijuana from out-of-state suppliers and sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort. It further alleges that Singh distributed synthetic marijuana to others on six occasions.
The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police. Mastan Mathan, the owner and operator of the store, recently pleaded guilty to a money laundering conspiracy involving proceeds from the sale of synthetic marijuana.
If convicted of the charge, Singh faces up to 20 years in prison and a $1 million fine.
A plea agreement was also filed in the case.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Developer of Condo-Hotels in Chicago and Florida Sentenced to Six Years in Prison for Federal Tax EvasionRead the Press Release
CHICAGO — The former manager of a defunct Chicago-based real estate company that acquired and managed hotels, including the Blake Hotel in Chicago and others in South Florida, was sentenced today to more than six years in federal prison for evading more than $1.7 million in federal income taxes. The defendant, ROBERT D. FALOR, siphoned millions of dollars from the Blake’s operations at the expense of a lender, city and state taxing authorities, union employees, and other creditors and vendors to support a lavish lifestyle that included multimillion dollar homes, luxury cars, boats, and planes.
Falor, 48, of Chicago and formerly of River Woods and Glencoe was “a one-man financial crime wave,” U.S. District Judge Virginia Kendall said in sentencing him to 74 months in prison and ordering him to pay $1,752,948 in restitution to the Internal Revenue Service. Falor has remained in federal custody since he was arrested in 2011. He pleaded guilty in May 2013 to two counts of federal income tax evasion.
Falor was the chief operator and manager of The Falor Companies, Inc. (TFC), which involved his brother and their father and, before it ceased operating in 2006, acquired and managed hotel properties through a complex network of limited liability corporations. Through various ventures before and after 2006, Falor attempted to convert hotels to condo-hotels by selling individual guest rooms to investors as separately titled condominium units, and renting them through a related hotel management company to other guests when the owner was not in residence, with the owner receiving a percentage of the rental fee. The companies operated multiple condo-hotel ventures in the mid-2000s, including the Blake Hotel, located at 500 S. Dearborn St., in Chicago, and the Tides Hotel on Ocean Drive in Miami Beach.
From 2006 through June 2008, the Blake generated hundreds of thousands of dollars per month in revenues. But instead of paying debts to the Blake’s creditors, Falor plundered approximately $5.7 million from the hotel and diverted the cash to himself. Falor also failed to pay state income taxes, as well as city and state hotel occupancy taxes, bringing the total tax loss he caused to more than $4.1 million.
In July 2008, Accelerated Assets, LLC, a Birmingham, Mich., lender foreclosed on a mezzanine loan to renovate the Blake, ousted the Falors, took over management, and assumed its debts, which included occupancy taxes of more than $500,000 to the City of Chicago and more than $1.4 million to the State of Illinois.
Falor’s father, DAVID R. FALOR, 73, who was a principal in TFC, formerly of Chicago and Miami Beach, was extradited last year from Italy. He also pleaded guilty to tax evasion and was sentenced last month to two years in federal prison. David Falor converted $779,000 in payments that were recorded as loans from TFC, but which became taxable income when the companies went out of business and David Falor used the funds for personal expenses.
Robert Falor’s brother, CHRISTOPHER FALOR, a consultant to the condo-hotel projects, is scheduled to be sentenced on March 5 after pleading guilty to mail fraud and tax counts.
Today’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Assistant U.S. Attorneys Ryan S. Hedges and Barry Jonas.
Defendants convicted of tax offenses remain civilly liable to the Government for any and all back taxes, as well as a civil fraud penalty of up to 75 percent of the underpayment plus interest.
Former Agriprocessors' Manager Hosam Amara Sentenced for Role in Alien Harboring ConspiracyRead the Press Release
Former Agriprocessors’, Inc., manager Hosam Amara was sentenced today to more than three years in federal prison. Amara, age 49, received the prison term after an August 30, 2013, guilty plea to one count of conspiracy to harbor undocumented aliens for profit.
In a plea agreement, Amara admitted he was a manager of the poultry side of Agriprocessors’ Postville facility. Amara admitted that, during at least the five years leading up to May 2008, he and several other Agriprocessors’ managers knowingly and willfully conspired to harbor undocumented alien workers at Agriprocessors’ Postville facility. Among Amara’s coconspirators was Agriprocessors’ Chief Executive Officer (CEO). Amara admitted the conspiracy was for the purpose of commercial advantage.
In the plea agreement, Amara also admitted that, in the Fall of 2007, an immigration agent warned Agriprocessors’ human resources manager that certain expired versions of resident alien cards should no longer be accepted as proof that alien employees were authorized to work in the United States. The human resources manager stopped accepting the cards, and Agriprocessors soon had a shortage of workers. Amara complained to the CEO about the worker shortage, and the CEO began causing new undocumented alien workers to be placed on the payroll of a separate company, Hunt Enterprises, to make it appear the undocumented aliens were not Agriprocessors’ employees. Knowing this, Amara told existing undocumented alien workers to encourage their family members to come to Agriprocessors for work.
In the plea agreement, Amara also admitted he fled to Israel in the wake of a May 12, 2008 immigration enforcement action at Agriprocessors in Postville. The CEO encouraged Amara to leave, telling him, “[j]ust go ahead and leave and forget about everything here.” The CEO gave Amara $4,000 to use for expenses including airfare. Amara was extradited to the United States in April 2013.
Amara was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Amara was sentenced to 41 months’ imprisonment – a sentence at the top of the sentencing range recommended by the United States Sentencing Guidelines -- to be followed by a 3-year term of supervised release. There is no parole in the federal system. Amara is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Peter Deegan, C.J. Williams, and Matthew Cole. The investigation was led by Homeland Security Investigations with assistance from the Federal Bureau of Investigation. Prior assistance was provided by the United States Marshals Service; United States Postal Inspections Service; Iowa Department of Public Safety; Iowa Department of Transportation; Federal Protective Service; Internal Revenue Service B Criminal Investigations; United States Department of Labor; Public Health Service; United States Department of Agriculture; United States Environmental Protection Agency; Iowa Department of Natural Resources; Drug Enforcement Administration; Waterloo Police Department; and Postville Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 08-1324 LRR.
Florida Man Sentenced to 140Months for Brownsville, Tennessee Bank RobberyRead the Press Release
Memphis, TN – Jeffrey Mack Traywick, 48, of Ocala, FL, was sentenced on Wednesday by Chief U.S. District Judge J. Daniel Breen to 140 months in federal prison for the robbery of the First South Bank in Brownsville, TN, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed in the indictment and during court hearings, Traywick entered First South Bank on June 28, 2013 and passed a note to a teller demanding money. He also acted in a manner to indicate that he had a gun. He was arrested by members of the Brownsville Police on July 3, 2013.
Traywick pleaded guilty on October 25, 2013. In addition to the prison sentence, Judge Breen ordered Traywick to pay $1,450 in restitution to First South Bank and serve two years of supervised release.
This case was investigated by FBI and the Brownsville Police Department. Assistant U.S. Attorney Victor L. Ivy represented the government.Florida Man Sentenced in Counterfeit Money SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Orlando, Florida, man convicted of Passing Counterfeit Obligations of the United States was sentenced on January 27, 2014, by U.S. District Judge Karen E. Schreier.
Rafiq McDonald, age 22, was sentenced to 6 months in custody (concurrent with a state sentence he will serve in Wisconsin), to be followed by 2 years of supervised release. He was also ordered to make restitution in the amount of $400.
McDonald was indicted for Conspiracy to Pass Counterfeit Obligations of the United States and four counts of Passing Counterfeit Obligations of the United States by a federal grand jury on March 13, 2013. He pled guilty to one count of Passing Counterfeit Obligations on November 6, 2013.
McDonald and two co-defendants, Macquillie Isaac Woodard, age 22, of Minneapolis, Minnesota, and Timothy Oben, age 22, of Eau Claire, Wisconsin, passed counterfeit $100 bills at various businesses in Sioux Falls in December 2012. Woodard and Oben also pled guilty to one count of Passing Counterfeit Obligations and were previously sentenced to10 months and 24 months in custody, respectively. They were also ordered to make restitution.
