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Tuesday 28 January 2014
Hartford Woman Who Illegally Received Social Security Benefits Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NILDA BERMUDEZ, 54, of Hartford, was sentenced last week in Hartford federal court for illegally receiving nearly $200,000 in Social Security disability benefits. On January 22, U.S. District Judge Vanessa L. Bryant sentenced BERMUDEZ to six months of imprisonment, followed by six months of home confinement and two years of supervised release.
According to court documents and statements made in court, between 1988 and 1992, BERMUDEZ began receiving Social Security Administration Disability Insurance Benefits (DIB) based on a medical condition. In 1993, BERMUDEZ began working as a receptionist at law firm. After the Social Security Administration advised BERMUDEZ that she no longer would qualify for DIB benefits as a result of her income from the firm, BERMUDEZ entered false information into her employer’s records. As a result, her weekly paychecks were made out in another person’s name. Each year, BERMUDEZ concealed her fraud by preparing the other person’s tax returns, which reported the income BERMUDEZ received from the law firm as income earned by the other person.
From 1993 to April 2013, BERMUDEZ received approximately $199,330 in DIB payments. During this time, she also periodically filed forms with the Social Security Administration reaffirming her claim for DIB benefits.
BERMUDEZ was ordered to pay full restitution.
On September 23, 2013, BERMUDEZ waived her right to indictment and pleaded guilty to one count of theft of government property.
This matter was investigated by the Office of the Inspector General for the Social Security Administration and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
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Tom Carson
(203) 821-3722
[email protected]Gun Store Owner Guilty of Smuggling Ammunition and Firearm Magazines to MexicoRead the Press Release
LAREDO,Texas – Robert Jacaman Sr., 60, owner of Jacaman Guns and Ammo, has entered a plea of guilty to conspiring to smuggle firearm ammunition and magazines to Mexico, announced United States Attorney Kenneth Magidson. Jacaman, now a convicted felon, surrendered his federal firearms license, is no longer a firearms dealer and is prohibited from possessing firearms, ammunition and destructive devices.
According to the written plea agreement filed with the court, Jacaman admitted to unlawfully conspiring with others to fraudulently and knowingly export .223 caliber and 7.62 mm ammunition and high capacity rifle magazines designed to fit AR 15-type and AK47-type firearms, contrary to the Arms Export Control Act. Several violations Jacaman committed as part of the conspiracy were discussed with federal U.S. Magistrate Judge Diana Song Quiroga, who presided over the entry of the guilty plea this morning.
Jacaman admitted being in direct contact with Oswaldo Roberto Borrego-Ramos aka “Baldo” during the conspiracy, who negotiated the purchase and delivery of the ammunition and firearm magazines with Jacaman. Borrego-Ramos would then send couriers to deliver cash to Jacaman and others to pick up the items to smuggle them into Mexico. In one instance, Jacaman even advised Borrego-Ramos of an outstanding balance which he had not paid for prior sales.
Another co-defendant, Alejandro Rivera-Ruiz, admitted delivering more than $100,000 to Jacaman on behalf of Borrego-Ramos. According to court documents, Borrego-Ramos told agents he was working for “Los Zetas” Mexican criminal organization, supplying them with firearms, ammunition and firearm accessories such as firearm magazines from various sources, including Jacaman.
On March 14, 2012, authorities arrested two Mexican nationals who had just received 27,000 rounds of .223 caliber ammunition from Jacaman’s gun store. They admitted they were on their way to deliver the ammunition to an awaiting Mexican truck driver who would smuggle the ammunition to Mexico. They admitted working for Rivera-Ruiz and Borrego-Ramos.
Borrego-Ramos, Rivera-Ruiz and the two Mexican Nationals have all pleaded guilty and are serving their sentences in federal prison for their respective crimes.
Others originally named with Jacaman in the indictment, Atanacio “None” Gonzalez-Torres, 43, Jose Luis Estrada, 23, and Carlos Picazio, 30, have also pleaded guilty for their roles in this conspiracy and are pending sentencing. Jacaman was permitted to remain on bond pending his sentencing hearing, set for May 27, 2014, at 9:00 a.m. before U.S. Judge Marina Garcia Marmolejo. At that time, he faces a maximum sentence of five years in federal prison and a possible $250,000 fine.
The ammunition and magazines referenced in this indictment were intercepted before being delivered to Mexico.
The case is being investigated by Homeland Security Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the Laredo Police Department. One of HSI's top priorities is the dismantling of organizations involved in the smuggling of firearms to Mexican drug cartels. The collective expertise and authorities of our law enforcement partners during this investigation significantly contributed to preventing hundreds of rifles and handguns from reaching violent criminal organizations and prosecuting those who were responsible. Several police officers have been cross-designated as ATF Task Force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Jose Homero Ramirez is prosecuting this case.
Grand Rapids Man Sentenced to 15 Years in Federal Prison for Seeking Out Child Pornography While on Supervised Release for A Prior Child Pornography ConvictionRead the Press Release
GRAND RAPIDS, MICHIGAN – Jack Alan Groenendal, 54, of Grand Rapids, Michigan was sentenced on January 27, 2014 to 15 years in federal prison for attempting to receive child pornography, and 10 years for attempting to access child pornography with the intent to view it, U.S. Attorney Patrick A. Miles, Jr. announced today. The sentences will run concurrently. In addition to the prison term, Chief U.S. District Judge Paul Maloney imposed an eight-year term of supervised release that will commence once Groenendal is released from imprisonment. Groenendal will also be required to maintain his registration as a sexual offender.
A jury convicted Groenendal of these offenses in October of 2013. The evidence at trial showed that between July 6 and August 9, 2011, Groenendal made a deliberate and sustained effort to seek out child pornography on the Internet and to bring that child pornography onto his computer where he could view it, control it, and use it for his own purposes. At the time Groenendal committed these offenses, he was on supervised release for a prior conviction for possessing child pornography. Groenendal’s probation officer uncovered his activity and enlisted the assistance of law enforcement. Groenendal’s computer was subsequently seized pursuant to a search warrant, and forensic analysis revealed the presence of child pornography on his hard drive.
U.S. Attorney Patrick A. Miles, Jr. underscored the seriousness of these offenses, noting that “the possession, receipt, transportation, distribution, and viewing of child pornography perpetuates the harm to the victims depicted in images, validates and normalizes the sexual exploitation of children, and fuels a market, thereby leading to further production of images. The seriousness of the offenses in this case is amplified by the fact that the defendant was under supervision for a previous child-pornography conviction at the time.”
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorneys Sean M. Lewis and Tessa K. Hessmiller prosecuted the case.
END
Four More Defendants Sentenced in Southwest Idaho Drug Trafficking CaseRead the Press Release
Ten Sentenced; Eight Await Sentencing
BOISE – U.S. Attorney Wendy J. Olson announced today that four defendants were sentenced this week in federal court for their roles in a large-scale methamphetamine trafficking ring. Twenty defendants were charged in an 89-count indictment filed in May 2013. Ten defendants have been sentenced in the case; eight others have pleaded guilty to the same or related charges and are awaiting sentencing.
U.S. District Judge Edward J. Lodge sentenced Randy Beal, 59, of Nampa, Idaho, on Monday to 57 months in federal prison followed by three years of supervised release for possession with intent to distribute a controlled substance. Jerry Lee Holmberg, 65, of Marsing, Idaho, was sentenced to 41 months in prison followed by two years of supervised release for possession with intent to distribute a controlled substance. Cynthia Prado, 32, of Boise, was sentenced to 30 months in prison followed by three years of supervised release and 80 hours of community service for interstate transportation in aid of racketeering enterprise. Beal, Holmberg and Prado were also ordered to serve 80 hours of community service in lieu of a fine after they are released from prison. They pleaded guilty to the charges on October 8, 2013.
Steven Richard, 42, of Eagle, Idaho, was sentenced this morning to two years’ probation for possession of a user amount controlled substance. He pleaded guilty on October 23, 2013.
Co-defendant Lena Kettle, of Caldwell, Idaho, is set for trial on March 11, 2014. The remaining defendant, David Echevarria, is in state custody; an arraignment date has not been set.
According to court proceedings, the conspiracy involved two distribution cells in the Treasure Valley: one led by Jason Holmberg, the other by Andrew Polney. Kenneth Jones in Sacramento, California, supplied multi-pound shipments of methamphetamine for transport to the Treasure Valley for distribution; also, a drug debt was owed by Jason Holmberg and unpaid for a large amount of methamphetamine obtained from Mexican sources of supply transshipped through Phoenix, Arizona, and transported to Idaho by Beal. The group operated from about June 2012 through the time of the various arrests on April 18, 2013 and May 23, 2013.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Nampa Police Department and Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Former Postal Worker Pleads Guilty to Stealing Video Games from the MailRead the Press Release
BOSTON – A former postal worker pleaded guilty today to stealing more than 200 video games from the mail.
James L. White, 68, of Dorchester, pleaded guilty before U.S. District Judge Douglas P. Woodlock to theft of mail. Sentencing is scheduled for May 8, 2014. The statutory maximum penalty for the crime is five years in prison, three years of supervised release and a $250,000 fine.
From July through November 2012, White, while working as a mail handler at the Boston General Mail Facility, stole GameFly video games from the mail. He resold those video games to Gamestop, a videogame and software retailer. During the course of the theft, White stole over 200 video games worth several thousand dollars.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Network Engineer Pleads Guilty to Crashing Employer's Computer SystemRead the Press Release
Defendant faces prison time; must repay EnerVest for damage to computer system
CHARLESTON – United States Attorney Booth Goodwin announced today that a former network engineer at Charleston-based EnerVest Operating pleaded guilty to intentionally causing damage to his employer’s computer system. Ricky Joe Mitchell, 34, now of Mableton, GA, admitted that in June of 2012, shortly after he learned that he was going to be fired, he remotely accessed EnerVest’s computer system and reset the network servers to factory settings. As a result of his intentional conduct, EnerVest was unable to fully communicate or conduct business operations for approximately 30 days. In addition, data that the company thought had been backed up could not be retrieved.
“In 2014, it goes without saying that any business’s electronic communication capabilities and data storage are nearly as important to its success as the product or service it provides,” said U.S. Attorney Goodwin. “The prosecution of Mr. Mitchell for his reckless conduct underscores my commitment to help protect small businesses from any threat – both inside and out.”
Mitchell will be sentenced by the Honorable John T. Copenhaver, Jr. on April 24, 2014 to a maximum term of imprisonment of ten years and three years supervised release. Mitchell will also be ordered to pay restitution for the damage caused by his criminal conduct.
The U.S. Secret Service conducted the investigation. United States Attorney Goodwin and Assistant United States Attorney Thomas C. Ryan are handling the prosecution.
U.S. Attorney Booth Goodwin announced the Business Protection Initiative in November 2010. Business protection is a primary initiative of the U.S. Attorney’s Office that focuses on prosecuting individuals who defraud West Virginia businesses.
Former NYPD Officer Sentenced in Manhattan Federal Court for Tax Fraud and Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JONATHAN WALLY, a Police Officer with the New York City Police Department (“NYPD”) at the time of his offenses, was sentenced today in Manhattan federal court to five years of probation for tax fraud and identity theft offenses related to his preparation and filing of false and fraudulent U.S. individual income tax returns (“tax returns”). WALLY’s probation will include six months of intermediate confinement and one year of electronic monitoring to run concurrent to confinement. WALLY pled guilty in August 2013, and was sentenced today by U.S. District Judge Lorna G. Schofield.
According to court filings and statements made in court:
From 2003 until his arrest in this case in April 2013, WALLY was employed by the NYPD as a Police Officer assigned to the 34th precinct located in the Washington Heights/Inwood section of Manhattan. Since at least 2008, he also served as a tax preparer registered with the Internal Revenue Service (“IRS”). Although the NYPD requires its Police Officers to obtain written authorization to engage in off-duty employment, WALLY never sought or obtained such authorization to work as a tax preparer.
From 2010 through April 2012, WALLY defrauded the IRS by causing it to issue tax refunds to other individuals based on fraudulent and false tax returns he prepared and filed on behalf of those taxpayers. Among other things, the tax returns claimed deductions for false dependents. During that time period and continuing through January 2013, WALLY further defrauded the IRS by preparing and filing fraudulent and false tax returns on his own behalf that claimed false dependents and failed to declare certain income. In connection with this fraudulent tax return scheme, WALLY obtained personal identifying information and Social Security cards of children and declared those children as dependents on the false and fraudulent tax returns he prepared and filed on behalf of others and himself.
As a result of the false and fraudulent tax returns WALLY prepared and filed on behalf of other individual taxpayers, the IRS paid these taxpayers at least $146,818 in fraudulent tax refunds. The false and fraudulent tax returns prepared and filed by WALLY on his own behalf and his failure to declare the income he earned as a tax preparer caused the IRS to pay him at least $48,990 in fraudulent tax refunds. In total, WALLY’s tax scheme defrauded the IRS in the amount of $195,808.
In addition to probation and intermediate confinement, Judge Schofield ordered WALLY, 34, of Bronx, New York, to pay a $400 special assessment fee. WALLY was also ordered to pay restitution of, and agreed to forfeit to the IRS, the amount of $195,808.
Mr. Bharara praised the investigative work of the IRS, the New York State Department of Taxation and Finance, and the Internal Affairs Bureau of the NYPD.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Former Memphis Patrolman Sean Mcwhirter Sentenced for Transporting Prostitutes to TunicaRead the Press Release
Memphis, TN – Sean McWhirter, 30, of Memphis, TN, was sentenced today to one year and one day in federal prison following his guilty plea to one count of transportation of individuals in interstate commerce for the purpose of prostitution (Mann Act), announced United States Attorney Edward L. Stanton III, and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
According to the facts alleged in the indictment and revealed during plea and sentencing hearings, on September 13, 2012, while on duty and in his patrol car, McWhirter agreed to transport three women to a location in Tunica, MS for the purpose of prostitution. Subsequently, on September 16, 2012, while off duty, McWhirter delivered two women from Memphis to a hotel in Tunica. Upon entering the room with the women, McWhirter was arrested by Special Agents and Task Force Officers of the FBI. McWhirter was a five-year veteran of the Memphis Police Department who was serving as a patrolman at the time of his arrest.
