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13 March 2014
Construction Company Owner Convicted of Two Counts of Filing False Corporate Tax ReturnsRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that construction company owner Tomas Olazabal, of Fresh Meadows, N.Y., was convicted of two counts of filing false corporate tax returns for his corporation, Tupac Construction Corporation. Olazabal was convicted by a jury sitting in the U.S. District Court for the Eastern District of New York.
According to the evidence admitted at trial, Olazabal was the sole owner and operator of Tupac Construction. Between 2006 and 2008, Olazabal cashed a large number of checks representing gross receipts to Tupac Construction at a commercial check cashing service. Olazabal did not tell his tax return preparer about the cashed checks and failed to report those gross receipts on Tupac Construction’s 2007 and 2008 corporate tax returns.
Olazabal faces a statutory maximum potential sentence of six years in prison and a fine of up to $500,000.
Assistant Attorney General Kathryn Keneally for the Tax Division commended the IRS-Criminal Investigation Special Agents who investigated the case, as well as Trial Attorneys Steve Descano and Mark Kotila of the Tax Division, who prosecuted the case.
Carthage, Texas Resident Pleads Guilty to Trying to Entice an Underage Girl to Have SexRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced today that Sammy D. Mosely, 39, of Carthage, Texas, pleaded guilty before U.S. District Judge S. Maurice Hicks to attempting to entice a minor to engage in criminal sexual activity.
According to evidence presented at the guilty plea, Mosely responded to an online advertisement July 24, 2013 soliciting a mother and daughter for sex. Mosely began to correspond with a law enforcement officer posing as a 13-year-old girl. Mosely negotiated prices for sex with the minor and asked her to send nude pictures of herself. Mosely was arrested on August 1, 2013 at a meeting place in Bossier City, La., where he had agreed to meet the girl and her mother.
Mosely faces 10 years to life in prison, five years to life supervised release, and a $250,000 fine for one count of attempting to entice a minor to engage in sexual activity. A sentencing date of June 26, 2014 was set. The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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 via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Caregiver at Child Development Center Charged with Misdemeanor AssaultRead the Press Release
ALEXANDRIA, Va. – Va Nessa Taylor, 47, of Temple Hills, Md., was charged today by criminal complaint for allegedly engaging in misdemeanor assaults while working as a caregiver at the Cody Child Development Center (CDC) on Joint Base Myer-Henderson Hall (JBM-HH) in Arlington, Va.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Col. Fern O. Sumpter, Joint Base Commander at JBM-HH, made the announcement.
Taylor has been charged with committing the offense of simple assault against a child under 16 years of age at a facility located within the special maritime and territorial jurisdiction of the United States. The offense is a Class A misdemeanor under federal law, and if convicted, Taylor faces a maximum penalty of one year in prison and a $100,000 fine.According to court records, Taylor worked at the CDC as a caregiver. On Jan. 29, 2014, a CDC employee reported to a supervisor that Taylor had been observed withholding food from a two-year-old child during the facility’s lunch period. After this conduct was reported, officials investigated the allegations and conducted a thorough review of surveillance footage within the CDC. That investigation ultimately revealed four instances in which Taylor allegedly assaulted four children within her care by hitting and pushing the children. The children ranged in ages from 18 months to two years, and the observed conduct occurred from Nov. 26, 2013 to Jan. 29, 2014.
Based on the investigation, Taylor’s conduct did not appear to result in sustained physical injury to the children. Taylor was removed from her duties of supervising children on Jan. 30, 2014, immediately after her conduct was reported to the relevant authorities at JBM-HH.
This case was investigated by the U.S. Army’s Criminal Investigation Command (CID) at JBM-HH. Special Assistant U.S. Attorney Amanda O’Neil and Assistant U.S. Attorney Rosanne C. Haney are prosecuting the case on behalf of the United States.