This case was investigated by the Sioux Falls Police Department and the U.S. Secret Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
McDonald was immediately turned over to the custody of the U.S. Marshals Service.
First Assistant United States Attorney Kenneth P. Madden Retires After Nearly 28 Years as Federal ProsecutorRead the Press Release
PROVIDENCE, R.I. – First Assistant United States Attorney Kenneth P. Madden, a federal prosecutor for nearly twenty-eight years, is retiring from public service today after serving a total of thirty-eight years as a local prosecutor. Mr. Madden served as a Rhode Island state prosecutor for ten years prior to his appointment as an Assistant United States Attorney in 1986.
Since joining the United States Attorney’s office in January 1986, Mr. Maddenhas served at various times as Chief of the Organized Crime Drug Enforcement Task Force, Chief of the Organized Crime Strike Force, Senior Litigation Counsel and First Assistant U.S. Attorney. From 1975 until January 1986, Mr. Madden served as a Special Assistant Rhode Island Attorney General and an Assistant Rhode Island Attorney General. Mr. Madden is a 1972 graduate of Providence College and received his law degree from St. John’s University in 1975.
“During my four-plus years as United States Attorney, I have turned to Ken Madden nearly every day for his advice and counsel. There has never been a finer First Assistant United States Attorney. His combination of experience, wisdom and grace cannot be replaced,” said United States Attorney Peter F. Neronha.
United States Attorney Neronha added, “All Rhode Islanders should be grateful for the nearly forty years that Ken has worked tirelessly and with great distinction on their behalf. If the story of Ken Madden and his public service is ever written, those who have never met Ken will surely wish that they had.”
First Assistant United States Attorney Kenneth P. Madden was recently recognized by United States Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett with a 2013 Director’s Award, the most prestigious individual award presented jointly by the United States Attorney General and EOUSA.
First Assistant Kenneth P. Madden remarked, “I am very grateful to United States Attorney Peter F. Neronha for the faith and trust he had in me to appoint me as his First Assistant, and I consider myself very fortunate to have worked alongside so many dedicated federal and state prosecutors, support staff and law enforcement officers these many years.”
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Contact: 401-709-5357
[email protected]Federalsburg Man Sentenced to 40 Years in Prison for Producing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Scott Zalewski, age 31, of Federalsburg, Maryland, today to 40 years in prison followed by lifetime supervised release for two counts of producing child pornography. Judge Motz ordered that upon his release from prison, Zalewski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.
According to the plea agreement, on at least three occasions from July through August 2011, Zalewski took sexually explicit photographs of a minor female, under 12 years of age, including several photographs documenting his sexual abuse of the girl, which he then emailed to another person. On January 2, 2013, the Zalewski’s live-in girlfriend provided police with photographs that contained sexually explicit images of the victim, which she reported finding in Zalewski’s email account.
Police arrested Zalewski later on January 2, 2013. A search warrant subsequently executed on Zalewski’s email account recovered digital copies of the sexually explicit pictures of the victim being sent to another individual. More than a dozen other emails were also seized, dating from July and August 2011, in which Zalewski was trading sexually explicit images of other children with other individuals.
A hard drive recovered from Zalewski’s house, and a laptop Zalewski’s ex-girlfriend previously turned over to police were also searched pursuant to a federal warrant. The hard drive contained forty-five images of child pornography, dating from approximately April 2008. On the laptop were records of chats in which the defendant discussed and exchanged child pornography with others, dating from approximately December 2006 through October 2007.
Text messages recovered from Zalewski’s cellular telephone showed discussion of child pornography with others on December 31, 2012, and January 1, 2013. Some text messages had image attachments, but the images were deleted and could not be recovered.Zalewski previously pleaded guilty in Caroline County Circuit Court to a second degree sex offense and to rape in the second degree and was sentenced to a total of 40 years in prison on those charges. Zalewski’s state and federal sentences will be served concurrently.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Caroline County Sheriff’s Office, and Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.
Ex-Metlife Employee Pleads Guilty in Phony Expense SchemeRead the Press Release
BOSTON - A former employee of MetLife, the New York-based insurance company, pleaded guilty today to defrauding the company of more than a quarter of a million dollars by submitting bogus expense reports.
Meredith Mandracchia, 32, of Brighton, pleaded guilty to wire fraud. The statutory maximum penalty for wire fraud is 20 years in prison, three years of supervised release and a $250,000 fine. United States Senior District Judge Mark L. Wolf scheduled sentencing for May 2, 2014.
From 2005 until 2010, Mandracchia, a former senior marketing consultant for MetLife, charged a wide variety of personal expenses to her corporate American Express card, including purchases at retailers such as Banana Republic, J. Crew, and Victoria’s Secret; payments to tanning salons, nail salons and grocery stores; and numerous calls to psychic hotlines. Mandracchia then fabricated invoices from legitimate MetLife vendors for conference sponsorships, membership fees, and other charges, prompting the company to make payments to Mandracchia’s corporate American Express account. In fact, however, those payments simply satisfied Mandracchia’s personal charges. In addition, Mandracchia submitted fabricated invoices for company expenses she claimed to have charged to her personal credit card, causing the company to reimburse her directly for those fake charges. The loss to MetLife totaled $230,000.
United States Attorney Carmen M. Ortiz; Kevin Niland, Postal Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
East Tennessee Residents Indicted in Counterfeiting ConspiracyRead the Press Release
GREENEVILLE, Tenn.-- On Jan. 14, 2014, a federal grand jury in Greeneville returned a three count indictment against Jordan Johnson, 20, Shannon Hawkins, 21, Tyler Monroe, 18, Ruben Suarez, 20, and Kayla White, 21, all of Kingsport, Tenn., charging them with conspiracy to defraud the United States; counterfeiting; and possessing counterfeited obligations.
Suarez was arrested on Jan. 27, 2014, and pleaded not guilty to the charges in U.S. District Court on Jan. 30, 2014. He was released on bond pending his trial date, which has not yet been set. Both Jordan and White are currently in state custody and will appear in U.S. District Court on Mar. 6, 2014, to enter pleas to the charges contained in the indictment.
Neither Hawkins nor Monroe has been arrested. As their current locations are unknown to law enforcement authorities, the Kingsport Police Department and U.S. Secret Service request anyone who has knowledge of either of their whereabouts to please contact the Kingsport Police Department at 423-229-9111.
This indictment is the result of an investigation by the U.S. Secret Service and Kingsport Police Department. Assistant U.S. Attorney Christian Lampe will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Downingtown Man Charged with Possessing ExplosivesRead the Press Release
Istvan Merchenthaler, 43, of Downingtown, PA, was charged by indictment, unsealed today, with one count of possession of unregistered firearms and one count of being a fugitive in possession of a firearm and ammunition, announced United States Attorney Zane David Memeger. Specifically, Merchenthaler is charged with possessing approximately 60 plastic PVC pipe improvised explosive devices (“IEDs”), approximately 400 cardboard tube IEDs, a 9mm Cobray M-11 semi-automatic machine pistol, and ammunition. Merchenthaler has been in federal custody since February 16, 2013.
If convicted of both counts, Merchenthaler faces a maximum possible sentence of 20 years in prison, a $500,000 fine, 3 years of supervised release and a $200 special assessment.
On September 23, 2013, the federal grand jury in the District of Maryland issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device.On August 6, 2013, the federal grand jury in the Eastern District of North Carolina issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device.
On March 7, 2013, the federal grand jury in this District issued a superseding indictment charging Merchenthaler with four (4) counts of wire fraud, two (2) counts of aggravated identity theft, four (4) counts of money laundering, two (2) counts of filing false tax returns, and two (2) counts of interstate transportation of stolen goods. According to the superseding indictment, from at least about May 2006 to about February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones. Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club. Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme.