McWhirter pleaded guilty to the charge on October 7, 2013. In addition to the prison sentence, U.S. District Judge S. Thomas Anderson ordered McWhirter to serve five years of supervised release. There is no parole in the federal system.
This crime was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the Federal Bureau of Investigation, Memphis Police Department, and Shelby County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brian K. Coleman on behalf of the government.Former Iowa State Professor Pleads Guilty to False StatementsRead the Press Release
DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced that Dr. Palaniappa Molian, of Ames, pled guilty on January 24, 2014, to two felony counts relating to false statements made to the National Science Foundation.
According to the written plea agreement, in December of 2009, Dr. Molian, as a principal investigator on a National Science Foundation grant to Iowa State University, submitted a reimbursement expense voucher that contained false statements. Dr. Molian claimed in a requested reimbursement that he traveled to Boston, Massachusetts, to work on an Iowa State University National Science Foundation grant research experiment. Dr. Molian admitted in the plea agreement that he did not perform any work on the grant research experiment in Boston, and that he traveled to Boston for unrelated reasons.
The plea agreement also provides that Dr. Molian, in his capacity as president of Photon Energy Technology, submitted a Small Business Innovation Research Program Report to the National Science Foundation on July 1, 2010, that contained false statements. Dr. Molian claimed and sought payment for approximately $20,000 in laser rental costs, when he had access to a laser at no cost. Dr. Molian spent the excess grant funds he was awarded on unrelated personal expenses.
Dr. Molian will be sentenced on April 25, 2014, before the Honorable James E. Gritzner. Making a false statement to a federal agency carries a maximum sentence of imprisonment of up to five years and a maximum fine of $250,000.
This case was investigated by the National Science Foundation Office of the Inspector General and the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former Corrections Officer Sentenced for His Role in <br /> Providing Armed Security for Drug TransactionsRead the Press Release
A former Puerto Rico Department of Corrections officer was sentenced today to serve 811 months in prison for his role in providing armed security for three drug transactions.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Bernis Gonzalez Miranda, 27, was sentenced by U.S. District Judge Juan Perez Gimenez of the District of Puerto Rico. He was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.
In April 2012, a federal jury in San Juan found Gonzalez Miranda guilty of three counts of conspiracy to possess with intent to distribute more than five kilograms of cocaine, three counts of attempting to possess with the intent to distribute more than five kilograms of cocaine and three counts of possessing a firearm in furtherance of a drug transaction. According to the evidence presented in court, Gonzalez Miranda provided security for what he believed were illegal cocaine deals on June 15, July 2, and July 7, 2010. In fact, the purported drug transactions were part of an undercover FBI operation. On those days, the defendant’s actions included providing armed protection for the deals and escorting the buyer into and out of the transaction.
In return for the security he provided, Gonzalez Miranda received a cash payment of $2,000 for each transaction, and at sentencing he was ordered to forfeit the $6,000 he received.
The case was investigated by the FBI. The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.Former Austin Police Officer Enters Guilty Plea to Providing False Information to Federal InvestigatorsRead the Press Release
Former Austin Police Officer Jermaine Gaspard, age 34, faces up to five years in federal prison after pleading guilty this afternoon to making a false statement to federal authorities announced United States Attorney Robert Pitman, U.S. Secret Service Acting Special Agent In Charge Ben Bass, Federal Bureau of Investigation Special Agent In Charge John Boles, San Antonio Division, and Austin Police Chief Art Acevedo.
Appearing before United States Magistrate Judge Andrew Austin in Austin this afternoon, Gaspard admitted that he made a false statement to federal authorities conducting a credit card fraud investigation. According to the factual basis filed in this case, in April 2013, Gaspard knowingly accessed the mobile data terminal inside his Austin Police Department (APD) patrol car and performed an unauthorized database check on a subject. Subsequently, Gaspard showed the subject the APD report he discovered, which included the fact that there was a pending indictment related to the subject’s fraudulent use of a credit card. When questioned by federal authorities, Gaspard denied providing the information to the subject.
Gaspard is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with the U.S. Secret Service and the Federal Bureau of Investigation together with the Austin Police Department. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.
Florida Attorney Sentenced to Six Months in Prison for Laundering Purported Stock Fraud ProceedsRead the Press Release
Michael J. Scaglione, Esq., an attorney in Coral Gables, Florida, was sentenced today in federal court in Brooklyn, New York, to six months in prison to be followed by four months of home detention with electric monitoring to be served during a two-year term of supervised release. As part of the sentence, Scaglione was ordered to perform 200 hours of community service and to forfeit approximately $31,950 to the government. In October 2013, Scaglione pleaded guilty to a money laundering charge for laundering over $750,000, which he believed were the proceeds of a penny stock fraud scheme. In July 2013, Scaglione was arrested after taking possession of $500,000 in cash from an undercover federal agent posing as a criminal stock promoter in connection with a government sting operation.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Toni Weirauch, Special Agent in Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
“Abusing his position as an attorney by laundering money, Scaglione not only violated the code of ethics by which he was bound – he also broke the law. Those attorneys who seek to misuse the trust that is instilled in them by the public to perpetrate crime are on notice that they will be held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the FBI and the IRS for their work on this investigation.
From approximately February to July 2013, Scaglione exploited his position as an attorney to launder money through an escrow account for an undercover law enforcement agent who posed as a corrupt stock promoter. Scaglione believed that the undercover agent was a middleman for a network of corrupt stock brokers who fraudulently inflated prices of worthless stock in exchange for high commissions. Scaglione agreed to launder what he believed were proceeds of this stock fraud through his attorney escrow account to hide that money from the United States Securities and Exchange Commission and the IRS. In total, Scaglione funneled over $750,000, including $88,000 in cash given to him in a Federal Express box in the lobby of a Miami Beach hotel, through the escrow account into the undercover agent=s bank account in Long Island, New York. Scaglione carefully structured the movement of these funds to avoid triggering financial reporting requirements. In exchange, Scaglione collected over $25,000 in fees. In recorded conversations, Scaglione assured the undercover agent that their conversations were “completely privileged” and that his money was “safe” with Scaglione. When the undercover agent explained to Scaglione that he did not “want to go to jail,” Scaglione stated to the undercover agent that the escrow account was “tight as can be.” On the day of his arrest, Scaglione accepted an additional $500,000 in cash from the undercover agent, which Scaglione believed to be proceeds from the stock fraud, at a hotel in Miami Beach, Florida.
The government’s case is being prosecuted by Assistant United States Attorney Jacquelyn Kasulis.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which 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 is 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
MICHAEL J. SCAGLIONE
Age: 42
Residence: Miami Springs, Florida
E.D.N.Y. Docket No. 13-CR-553
Fleming Island Man Pleads Guilty in Federal Court to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Jimmy Laverne Holmes (57, Fleming Island) has pleaded guilty in United States District Court, in Jacksonville, to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison, and a potential life term of supervised release. Holmes has been in custody since his arrest on September 24, 2013. At the time of his arrest, Holmes stated that he worked at the Barco-Newton YMCA in Fleming Island, where he taught sports to children. A sentencing hearing has not yet been set.
According to court documents, an agent with the Federal Bureau of Investigation, in Jacksonville, began an investigation to identify individuals in that area that had access to and/or were trading images and videos of child pornography over the Internet. Through his investigation, the agent determined that a host computer in the Jacksonville area, using a particular Internet Protocol (IP) address, was hosting images of child pornography via a particular peer-to-peer file sharing program. The agent made successful connections to the host computer and successfully downloaded several video files directly. The downloaded files contained depictions of child pornography. Further investigation revealed that the subscriber information to the IP address resolved to a particular residence located in Fleming Island, Florida, where Holmes resided.
On September 24, 2013, FBI agents and other law enforcement officers executed the search warrant at Holmes= residence and seized several computers and other items of electronic media. At the residence, Holmes told the agents that he knew child pornography to be both illegal and morally unjustifiable, and was recently downloading and watching child pornography two or three times per week. Holmes further stated that he has tried to cease such activities repeatedly, but has not been able to abstain indefinitely. According to Holmes, he uses child pornography for “personal use” and further noted, “I like to watch it.” Subsequent analysis of Holmes' computer media revealed that it contained a total of 174 videos and 247 images depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another 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."
Final Defendant Convicted in Methamphetamine Distribution Conspiracy Is Sentenced to Serve A Total of 240 Months in Federal PrisonRead the Press Release
Defendant Convicted on Drug Conspiracy and Federal Firearm Charges
WICHITA FALLS, Texas — Darren Scott Murphy, 26, of Electra and Wichita Falls, Texas, was sentenced yesterday, by U.S. District Judge Reed C. O’Connor, following his guilty plea in July 2013 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine and one count of being a felon in possession of a firearm. Judge O’Connor sentenced Murphy to 240 months on the drug count and 120 months on the firearm count, to run concurrently. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
All seven defendants charged in the case pleaded guilty and all have been sentenced:
Anthony Rueben Johnston, 28, to 480 months in federal prison
Rachel Dawn Billen, 21, to 36 months
Louis Griego, Jr., 44, to 168 months
Janis Hernandez, 31, to 136 months
James Allen Holley, 34, to 142 months
Christina Gail Thompson, 32, to 42 monthsAccording to documents filed in his case, Murphy admitted that on multiple occasions, from at least August 4, 2012 through February 21, 2013, he received multi-ounce quantities of methamphetamine from supply sources in the Dallas-Fort Worth area and elsewhere, and distributed it to numerous customers in the Electra and Wichita Falls, areas.
Murphy admitted that on the evening of December 2, 2011, when the vehicle he was driving was stopped on by officers with the Fort Worth Police Department, he ran when he exited the vehicle. While being apprehended a short distance from the vehicle, Murphy yelled to the vehicle’s passenger, “Get the pistol! Get the pistol!” One of the officers located a silver revolver lying in the road beneath the driver’s side of the vehicle.
He further admitted that on August 4, 2012, in Clay County, Texas, deputies with the Clay County Sheriff’s Office initiated a traffic stop on a car in which he was the front-seat passenger. He had approximately 81.6 grams of methamphetamine hidden in a fast food restaurant bag in the front seat.
He also admitted that on November 6, 2012, in Wise County, a trooper with the Texas Department of Public Safety initiated a traffic stop on a car driven by co-defendant Johnston in which Murphy was the front-seat passenger. Law enforcement seized a small amount of methamphetamine and approximately $10,015 in cash. Murphy further admitted that he attempted to obstruct the investigation of this crime.
In addition, Murphy admitted that he conspired with Johnston regarding the methamphetamine that law enforcement recovered during the execution of a state search warrant on February 14, 2013, at a residence in Wichita Falls shared by Johnston and co-defendant Billen. Murphy admitted that he possessed that methamphetamine with the intent to distribute it. Law enforcement also recovered handwritten notes inside the residence that identified customers who owed Murphy approximately $10,925 for methamphetamine purchases.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters prosecuted.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on January 22, 2014:
Courtney Crusoe, 24, Marcel Banks, 26, and Deandre Banks, 23, all of Fort Wayne, Indiana, are charged in a five count Indictment (respectively) with bank fraud from on or about July 2013 to on or about August 2013 (Crusoe, M. Banks and D. Banks), bank embezzlement on or about July 12, 2013 (Crusoe), conspiracy to launder money on or about July 2013 (Crusoe, M. Banks, and D. Banks), money laundering on or about July 15, 2013 (Crusoe and D. Banks), and July 17, 2013 (D. Banks and M. Banks). The Indictment also alleges forfeiture United States currency and property. These charges were filed as a result of an investigation by the Internal Revenue Service. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Essex County, N.J., Man Admits Preparing False Income Tax ReturnsRead the Press Release
NEWARK, N.J. – The owner of a tax preparation business admitted today his role in the preparation of income tax returns with false information, Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Paul Fishman announced.
Carlyle Fraser of Maplewood, N.J., owner of Fraser CPA and Taxko Inc., a tax preparation business, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of aiding and assisting in the preparation of false individual income tax returns.
According to documents filed in this case and statements made in court:
From 2008 through 2011, Fraser prepared and filed false individual income tax returns for his clients. On April 8, 2011, Fraser prepared a false 2010 individual income tax return for an undercover agent, which claimed false deductions for medical and dental expenses, charitable contributions, unreimbursed employee expenses, tuition, a business loss, and a capital gains loss. In preparing false individual income tax returns for his clients, Fraser caused a tax loss to the IRS of $149,739.
Assistant Attorney General Keneally and U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The count to which Fraser pleaded guilty is punishable by a maximum potential penalty of three years in prison and a fine of $250,000. Sentencing is scheduled for June 25, 2014.
The government is represented by Tax Division Trial Attorneys Jessica Moran and Tino Lisella.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
14-030Defense counsel: Thomas A. Ashley Esq., Newark
Fraser, Carlyle Information
Eagle Pass Brothers Sentenced to Federal Prison for Ammunition SmugglingRead the Press Release
In Del Rio this afternoon, United States District Judge Alia Moses sentenced 34-year-old Richard Hesles, Jr., and his brother, 24-year-old Damien Hesles to 120 months and 110 months in federal prison, respectively, in connection with a scheme to smuggle over 6,000 rounds of ammunition and hundreds of firearm magazines into the Republic of Mexico stated United States Attorney Robert Pitman, Homeland Security Investigations (HSI) Special Agent In Charge Janice Ayala and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent In Charge Robert Elder, Houston Division.