The Cody Child Development Center, which cares for infants and school-age children, is the largest in the Department of Defense and serves military and civilian families who work at the Pentagon, Forts Myer-Henderson and McNair and throughout the national capital region.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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 PACER and on the website of the U.S. District Court for the Eastern District of Virginia.Burlingame Business Owner Pleads Guilty to $1.96 Million Loan FraudRead the Press Release
SAN FRANCISCO – Nimer Anton Massis, of Burlingame, Calif., pleaded guilty in federal court in San Francisco yesterday to making false statements to three federally insured lenders and the federal Small Business Administration (“SBA”) to obtain approximately $1.9 million in loans for his various businesses, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Massis, 40, admitted to making false statements in three separate business loan packages in 2008 and 2009. Each loan package was guaranteed in some form by the SBA, which provides financial support to small businesses across the country. The loans were made by Mission National Bank, One California Bank, and Capital Access Group. On each application, Massis was required to disclose to the lender his full financial portfolio, including all preexisting debts and obligations owed to other lenders. At the time he applied for each of the three loans, Massis was in default on approximately $630,000 in debt owed to Citibank. He did not disclose the debt that he owed to Citibank on his SBA-backed loan applications and then falsely certified that his applications represented his full financial situation. Massis ultimately fell behind and into default on the SBA-backed loan packages. He owed approximately $1.8 million to the government and lenders at the time his fraud was discovered by federal investigators. As of February 2014, he still owed approximately $1 million on his fraudulently obtained loans.
Massis was indicted on October 8, 2013. The indictment charged three counts of making false statements to a federally insured bank, in violation of 18 U.S.C. § 1014, and one count of making a false statement to the United States, in violation of 18 U.S.C. § 1001. The defendant pleaded guilty to all four counts.As part of his guilty plea, Massis admitted that he knew that these statements to the lenders and SBA were false. He also admitted that he made them for the purpose of influencing the lenders to loan him the money, and in the case of the SBA, that the false statements were material to the agency’s decision to loan him money.
Massis is scheduled for sentencing on July 23, 2014, at 2:30 p.m. before the Honorable Edward M. Chen, United States District Court Judge, in San Francisco. The maximum statutory penalty for violating 18 U.S.C. § 1014 is thirty years in prison, five years of supervised release, and a $1 million fine, plus restitution. The maximum statutory penalty for violating 18 U.S.C. § 1001 is five years in prison, three years of supervised release, and a $250,000 fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robin Harris and Benjamin Kingsley are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Denise Oki and Rawaty Yim. The prosecution is the result of an investigation by the Small Business Administration and the Federal Bureau of Investigation.
(Massis indictment )
Bozeman Man Sentenced for Child PornographyRead the Press Release
The United States Attorney's Office announced that KEVIN SCOTT NESSLAND, 41, of Bozeman, Montana, was sentenced to 84 months in prison followed by 15 years supervised release during a federal court hearing in Missoula, on March 6, 2014, before U.S. District Judge Dana Christensen. Nessland was sentenced in connection with his November 2013 bench trial conviction on three counts of Receipt of Child Pornography.
In a Trial Brief filed by Assistant U.S. Attorney Cyndee Peterson, the Government stated that defendant Kevin Scott Nessland was surreptitiously observing (through holes he made in the attic) and recording the adult females in the apartment next to his apartment in Bozeman, Montana. Nessland's residence was searched pursuant to a search warrant. Law enforcement seized several items including electronic devices.
When the crimes (state charges) were first detected, Nessland immediately left the Bozeman area. This occurred prior to the search of his residence. When he left Bozeman, Nessland took some of his computers and equipment. Nessland called the Bozeman Police Department from the road, and multiple telephonic conversations with Bozeman Police were recorded. During the telephonic conversations, Nessland stated that he has sex addiction issues and was seeking treatment.
Nessland was subsequently located in Idaho after law enforcement officers responded to his vehicle during Nessland's suicide attempt. At that time, he was arrested on a warrant for the state charges and returned to Montana. Electronic items found in his vehicle were seized and transferred to the Bozeman Police Department in Montana.
When detectives were searching one of Nessland's external hard drives for evidence of the burglary and surreptitious observation crimes, the detective found images of child pornography. Detectives obtained a second search warrant and submitted the computers and electronic devices to the Montana DCI Computer Crime Lab for forensic examination. This included the devices seized from Nessland's residence and vehicle.
Numerous items were forensically examined. A DCI Forensic Examiner found evidence which tied the computers to certain of the drives. The examiner located more than 1,700 files which depicted child pornography.
The case was investigated by the Bozeman Police Department, the Montana Department of Criminal Investigations, and the Federal Bureau of Investigation.
Bolivian Police Officer Convicted on Extortion ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce yesterday’s conviction of Mario Fabricio Ormachea Aliaga, 43, of La Paz, Bolivia. After a three-day jury trial in Ft. Lauderdale before U.S. District Judge Jose A. Gonzalez, Jr., Ormachea was convicted of traveling to the United States with the intent to commit extortion and attempted extortion.