Both the Maryland and North Carolina prosecutions of Merchenthaler have been transferred to this District. All of the above cases have been consolidated before United States District Judge Robert F. Kelly.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, and the Chester County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to 56 Months in Prison for Attacking Two People in Robberies Last Fall-One Victim Is A Senior Citizen, the Other Is A News Producer-Read the Press Release
WASHINGTON – Shabazz Thompson, 20, of Washington, D.C., was sentenced today to 56 months in prison on charges stemming from two robberies that took place in Northeast Washington within a three-week period last fall, U.S. Attorney Ronald C. Machen Jr. announced.
Thompson pled guilty in December 2013 to robbery and other charges in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, the first attack took place on Sept. 27, 2013 at about 3 p.m. Thompson approached an 81-year-old woman at a check-cashing store in the 600 block of H Street NE. The victim, who suffers from arthritis, had just cashed her retirement check. As she was collecting her belongings, Thompson robbed her of her money, grabbing $789. The victim fell down when she tried to prevent him from escaping.
The second attack occurred at about 4:20 a.m. on Oct. 17, 2013. The victim, a producer for CNN, was walking to work in the 800 block of First Street NE when Thompson and an unidentified male approached him. Thompson punched the victim in the face, and he and the other male took his belongings, including his wallet, cell phone, and backpack, which contained his laptop. The victim fell to the ground, bleeding profusely; his jaw had been fractured and his sinus was crushed, leading to severe nasal injuries.
About 25 minutes after the robbery, Thompson used the victim’s credit card at a convenience store. Surveillance video shows him using the card. Thompson was arrested in both cases on Oct. 31, 2013.
Thompson pled guilty to attempted robbery in the first attack. He pled guilty to charges of robbery and assault with significant bodily injury in the second attack.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), especially the detectives from the First Police District who investigated the case. He also acknowledged the efforts of those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond and Assistant U.S. Attorney James A. Petkun, who prosecuted the matter.
14-025District Man Sentenced to 25 Years in Prison for Sexually Assaulting Woman at Apartment Complex-Defendant Was Identified Through Video Surveillance-Read the Press Release
WASHINGTON – Jahlani Brown, 21, of Washington, D.C., was sentenced today to 25 years in prison for sexually assaulting a rental office employee last year at an apartment building in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Brown pled guilty in October 2013, in the Superior Court of the District of Columbia, to first-degree sexual abuse. He was sentenced by the Honorable John Ramsey Johnson. In addition to prison time, Brown will be subject to 10 years of supervised release and will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on Sept. 17, 2013, at about 9 a.m., the victim reported to her office in the Shaw area of Northwest Washington and began preparing for her workday. Brown, who was captured on video surveillance, entered the office and locked the door. He sexually assaulted, threatened, and robbed the victim before leaving the office.
The Metropolitan Police Department (MPD) released surveillance images to the media in hopes of generating information, and neighboring businesses and community members cooperated with law enforcement in getting the word out about the attack. Brown was arrested two days after the assault and has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key, Victim/Witness Advocate Lezlie Richardson and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-027Desperado's Co-owner Pleads Guilty to Benefiting from Prostitution at ClubRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Dipvak Vora, 70, of Baton Rouge, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote, to a one count bill of information on a charge of engaging in interstate travel in aid of racketeering by receiving illegal proceeds from prostitution at the now closed Desperado’s Cabaret in Carencro, La. Desperado’s used facilities in interstate commerce to operate, which included shipment of alcohol and other goods, internet advertisements, and negotiation of debts through credit cards and checks.
According to evidence presented at the guilty plea, Vora is the property owner of the building and land that formerly operated as Desperado’s Cabaret. Vora formed Desperado’s of Acadiana with business partner and operator of Desperado’s Cabaret, James Panos.
Vora admitted that he knew Desperado’s engaged in prostitution as early as 2006, and that between 2006 and 2011, he was paid cash totaling $500,000 in illegal proceeds from Desperado’s.
Vora, Panos, and eight others were charged on May 15, 2013, in an indictment alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
Vora is the fifth person to plead guilty in the case. He faces up to five years in prison, a $250,000 fine, and three years of supervised release for one count of interstate and foreign travel or transportation in aid of racketeering enterprises. As part of the plea agreement, Vora agreed to forfeit $500,000 of illegal proceeds and to forfeit the Desperado’s property. A sentencing date of June 11, 2014 was set.
The U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Department of Homeland Security Investigations, Louisiana State Police, and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy are prosecuting the case.
Denver Paving Company Sentenced for Violating the Law by Hiring Illegal AliensRead the Press Release
DENVER – Premier Paving, Inc., a Denver corporation, was sentenced by U.S. Magistrate Judge Michael J. Watanabe on January 28, 2014 to pay $184,916.58 in forfeiture of criminal proceeds for their criminal practice of hiring illegal aliens. The money will go to the Department of Transportation federal highway fund.
Premier Paving was charged by misdemeanor Information on August 21, 2013. An executive, Russ Otterstein, on behalf of the corporation, signed an agreement on October 9, 2013, where the company pled guilty to engaging in the practice of hiring illegal aliens. On January 28, 2014, the corporation was sentenced.According to the stipulated facts contained in the plea agreement, the defendant is a Colorado corporation. From January 2007 through September 2012, the defendant hired and continued to employ aliens knowing that some of those aliens were not authorized to work in the United States. During this period, PPI hired aliens who lacked the documents required by law to complete an employment eligibility verification form (I-9). In 2007, ICE audited Premier Paving’s employment records, finding violations of hiring employees not authorized to work in the U.S. That investigation resulted in the company entering a settlement agreement with ICE on June 8, 2008 where the company agreed to pay $11,000. The agreement also stated that Premier Paving “can hire only United States citizens and aliens authorized to work in the United States.”
Subsequent to entering into that settlement agreement with ICE, Premier Paving, working with a Denver entity known as Servicios de Migracion Para Todos. As a result of that relationship, Premier Paving again began employing aliens unauthorized to work in the U.S. Another review by ICE in September 2012 determined that the company employed unauthorized workers, and failed to adequately complete I-9 forms for a number of employees hired between January 1, 2011 and September 20, 2012. Some of the employees performed work on federal transportation contracts. After ICE conducted a criminal investigation, the misdemeanor charges were filed in U.S. District Court in Denver. Premier Paving has established new procedures to ensure compliance with federal immigration-related employment laws as a result of this prosecution.
“This is the second time Premier Paving has had to pay for knowingly employing illegal aliens since 2008,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Homeland Security Investigations helps ensure that these unscrupulous employers don’t gain an unfair advantage over their competition by knowingly hiring illegal workers who are paid less.”
“This sentencing sends a clear message of the severe penalties in store for those who act in a criminally irresponsible manner,” said Max Smith, U.S. Department of Transportation Office of Inspector General regional Special Agent in Charge. “Both DOT and the OIG are committed to ensuring fair competition for parties seeking to do business with the Department. We will continue to vigorously investigate and work with our law enforcement and prosecutorial colleagues to see that those who violate criminal laws are punished to the fullest extent of the law.”
This case was investigated by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Transportation Office of the Inspector General (DOT OIG).
The corporation was prosecuted by ICE Special Assistant U.S. Attorney Beth Gibson and Assistant U.S. Attorney Tonya Andrews handled the forfeiture.
Dallas Man Arrested on Federal Drug and Counterfeiting Charges to Remain in Federal CustodyRead the Press Release
DALLAS — Following a hearing this afternoon in federal court, a Dallas man, who is charged in a federal complaint with attempting to possess anabolic steroids and falsely making, forging, counterfeiting and altering a U.S. Marshals Service seal, was ordered detained by U.S Magistrate Judge Irma C. Ramirez pending further order of the court. Nicholas Todd Freed, 39, was arrested this week by a task force officer assigned to Homeland Security Investigations (HSI), after it was discovered Freed was claiming packages containing anabolic steroids from a postal center in Dallas. As Freed was being apprehended, law enforcement also observed that he possessed a counterfeit U.S. Marshals Service (USMS) credential and badge. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
According to the filed criminal complaint, the investigation began in early January 2014 when U.S. Customs and Border Protection (CBP) in San Francisco identified a U.S.Postal Service Express Mail parcel, arriving from Singapore, as suspicious. Its contents were identified as Boldenone Undecylenate, an anabolic steroid and Schedule III controlled substance. CBP seized the parcel, which was addressed to JPEG Press, 3100 Main Street #1, Dallas, Texas 75226, the true address of the Deep Ellum Postal Center. HSI in Dallas was notified about the parcel and its contents.