In addition to the prison term, Judge Moses ordered that Richard Hesles pay a $7,500 fine and be placed under supervised release for a period of three years after completing his prison term; Damien Hesles, a $5,000 fine and three years of supervised release following his prison term. Judge Moses also ordered that Richard Hesles, Jr., and Damien Hesles pay monetary judgments in the amount of $54,414 and $42,634, respectively. Those sums represent the value of property involved or used to facilitate the defendants’ scheme.
On October 25, 2013, the defendants pleaded guilty to one count of aiding and abetting the smuggling of goods from the United States. According to the factual basis in this case, while under surveillance at the Hesles Gun and Knife Store in Eagle Pass, TX, on February 17, 2012, Damien Hesles unloaded several boxes from his vehicle. Those boxes were subsequently loaded into another vehicle which began traveling towards the U.S.-Mexico border. When the driver of that vehicle noticed he was being followed, he stopped the vehicle and discarded the boxes inside a dumpster, then fled the area. Inside the boxes, surveillance agents discovered U.S. defense articles, namely 100 AR-15 assault rifle rear tactical sights and 100 AR-15 assault rifle front tactical sights.
Investigators were able to determine that Piedras Negras, Mexico residents Oliver Bres-Carranza and Erik Alan Garza had spoken to Richard Hesles, Jr., and placed the order for the AR-15 sights. Damien Hesles received payment from Bres-Carranza and Garza for the sights and then shared the money with his brother.
Authorities estimate that the brothers aided and abetted the exportation or attempted exportation of over 6,000 rounds of ammunition designed for use in various firearms, including AK-47 and AR-15 assault rifles as well as .50 caliber sniper rifles; over 300 assault rifle magazines and more than 60 magazines for other types of firearms; and, firearm sights.
The factual basis, which the defendants admitted was accurate, stated that the brothers procured ammunition, firearm magazines and firearm sights for individuals in Mexico from 2010 until 2012 and that Richard Hesles, Jr., knew that the items were going to Los Zetas Cartel operatives in Mexico.
The brothers, along with the store owner, have entered into an agreement with the Government to surrender their Federal Firearms License and to no longer support or fund, directly or indirectly, any business or venture which deals in any manner with the sale, trade or distribution of firearms, ammunition, magazines and/or components/accessories related to the firearms trade.
“Gun and drug trafficking fuels violence by criminal organizations domestically and abroad,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “HSI special agents will continue working jointly with our law enforcement partners and utilize our expertise in export enforcement to keep our citizens safe and secure.”
On January 15, 2014, Erik Alan Garza was sentenced to 44 months in federal prison and fined $3,000 for his role in the smuggling scheme. Bres-Carranza, who remains in custody, faces up to ten years in federal prison after pleading guilty in October 2013 to his role in the smuggling scheme. Bres-Carranza is scheduled to be sentenced at 9:00am on February 25, 2014, before Judge Moses. A 5th defendant in this case, Rolando Tamayo, was released on bond following his arrest in June 2012, but is now considered a fugitive.
The case was investigated by agents from Homeland Security Investigations (HSI) together with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Michael Galdo prosecuted this case on behalf of the Government.
Eagle Dentist Sentenced for Prescription Drug FraudRead the Press Release
BOISE – Rahil Akhtar, 37, of Eagle, Idaho, was sentenced today by U.S. District Judge Edward J. Lodge for acquiring and obtaining a controlled substance by misrepresentation, fraud and deception, U.S. Attorney Wendy J. Olson announced. Akhtar was a dentist licensed to practice in the state of Idaho. He was sentenced to three years’ probation, 300 hours of community service, and fined $4,000. As part of his probation, Akhtar may not work in any capacity related to dentistry or pharmaceuticals without the permission of his probation officer. Additionally, in a separate proceeding, Akhtar entered a consent decree with the Board of Dentistry to suspend and revoke his dental license for ten years.
According to court documents, from 2011 through June 2013, Akhtar schemed to obtain controlled substances for himself by writing fraudulent prescriptions to other people. The prescriptions were for medications containing hydrocodone, a Schedule III controlled substance, and Alprazolam (a benzodiazepine), a Schedule IV controlled substance. Generally, Akhtar would write a prescription to a person who was not a current patient in need of treatment or a prescription. At Akhtar’s direction, the person would fill the prescription at a pharmacy and return the majority of the pills to Akhtar. Sometimes Akhtar provided the person filling the prescription with money, but other times he expected that person to pay for the prescription. On some occasions, the person picking up the prescription kept some of the pills.
On November 4, 2013, Akhtar pleaded guilty to two counts of acquiring and obtaining a controlled substance by misrepresentation, fraud and deception. According to the plea agreement, Akhtar admitted that he wrote approximately 93 prescriptions and thereby acquired by fraud more than 2,500, but less than 5,000, dosage units of Schedule III and IV controlled substances. Akhtar further admitted the prescriptions were written without a legitimate medical purpose and outside the usual course of a professional dental practice: the individuals to whom the prescriptions were written were not patients in need of the prescriptions at the time; Akhtar provided no treatment and created no medical records related to the prescriptions; and although written to different people, the prescriptions were intended to provide drugs for Akhtar.
As part of the plea agreement, Akhtar will withdraw his DEA application for a DEA number in the state of Washington and agreed not to reapply for any DEA registration for at least one year after the final entry of judgment in this case.
This case was investigated by the Drug Enforcement Administration (DEA Diversion) and Meridian Police Department.
Defendants Sentenced for Roles in Major Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas— Three defendants, who pleaded guilty in 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, were sentenced yesterday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Bobby Ray Harris, Jr., aka “Bobby Landrum,” 34, was sentenced to 210 months in federal prison. He pleaded guilty in August 2013 to one count of conspiracy to possess and distribute methamphetamine. According to the factual resume filed in his case, he purchased at least one-half ounce quantities of methamphetamine from co-conspirator Deborah McCulloch five times during the time frame of March to July 2012, with the purpose of redistributing it. Harris has been in custody since his arrest in April 2013. McCulloch is currently serving a 50-month federal prison sentence after pleading guilty to the same offense.
Co-conspirators Margarita C. Crowe, 42, Amy Kitchell Hamm, 38, each pleaded guilty in October 2013 to the same offense as Harris, and they were each sentenced to 72 months in federal prison. Both were remanded into custody at yesterday’s sentencing hearing. They each admitted that on multiple occasions, between April 2012 and August 2012, they distributed quantities of methamphetamine they had obtained from co-conspirators, to customers in the Wichita Falls area.
To date, all 39 defendants charged in this conspiracy have entered guilty pleas; a total of 35 defendants have been sentenced.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Defendant Charged in Immigration SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), announce that Gary Wayne Peters, 58, of Key West, was charged in a nine-count indictment, which included eight counts of wire fraud and one count of encouraging and inducing an alien to reside illegally in the United States for profit.
According to the indictment, Peters defrauded an undocumented alien with initials “M.P.” by falsely claiming that he would assist M.P. obtain legal immigration status in the United States. To accomplish this scheme, Peters told M.P. that he knew certain-named federal immigration agents; that Peters had filed an immigration petition for M.P.; and that the named immigration agents were processing M.P.’s immigration documents. M.P. paid Peters approximately $25,000 for Peters’ supposed assistance with his immigration application. In reality, Peters never filed an immigration petition for M.P., and there were no agents employed by the Department of Homeland Security with the names mentioned.
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS. This case is being prosecuted by Assistant U.S. Attorney Cristina Moreno.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Dallas Man Admits Possessing and Producing Child Pornography Involving A Minor Under Age TwoRead the Press Release
DALLAS — James Brian Rivers, 23, of Dallas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to an indictment charging one count of production of child pornography and one count of possession of prepubescent child pornography. He faces a total statutory penalty of at least 15 years and a maximum of 50 years in federal prison, a $500,000 fine and up to a lifetime of supervised release. Sentencing is set for May 19, 2014, before U.S. District Judge Sam A. Lindsay. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on June 30, 2013, Rivers left his cellphone at a neighbor’s home. The neighbor looked through the cellphone and observed multiple images of child pornography and called 911. When officers with the Dallas Police Department arrived at the residence, they seized the cell phone obtained a search warrant for the phone. A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Cyber Criminal Pleads Guilty to Developing and Distributing Notorious Spyeye MalwareRead the Press Release
Aleksandr Andreevich Panin, a Russian national also known as “Gribodemon” and “Harderman,” has pleaded guilty to conspiracy to commit wire and bank fraud for his role as the primary developer and distributor of the malicious software known as “SpyEye,” which, according to industry estimates, has infected over 1.4 million computers in the United States and abroad.
Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Acting Special Agent in Charge Ricky Maxwell of the FBI’s Atlanta Field Office made the announcement.
“Given the recent revelations of massive thefts of financial information from large retail stores across the country, Americans do not need to be reminded how devastating it is when cyber criminals surreptitiously install malicious codes on computer networks and then siphon away private information from unsuspecting consumers,” said Acting Assistant Attorney General Raman. “Today, thanks to the tireless work of prosecutors and law enforcement agents, Aleksandr Panin has admitted to his orchestration of this criminal scheme to use ‘SpyEye’ to invade the privacy of Americans by infecting their computers through a dangerous botnet. As this prosecution shows, cyber criminals – even when they sit on the other side of the world and attempt to hide behind online aliases – are never outside the reach of U.S. law enforcement.”
“As several recent and widely reported data breaches have shown, cyber-attacks pose a critical threat to our nation’s economic security,” said U.S. Attorney Yates. “Today’s plea is a great leap forward in our campaign against those attacks. Panin was the architect of a pernicious malware known as ‘SpyEye’ that infected computers worldwide. He commercialized the wholesale theft of financial and personal information. And now he is being held to account for his actions. Cyber criminals be forewarned: you cannot hide in the shadows of the Internet. We will find you and bring you to justice.”
“This investigation highlights the importance of the FBI’s focus on the top echelon of cyber criminals,” said Acting FBI SAC Maxwell. “The apprehension of Mr. Panin means that one of the world’s top developers of malicious software is no longer in a position to create computer programs that can victimize people around the world. Botnets such as SpyEye represent one of the most dangerous types of malicious software on the Internet today, which can steal people’s identities and money from their bank accounts without their knowledge. The FBI will continue working with partners domestically and internationally to combat cyber-crime.”
According to the charges and other information presented in court, SpyEye is a sophisticated malicious computer code that is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information. The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cyber criminals to remotely control the infected computers through command and control (C2) servers. Once a computer is infected and under their control, cyber criminals can remotely access the infected computers, without authorization, and steal victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.” The victims’ stolen personal and financial data is then surreptitiously transmitted to the C2 servers, where it is used to steal money from the victims’ financial accounts.
Panin was the primary developer and distributor of the SpyEye virus. Operating from Russia from 2009 to 2011, Panin conspired with others, including codefendant Hamza Bendelladj, an Algerian national also known as “Bx1,” to develop, market and sell various versions of the SpyEye virus and component parts on the Internet. Panin allowed cyber criminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that specifically targeted designated financial institutions. Panin advertised the SpyEye virus on online, invitation-only criminal forums. He sold versions of the SpyEye virus for prices ranging from $1,000 to $8,500. Panin is believed to have sold the SpyEye virus to at least 150 “clients,” who, in turn, used them to set up their own C2 servers. One of Panin’s clients, “Soldier,” is reported to have made more than $3.2 million in a six-month period using the SpyEye virus.
According to industry estimates, the SpyEye virus has infected more than 1.4 million computers in the United States and abroad, and it was the preeminent malware toolkit used from approximately 2009 to 2011. Based on information received from the financial services industry, over 10,000 bank accounts have been compromised by SpyEye infections since 2013 alone. Some cyber criminals continue to use SpyEye today, although its effectiveness has been limited since software makers have added SpyEye to malicious software removal programs.
In February 2011, pursuant to a federal search warrant, the FBI searched and seized a SpyEye C2 server allegedly operated by Bendelladj in the Northern District of Georgia. That C2 server controlled over 200 computers infected with the SpyEye virus and contained information from numerous financial institutions.
In June and July 2011, FBI covert sources communicated directly with Panin, who was using his online nicknames “Gribodemon” and “Harderman,” about the SpyEye virus. FBI sources then purchased a version of SpyEye from Panin that contained features designed to steal confidential financial information, initiate fraudulent online banking transactions, install keystroke loggers, and initiate distributed denial of service (DDoS) attacks from computers infected with the malware.
On Dec. 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj. The indictment charged one count of conspiracy to commit wire and bank fraud, 10 counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name.
Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on Jan. 5, 2013 and was extradited from Thailand to the United States on May 2, 2013. His charges are currently pending in the Northern District of Georgia.
Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport.
The investigation also has led to the arrest of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria.
On Jan. 28, 2014, Panin pleaded guilty to conspiring to commit wire and bank fraud. Sentencing for Panin is scheduled for April 29, 2014, before United States District Judge Amy Totenberg of the Northern District of Georgia.
The case is being investigated by the FBI. Assistant United States Attorney Scott Ferber of the Northern District of Georgia, Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Senior Litigation Counsel Carol Sipperly of the Criminal Division’s Fraud Section are prosecuting the case. Former Assistant United States Attorney Nicholas Oldham also participated in the prosecution while with the Criminal Division.
Valuable assistance was provided by the Criminal Division’s Office of International Affairs and the following international law enforcement agencies: The United Kingdom’s National Crime Agency, the Royal Thai Police-Immigration Bureau, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria and the Australian Federal Police (AFP).