At trial, the evidence showed that Ormachea, the National Chief of the Bolivian Police’s Anti-Corruption Department, traveled to the United States to extort Humberto Roca, a Bolivian citizen and political exile who was living in the United States.
Mr. Roca was a successful and prominent Bolivian businessman who had run the country’s largest private airline, Aerosur. After Mr. Roca spoke out against the Bolivian government, the Bolivian government charged him and members of his family with various crimes against the State. Ormachea flew to the United States to meet with Mr. Roca. During his meetings with Mr. Roca, Ormachea told Mr. Roca that he was in charge of several of the criminal cases against him, that he decided what the criminal investigations showed and what they did not show, and that he provided the components necessary for the Bolivian government to make decisions on Mr. Roca’s cases. Ormachea then told Mr. Roca that he believed him to be innocent of any crimes but that it would cost him $30,000 to have Ormachea shift the investigations to the guilty parties.
Ormachea faces a statutory maximum sentence of up to 25 years in prison, plus fines and restitution. Ormachea will be sentenced in May by U.S. District Judge Robin S. Rosenbaum.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys John R. Byrne and Jon Juenger.
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.
Bloomfield Man Pleads Guilty to Federal Involuntary Manslaugher ChargeRead the Press Release
ALBUQUERQUE – This morning in federal court, Jasper Fernandez, 39, an enrolled member of the Navajo Nation who resides in Bloomfield, N.M., entered a guilty plea to a felony information charging him with involuntary manslaughter under a plea agreement with the United States Attorney’s Office.
Fernandez was arrested on Feb. 22, 2012, on a criminal complaint charging him with the Nov. 4, 2011, murder of a 36-year-old Navajo woman on the Navajo Indian Reservation.
During today’s plea hearing, Fernandez admitted that he killed the victim while defending himself from a physical assault by the victim. According to the plea agreement, Fernandez and the victim were both intoxicated when the victim began kicking and punching Fernandez because he criticized her. Fernandez, who lost a tooth as a result of the assault, pushed the victim away too hard and caused her to hit her head against the door pillar of a vehicle and die. Fernandez acknowledged that instead of seeking medical attention for the victim or contacting the police, he attempted to conceal his crime by burying the victim’s remains.
Under the terms of his plea agreement, Fernandez will be sentenced to a prison term of time served. Fernandez remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque and Farmington offices of the FBI, the Navajo Nation Department of Public Safety and San Juan County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Billings Man Subject to Restraining Order Sentenced to Prison for FirearmsRead the Press Release
The United States Attorney's Office announced that ANTHONY MARCOS CHADWELL, 20, of Billings, was sentenced to 48 months in prison followed by 3 years supervised release by Senior U.S. District Judge Donald Molloy on February 19, 2014. In November 2013, a jury found Chadwell guilty of being a subject of a court order in possession of firearms and ammunition after a 2 day trial.
On August 26, 2012, a Billings Police Officer performed a traffic stop on a vehicle that was believed to contain the subject of an active felony arrest warrant, namely Charlie Lawson. The vehicle did not stop right away and the officer observed movements as he followed it.
After the vehicle did pull over, the officer approached and spoke with the two males inside. The officer identified the driver of the vehicle as Anthony Marcos Chadwell.
The defendant told the officer he did not have an ID, but he gave his correct name and told the officer he was a habitual traffic offender ("HTO"). The officer immediately knew he was going to arrest the defendant for the HTO offense if confirmed by dispatch.
Dispatch later confirmed that Mr. Chadwell was in fact HTO and was on probation. Dispatch also advised the officer that the defendant had an "officer caution" on him stemming from a previous incident where he had a .357 firearm near the center console/arm rest area.
After cover officers arrived, the officer asked the defendant to step out of the car and the defendant did so without issue. The officer was aware the defendant had been stabbed recently and he placed two sets of handcuffs on the defendant for his comfort. The defendant kicked the driver's side door closed. The officer walked the defendant back to his patrol vehicle and placed him in the back seat.
The officer told Chadwell that he was going to contact his probation officer to obtain authority to search the vehicle. Immediately, Chadwell became agitated and he yelled at the other passenger to get out and lock the doors. Chadwell yelled again for the passenger to lock the doors. The officer asked dispatch to inform Chadwell's probation officer that he was going to arrest Chadwell for the HTO violation. The defendant also yelled at the passenger to call his mother and to tell her they were being harassed. The passenger told the defendant she was on her way and told the defendant to calm down.