The ensuing investigation determined that the account for the rental box at the postal center was opened with fictitious information, and the box frequently received similar packages. The investigation ensued, and on January 28, 2014, when the HSI task force officer approached Freed, who was at the postal center to pick up the package, he discovered Freed was carrying a silver-colored USMS badge and apparent counterfeit USMS credentials identifying him as a USMS Chief Inspector. Freed was also carrying a credit card knife, handcuff key and several driver licenses with his photo, but different names on them. In addition, Freed’s vehicle had several items on it or in it consistent with an equipped police vehicle, including emergency flashing lights mounted on the grill, siren, rear flashing red tail lights, spotlight, front push bumper and handcuffs.
During a consensual search at Freed’s residence, law enforcement located several computers, laminating materials, blank plastic cards the size of a Texas driver license, pages of magnetic strips for the back of the cards, ink consistent with that of the Texas seal on the license and identification cards, a press to laminate the cards, pages with hologram material of official federal and government seals, pages of names and identities used to produce the cards, several computer related files of identification cards Freed had previously made, head-shot photos on the computer, and other materials necessary to manufacture and produce fraudulent government identifications, specifically Texas driver licenses, a picture of a Texas Motor Vehicle Inspection sticker on the computer, Texas identification cards, state school identification cards, military identifications and a USMS identification card.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense, as charged, of knowingly, intentionally and unlawfully attempting to possess with the intent to distribute anabolic steroids is 10 years in federal prison and a $500,000 fine. The maximum statutory penalty of the offense, as charged, of falsely making, forging, counterfeiting and altering the seal of a department and agency of the U.S., is five years in federal prison and a $250,000 fine.
The ongoing investigation is being conducted by HSI, CBP, the Balch Springs Police Department and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
Criminal Complaint Unsealed Today in EDNY Federal Court Charging Four Members for Transnational Sex Trafficking RingRead the Press Release
Criminal Complaint
Crack Cocaine Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I.– Ulicssye Towns, aka Voomp, 35, of Providence, was sentenced in U.S. District Court on Thursday to 60 months in federal prison for trafficking crack cocaine, announced United States Attorney Peter F. Neronha, J Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Providence Police Chief Colonel Hugh T. Clements, Jr.
Towns was arrested by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Providence Police in May 2012, following an undercover investigation into his drug trafficking activities.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also sentenced Towns to serve 5 years supervised release upon completion of his prison term. Towns pleaded guilty on November 6, 2013, to one count of possession with the intent to distribute 28 grams or more of cocaine base.
According to information presented to the court at the time of Towns’ guilty plea, a lengthy investigation into Towns’ drug trafficking activities resulted in at least five purchases of crack cocaine from Towns by a confidential source who was working at the direction of ATF agents and Providence Police. As a result of those purchases, and additional information gathered by law enforcement, ATF agents and the U.S. Atorney’s Office obtained a court authorized federal search warrant for Towns’ Providence residence and his vehicle. A search of the residence and vehicle on May 2, 2012, resulted in the seizure of nearly 16 grams of crack cocaine found stuffed inside a shoe inside the residence and more than 19 grams of crack cocaine stashed in the housing surrounding the emergency parking break inside of Towns’ vehicle.
Towns has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Contact: 401-709-5357
[email protected]Cordova Man Sentenced to 78 Months in Prison for Identity Theft and Filing False Tax ReturnsRead the Press Release
Memphis, TN – Bryan Gardner, 31, of Cordova, TN, was sentenced yesterday by U.S. District Judge S. Thomas Anderson to 78 months in federal prison for stealing government funds through the filing of false income tax returns and identity theft, announced United States Attorney Edward L. Stanton III.
According to the Indictment and facts discussed in court, at different times between August 19, 2010 and November 15, 2011, Gardner and other individuals obtained the names, dates of birth and Social Security numbers of individuals without their knowledge or consent. He then provided this information to his brother, Jeremy Lasane, and other associates who filed taxes claiming refunds using this information. Gardner and Lasane opened bank accounts and directed the U.S. Department of Treasury Tax refunds associated with the false tax returns to be electronically deposited into these accounts. Over $135,000 of refunds were deposited into Gardner’s accounts.
Lasane was sentenced last year to serve 12 years in prison for a related tax fraud scheme. In addition to the prison sentence, Lasane was ordered to pay over $791,000 in restitution, and his vehicles, including a Maserati and Mercedes-Benz, were forfeited to the United States Government.
In addition to the prison sentence, Judge Anderson ordered Gardner to pay restitution in the amount of $135,595.26.
The case was investigated by the United States Secret Service and IRS-Criminal Investigative Division. These cases were prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Coatesville Man Charged with Dealing Explosive MaterialsRead the Press Release
Ryan Joseph Hribick, 32, of Coatesville, Pennsylvania, was charged yesterday by indictment with one count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice, and one count of witness tampering, announced United States Attorney Zane David Memeger.
According to the indictment, Hribick possessed, manufactured, and dealt cardboard tube improvised explosive devices (“IEDs”) for several years. After federal agents searched his home, Hribick allegedly instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury. In addition, the indictment alleges that Hribick attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence.
This case has been assigned to United States District Judge Robert F. Kelly.
If convicted of all counts, Hribick faces a maximum possible sentence of 60 years in prison, a $1 million fine, 3 years of supervised release and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.Click here to view the indictment
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Chesterfield Man Sentenced to 48 Months for Defrauding Military Personnel and Their DependentsRead the Press Release
RICHMOND, Va. – Vernon Matthews, 42, of Chesterfield, Virginia, was sentenced to 48 months’ in prison today for his role in defrauding military personnel and their dependents and stealing more than $200,000 through an investment fraud scheme. Matthews previously pleaded guilty to Mail Fraud on September 3, 2013.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office; and United States Postal Inspection Service, Richmond Inspector in Charge Keith Fixel made the announcement after the sentence was imposed today by United States District Judge Henry E. Hudson.
In connection with his guilty plea, Matthews admitted to operating First Capital Group (FCG), located at 4624 Pembroke Boulevard, Suite 102, Virginia Beach, Virginia. He solicited United States Military personnel and their dependents to make investments with FCG, with misrepresentations about how the investment funds would be used, the security of the investments, and the promised amount of returns, which he represented ranged from 4% to 300%. The defendant also misrepresented his affiliation with reputable investment companies and funds, including HB Group and American Funds. Matthews did not have any relationship with HB Group or American Funds, and no investor funds were provided to either of those companies or any other investment-type company. Instead, the defendant misappropriated the investors’ money, causing it to be used for his own personal use and benefit and to the investors’ detriment.
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.
The charged mail fraud centered around the defendant’s acts in defrauding investor A.G., a graduate of the U.S. Naval Academy who was attending medical school. Through various communications, Matthews led A.G. to believe her investment monies would be transferred to a mutual fund with a guaranteed 7.27% rate of return. That promised return was later revised to a higher amount (10%-12%), provided A.G. invested additional monies with the defendant. A.G., in turn, invested the following amounts with FCG: $20,000 (12/21/2010); $3,500 (5/18/2012); and $6,000 (10/20/12). Although Matthews had promised that these funds would be put in an investment fund, he did not transfer any of A.G.’s money to that promised destination. When A.G. later tried to withdraw her investment funds, the defendant delayed returning her funds and later mailed her a refund check in the amount of $32,328.55. Upon receipt of the mailing, A.G. attempted to cash the check, but it bounced.
Overall, from about July 2010 until about May 2013, Matthews received over $235,600 in funds from the victim investors. The defendant did not invest any of those monies as promised and used the funds for his own benefit and to repay other investors. Judge Hudson ordered the defendant to pay the outstanding balance of $204,465 in restitution to the victim investors.