Valuable assistance also was provided by the following private sector partners: Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Mandiant, Dell SecureWorks, Trusteer and the Norwegian Security Research Team known as “Underworld.no”.Cyber Criminal Pleads Guilty to Developing and Distributing Notorious SpyEye MalwareRead the Press Release
ATLANTA – Aleksandr Andreevich Panin, a Russian national also known as “Gribodemon” and “Harderman,” has pleaded guilty to conspiracy to commit wire and bank fraud for his role as the primary developer and distributor of the malicious software known as “SpyEye,” which, according to industry estimates, has infected over 1.4 million computers in the United States and abroad.
“As several recent and widely reported data breaches have shown, cyber-attacks pose a critical threat to our nation’s economic security,” said United States Attorney Sally Quillian Yates. “Today’s plea is a great leap forward in our campaign against those attacks. Panin was the architect of a pernicious malware known as ‘SpyEye’ that infected computers worldwide. He commercialized the wholesale theft of financial and personal information. And now he is being held to account for his actions. Cyber criminals be forewarned: you cannot hide in the shadows of the Internet. We will find you and bring you to justice.”
“Given the recent revelations of massive thefts of financial information from large retail stores across the country, Americans do not need to be reminded how devastating it is when cyber criminals surreptitiously install malicious codes on computer networks and then siphon away private information from unsuspecting consumers,” said Acting Assistant Attorney General Mythili Raman. “Today, thanks to the tireless work of prosecutors and law enforcement agents, Aleksandr Panin has admitted to his orchestration of this criminal scheme to use ‘SpyEye’ to invade the privacy of Americans by infecting their computers through a dangerous botnet. As this prosecution shows, cyber criminals – even when they sit on the other side of the world and attempt to hide behind online aliases – are never outside the reach of U.S. law enforcement.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation highlights the importance of the FBI’s focus on the top echelon of cyber criminals. The apprehension of Mr. Panin means that one of the world’s top developers of malicious software is no longer in a position to create computer programs that can victimize people around the world. Botnets such as SpyEye represent one of the most dangerous types of malicious software on the Internet today, which can steal people’s identities and money from their bank accounts without their knowledge. The FBI will continue working with partners domestically and internationally to combat cyber-crime."
According to United States Attorney Yates, the charges, and other information presented in court: SpyEye is a sophisticated malicious computer code that is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information. The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the infected computers through command and control (“C2”) servers. Once a computer is infected and under their control, cybercriminals can remotely access the infected computers, without authorization, and steal victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.” The victims’ stolen personal and financial data is then surreptitiously transmitted to the C2 servers, where it is used to steal money from the victims’ financial accounts.
Panin was the primary developer and distributor of the SpyEye virus. Operating from Russia from 2009 to 2011, Panin conspired with others, including codefendant Hamza Bendelladj, an Algerian national also known as “Bx1,” to develop, market, and sell various versions of the SpyEye virus and component parts on the Internet. Panin allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that targeted information about specific financial institutions including banks and credit card companies. Panin advertised the SpyEye virus on online, invite-only criminal forums. He sold versions of the SpyEye virus for prices ranging from $1,000 to $8,500. Panin is believed to have sold the SpyEye virus to at least 150 “clients,” who, in turn, used them to set up their own C2 servers. One of Panin’s clients, “Soldier,” is reported to have made over $3.2 million in a six-month period using the SpyEye virus.
According to industry estimates, the SpyEye virus has infected over 1.4 million computers in the United States and abroad and it was the preeminent malware toolkit used from approximately 2009 to 2011. Based on information received from the financial services industry, over 10,000 bank accounts have been compromised by SpyEye infections in 2013 alone. Some cyber criminals continue to use SpyEye today, although its effectiveness has been limited since software makers have added SpyEye to malicious software removal programs.
In February 2011, pursuant to a federal search warrant, the FBI searched and seized a SpyEye C2 server allegedly operated by Bendelladj in the Northern District of Georgia. That C2 server controlled over 200 computers infected with the SpyEye virus and contained information from numerous financial institutions.
In June and July 2011, FBI covert sources communicated directly with Panin, who was using his online nicknames “Gribodemon” and “Harderman,” about the SpyEye virus. FBI sources then purchased a version of SpyEye from Panin that contained features designed to steal confidential financial information, initiate fraudulent online banking transactions, install keystroke loggers, and initiate distributed denial of service (DDoS) attacks from computers infected with the SpyEye malware.
On December 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj. The indictment charged one count of conspiracy to commit wire and bank fraud, ten counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name.
Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Algeria. Bendelladj was extradited from Thailand to the United States on May 2, 2013. His charges are currently pending in the Northern District of Georgia.
Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport.The investigation also has led to the arrests by international authorities of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria.
On January 28, 2014, Panin pleaded guilty to conspiring to commit wire and bank fraud. Sentencing for Panin is scheduled for April 29, 2014 before United States District Judge Amy Totenberg.
The case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Scott Ferber of the Northern District of Georgia, Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Senior Litigation Counsel Carol Sipperly of the Criminal Division’s Fraud Section are prosecuting the case. Former Assistant United States Attorney Nicholas Oldham also participated in the prosecution while with the Criminal Division.Valuable assistance was provided by the Criminal Division’s Office of International Affairs and the following international law enforcement agencies: The United Kingdom’s National Crime Agency, the Royal Thai Police-Immigration Bureau, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria, and the Australian Federal Police (AFP).
Valuable assistance also was provided by the following private sector partners: Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Mandiant, Dell SecureWorks, Trusteer, and the Norwegian Security Research Team known as “Underworld.no”.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Crab Orchard Woman Pleads Guilty to Obtaining Powerful Painkillers with A Forged PrescriptionRead the Press Release
BECKLEY, W.Va. - United States Attorney Booth Goodwin announced today that Sherry Lively, 46 of Crab Orchard, West Virginia, pleaded guilty in federal court in Beckley to obtaining oxycodone painkillers by fraud. In July of 2013, Lively took a forged prescription for oxycodone to a local pharmacy. The prescription was forged by an individual who stole a script pad from a Beckley doctor. The pharmacy filled the forged prescription and gave Lively oxycodone pills that were not legitimately prescribed for her. Agents obtained a copy of the forged prescription from the pharmacy and were able to confirm that the doctor whose name was on the prescription had not signed it.
Lively faces up to four years’ imprisonment and a $250,000 fine. United States District Judge Irene Berger has scheduled the sentencing for May 15, 2014.
The DEA and Beckley Police Department handled the investigation.
Coin Dealer Formerly from Hackensack, N.J., Admits Filing A False Federal Income Tax ReturnRead the Press Release
NEWARK, N.J. – A former Hackensack, N.J., dealer in ancient coins today admitted filing a false federal income tax return for the 2006 tax year, U.S. Attorney Paul J. Fishman announced.
Gantcho Zagorski, 60, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to one count of aiding and assisting in the filing of a false tax return.According to documents filed in this case and statements made in court:
Zagorski owned and operated a business that sold ancient coins to domestic and international customers, primarily on the online auction site eBay, from his residence in Hackensack, N.J. Zagorski; his wife; and, at times, his daughter, operated the coin-selling business under the names “Diana Coins,” “Paganecoins,” and “Diana Coins LLC.”
Zagorski admitted he provided histax preparer with false and fraudulent information by substantially understating the amount of gross receipts and sales earned by his business and then caused to be filed with the IRS a false federal income tax return for 2006. Zagorski admitted the 2006 tax return claimed gross receipts and sales of $310,901 when, in fact, the business had generated more than $600,000 in gross receipts and sales for that year.
The tax count to which Zagorski pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2014.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, Newark Field Office; Department of Homeland Security, Homeland Security Investigations, New York, under the direction of Special Agent in Charge James T. Hayes Jr.; and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Maureen Nakly and Leslie Schwartz of the U.S. Attorney’s Office in Newark.
14-031Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
Zagorski, Gantcho Indictment
Chillicother Couple Indicted for False Tax Returns Related to Wife's $4 Million TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chillicothe, Mo., husband and wife were indicted by a federal grand jury today for filing a false income tax return by not claiming the income from a wire fraud scheme in which the wife embezzled nearly $4 million from her employer, Burdg, Dunham & Associates Construction Corp. in Hamilton, Mo.
Donna M. Preszler, 60, and her husband, Terrance W. Preszler, 63, both of Chillicothe, were charged in a 21-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces a federal indictment that was returned on June 20, 2013, and adds the husband as a defendant in one count of making a false income tax return.
Donna Preszler was employed at Burdg, Dunham & Associates (BDA) from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
The indictment alleges that Preszler embezzled $3,912,000 in a wire fraud scheme from June 30, 2006 through June 15, 2012. Preszler allegedly used her employer’s accounting software to create payroll data files that contained unauthorized false and fictitious payments to her bank accounts and others.
Today’s indictment alleges that Donna and Terrance Preszler failed to report the fraudulently obtained funds on their federal income tax returns for tax years 2007 through 2012. During that time, according to the indictment, the Preszlers should have paid $1,236,690 in taxes on their unreported fraudulent income from BDA.
For example, according to today’s indictment, the Preszlers claimed their income in 2012 was only $46,863. Including the embezzled funds, the indictment says, their income was actually $851,863 and they should have paid an additional $253,641 in taxes.
The federal indictment charges Donna Preszler with six counts of wire fraud and 14 counts of money laundering.
Donna Preszler allegedly utilized her role as accounting manager to add false and fictitious non-taxable pay, such as expense reimbursements to herself. Over a six-year period, the indictment says, Donna Preszler transferred approximately $3,912,000 in false and fictitious payments to herself and her family.
Donna Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll, the indictment says. Donna Preszler allegedly initiated approximately $76,000 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Donna Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
The indictment also contains a forfeiture allegation, which would require Preszler to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $3,912,000, two residential lots, two 14kt diamond rings, 10 vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2011 Ford F150, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank accounts and funeral trust accounts. Most of those items have been seized by law enforcement agents.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI and IRS-Criminal Investigation.
Charleston Methamphetamine Dealers Enter Federal Guilty PleaRead the Press Release
Dealers busted with two pounds of pure meth and more than $40,000 cash
Charleston, W.Va. – Richard Milton Hudson Riggal, 44, of Zephyrhills, Florida and Howard Leon Lykins, II, 49, of Charleston, West Virginia pleaded guilty today to methamphetamine trafficking charges before United States District Judge John T. Copenhaver, Jr., announced U.S. Attorney Booth Goodwin.
On July 2, 2013 detectives from the Metropolitan Drug Enforcement Network Team (MDENT) searched Lykins’ Stone Acres Drive residence. Riggall was present at the residence when officers arrived. Officers found methamphetamine, digital scales, two firearms, and $41,490.00 in cash in Riggall’s luggage. Police seized additional methamphetamine, firearms, and money from the house.
Police executed a second search warrant at another Kanawha County residence associated with the conspiracy, where they seized more than 900 grams of high-purity “Ice” methamphetamine . Riggall admitted he had brought the Ice from Florida to West Virginia to sell.
Riggall pleaded guilty to possession with intent to distribute methamphetamine. Lykins pleaded guilty to maintaining a residence for drug purposes.
Both men face up to 20 years in federal prison when they are sentenced on April 29, 2014.
MDENT and the DEA Task Force conducted the investigation. Assistant U.S. Attorney Joshua Hanks is in charge of the prosecution.
Camden, N.J., Man Sentenced to 100 Months in Prison for Conspiracy to Steal Checks from MailRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 100 months in prison for his role in a scheme in which he and others stole business checks from the mail in New Jersey and Connecticut, altered them and cashed them through a series of conspirators, U.S. Attorney Paul J. Fishman announced.
Michael A. Ingalls, Jr., 36, previously pleaded guilty before Chief U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to commit bank fraud and one count of possession of stolen mail. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From September 2010 through January 2012, Ingalls and others stole mail containing checks from businesses in Burlington, Camden and Gloucester counties in New Jersey. Ingalls and his conspirators – including Ibn Muhammad, 35, of Camden – would recruit conspirators to cash the stolen checks, altering the name of the payee on the check to match the name of the recruit. Ingalls, Muhammad and the check casher would then travel to a bank to cash the check.
Ingalls, Muhammad and their conspirators cashed or attempted to cash more than 100 stolen and altered business checks worth more than $600,000. The scheme resulted in a total loss of more than $300,000 to the victim banks.
In addition to the prison term, Judge Simandle sentenced Ingalls to serve five years of supervised release and ordered him to pay $361,955.04 in restitution.
Muhammad pleaded guilty to bank fraud and theft of mail and was sentenced to 135 months in prison on July 15, 2013. One of Ingalls’ and Muhammad’s conspirators, Andrew Fortune, 62, of Camden, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 21 months in prison on Dec. 11, 2013.
U.S. Attorney Fishman credited special agents from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates in Newark, and troopers from the New Jersey State Police, under the direction of Col. Rick Fuentes, with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Dennis Wixted Esq., CamdenBranford Man Sentenced to Four Years in Prison for Defrauding Investors of More Than $5 MillionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN JOSE ALVAREZ DE LUGO AZPURUA, 54, of Branford, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for operating a real estate investment scheme that defrauded individuals out of more than $5 million.
According to court documents and statements made in court, ALVAREZ DE LUGO, who held himself out as the president of multiple successful businesses specializing in real estate development programs, represented to victim investors that his business was acquiring houses from the City of New Haven and from local banks. Investors were told that invested funds would be used to remodel the houses, which would then be sold. At times, ALVAREZ DE LUGO represented to victim investors that he was working jointly with New Haven on the Livable City Initiative, and he stated that the remodeled homes would be used and occupied by low income families that secured financing from a local bank and State of Connecticut agencies. ALVAREZ DE LUGO also told investors that he was developing a senior housing facility in New Haven. He also provided investors with Promissory Notes and other documentation that promised to pay investors interest of 20 percent per year, and a full return of principal in one year.
ALVAREZ DE LUGO has admitted that these representations were false, and that he did not invest his victims’ money as promised. He did not own and develop the large number of properties he represented to investors, and he had no relationship with the City of New Haven or the State of Connecticut.
Between approximately 2005 and 2010, ALVAREZ DE LUGO defrauded approximately 30 victims out of more than $5 million. He spent investment money on his own personal expenses, including improving his Branford residence with a swimming pool and backyard patio, and to pay his children’s school and college tuition.
ALVAREZ DE LUGO was ordered to pay restitution in the amount of $5,161,083.
ALVAREZ DE LUGO has been detained since his arrest on January 18, 2013. On September 18, 2013, he pleaded guilty to one count of wire fraud.
ALVAREZ DE LUGO’s three companies, Arquin Decoraciones LLC, Arquin Development LLC, and Juko Investments, LLC, and the investment instruments he provided, were never registered with the Securities and Exchange Commission or Connecticut Department of Banking.
This matter was investigated by the Federal Bureau of Investigation with the assistance of the State of Connecticut Department of Banking. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
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[email protected]Beckley Man Pleads Guilty to Obtaining Powerful Painkillers with A Forged PrescriptionRead the Press Release
BECKLEY, W.Va. - United States Attorney Booth Goodwin announced today that Justin Woodie, 22, of Beckley, West Virginia, pleaded guilty in federal court in Beckley to obtaining oxycodone painkillers by fraud. In July of 2013, Woodie attempted to obtain oxycodone pills from a local pharmacy using a forged prescription. The prescription had been forged by an individual who stole a script pad from a Beckley doctor. The pharmacy filled the forged prescription and gave Woodie oxycodone pills that were not legitimately prescribed for him. Agents obtained a copy of the forged prescription from the pharmacy and were able to confirm that the doctor whose name was on the prescription had not signed it.
Woodie faces up to four years’ imprisonment and a $250,000 fine. United States District Judge Irene Berger has scheduled the sentencing for May 15, 2014.
The DEA and Beckley Police Department handled the investigation.
Attorney General Holder Appoints Eight New U.S. Attorneys to Advisory CommitteeRead the Press Release
Attorney General Eric Holder today announced the appointment of the following eight U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee (AGAC): A ndré Birotte Jr., Central District of California; Thomas E. Delahanty II, District of Maine; Zachary T. Fardon, Northern District of Illinois; Wifredo A. Ferrer, Southern District of Florida; Kerry B. Harvey, Eastern District of Kentucky; Zane D. Memeger, Eastern District of Pennsylvania; Tim Q. Purdon, District of North Dakota; and Sarah R. Saldaña, Northern District of Texas.
“In the face of daunting staff and resource constraints, our U.S. Attorneys’ Offices are performing tremendous work in their districts across the country, standing on the front lines of federal law enforcement efforts,” said Attorney General Holder. “Each of the U.S. Attorneys who serves on the Attorney General’s Advisory Committee plays an indispensable role in guiding the Justice Department’s work as we confront a range of challenging issues and opportunities. I welcome the eight new members of the AGAC I’ve chosen to appoint today, and look forward to working closely with them to take fresh, and smart, approaches to fighting crime and achieving justice across the nation.”
The Attorney General also thanked the following U.S. Attorneys who have completed their two-year terms and are rotating off the committee: Laura E. Duffy, Southern District of California; Timothy J. Heaphy, Western District of Virginia; Brendan V. Johnson, District of South Dakota; Pamela C. Marsh, Northern District of Florida; Carmen M. Ortiz, District of Massachusetts; Robert L. Pitman, Western District of Texas; James Santelle, Eastern District of Wisconsin; Carter M. Stewart, Southern District of Ohio.
Chaired by U.S Attorney for the Eastern District of New York Loretta E. Lynch, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
A brief bio on each new appointee is below:
A ndré Birotte Jr. was presidentially appointed and sworn in as the U.S. Attorney for the Central District of California on March 4, 2010. He previously served as the Inspector General for the Los Angeles Police Commission from 2003 to 2010 and as an Assistant Inspector General from 2001 to 2003. From 1995 to 1999, Birotte served as an Assistant United States Attorney for the Central District of California. He started his legal career as a Deputy Public Defender in the Los Angeles County Public Defender’s Office from 1991 to 1995. Birotte serves as Co-Chair of the AGAC’s Terrorism/National Security Subcommittee, and as a member of the Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Cyber/Intellectual Property Subcommittee, Violent and Organized Crime Subcommittee and White Collar/Fraud Subcommittee.
Thomas E. Delahanty II was presidentially appointed and sworn in as the U.S. Attorney for the District of Maine on July 1, 2010. Prior to his appointment, he served as a Justice for the Maine Superior Court for more than 26 years, and as Chief Justice from 1990 until 1995. From 1981 until 1983, he was a partner in the firm Delahanty & Longley. He previously served as the U.S. Attorney for the District of Maine from 1980 to 1981. Prior to this, Delahanty served as a District Attorney for Prosecutorial District 3 for Androscoggin, Franklin and Oxford Counties (1975 to 1980); as a County Attorney and Assistant County Attorney with the Androscoggin County Attorney’s Office (1971 to 1975); and as an associate at Marshall, Raymond & Beliveau (1970 to 1974). Delahanty serves as Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group, as a member of the AGAC’s Medical Marijuana Working Group and the AGAC’s Border and Immigration Law Enforcement Subcommittee, and as a participant in the department’s Arab American and Muslim Outreach Program.
Zachary T. Fardon was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Illinois on Oct. 23, 2013. Prior to his appointment, Fardon was a partner at the law firm of Latham & Watkins where he served as the Chair of the Litigation Department in their Chicago office. Previously, Fardon served as the First Assistant United States Attorney in the Middle District of Tennessee from 2003 to 2006 and as an Assistant United States Attorney in the Northern District of Illinois from 1997 to 2003. He began his legal career working as an Assistant Public Defender in the Nashville Metropolitan Public Defender’s Office from 1996 to 1997 and as an associate at the law firm of King & Spalding from 1992 to 1996.
Wifredo A. Ferrer was presidentially appointed and sworn in as the U.S. Attorney for the Southern District of Florida on May 4, 2010. Ferrer previously served as an Assistant County Attorney and as Chief of the Federal Litigation Section in the Miami-Dade County’s Attorney’s Office from 2006 to 2010. From 2000 until 2006, he was an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of Florida. While at the U.S. Attorney's Office, he served in the Public Integrity and National Security Section, the Economic Crimes Section, the Major Crimes Section, and the Appellate Division of the Office. Prior to that, he had been Counsel and Deputy Chief of Staff to the United States Attorney General from 1995 to 2000. From 1994 to 1995, Ferrer was a White House Fellow and Special Assistant to the United States Secretary of Housing and Urban Development. From 1991 to 1994, he had been a Litigation Associate with Steel Hector & Davis in Miami, Florida. From 1990 until 1991, Ferrer was a law clerk to then- District (now 11th Circuit) Judge Stanley Marcus. Ferrer serves as Vice Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group.
Kerry B. Harvey was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Kentucky on May 14, 2010. Harvey previously served as the General Counsel and Acting Inspector General of the Kentucky Cabinet for Health and Family Services from 2008 to 2010. He was a partner at Owen, Harvey, and Carter from 1991 to 2008; at Prince, Harvey, Brien & Carter from 1986 to 1991; and at Prince & Harvey from 1984 to 1986. Mr. Harvey worked as the Marshall County, Kentucky, Attorney from 1986 to 1994. He began his legal career as an associate at Brown, Todd & Heyburn from 1982 to 1984. Harvey serves as a member of the AGAC’s Health Care Fraud Working Group.
Zane David Memeger was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Pennsylvania on May 10, 2010. Prior to his appointment, Memeger was a Partner at Morgan, Lewis & Bockius, LLP from 2006 to 2010. Previously, Memeger had served as an Assistant United States Attorney in the United States Attorney’s Office for the Eastern District of Pennsylvania from 1995 until 2006. From 1991 until 1995, Memeger was an Associate at Morgan, Lewis & Bockius, LLP. Memeger serves as a member of the AGAC’s Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee, Violent and Organized Crime Subcommittee, White Collar/Fraud Subcommittee and Health Care Fraud Working Group.
Timothy Q. Purdon was presidentially appointed and sworn in as the U.S. Attorney for the District of North Dakota on August 24, 2010. Prior to his appointment, Purdon was a partner at Vogel Law Firm from 2005 to 2010; prior to his promotion he also served as an associate at the firm. From 1996 until 2001, Purdon worked as an associate at Dickson & Purdon, and he became a partner in the firm in 2001. From 1995 through 1996, he was an associate at Olson & Cichy. Purdon has also served as a law clerk for the Honorable Bruce M. Van Sickle of the United States District Court for the District of North Dakota. Purdon serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Native American Issues Subcommittee, Environmental Issues Working Group, and Local Government Coordination Working Group.
Sarah R. Saldaña was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Texas on Sept. 29, 2011. She previously served as an Assistant United States Attorney for the Northern District of Texas since 2004, serving as Deputy Criminal Chief for Fraud and Public Corruption since 2009. Ms. Saldaña was an attorney for Baker Botts, L.L.P, from 1987 to 1998, and Haynes Boone from 1985 to 1987. Following law school, she served as a judicial clerk to the Honorable Barefoot Sanders, U.S. District Court Judge for the Northern District of Texas, from 1984 to 1985. Saldaña serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee and White Collar/Fraud Subcommittee.
The full AGAC membership is listed below:
Loretta E. Lynch, United States Attorney, Eastern District of New York, ChairSally Quillian Yates, United States Attorney, Northern District of Georgia, Vice Chair
David Barlow, United States Attorney, District of Utah
Andre Birotte Jr. – Central District of California
Thomas E. Delahanty II – District of Maine
Zachary T. Fardon – Northern District of Illinois
Wifredo A. Ferrer – Southern District of Florida
Richard S. Hartunian, United States Attorney, Northern District of New York
Kerry B. Harvey – Eastern District of Kentucky
Barbara L. McQuade, United States Attorney, Eastern District of Michigan
Zane D. Memeger – Eastern District of Pennsylvania
Wendy J. Olson, United States Attorney, District of Idaho
Timothy Q. Purdon – District of North Dakota
Sarah R. Saldan͂a – Northern District of Texas
Ronald W. Sharpe, United States Attorney, District of the Virgin Islands
Anne Tompkins, United States Attorney, Western District of North Carolina
Ronald C. Machen, United States Attorney, District of Columbia, ex officio
Daniel Bella, Criminal Chief, Northern District of Indiana, ex officio
Suzanne Bauknight, Civil Chief, Eastern District of Tennessee, ex officio
Robert Zauzmer, Appellate Chief, Eastern District of Pennsylvania, ex officio
Attorney General Holder Appoints Eight New U.S. Attorneys to Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Eric Holder today announced the appointment of the following eight U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee (AGAC): André Birotte Jr., Central District of California; Thomas E. Delahanty II, District of Maine; Zachary T. Fardon, Northern District of Illinois; Wifredo A. Ferrer, Southern District of Florida; Kerry B. Harvey, Eastern District of Kentucky; Zane D. Memeger, Eastern District of Pennsylvania; Tim Q. Purdon, District of North Dakota; and Sarah R. Saldaña, Northern District of Texas.
“In the face of daunting staff and resource constraints, our U.S. Attorneys’ Offices are performing tremendous work in their districts across the country, standing on the front lines of federal law enforcement efforts,” said Attorney General Holder. “Each of the U.S. Attorneys who serves on the Attorney General’s Advisory Committee plays an indispensable role in guiding the Justice Department’s work as we confront a range of challenging issues and opportunities. I welcome the eight new members of the AGAC I’ve chosen to appoint today, and look forward to working closely with them to take fresh, and smart, approaches to fighting crime and achieving justice across the nation.”
The Attorney General also thanked the following U.S. Attorneys who have completed their two-year terms and are rotating off the committee: Laura E. Duffy, Southern District of California; Timothy J. Heaphy, Western District of Virginia; Brendan V. Johnson, District of South Dakota; Pamela C. Marsh, Northern District of Florida; Carmen M. Ortiz, District of Massachusetts; Robert L. Pitman, Western District of Texas; James Santelle, Eastern District of Wisconsin; Carter M. Stewart, Southern District of Ohio.
U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, said, “I am honored by the Attorney General’s appointment. It is an extraordinary privilege and I look forward to serving the United States in this expanded role.”
Chaired by U.S Attorney for the Eastern District of New York Loretta E. Lynch, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
A brief bio on each new appointee is below:
André Birotte Jr. was presidentially appointed and sworn in as the U.S. Attorney for the Central District of California on March 4, 2010. He previously served as the Inspector General for the Los Angeles Police Commission from 2003 to 2010 and as an Assistant Inspector General from 2001 to 2003. From 1995 to 1999, Birotte served as an Assistant United States Attorney for the Central District of California. He started his legal career as a Deputy Public Defender in the Los Angeles County Public Defender’s Office from 1991 to 1995. Birotte serves as Co-Chair of the AGAC’s Terrorism/National Security Subcommittee, and as a member of the Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Cyber/Intellectual Property Subcommittee, Violent and Organized Crime Subcommittee and White Collar/Fraud Subcommittee.
Thomas E. Delahanty II was presidentially appointed and sworn in as the U.S. Attorney for the District of Maine on July 1, 2010. Prior to his appointment, he served as a Justice for the Maine Superior Court for more than 26 years, and as Chief Justice from 1990 until 1995. From 1981 until 1983, he was a partner in the firm Delahanty & Longley. He previously served as the U.S. Attorney for the District of Maine from 1980 to 1981. Prior to this, Delahanty served as a District Attorney for Prosecutorial District 3 for Androscoggin, Franklin and Oxford Counties (1975 to 1980); as a County Attorney and Assistant County Attorney with the Androscoggin County Attorney’s Office (1971 to 1975); and as an associate at Marshall, Raymond & Beliveau (1970 to 1974). Delahanty serves as Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group, as a member of the AGAC’s Medical Marijuana Working Group and the AGAC’s Border and Immigration Law Enforcement Subcommittee, and as a participant in the department’s Arab American and Muslim Outreach Program.