The investigation was jointly coordinated by the Richmond office of the FBI and the Richmond office of the United States Postal Inspection Service. Assistant United States Attorney Michael Gill prosecuted the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Chesapeake Man Sentenced for Possession of Child PornographyRead the Press Release
NORFOLK, Va. – Patrick Ryan Hudson, 23, of Chesapeake, Va., was sentenced today to 97 months in prison, followed by 180 months of supervised release for possession of child pornography.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Hudson pleaded guilty to a criminal information on October 29, 2013. According to court documents, in late 2012 Hudson was an active duty Navy sailor stationed in Hampton Roads. Undercover agents of Homeland Security Investigations discovered Hudson sharing child pornography through an online peer-to-peer file sharing service. The Naval Criminal Investigative Service also downloaded contraband images from Hudson’s computer. NCIS and HSI special agents executed a federal search warrant at Hudson’s Chesapeake residence and recovered a computer belonging to Hudson containing hundreds of videos and images of child pornography. Hudson admitted to investigators that he had amassed a collection of child pornography on his computer through a peer-to-peer file sharing program.
The case was investigated by the Naval Criminal Investigative Service and Homeland Security Investigations. The Chesapeake Police Department assisted with the search warrant. Special Assistant United States Attorney Christopher A. George 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.Charleston Crack Dealer Sentenced to 262 Months in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold cocaine base, commonly known as crack cocaine, to an informant in January of 2012 on Central Avenue in Charleston was sentenced today to 262 months in federal prison, U.S. Attorney Booth Goodwin announced. Marvin Lee Garrett, 33, was convicted at trial in October of 2012 for distributing crack cocaine. Garrett is a career offender, having at least two prior convictions for drug offenses and crimes of violence.
The case was prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. The DMI initiative was launched in February 2012 by Charleston Police Chief Brent Webster and U.S. Attorney Booth Goodwin, in collaboration with other federal, state, and local law enforcement agencies, as well as leaders representing several West Side community organizations. The DMI initiative was initiated in Charleston as a strategic problem-solving effort aimed at closing down open-air drug markets that breed crimes of violence and disorder. The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys William King and Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Chamberlain Woman Charged with False Statements and FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Marcella His Law, a/k/a Michelle His Law, age 45, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 5, 2013, His Law, in a matter involving a health care benefit program, knowingly and willfully presented a falsified prescription for Hydrocodone, a Schedule III controlled substance, to the Indian Health Services Pharmacy in Ft. Thompson, South Dakota.
The charges are merely accusations and His Law is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General, Office of Investigations. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
His Law was released on bond pending trial. A trial date has not been set.
California Man Sentenced to Federal Prison for Child Exploitation OffensesRead the Press Release
David Michael Thompson, a 27-year old resident of Temecula, California, was sentenced today in United States District Court for transporting child pornography and for traveling in interstate commerce to engage in illicit sexual conduct with a minor child. Thompson was sentenced to a total of 210 months in federal prison (sentences of 210 and 180 months ordered to run concurrently) announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
According to court documents, on October 24, 2012, a trooper with the Illinois State Police (ISP) conducted a traffic stop on a 2008 white Honda Civic owned and driven by Thompson. The passenger of the vehicle was determined to be a sixteen year old female who had been reported missing from the Cincinnati, Ohio area. According to the victim, she and Thompson met on internet social networking sites. Thompson and the victim communicated over the internet using a computer and other electronic equipment capable of accessing the internet for several years.
Between September 23, 2012, and October 22, 2012, Thompson and the victim agreed that Thompson would drive from California to Ohio to pick the victim up and the two would drive back to California where the victim would move-in with Thompson. On October 20, 2012, Thompson left his home in California. Thompson picked the victim up two days later. The two traveled to Indiana where they spent the night and engaged in sexual intercourse. The following morning, Thompson and the victim drove from Indiana into Illinois with the intent of driving to Thompson’s home in California until they were stopped by the ISP. At all times during Thompson’s car trip, he knew he had on his person his iPhone 5, which he knew stored two photographs visually depicting the victim engaging in sexually explicit conduct. These photographs constitute child pornography.
In addition to the prison sentence, Thompson was sentenced to a lifetime of supervised release when he gets out of prison, and ordered to pay a $4,383.00 fine. According to United States Attorney, “The facts of this case are particularly disturbing and highlight the necessity to educate our children about online child predators. I urge parents to be aware of where their children are on the internet and to know who their children are communicating with. My office remains committed to prosecuting dangerous criminals who prey on children. Keeping the children of this district safe is a top priority.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the ISP, the FBI Cyber Crimes Task Force, Springfield Division, the FBI Cincinnati Field Division, and the Greater Cincinnati ICAC Task Force. Law enforcement received assistance from the FBI-Los Angeles Division, Collinsville, Illinois Police Department, Milford, Ohio, Police Department, and the Riverside County, California, Sheriff’s Department. Assistant United States Attorney Monica A. Stump prosecuted the case in coordination with Assistant United States Attorney Christy Muncy, Southern District of Ohio.
Bridgeport Man Sentenced for Role in Narcotics Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SEAN THOMPSON, 36, of Bridgeport, was sentenced today by U.S. District Stefan R. Underhill in Bridgeport to approximately one month of imprisonment, time already served, followed by five years of supervised release, the first eight months of which THOMPSON must spend in home confinement, for his role in a southwestern Connecticut narcotics trafficking ring. THOMPSON was also ordered to perform 100 hours of community service during his supervised release.
This matter stems from “Operation There It Is,” a six-month wiretap investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, a total of 20 individuals have been charged in federal court with various narcotics offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, between December 2012 and February 2013, THOMPSON regularly purchased ounce quantities of powder cocaine from a co-defendant and distributed it in smaller amounts to customers in the Bridgeport area.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The United States Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
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[email protected]Boone Man Sentenced to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and possessed a firearm in furtherance of the drug conspiracy was sentenced January 30, 2014, to more than 10 years in federal prison.
James Edward Poole, 34, from Boone, Iowa, received the prison term after an August 13, 2013, guilty plea to one count of conspiring to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
At the guilty plea, Poole admitted his involvement in a conspiracy from 2012 through January 2013 that distributed more than 1000 grams of mixed methamphetamine which contained at least 150 grams of actual (pure) methamphetamine. On January 8, 2013, officers conducted a traffic stop of a vehicle occupied by Poole and his wife, Shannon Poole. During a search of the vehicle, officers located and seized about over 134 grams of actual (pure) methamphetamine, $377.74 in U.S. Currency, and a loaded handgun (namely a Kel-Tec .380). Poole admitted he had just obtained the methamphetamine from his source near Webster City, Iowa, and planned to distribute it to other person(s).
Poole was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Poole was sentenced to 126 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Poole is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Webster City Police Department, Hamilton County Sheriff’s Office, Wright County Sheriff’s Office, Iowa State Patrol, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov /cgi-bin/login.pl. The case file number is 13-3003.
Bartlett Man Sentenced on Child Pornography ChargeRead the Press Release
CONCORD, N.H. – Jonathan Tanguay, 42, of Bartlett, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire to 84 months in prison, announced United States Attorney John P. Kacavas.
In February of 2010, a search warrant executed at Tanguay’s home revealed a laptop computer, external hard drive and compact disc containing child pornography images. Tanguay was convicted of knowingly possessing those images in October 2013 after a three-day jury trial.
Special Agent Phil Bleezarde led the investigation for the Department of Homeland Security, Immigration and Customers Enforcement Division, and Concord Police Detective Mark Dumas, a member of the New Hampshire Internet Crimes Against Children Task Force, was the lead computer forensic examiner on the case. This case was prosecuted by Assistant United States Attorneys Seth R. Aframe and Nick Abramson.
This case was being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Appeals Court Affirms Life Sentence for Drug TraffickerRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the sentence of life imprisonment imposed by Senior U.S. District Court Judge James M. Munley on Krishna Mote for his participation in a drug trafficking conspiracy that was responsible for distributing large amounts of crack cocaine in the Lehighton area of Northeastern Pennsylvania between 2005 and 2007.