Zachary T. Fardon was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Illinois on Oct. 23, 2013. Prior to his appointment, Fardon was a partner at the law firm of Latham & Watkins where he served as the Chair of the Litigation Department in their Chicago office. Previously, Fardon served as the First Assistant United States Attorney in the Middle District of Tennessee from 2003 to 2006 and as an Assistant United States Attorney in the Northern District of Illinois from 1997 to 2003. He began his legal career working as an Assistant Public Defender in the Nashville Metropolitan Public Defender’s Office from 1996 to 1997 and as an associate at the law firm of King & Spalding from 1992 to 1996.
Wifredo A. Ferrer was presidentially appointed and sworn in as the U.S. Attorney for the Southern District of Florida on May 4, 2010. Ferrer previously served as an Assistant County Attorney and as Chief of the Federal Litigation Section in the Miami-Dade County’s Attorney’s Office from 2006 to 2010. From 2000 until 2006, he was an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of Florida. While at the U.S. Attorney's Office, he served in the Public Integrity and National Security Section, the Economic Crimes Section, the Major Crimes Section, and the Appellate Division of the Office. Prior to that, he had been Counsel and Deputy Chief of Staff to the United States Attorney General from 1995 to 2000. From 1994 to 1995, Ferrer was a White House Fellow and Special Assistant to the United States Secretary of Housing and Urban Development. From 1991 to 1994, he had been a Litigation Associate with Steel Hector & Davis in Miami, Florida. From 1990 until 1991, Ferrer was a law clerk to then- District (now 11th Circuit) Judge Stanley Marcus. Ferrer serves as Vice Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group.
Kerry B. Harvey was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Kentucky on May 14, 2010. Harvey previously served as the General Counsel and Acting Inspector General of the Kentucky Cabinet for Health and Family Services from 2008 to 2010. He was a partner at Owen, Harvey, and Carter from 1991 to 2008; at Prince, Harvey, Brien & Carter from 1986 to 1991; and at Prince & Harvey from 1984 to 1986. Mr. Harvey worked as the Marshall County, Kentucky, Attorney from 1986 to 1994. He began his legal career as an associate at Brown, Todd & Heyburn from 1982 to 1984. Harvey serves as a member of the AGAC’s Health Care Fraud Working Group.
Zane David Memeger was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Pennsylvania on May 10, 2010. Prior to his appointment, Memeger was a Partner at Morgan, Lewis & Bockius, LLP from 2006 to 2010. Previously, Memeger had served as an Assistant United States Attorney in the United States Attorney’s Office for the Eastern District of Pennsylvania from 1995 until 2006. From 1991 until 1995, Memeger was an Associate at Morgan, Lewis & Bockius, LLP. Memeger serves as a member of the AGAC’s Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee, Violent and Organized Crime Subcommittee, White Collar/Fraud Subcommittee and Health Care Fraud Working Group.
Timothy Q. Purdon was presidentially appointed and sworn in as the U.S. Attorney for the District of North Dakota on August 24, 2010. Prior to his appointment, Purdon was a partner at Vogel Law Firm from 2005 to 2010; prior to his promotion he also served as an associate at the firm. From 1996 until 2001, Purdon worked as an associate at Dickson & Purdon, and he became a partner in the firm in 2001. From 1995 through 1996, he was an associate at Olson & Cichy. Purdon has also served as a law clerk for the Honorable Bruce M. Van Sickle of the United States District Court for the District of North Dakota. Purdon serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Native American Issues Subcommittee, Environmental Issues Working Group, and Local Government Coordination Working Group.
Sarah R. Saldaña was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Texas on Sept. 29, 2011. She previously served as an Assistant United States Attorney for the Northern District of Texas since 2004, serving as Deputy Criminal Chief for Fraud and Public Corruption since 2009. Ms. Saldaña was an attorney for Baker Botts, L.L.P, from 1987 to 1998, and Haynes Boone from 1985 to 1987. Following law school, she served as a judicial clerk to the Honorable Barefoot Sanders, U.S. District Court Judge for the Northern District of Texas, from 1984 to 1985. Saldaña serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee and White Collar/Fraud Subcommittee.
The full AGAC membership is listed below:
Loretta E. Lynch, United States Attorney, Eastern District of New York, Chair
Sally Quillian Yates, United States Attorney, Northern District of Georgia, Vice Chair
David Barlow, United States Attorney, District of Utah
Andre Birotte Jr. – Central District of California
Thomas E. Delahanty II – District of Maine
Zachary T. Fardon – Northern District of Illinois
Wifredo A. Ferrer – Southern District of Florida
Richard S. Hartunian, United States Attorney, Northern District of New York
Kerry B. Harvey – Eastern District of Kentucky
Barbara L. McQuade, United States Attorney, Eastern District of Michigan
Zane D. Memeger – Eastern District of Pennsylvania
Wendy J. Olson, United States Attorney, District of Idaho
Timothy Q. Purdon – District of North Dakota
Sarah R. Saldan͂a – Northern District of Texas
Ronald W. Sharpe, United States Attorney, District of the Virgin Islands
Anne Tompkins, United States Attorney, Western District of North Carolina
Ronald C. Machen, United States Attorney, District of Columbia, ex officio
Daniel Bella, Criminal Chief, Northern District of Indiana, ex officio
Suzanne Bauknight, Civil Chief, Eastern District of Tennessee, ex officio
Robert Zauzmer, Appellate Chief, Eastern District of Pennsylvania, ex officioArmy Contracting Official Charged in Pentagon Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was arrested today and charged with soliciting bribes from executives working for a private company on a contract that Warner managed out of the Pentagon.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, 701st Military Police Group, U.S. Army Criminal Investigation Command, made the announcement after Warner’s initial appearance before U.S. Magistrate Judge John F. Anderson.
Warner faces a maximum penalty of 15 years in prison and up to a $1.5 million fine, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
According to the affidavit in support of the criminal complaint, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million. At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cellular telephone, which was passed around the table. As the affidavit alleges, Warner then passed a menu to the two executives. Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed. According to the affidavit, the Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents. Acting at the direction of law enforcement, a Company A executive then met with Warner on four subsequent occasions, paying Warner a total of $50,000 cash bribes out of the total $500,000 solicited by Warner.
This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Mark D. Lytle and Kosta S. Stojilkovic are prosecuting the case on behalf of the United States.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-mj-39.Tweet
Albuquerque Man Pleads Guilty to Robbing Wells Fargo Bank Branch at Gunpoint in September 2013Read the Press Release
ALBUQUERQUE – Mariano H. Herrera, 59, of Albuquerque, N.M., pleaded guilty this morning to armed bank robbery and firearms charges, and admitted robbing the Wells Fargo Bank branch located on 3401 Coors Blvd. NW, in Albuquerque at gunpoint on Sept. 20, 2013. Herrera entered his guilty plea without the benefit of a plea agreement.
Herrera was arrested on Sept. 20, 2013, and charged in a criminal complaint with armed bank robbery. In Oct. 2013, Herrera was indicted and charged with armed bank robbery and using a firearm in relation to a crime of violence.
Court filings reflect that on Sept. 20, 2013, a man wearing a ski mask entered the bank and drew a handgun from his pants. The masked man brandished the handgun at two bank tellers and demanded that they give him all their money. After the two tellers handed currency to the robber, he left the bank on foot and ran around the building where he got into a pickup truck. Two bank customers, who followed the robber and watched him get into the truck, called “911” and provided the truck’s license plate number.
Deputies of the Bernalillo County Sheriff’s Office proceeded to Herrera’s residence, which was listed as the address for the registered owner of the truck. The deputies arrested Herrera after one of the bank customers positively identified him as the bank robber having seen Herrera’s face as he pulled off the ski mask as he drove away from bank. Herrera then led the deputies to a toolbox that contained Herrera’s handgun and almost all the money Herrera stole from the bank.
Herrera has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Herrera faces a maximum penalty of 25 years in prison on the armed bank robbery conviction and a mandatory minimum seven years in prison on the firearms conviction which must be served consecutive to the sentence imposed on the armed bank robbery charge.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Monday 27 January 2014
Winchester Man Sentenced to 20 Years for Distributing Heroin Resulting in DeathRead the Press Release
LEXINGTON, KY -A Winchester, KY., man, previously convicted of distributing heroin to an individual who died of an overdose, was sentenced today to 20 years in federal prison.
Senior U.S. District Judge Joseph M. Hood sentenced Harold Wayne Salyers, 53, for distribution of heroin resulting in death, conspiracy to distribute heroin, possession with intent to distribute heroin and distribution of heroin. Under federal law, Salyers will have to serve at least 85 percent of his prison sentence. A federal jury convicted Salyers in October 2013 following two days of trial.
According to the evidence at trial, in August of 2012, Salyers distributed a large quantity of heroin to an individual in Clark County. This individual used the heroin, overdosed, and died. The evidence further established that three other individuals witnessed the victim ingest the heroin and, the day after the victim died, Salyers admitted to one of the witnesses, in a recorded conversation, that he had distributed the heroin to the victim.
An expert from the Medical Examiner’s Office and a toxicologist testified that the death was caused by the toxic effects of heroin in the victim’s body. The evidence established that Salyers had conspired with others to distribute heroin, in Clark County, from approximately August 2012 until June 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration; and Kevin Palmer, Chief, Winchester Police Department, jointly made the announcement today.
The investigation was conducted by the DEA and the Winchester Police Department. Assistant U.S. Attorney Todd Bradbury prosecuted the case for the U.S. Attorneys’ Office on behalf of the federal government.
Waterbury Man Sentenced to More Than Eight Years in Prison for Robbing Banks in Waterbury and New BritainRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICTOR RAMOS, 32, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 102 months of imprisonment, followed by three years of supervised release, for robbing banks in Waterbury and New Britain.
According to court documents and statements made in court, on February 1, 2013, RAMOS, Jose Rivera and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RAMOS, Rivera and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319. RAMOS carried a loaded firearm during both robberies and, during the Waterbury robbery, Rivera physically assaulted a customer causing her injuries.
RAMOS and Rivera also violently stole $100 from a small business in Waterbury on January 28, 2013. During this robbery, RAMOS twice used a Taser on a victim.
RAMOS has been detained since his arrest on June 5, 2013. On August 19, 2013, he pleaded guilty to one count of bank robbery.
Rivera pleaded guilty to the same charge and, on October 30, 2013, he was sentenced to 117 months of imprisonment.
This matter is being investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Virginia Man Sentenced to Four Years in Prison for Traveling to Engage in Illicit Sexual Conduct and Possession of Child PornographyRead the Press Release
WASHINGTON - Kaylan Joseph Cureton, 25, of Richmond, Va., was sentenced today to four years in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI's Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cureton pled guilty in August 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, Cureton will be required to serve six months of home confinement. He also will be placed on 10 years of supervised release and must register as a sex offender for 15 years.
According to the government's evidence, on May 24, 2012, Cureton contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site. Over the next several days, Cureton engaged in online email, instant message, text message and telephone conversations with the undercover officer, whom Cureton believed was the father of an under-aged child. During this period of time, Cureton arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. He traveled from Richmond to a pre-arranged meeting place in Washington, D.C., where he was arrested.
Upon execution of a search warrant on Cureton=s residence, members of the FBI=s Child Exploitation Task Force recovered a USB drive containing numerous videos of child pornography.
This case was brought as part of the Department of Justice’s Project Safe Childhood initiative and investigated by the FBI’s Child Exploitation Task Force, which includes members of the FBI’s Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-023Virginia Businessman Sentenced to 46 Months in Prison for Role in Contracting Scheme Involving U.S. ArmyDefendant Provided Money to Army Official, Paid for Trips, Luxury Vehicles, and Other Things of ValueRead the Press Release
WASHINGTON - Oh Sung Kwon, 48, a Northern Virginia businessman, was sentenced today to 46 months in prison on federal charges stemming from a bribery scheme in which he paid thousands of dollars to an Army official in return for government contracts, as well as a separate scheme involving fraudulent real estate sales and refinances.
Kwon, also known as Thomas Kwon, of Vienna, Va., pled guilty in September 2012 in the U.S. District Court for the District of Columbia to one count each of bribery, conspiracy to commit bank fraud and willful failure to file a tax return. He was sentenced by the Honorable Emmet G. Sullivan. Judge Sullivan also ordered Kwon to pay $1,188,500 in restitution and the same amount in a forfeiture money judgment. Upon completion of his prison term, Kwon will be placed on three years of supervised release.
Kwon was the co-founder and chief executive officer of Avenciatech, Inc., a government contractor based in Annandale, Va. He is among 17 people and one corporation that pled guilty to federal charges for their roles in the largest domestic bribery and bid-rigging scheme in the history of federal contracting. The investigation is continuing.
The plea was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to a statement of offense, signed by the government and the defendant, Kwon learned of a contract-steering scheme from two business contacts: Alex N. Cho, who was then the chief technology officer for Nova Datacom, LLC, and a second Nova Datacom employee. This scheme involved contracts and subcontracts awarded through the U.S. Army Corps of Engineers in return for hundreds of thousands of dollars in payments to Kerry F. Khan. At the time, Khan was a program manager at the Army Corps of Engineers.
Kwon’s role in the scheme involving the Army Corps of Engineers included Kwon arranging for Cho and another Nova Datacom employee to exchange checks for approximately $700,000 in cash, which was paid to Khan in exchange for government contracts. Kwon later attempted to obstruct the resulting criminal investigation by destroying evidence. However, he also disclosed to law enforcement authorities the efforts by Cho and another Nova Datacom employee to obstruct the criminal investigation, including Cho’s attempts while wearing a recording device to prevent Kwon from making incriminating statements.
Kwon learned of a second, similar scheme involving another business contact: Nick Park, a former Nova Datacom employee who was then the president of Unisource Enterprise Inc. Kwon learned through Park that he had obtained a subcontract for his company by agreeing to pay bribes to a person identified in court documents as “Public Official C.” This official, based at the time in Seoul, South Korea, was an assistant project manager for the U.S. Army who had responsibilities for a major contract.
In or about February 2009, Kwon traveled to South Korea to meet “Public Official C.” In exchange for an undisclosed ownership interest in Avenciatech, “Public Official C” agreed to use his official position to steer subcontracts from the Army to Avenciatech. Plans later called for “Public Official C” to have a 40 percent ownership interest in the company.
In September 2009, Avenciatech obtained an Army subcontract in the amount of $366,844. However, Army change orders later increased the value of this subcontract to $1,913,059. Avenciatech also obtained a second contract in February 2011, in the amount of $551,093. Change orders later increased its value to $1,413,513.
In exchange for the official assistance of “Public Official C,” Kwon made a series of bribe payments. They included cash payments; payments for hotel stays for “Public Official C” and family members, including a trip to the Atlantis resort in the Bahamas; payments to finance the purchase of a 2010 Lexus automobile, and payments for other things of value.
Kwon also assisted “Public Official C” in obtaining financing for the purchase of a home in Fairfax Station, Va., where “Public Official C” resided following his reassignment in 2010 to a position at Fort Belvoir. “Public Official C” wanted to make a $230,000 down payment on the home purchase but did not want to face questions about the source of the money in “Public Official C’s” bank account. Instead “Public Official C” transferred the $230,000 to an account of an Avenciatech employee, Helen Woo. Kwon caused Woo, in turn to execute a phony “gift letter” claiming that she was “Public Official C’s” cousin and that she was providing the $230,000 to a settlement company for the home purchase.
Kwon also pled guilty and was sentenced today on charges in a separate scheme involving bank fraud. In addition to running Avenciatech, Kwon was the operations manager for Onyx Financial Services, a mortgage broker based in Annandale. He admitted involvement in at least six fraudulent real estate sales and refinances in northern Virginia, with loan amounts of about $1.8 million. Finally, Kwon pled guilty and was sentenced today for the willful failure to file a tax return. This charge involved his 2010 income tax return.
Cho, Khan, Park and Woo are among those pleading guilty in the case.
Cho pled guilty to one count of conspiracy to commit bribery, money laundering, and wire fraud, and to defraud the United States, and one count of bribery. Khan pled guilty to one count each of bribery and conspiracy to commit money laundering. Park pled guilty to two counts of bribery. Woo pled guilty to a misdemeanor fraud charge for her role in the home financing scheme.
Khan was sentenced to 19 years and seven months in prison. Woo was sentenced to two years of probation. Cho and Park are awaiting sentencing.
In announcing Kwon’s sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge Kelly, Inspector General Gustafson, Special Agent in Charge Craig, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Bryan Seeley of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Lenisse Edloe, Shanna Hays, Taryn McLaughlin, Sarah Reis, Christopher Samson, and Nicole Wattelet, and Legal Assistants Krishawn Graham and Jessica McCormick.
14-024
Two Mexican Mafia Members Guilty of Federal Racketeering Charges in Crackdown Targeting Ontario Street GangRead the Press Release
RICO Case Has Led to Conviction of 59 Linked to Black Angels Gang, including the gang’s enforcers, female associates and drug dealers who were paying ‘rent’
LOS ANGELES – Two members of the Mexican Mafia prison gang were found guilty this afternoon of federal racketeering charges for overseeing the conduct of the main street gang in Ontario, a criminal enterprise that was responsible for numerous violent crimes and widespread drug trafficking.
The convictions of the two leaders of the Black Angels gang stem from an indictment that charged violations of the Racketeer Influenced Corrupt Organizations (RICO) Act. In addition to the RICO charges, the indictment alleges violent crimes in aid of racketeering, conspiracies to distribute heroin and methamphetamine, and firearms violations.
Following a nine-day trial, a federal jury convicted the lead defendant in the racketeering case – Armando “Mando” Barajas, a 50-year-old Mexican Mafia member who resides in Pomona. Barajas controlled the gang’s activities, including the narcotics distribution activities in the gang's territory.
Another Mexican Mafia member – Juan “Nito” Gil, 43, who was serving a 10-year prison term when he was indicted in 2010 – was also found guilty today by a jury that determined he exercised control of gang activities by communicating directions through others linked to the gang.
“Gang violence takes a heavy toll on too many of our neighborhoods,” said United States Attorney André Birotte Jr. “Today’s verdicts demonstrate once again that the gang leaders and shot-callers responsible for that violence will be held accountable for their criminal conduct. The United States Attorney’s Office will continue to work with our federal and local partners to protect the residents Southern California and make our communities safe.”
The Black Angels is a multi-generational Latino street gang that claimed a portion of city of Ontario as its turf. The Black Angels’ main criminal activity is the distribution of narcotics, specifically methamphetamine and heroin. Leaders of the gang extorted drug dealers, who, in exchange for paying “taxes” or “rent,” were allowed to operate in gang-controlled territory. The gang’s drug trafficking activities extended to smuggling narcotics into prisons for use by incarcerated Mexican Mafia and Black Angels members.
Ontario Police Department’s Chief Eric Hopley said he was “extremely pleased” when informed of today’s guilty verdicts. “This was a huge case for us that involved scores of investigators and hundreds of man hours. The guilty verdicts are good news for both law enforcement and the citizens of Ontario. This investigation is another example of the success that can be accomplished when federal and local law enforcement agencies work together to reach a common goal.”
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration and the Ontario Police Department. The Inland Empire-based task force operates within the High-Intensity Drug Trafficking Area (HIDTA) program, and includes agents and officers from DEA, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement, the San Bernardino Sheriff’s Department, the Riverside Sheriff’s Department, and the Riverside Police Department.
Release No. 14-011
Trifon Pineda Sentenced in District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant Trifon Pineda, age 44, was sentenced on January 16, 2014, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood. Pineda was sentenced to 55 months imprisonment, five years supervised release, ordered to pay a $100 assessment fee, and subject being deported.
Defendant and his co-defendant, Les Vitug, were arrested on a complaint on March 20, 2011. On March 23, 2011 the grand jury indicted the defendants for conspiracy to distribute more than 50 grams of methamphetamine and attempted possession with intent to distribute methamphetamine. On March 6, 2011, postal inspectors seized a package addressed from Les Vitug in California to Joan Vitug in Guam. Agents searched the package pursuant to a federal search warrant and recovered 27 grams of ice that was 99% pure. Les Vitug (sentenced on March 27, 2012 to 48 months) claimed the package and was detained by law enforcement agents. Vitug told agents he was picking up the package for his pare’ Pineda. Vitug called Pineda (with agents listening) to tell him the package was in. Pineda went to Vitug’s house where he was arrested. Pineda admitted that the package was his and it was sent to him by his brother Pablito Pineda who has also been indicted and has pled guilty. Pablito Pineda is awaiting sentencing.
Credit for the investigation is given to the Drug Enforcement Administration (DEA), U.S. Postal Service Inspectors, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Task Force Agents from the Superior Court of Guam’s Probation Office assigned to the DEA, Guam Customs and Quarantine, and the Guam Police Department. The case was handled by Assistant U.S. Attorney Clyde Lemons.
Tampa Man Pleads Guilty to Coercing and Enticing Minors into ProstitutionRead the Press Release
Tampa, FL –United States Attorney A. Lee Bentley, III announces that Naba Raheem Lewis (34, Tampa) pleaded guilty, last Friday, to coercion and enticement of a minor to engage in sexual activity. Lewis faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
Lewis was charged in an Information on December 13, 2013.
According to the plea agreement, on June 12, 2013, the Tampa Police Department received a 911 call in reference to a room located at the Americas Best Value Inn & Suites. While conducting this investigation, officers made contact with two sixteen year-old minors and a baby. Further investigation determined that Lewis had met one of the minors on an Internet website, in June 2013. Lewis had browsed the website and found the minor’s Internet profile, then utilized the information to send her a private message. Lewis informed the minor that he was reviewing her photographs online and noticed that she had a child. He told her that he knew how she could make money to help care for her child.
Lewis subsequently obtained sexually explicit photos of the minor victim and her friend. Lewis then posted an Internet advertisement listing his telephone number so that he could schedule dates for the minor victims to meet men and have sex with them in exchange for money. To facilitate the crimes, Lewis rented two hotel rooms at the Americas Best Value Inn & Suites. One room was used for Lewis and the minors to sleep, while the other room was designated for prostitution. Lewis took all of the money that the minors earned from prostitution and stashed it in one of the hotel rooms.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case 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.
Tampa Bay Man Sentenced to More Than 13 Years in Federal Prison for Product Tampering, Causing the Death of an Unborn ChildRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced John Andrew Welden (29) to 13 years and 8 months in federal prison for tampering with a consumer product resulting in bodily injury to the victim (Remee Lee), and for conspiracy to commit mail fraud. Specifically, Judge Lazzara sentenced Welden to 10 years’ imprisonment on the consumer product offense and 44 months in prison on the mail fraud charge, to be served consecutively. The court also ordered Welden to pay restitution in the amount of $28,541, with respect to the injuries suffered by the victim, and to serve a 3-year term of supervised release, following his incarceration.
Welden pleaded guilty on September 9, 2013.
According to court documents, Welden obtained and then tampered with Cytotec pills by removing the identifying information from the pills. On March 29, 2013, Welden gave the pills to Lee, in a pill bottle, with a label falsely describing the pills as Amoxicillin. Subsequently, Welden admitted to law enforcement that he gave the pills to the victim, with the intention of killing her unborn child. Shortly after taking one of the Cytotec pills, on the same date, Lee began experiencing severe cramping and bleeding. Thereafter, her baby died.
Following two days of expert witness testimony on January 8th and 9th, 2014, Judge Lazzara found in favor of the United States and determined that the Cytotec pill taken by Lee, at the direction of Welden, caused her to suffer serious bodily injury and also resulted in the death of her unborn child.
This case was investigated by the Hillsborough County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys W. Stephen Muldrow and Josephine W. Thomas.
Surry Man Sentenced on Federal Kidnapping and Firearm ChargesRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Travis
R. Landry, 29, of Surry, Maine, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 14 years of imprisonment to be followed by five years of supervised release for
interstate kidnapping and brandishing a firearm in relation to the kidnapping. Landry was also
ordered to pay $5,540 in restitution to the victim of the kidnapping. Landry pled guilty to the
charges on August 21, 2013.According to court records, in mid-April 2013, Landry responded to an advertisement in
Craigslist offering to sell a BMW automobile. On the evening of April 24, Landry met with the
BMW’s owner on Riverside Street in Portland and the two took the car for a test drive. After the
test drive, Landry told the victim to get into the trunk of the car. The victim complied when
Landry displayed a Glock .45 caliber handgun. Landry then drove the BMW south, with the
victim locked inside the trunk, for about eight hours. When he reached Newark, Delaware,
Landry stopped the BMW in a secluded wooded area and released the victim, who ran away and
called local police. On May 7, 2013, sheriff deputies in Granville County, North Carolina
arrested Landry, who was driving the BMW, after a high speed chase. The Glock handgun was
seized from the glove compartment of the BMW. The victim of the kidnapping testified at
today’s sentencing and described the mental anguish and fear that he experienced during the
course of the kidnapping.
The investigation was conducted by the Federal Bureau of Investigation; the Portland
Gorham, Killeen (Texas) and Newark (Delaware) Police Departments; and the Granville County
(North Carolina) Sheriff’s Office.Southlake, Texas, Man Sentenced to Two Years in Federal Prison on Structuring ConvictionRead the Press Release
Defendant Owns and Operates Pharmacies
DALLAS — Linus Nwosu was sentenced on Thursday, by U.S. District Judge Reed C. O’Connor, to 24 months in federal prison, following his guilty plea in June 2013 to one count of conspiracy to commit structuring. He was ordered to surrender to the Bureau of Prisons on February 25, 2014. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nwosu has also agreed to amend his taxes, and he has forfeited the $476,190 to the government. According to the order setting conditions of release, Nwosu is a resident of Southlake, Texas.
According to documents filed in the case, Nwosu owns and operates two pharmacies with his wife in the Dallas/Fort Worth area under the name GeneRx Discount Pharmacy, Inc. According to the factual resume, from on or about October 12, 2011, to May 16, 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits in order to avoid the currency reporting requirements. During this time, both he and his wife made approximately 77 cash deposits for a total of $476,190, and each of the deposits was made with the intent to avoid the currency reporting requirements. They received cash receipts from GeneRx on a daily basis and divided the cash into amounts under $10,000.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
Snow Hill Man Sentenced for Selling Crack and Firearms OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced JOEL DEVON WILLIAMS, 27,of Snow Hill, North Carolina, to 72 months in prison and 3 years of supervised released for distribution of crack cocaine and possession of firearm by a convicted felon. WILLIAMS previously pled guilty to these charges on October 28, 2013.
On October 25, 2011, the Greenville Police Department used an informant to buy a Smith & Wesson .45 caliber handgun from WILLIAMS. On October 27, 2011, the Greenville Police Department used an informant to buy an SKS assault rifle and approximately 19 grams of crack cocaine from WILLIAMS. WILLIAMS was prohibited from possessing firearms due to his prior state felony convictions of conspiracy to commit robbery with a dangerous weapon and possession of a firearm by a convicted felon.