According to United States Attorney Peter J. Smith, Mote, age 44 who resided in the Allentown-Bethlehem area during the time of the conspiracy, was convicted by a jury after a three-day trial in December 2012. The jury returned guilty verdicts on both drug-related charges in the indictment.
Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
In upholding the jury’s verdict, the Court rejected Mote’s claims that the indictment was duplicitous and the evidence proved two conspiracies instead of a single conspiracy. The Court noted that Mote engaged in the drug trafficking enterprise “with the same individuals during most of the period in question, and worked with a number of people who had an overlapping involvement over the entire time span” of the drug conspiracy. The Court concluded that there was “overwhelming evidence at trial” that Mote conspired with others to distribute more than 280 grams of crack cocaine.
In affirming the sentence, the Court explained that “with three prior felony drug convictions, the District Court properly sentenced [Mote] to a mandated life imprisonment.”
Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.
****Apopka Man Sentenced to 7 Years in Federal Prison for $3 Million FraudRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell sentenced Salvatore Ciccarello, Jr. (31, Apopka) to 7 years in federal prison for wire fraud. Ciccarello was also ordered to serve 3 years of supervised release and to pay more than $3 million in restitution to his victims.
On October 10, 2013, Ciccarello was convicted by a federal jury of 15 counts of wire fraud.
According to court documents and evidence presented at trial, Ciccarello’s companies (Workalition, Inc. and Workalition of America, LLC) entered into a “factoring” arrangement with AGR Advisors, Inc. "Factoring" is a financial transaction by which a business sells its invoices to a third party (called a factor) at a discount. The factor provides financing to the seller of the invoice in the form of a cash advance, often 70% to 85% of the amount of the invoice. Once an invoice has been factored, the business will arrange to have the client pay the factor directly.
From May 2011 until December 2011, Ciccarello submitted a series of factoring invoices falsely representing that Ciccarello’s companies were owed millions of dollars for providing temporary and permanent staffing for several businesses. In fact, Ciccarello’s companies were not owed that money, and many of the employees identified on the invoices were fictitious. To deceive AGR into funding the invoices, Ciccarello forged documents and directed his employees to keep a second set of books, to forge documents, and to prepare invoices that included the fictitious employees. As a result of his scheme, Ciccarello defrauded AGR out of more than $3 million.
Further, in August 2012, Ciccarello signed an agreement with TS Staffing, by which that company agreed to fund four Workalition payrolls. After those payrolls were funded, Ciccarello was supposed to begin paying back some of what he owed. Instead, he sent emails whereby he represented that he had deposited checks into TS Staffing’s account. In response, TS Staffing released more money, only to learn later that Ciccarello had actually put a stop payment on the checks. Ciccarello was able to defraud TS Staffing out of $106,000 through this scheme.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Thursday 30 January 2014
Woman Sentenced to Prison for Lying to FBI and IRS in Connection with Mortgage Fraud InvestigationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on January 27, 2014, Chief United States District Judge James C. Dever, III sentenced LILIANA DELIA DEIAC, 43, of Jamaica, NY, to 18 months in prison, followed by 3 years of supervised release. She pled guilty to Making Material False Statements, in violation of Title 18, United States Code, Section 1001. DIEAC was also ordered to make restitution in the amount of $674,856.94 to Wells Fargo Bank.
On May 18, 2010, DEIAC was questioned by special agents with the Internal Revenue Service Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI). At that time, IRS-CI and the FBI were investigating a fraudulent property flipping scheme committed by, among others, Arthur Barnes and David Johnson, who have already been sentenced to prison. DEIAC was questioned because evidence showed that DEIAC was involved in the purchase of a $2 Million property at 1016 Clear Creek Farm Drive in Raleigh using her husband’s name and credit, and without the husband’s knowledge or consent. Participants in the scheme failed to make mortgage payments on the property, resulting in foreclosure and losses to Wells Fargo Bank in the amount of $674,856.94.
When questioned by the FBI and IRS-CI, DEIAC lied about the circumstances of her involvement in the transaction. Specifically, DEIAC told special agents that when she executed loan and closing documents, she believed that she was leasing a building located in New York. In fact, DEIAC was aware that the multimillion dollar transaction at 1016 Clear Creek Farm Drive in Raleigh was a purchase, using her husband’s name and credit. The investigation established that DEIAC participated in the transaction based upon promises of cash kickbacks from others who orchestrated the deal.
“IRS Criminal Investigation is committed to uncovering fraud and abuse in all facets of the housing market - a market upon which so many American families have pinned their hopes and their futures for so many years,” said Special Agent in Charge, Jeannine A. Hammett, Charlotte Field Office. “I want to assure the American public that IRS-CI will not rest until the tide of this criminal activity is turned.”
On August 6, 2013, DEIAC pled guilty to Count 2 of the Indictment which charged her with Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the Government.
Waterford Man Admits Stealing and Possessing FirearmsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK MISSINO, also known as “Mark Houston” and “Mark Serano,” 46, formerly of Waterford, pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to one count of possession of firearms by a previously convicted felon.
According to court documents and statements made in court, on November 13, 2010, MISSINO and Bernard McAllister possessed 19 firearms that they had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 13, 2010, MISSINO had been convicted of multiple felony offenses in Connecticut and Florida, including convictions for larceny, burglary, robbery, grand theft and escape. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
MISSINO, who is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on April 24, 2014, is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. As an Armed Career Criminal, MISSINO faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
McAllister, 43, formerly of Lisbon, pleaded guilty to the same charge on June 6, 2013, and awaits sentencing.
MISSINO and McAllister have been detained since November 18, 2010, when they were arrested in Massachusetts. They also have pleaded guilty in state court to several charges related to the series of residential burglaries.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Jonathan S. Freimann and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Washington Woman Sentenced for Distributing Meth on Nez Perce ReservationRead the Press Release
COEUR D’ALENE – Stacia Larrea Greene, 29, of Clarkston, Washington, was sentenced today in United States District Court to 30 months in prison followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wend J. Olson announced. U.S. District Court Judge Edward J. Lodge also ordered Greene to pay a $3,000 fine and forfeit $5,000 in United States currency. She pleaded guilty to the charge on November 12, 2013.
According to statements made during the sentencing hearing, Greene distributed methamphetamine and cocaine on several occasions in 2011 and 2012. Her drug sales occurred in Lewiston, and on the nearby Nez Perce Indian Reservation.
The Greene case was jointly investigated by the Bureau of Indian Affairs, Drug Enforcement Administration, Idaho State Police, and Nez Perce Tribal Police.
Utah Man Sentenced for Drug ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Jan. 30, 2014, Rodney L. Kirk, 46, Spanish Fork, Utah, pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession with intent to distribute a controlled substance (methamphetamine).
Judge Hovland sentenced Kirk to serve four years and two months in federal prison, to be followed by three years of supervised release. Kirk was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
In 2011, Kirk moved from Utah to Williston, North Dakota, for employment. Shortly after arriving in North Dakota, he started importing methamphetamine from Utah with the intent to distribute it in North Dakota. On October 18, 2011, law enforcement officials executed a search warrant at Kirk’s residence in Williston and found approximately seven ounces of methamphetamine, with a street value of $15,000 - $20,000.
The case was investigated by the Drug Enforcement Administration, the Williston Police Department and the Northwest Narcotics Task Force.
Assistant U.S. Attorney David Hagler prosecuted the case.
Utah Man Charged in Marijuana Trafficking SchemeRead the Press Release
PITTSBURGH - A Utah resident has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and possession with intent to distribute a controlled substance, United States Attorney David J. Hickton announced today.
The two-count indictment, returned yesterday, named Ken Barton Burrow, 53, currently incarcerated in the Lawrence County Jail, as the sole defendant.
According to the indictment, Burrows conspired with others to distribute 100 kilograms or more of marijuana.
The law provides for a maximum total sentence of not more than 80 years in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Homeland Security Investigations, Customs and Border Protections Air and Marine, along with the Union and Mahoning Township Police Departments, and the Pennsylvania State Police, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. The defendant is presumed innocent unless and until proven guilty.