The investigation further revealed that between June 6 and June 27, 2011, co-defendant BRANDON JAMAL GREEN purchased 3 firearms that he later provided to his co-defendant, JOEL DEVON WILLIAMS, a convicted felon. During the purchases, GREEN signed paperwork under oath swearing that the firearms were for his use. After GREEN gave the firearms to WILLIAMS, GREEN filed reports with the Greenville Police Department and Winterville Police Department alleging that the firearms were stolen. On January 27, 2012, one of the firearms purchased and reported stolen by GREEN was seized during a drug investigation in Washington, D.C. GREEN pled guilty to charges arising from the investigation and was sentenced to 12 months and one day on January 6, 2013.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Riverview Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Ashley C. Guy (30, Riverview) today pleaded guilty to wire fraud and aggravated identity theft charges. She faces a maximum penalty of 20 years in federal prison on the wire fraud charge and a 2 year consecutive sentence on the aggravated identity theft charge. In her plea agreement, Guy agreed to make full restitution to the Internal Revenue Service and to forfeit $309,895 to the United States, representing the amount of the proceeds obtained as a result of the wire fraud scheme. A sentencing date has not yet been set.
Guy was indicted on October 3, 2013.
According to the plea agreement, Ashley C. Guy a/k/a “Ashley C. Gay” devised and participated in a scheme to defraud the United States out of tax refunds by using stolen identities to electronically file false federal income tax returns. During a search warrant executed at Guy’s residence, federal agents uncovered lists containing more than 200 names, dates of birth, and Social Security numbers, as well as at least 15 prepaid debit cards in the names of others. The search also uncovered documents containing information on the filing of false tax returns, $1,500 in U.S. currency from a small safe in Guy’s living room, and $642 in cash from a purse in her master bedroom. In addition, agents found a trash can on the back porch that had been used for burning documents related to the fraud. The agents were able to recover a list of personal identifying information that had not been completely burned.
Between January 2012 and April 2013, approximately 100 false federal income tax returns were filed from Guy’s house, claiming $560,713 in refunds. Additionally, another 112 false returns, claiming $801,011 in refunds, were filed from different locations, but were linked to Guy. The IRS was able to stop many of these fraudulent refund claims. Out of the 212 total returns claiming roughly $1,361,724 in refunds, the IRS was ultimately defrauded into paying $309,895.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Resident of Wolfeboro Pleads Guilty to Defrauding Federal Employee Disability Benefit ProgramRead the Press Release
CONCORD, N.H. – Mark McLaughlin, 49, of Wolfeboro, has pleaded guilty in United States District Court for the District of New Hampshire to making false statements to obtain federal employee disability benefits, announced United States Attorney John P. Kacavas.
McLaughlin admitted in annual reports he submitted to the Office of Workers’ Compensation Program (“OWCP”) that from June 2007 to July 2013, he failed to disclose income he received while working for a landscaping business. Consequently, he fraudulently received disability payments totaling $119,649.79 from the OWCP.
The United States Department of Labor, (“OWCP”) provides benefits to employees of the United States Postal Service who are totally or partially disabled due to injuries sustained during the course of their employment. While receiving the benefits, a disabled employee is required to report all employment for which he received a salary, wage or payment of any kind. This information is important to the OWCP because the amount of the disability benefit paid to the employee depends on the employee’s ability to earn money from other types of work.
McLaughlin is scheduled to be sentenced on April 30, 2104. He is facing up to five years in prison and a $250,000.00 fine.
The case was investigated by the United States Postal Service, Office of Inspector General, and the United States Department of Labor, Office of Inspector General and is being prosecuted by Assistant United States Attorney Bob Kinsella.Pennsylvania Man Pleads Guilty to Selling Counterfeit Goods, Including Counterfeit Military GoodsRead the Press Release
Defendant Imported Counterfeit Merchandise from China
Baltimore, Maryland – Hao Yang, age 25, of Bloomsburg, Pennsylvania, pleaded guilty today to conspiracy to traffic in counterfeit goods and counterfeit military goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).“The defendant imported counterfeit goods from China and fraudulently sold them as legitimate merchandise,” said U.S. Attorney Rod J. Rosenstein. “Counterfeit integrated circuits from China were falsely represented to be legitimate American-made parts.”
According to his plea agreement, from 2010 through the date of his arrest on June 19, 2013, Yang participated in a conspiracy to import and sell counterfeit goods and counterfeit military goods to customers in the United States. Yang and his co-conspirators created and operated several companies in Maryland, Pennsylvania, and elsewhere, to facilitate the conspiracy, including MS TECHNOLOGIES and AONE ELECTRONICS in Baltimore, Maryland; ABEST TECHNOLOGIES in China; and ARRCORD GROUP, SMC GROUP and SMOOTH LLC. The latter three companies were operated by Yang at his residence in Bloomsburg. Yang used his residence to warehouse the counterfeit goods, including counterfeit military goods, sent to him by his co-conspirators in China. He then shipped specific items to buyers in the United States based on the order information provided by his co-conspirators. Yang maintained numerous bank accounts to deposit his illegal commissions and make payments associated with his counterfeit activities. He also used the commissions he received from his co-conspirators to pay for living expenses and other purchases, including his 2010 Acura TSX sedan.The counterfeit circuits received by Yang, a number of which were military-grade, were supplied by one specific co-conspirator located in China. This co-conspirator sold, or attempted to sell, the circuits to various individuals, companies and government agencies in the United States. Yang then distributed the counterfeit circuits, via his domestic businesses, to the buyers in the United States sometimes in repackaged form. The co-conspirator paid Yang a commission of $500 per month for his distribution services. To conceal the fact that the counterfeit circuits were being imported from China, Yang and his co-conspirator formed AARCORD GROUP to create the appearance that the co-conspirator’s company in China (from which the counterfeit circuits were being distributed) was actually based in the United States. By using counterfeit circuits, their malfunction or failure could likely have caused serious bodily injury or impaired military operations, personnel or national security.
Throughout the course of the conspiracy, Yang also obtained other counterfeit goods, including computer software, DVDs, and sports jerseys, from other co-conspirators in China and Hong Kong, which he then distributed in the United States. As was the case with the counterfeit circuits, Yang and these other co-conspirators concealed the fact that the goods they sold were counterfeit and produced in China and Hong Kong. Yang received commissions from these co-conspirators of $1,000 to $2,000 per month for his distribution services.
Between March 2011 and April 2013, Yang received hundreds of shipments from China and Hong Kong, including shipments involving integrated circuits. For example, in June 2012, Yang received two shipments of counterfeit military grade integrated circuits sent to ARRCORD Group at his residence and also received three shipments of other counterfeit goods, including DVDs and counterfeit computer software, sent to SMC Group at Yang’s residence. The Manufacturers Suggested Retail Price of the counterfeit DVDs and computer software was over $58,000.
As part of his plea agreement, Yang will be required to forfeit five bank accounts worth over $59,000, the 2010 Acura purchased with proceeds of the crime, and counterfeit computer software, DVDs, sports jerseys and other items with an approximate value of $280,720.
Yang faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 28, 2013 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Of Murder and Violent Crime OffensesRead the Press Release
WASHINGTON – Richard Reyes, a member of the Almighty Imperial Gangsters, has been convicted at trial for his role in violent acts as a member of a criminal street gang that operated in Northwest Indiana and is accused of engaging in drug trafficking and acts of violence, including murder, attempted murder and robbery.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
Reyes, 41, of Hammond, Ind., was convicted by a federal jury on Jan. 24, 2014, for his role in the murder of rival Latin King gang member Rene Alonzo on Sept. 16, 2007. According to evidence at trial, Reyes fatally shot Alonzo outside of the U.S. Bar in East Chicago. Reyes was convicted of conspiracy to participate in racketeering activity, conspiracy to distribute cocaine and marijuana, and murder in aid of racketeering activity, which each carry a maximum penalty of life in prison; and murder resulting from the use and carrying of a firearm during a crime of violence, which carries a minimum mandatory penalty of 10 years in prison consecutive to any other sentence and a maximum of life in prison.
Reyes was among 24 individuals charged in this investigation, and 22 have pleaded guilty, including six men who pleaded guilty in January 2014. Those charged are accused of having participated collectively in 14 murders and eight attempted murders from 2002 to 2012 as part of their criminal enterprise. Defendants are presumed innocent unless and until proven guilty at trial.
On Jan. 13, 2014, Salvador Chavez, 34, pleaded guilty before U.S. District Chief Judge Philip P. Simon in the Northern District of Indiana to conspiracy to participate in racketeering activity.
On Jan. 10, 2014, Jason Medina, aka Burns, 30; Edward Raye Serna, 34; and Armando Jose Velasquez, aka Money, age 26, all of East Chicago, Ind., pleaded guilty before Chief Judge Simon. Medina pleaded guilty to conspiracy to participate in racketeering activity; murder resulting from the use and carrying of a firearm during a crime of violence; and attempted murder in aid of racketeering activity, which carries a maximum penalty of 10 years in prison. Medina admitted that he used a firearm to murder Guadalupe Trevino on July 24, 2005, and attempted to murder a victim on June 6, 2011. Sentencing for Medina is scheduled for June 19, 2014. Edward Serna pleaded guilty to conspiracy to participate in racketeering activity and attempted murder in aid of racketeering activity and admitted to his participation in the same attempted murder on June 6, 2011. Sentencing for Edward Serna is also set for June 19, 2014. Velasquez pleaded guilty to conspiracy to participate in racketeering activity, murder resulting from the use and carrying of a firearm during a crime of violence, and attempted murder in aid of racketeering activity. Velasquez admitted he used a firearm on Dec. 3, 2011, when he attempted to murder a victim in aid of racketeering activity. Sentencing for Velasquez is scheduled for June 6, 2014.
On Jan. 3, 2014, Julian Guillermo Serna, aka Big Ju, 24, and Vincent Garza, aka Chente, 22, pleaded guilty before Chief Judge Simon. Julian Serna pleaded guilty to conspiracy to participate in racketeering activity and to murder resulting from the use and carrying of a firearm during a crime of violence. Julian Serna admitted that he used a firearm to murder Mario Soriano on March 25, 2008. Sentencing for Julian Serna is scheduled for July 25, 2014. Garza pleaded guilty to conspiracy to participate in racketeering activity and two counts of homicide in aid of racketeering activity, which each carry a maximum penalty of life in prison. Garza admitted that he participated in the murder of Michael Sessum and Miguel Mejias on June 3, 2008. Sentencing for Garza is scheduled for July 24, 2104.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area. The case is being prosecuted by Assistant United States Attorney David J. Nozick of the United States Attorney’s Office for the Northern District of Indiana and Trial Attorney Bruce Hegyi of the Criminal Division’s Capital Case Section.
Nuestra Familia Leader and Three Associates Plead Guilty to Drug TraffickingRead the Press Release
FRESNO, Calif. — Shawn Cameron, 36, his wife Vanessa Mojarro Cameron, 26, and Jonathan Mojarro, 24, all of Hanford, and Carlos Enriquez, 34, of Lemoore, pleaded guilty today to drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.
Forty-three defendants were charged in this case. Seven of the defendants are set to proceed to trial on March 11, 2014, before Judge O’Neill, and two have not yet appeared in federal court. All defendants were members or associates of the Nuestra Familia (NF). NF is a violent Hispanic prison gang based within the California prison system whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime.
“Shawn Cameron was the leader of one of the most dangerous drug trafficking organizations in the Central Valley,” U.S. Attorney Wagner said. “Today’s guilty pleas mark a very significant step in the efforts of federal, state, and local law enforcement to disable the NF organization.”
“This investigation is the essence of great law enforcement collaboration and teamwork in removing narcotics from our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl. “ATF and our law enforcement partners stay committed to identifying, apprehending, and prosecuting dangerous criminals and this investigation exemplifies this commitment.”
“The cohesiveness displayed by the numerous law enforcement agencies during this gang investigation is a testament of our commitment to uniting our resources to achieve a common goal. This investigation resulted in the successful identification and arrest of those who engage in trafficking conspiracies which erode our communities,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the FBI. “Drug trafficking networks continue to threaten the safety of the public without regard. The FBI will continue collaborating on large-scale and long term intensive investigations to disrupt and dismantle these violent organizations.”
According to court documents, between December 2009 and June 2010, Shawn Cameron was the commander for the Kings County regiment of Nuestra Familia. Cameron worked with a co-conspirator to bring in methamphetamine from Mexico and distribute it in half-pound to multi-pound quantities to other regiments in and outside of California. During that time, Cameron and co-conspirators obtained more than 45 pounds of methamphetamine that was distributed or intended to be distributed to various NF regiments throughout California, Utah and other states.
In April 2010, Vanessa Cameron used her phone to assist her husband in arranging to receive payment for methamphetamine and to arrange the delivery of methamphetamine.
In 2009 and 2010, Mojarro and Enriquez were members of the Kings County NF regiment. They assisted the NF by picking up, delivering and selling methamphetamine and cocaine.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kings County Narcotic Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the California Department of Justice Bureau of Narcotic Enforcement, and the California Department of Corrections and Rehabilitation. These agencies received the assistance of the U.S. Marshals Service, the police departments of Hanford, Lemoore, and Corcoran, the Kings County Sheriff’s Office, and the California Highway Patrol. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth are prosecuting the case.
Vanessa Cameron is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on April 7, 2014. Shawn Cameron, Mojarro, and Enriquez are scheduled to be sentenced by Judge O’Neill on April 21, 2014. Shawn Cameron, Mojarro, and Enriquez face 10 years to life in prison and a $4 million fine. Vanessa Mojarro Cameron faces a maximum statutory penalty of four years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Shawn Cameron Plea
Vanessa Cameron Plea
Enriquez Plea