United States Files Motion in Connection with the Robert Mericle CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that on January 29, 2014 it filed a motion in United States District Court in Scranton seeking a hearing regarding the modification of the plea agreement between the government and Mericle and to determine whether the defendant has breached the plea agreement.
Senior United States District Court Judge Edwin M. Kosik has scheduled Mericle’s sentencing for February 26, 2014.
Two Sentenced for Involvement in <br /> Aryan Brotherhood of Texas Racketeering MurderRead the Press Release
An Aryan Brotherhood of Texas (ABT) gang member and an ABT associate were sentenced to prison today for their involvement in the May 2008 murder of an ABT prospect member.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement after sentencing by U.S. District Judge Sim Lake in the Southern District of Texas.
Shane Gail McNiel, aka “Dirty,” 34, of San Antonio, was sentenced to serve 120 months in prison and Destiny Nicole Feathers, 24, of Jourdanton, Texas, was sentenced to serve 78 months in prison. In addition to their prison terms, McNiel and Feathers were sentenced to serve three years of supervised release.
On Aug. 21, 2013, McNiel pleaded guilty to the charge of accessory after the fact in the murder. Feathers pleaded guilty to the same offense on Aug. 14, 2013.
According to information presented in court, McNiel was a member of the ABT and Feathers was associated with the gang, a powerful, race-based, statewide organization that operates inside and outside of state and federal prisons throughout Texas and the United States. According to court documents, an ABT prospective member was murdered by Jim Flint McIntyre, 43, aka “Q-Ball,” Michael Dewayne Smith, 30, aka “Bucky,” and another ABT gang member for allegedly stealing drugs he was ordered to deliver to a customer on behalf of the ABT. According to court documents, the murder was a result of a “discipline” ordered by Frank Lavell Urbish, aka “Thumper,” and his superiors. The victim’s body was discovered in Atascosa County, Texas, on May 4, 2008. McIntyre, Smith, and Urbish each pleaded guilty to this racketeering murder in 2011.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which time he is referred to as a prospect, while his conduct is observed by the members of the ABT.
McNiel and Feathers are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Two Men Sentenced in Marijuana Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that two men convicted of Conspiracy to Distribute a Controlled Substance were sentenced on January 27, 2014, by U.S. District Judge Karen E. Schreier.
Samuel Joseph Pfeifle, age 27, of Sioux Falls, South Dakota, and Sean Michael McFarland, age 33, of Vermillion, South Dakota, were both sentenced to 60 months in prison, to be followed by 4 years of supervised release.
The United States obtained money judgments against both men ($80,000 as to Pfeifle and $100,000 as to McFarland) as forfeiture of money or property they acquired as a result of their illegal activities.
The men were indicted on September 10, 2013, for conspiracy to distribute more than 100 kilograms of marijuana. McFarland pled guilty on October 30, 2013, and Pfeifle pled guilty on November 7, 2013.
The men joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During their involvement, the men grew, harvested, and obtained marijuana, illegally distributed it, caused it to be illegally delivered and distributed, paid others for it, and received payments for it.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in both South Dakota and California, and the Internal Revenue Service, Criminal Investigations. Assistant U.S. Attorney Connie Larson prosecuted the case.
Both men were remanded to the custody of the U.S. Marshals Service.
Two Men Sentenced in Marijuana Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that two men convicted of Conspiracy to Distribute a Controlled Substance were sentenced on January 27, 2014, by U.S. District Judge Karen E. Schreier.
Samuel Joseph Pfeifle, age 27, of Sioux Falls, South Dakota, and Sean Michael McFarland, age 33, of Vermillion, South Dakota, were both sentenced to 60 months in prison, to be followed by 4 years of supervised release.
The United States obtained money judgments against both men ($80,000 as to Pfeifle and $100,000 as to McFarland) as forfeiture of money or property they acquired as a result of their illegal activities.
The men were indicted on September 10, 2013, for conspiracy to distribute more than 100 kilograms of marijuana. McFarland pled guilty on October 30, 2013, and Pfeifle pled guilty on November 7, 2013.
The men joined a conspiracy to illegally distribute marijuana in South Dakota and elsewhere. During their involvement, the men grew, harvested, and obtained marijuana, illegally distributed it, caused it to be illegally delivered and distributed, paid others for it, and received payments for it.
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in both South Dakota and California, and the Internal Revenue Service, Criminal Investigations. Assistant U.S. Attorney Connie Larson prosecuted the case.
Both men were remanded to the custody of the U.S. Marshals Service.
Two Men Charged with Trafficking Prescription NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAMES LOUIS COSTANZO, 35, of Ansonia, and BRIAN EARL, 39, of North Haven, were arrested last week on federal charges related to the illegal distribution of prescription narcotics.
According to allegations contained in court documents, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into COSTANZO, who had been identified as an illegal distributor of narcotic pharmaceuticals. The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that COSTANZO sold prescription narcotics to numerous customers from his Dwight Street residence. The investigation further revealed that EARL supplied COSTANZO with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.
On January 23, COSTANZO and EARL were arrested on criminal complaints charging each with conspiracy to distribute oxycodone and possession with intent to distribute oxycodone.
At the time of COSTANZO’s arrest, he possessed a 9mm handgun that was loaded with hollow-point ammunition, and $439 in cash. A subsequent search of his residence revealed approximately 600 oxycodone pills, four firearms, ammunition, approximately $5,500 in cash, and more than 50 stored-value cards.
At the time of EARL’s arrest, he possessed $2,557 in cash, and a search of his North Haven residence revealed approximately 11,000 prescription pills, including Oxycontin, oxycodone and oxymorphone.
The charges of conspiracy to distribute oxycodone and possession with intent to distribute oxycodone carry a maximum term of imprisonment of 20 years and a fine of up to $1 million.
COSTANZO, who has been detained since his arrest, appeared today in Bridgeport federal court for a detention hearing. The hearing was continued until February 7.
EARL is released on a $150,000 bond.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, with the assistance of the Ansonia Police Department and the Fairfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Charged for Sheffield Lake Bank RobberyRead the Press Release
A federal grand jury returned an indictment today charging two people with robbing the Chase Bank at 4100 East Lake Road, Sheffield Lake, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Andrew Perry, 21, of Lakewood, and Bryce Herring 18, of Elyria, were indicted on charges of bank robbery for the January 11, 2014, robbery of the financial institution.
This case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following investigation by the Federal Bureau of Investigation, the Sheffield Lake Police Department, and the North Olmsted Police Department.
If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Triadelphia Resident Convicted on Obstructing and Resisting Officers ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistDefendant Faces up to Two Years in Prison
WHEELING, WEST VIRGINIA - A 43-year old Triadelphia, West Virginia, man was convicted this week by a federal jury in a one-day trial before Chief Judge John Preston Bailey.
According to United States Attorney William J. Ihlenfeld, II, MICHAEL BEHRENS was convicted on two misdemeanor offenses of “Obstructing and Resisting an Officer.” Evidence offered at trial showed that just prior to the reading of the verdict in BEHRENS’ brother’s criminal trial, Judge Frederick P. Stamp, Jr. had advised all spectators to keep their comments and emotions to themselves upon hearing the verdict. Upon the reading of the verdict, BEHRENS stood up, kicked the bench in front of him, made a vulgar verbal outburst and existed the courtroom by throwing open a door.
Deputy U.S. Marshals ran after BEHRENS and ordered him to stop in the lobby of the federal building. When they told him that the Judge wanted him back in the courtroom, BEHRENS refused and said that he was leaving. Deputies were escorting him back through the lobby when he suddenly pulled away and a struggle ensued. BEHRENS forcibly resisted the deputies and ignored their verbal commands. With the assistance of Court Security Officer, BEHRENS was brought under control, restrained and taken to the U.S. Marshals’ holding cell. He was then taken to Judge Stamp’s courtroom.
BEHRENS, who is free on bond pending sentencing, faces up to 1 year in prison on each count.
The case was prosecuted by Assistant United States Attorney David J. Perri was investigated by the United States Marshals Service.
Three Miami Residents Indicted for Alleged Roles <br /> in $190 Million Medicare Fraud SchemeRead the Press Release
Three Miami residents have been indicted for their alleged participation in a $190 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the indictment was unsealed.
On Jan. 28, 2014, a federal grand jury in Miami returned a 10-count indictment charging Nelson Rojas, 43, Roger Bergman, 64, and Rodolfo Santaya, 54, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, from approximately December 2002 to October 2010.
Rojas was charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, conspiracy to commit money laundering, two counts of money laundering and one count of aggravated identity theft. Bergman and Santaya were each charged with conspiracy to commit health care fraud and wire fraud. In addition, Bergman was charged with conspiracy to make false statements relating to health care matters. Santaya was also charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, as well as two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
According to the indictment, Rojas, Bergman and Santaya allegedly participated in a scheme orchestrated by the owners and operators of American Therapeutic Corporation (ATC) and its management company, Medlink Professional Management Group Inc. ATC and Medlink were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida. Both corporations have been defunct since October 2010.
The indictment alleges that Bergman was a licensed physician’s assistant who participated in the scheme by, among other things, admitting Medicare beneficiaries to ATC facilities for PHP treatment even though they did not quality for such treatment and falsifying patient records to make it appear as though patients needed, qualified for and actually received legitimate PHP treatment when they did not. The indictment alleges that Santaya served as a patient recruiter who provided ineligible patients to ATC in exchange for kickbacks. The indictment alleges that Rojas was the co-owner of a check cashing business and that he facilitated the payments of bribes and kickbacks from ATC to various patient recruiters.
ATC, Medlink and various owners, managers, doctors, therapists, patient brokers and marketers of ATC and Medlink have pleaded guilty or have been convicted at trial. In September 2011, ATC owner Lawrence Duran was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Nicholas E. Surmacz.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Three Miami Residents Indicted for Alleged Roles in $190 Million Medicare Fraud SchemeRead the Press Release
Three Miami residents have been indicted for their alleged participation in a $190 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the indictment was unsealed.
On Jan. 28, 2014, a federal grand jury in Miami returned a 10-count indictment charging Nelson Rojas, 43, Roger Bergman, 64, and Rodolfo Santaya, 54, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, from approximately December 2002 to October 2010.
Rojas was charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, conspiracy to commit money laundering, two counts of money laundering and one count of aggravated identity theft. Bergman and Santaya were each charged with conspiracy to commit health care fraud and wire fraud. In addition, Bergman was charged with conspiracy to make false statements relating to health care matters. Santaya was also charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, as well as two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
According to the indictment, Rojas, Bergman and Santaya allegedly participated in a scheme orchestrated by the owners and operators of American Therapeutic Corporation (ATC) and its management company, Medlink Professional Management Group Inc. ATC and Medlink were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida. Both corporations have been defunct since October 2010.
The indictment alleges that Bergman was a licensed physician’s assistant who participated in the scheme by, among other things, admitting Medicare beneficiaries to ATC facilities for PHP treatment even though they did not quality for such treatment and falsifying patient records to make it appear as though patients needed, qualified for and actually received legitimate PHP treatment when they did not. The indictment alleges that Santaya served as a patient recruiter who provided ineligible patients to ATC in exchange for kickbacks. The indictment alleges that Rojas was the co-owner of a check cashing business and that he facilitated the payments of bribes and kickbacks from ATC to various patient recruiters.
ATC, Medlink and various owners, managers, doctors, therapists, patient brokers and marketers of ATC and Medlink have pleaded guilty or have been convicted at trial. In September 2011, ATC owner Lawrence Duran was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorney Nicholas E. Surmacz.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Three Individuals Indicted on Crack Cocaine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WV – Three individuals have been indicted by a federal grand jury on crack cocaine charges, according to United States Attorney William J. Ihlenfeld, II.
JAMES WILLARD JOHNSON a/k/a BUM, age 38, of Martinsburg; EDDIE YOUNG, III a/k/a BOBO, age 39, of Martinsburg; and, NAVARRE SOWELL, age 37, of Hagerstown, Maryland, were named in an eight-count Indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute More than 28 Grams of Crack Cocaine.”
JOHNSON is named in seven additional counts charging him with five counts of “Distribution of Crack Cocaine” and two counts of “Distribution of More than 28 Grams of Crack Cocaine” and “Distribution of Crack Cocaine,” and YOUNG is named in an additional count of “Distribution of Crack Cocaine.”
The defendants each face up to forty years in prison on the conspiracy and distribution of more than 28 grams of crack cocaine charges and up to twenty years in prison on each of the distribution charges.The U.S. Attorney’s Office is also seeking to forfeit currency which was seized from defendants on June 13, 2013.
This case was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
In addition, the following indictments were also returned:
GWEN MICHELLE LITTEN, age 32, of Keaneysville, West Virginia, was named in a five-count Indictment charging her with two counts “Theft of Government Money”; one count “Social Security Representative Payee Fraud,” and two counts of “False Statement for Use in Determining Survivor’s Benefits.” The U.S. Attorney’s office is also seeking to forfeit $10,853 which constitutes proceeds derived from the charges.
RAHEEM SELFALLAH UQDAH a/k/a ARTHUR EDWARD FRANKS, JR., age 66, of Martinsburg, was named in a two-count Indictment charging him with two counts “Theft of Government Money”; and “False Statement for Use in Determining Social Security Benefits.” The U.S. Attorney’s office is also seeking to forfeit $15,835 which constitutes proceeds derived from the charges.The LITTEN and UQDAH cases were investigated by the Social Security Administration Office of Inspector General.
The JOHNSON, LITTEN and UQDAH cases will be prosecuted by Assistant United States Attorney Jarod J. Douglas.
VICTOR ROBERTO ESTANGLE-FLORES, age 34, an inmate at USP Hazelton was named in a two-count Indictment charging him with “Assault with a Dangerous Weapon with Intent to do Bodily Harm,” and “Possession of a Prohibited Object.” ESTANGLE-FLORES faces up to ten years in prison on the assault charge and five years in prison on the possession charge. This case will be prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Unit at USP Hazelton.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Stow Man Sentenced to 33 Months in Prison for FraudRead the Press Release
A Stow man was sentenced to nearly three years in prison for defrauding his employer out of more than $744,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Thomas A. Steiger, 45, was sentenced to 33 monthis in prison after previously pleading guilty to six counts of wire fraud and four counts of interstate transportation of property obtained by fraud.
Steiger admitted that he had defrauded his employer, Voith Industrial Services, Inc. of Cincinnati. While working for Voith, Steiger was located at the Ford Motor Company Stamping Plant in Walton Hills, Ohio. During 2011-2012, Steiger defrauded his employer by ordering industrial equipment on company invoices, and after receipt, selling the equipment to individuals not related to Voith. Voith lost at least $744,109 as a result of Steiger’s scheme, according to court documents.
Steiger was also orderd to pay $744,109.00 in restitution.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Walton Hills, Ohio, Police Department. The case was prosecuted by Assistant United States Attorney James V. Moroney.
Statement by Attorney General Eric Holder <br /> Regarding the Case of Dzhokhar TsarnaevRead the Press Release
Attorney General Eric Holder today released the following statement regarding the case of Dzhokhar Tsarnaev:
“After consideration of the relevant facts, the applicable regulations and the submissions made by the defendant’s counsel, I have determined that the United States will seek the death penalty in this matter. The nature of the conduct at issue and the resultant harm compel this decision.”
Statement by U.S. Attorney Carmen M. Ortiz Regarding Attorney General's Authorization of the Death PenaltyRead the Press Release
Today, United States Attorney General Eric H. Holder, Jr. authorized the government to seek the death penalty in the case of United States v. Dzhokhar A. Tsarnaev. We support this decision and the trial team is prepared to move forward with the prosecution.
A short time ago, the government filed with the Court the required notice of intent to seek the death penalty. The case will now continue to proceed through the pretrial process and the next scheduled court event is a status conference set for February 12, 2014.
While I understand the public interest in this matter, we have rules that limit the release of information and the scope of public statements. The process by which this decision was made is confidential, and I will not comment further about that process other than to say that it entailed a careful and detailed consideration of the particular facts and circumstances of this case.