The officer asked the defendant if he had insurance and the defendant said he did. The officer asked if it was in the glove box and the defendant replied to just give him a no-insurance ticket because he was not getting in the glove box. The defendant was adamant and told the officer that he had the keys and the officer wasn't getting them.
The defendant was moved to another officer's patrol car and transported to jail. A probation officer authorized a search and requested that the police search the Chadwell's car. Because the officer was aware of the "officer caution" alert on Chadwell, that indicated there may be a firearm near the center armrest, he started his search there. The officer discovered a Colt model 1908 .25 caliber semi-automatic, loaded and with a round in the chamber. Officer Ward also found a Bryco Jennings J-22 semi-automatic pistol in the glove box.
Follow-up investigation showed that Chadwell was the subject of an "Order of Protection" issued on November 8, 2011. The order is one that prohibits the defendant from the lawful possession of firearms, with all four firearms prohibition criteria checked by the issuing court. Further, Chadwell had an opportunity to participate, had actual notice of the hearing and he was served with the order.
The investigation was conducted by the Billings Police Department and presented for federal prosecution by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bethany Man to Serve 17 Years in Prison for Operating A Ponzi SchemeRead the Press Release
Oklahoma City, Oklahoma – Earlier this week, BRIAN WILLIAM McKYE, 50, from Bethany, Oklahoma, was sentenced to serve 204 months in federal prison after being found guilty of seven counts of securities fraud and one count of conspiracy to commit money laundering in operating a Ponzi scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, McKye was ordered to serve three years of supervised release after being released from prison and pay $4,566,727.24 in restitution to victims.
Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 83 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
McKye’s original conviction on November 17, 2011, was overturned on appeal. Following a four-day retrial last fall, a jury convicted McKye again in November of 2013 after deliberating for less than 90 minutes. McKye represented himself at trial.
This case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Baltimore Armed Career Criminal Exiled to 15 Years Prison for Illegal Possession of A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Ellen L. Hollander sentenced Robert Stewart, age 28, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander enhanced Stewart’s sentence upon finding that he is an armed career criminal based on four previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, in early 2013, Baltimore Police officers received information that an individual, later identified as Robert Stewart, was engaged in drug trafficking while armed with a firearm in the 1200 block of Washington Boulevard in Baltimore. Officers watched the vehicle Stewart was using to conduct the drug trafficking and saw Stewart leaving in the car with a woman driving and returning no more than 15 minutes later.
On February 4, 2013, the officers received information that Stewart was returning to his residence with the gun in the car after having just dropped off narcotics. Officers stopped the car and saw Stewart bend down with hands between his feet. After repeated commands to show his hands, Stewart eventually put both hands in the air and officers removed Stewart and the driver from the vehicle.
During a search of the car officers recovered a .45 caliber semi-automatic pistol, loaded with six rounds of .45 caliber automatic, full metal jacket cartridges from the front passenger floor, partially hidden beneath the seat. After being advised of his rights, Stewart admitted that the gun was his.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Attorney General Holder Urges Changes in Federal Sentencing Guidelines to Reserve Harshest Penalties for Most Serious Drug TraffickersRead the Press Release
In testimony delivered before the U.S. Sentencing Commission Thursday, Attorney General Eric Holder endorsed a proposed change to the Federal Sentencing Guidelines that would reserve the harshest penalties for the most serious drug offenders.
The Sentencing Commission proposal, first unveiled in January, would lower by two levels the base offense associated with various drug quantities involved in drug trafficking crimes. If adopted, the change would impact nearly 70% of all drug trafficking offenders and reduce the average sentence by 11 months, or nearly 18%, according to the Commission.
As an added result of the new proposal, the Commission projects that the Bureau of Prisons population would drop by 6,550 inmates at the end of five years.
“This straightforward adjustment to sentencing ranges – while measured in scope – would nonetheless send a strong message about the fairness of our criminal justice system,” Holder testified. “And it would help to rein in federal prison spending while focusing limited resources on the most serious threats to public safety.”
The move is Holder’s latest step to alter the federal government’s approach to dealing with nonviolent drug offenders. Last August, Holder announced his “Smart on Crime” initiative, which included a major change to the department’s charging policy intended to reserve strict, mandatory minimum sentences for high-level or violent drug traffickers.
The “Smart on Crime” initiative would help ease the nation’s overcrowded prison system. Today, the United States comprises just five percent of the world’s population but it incarcerates almost a quarter of the world’s prisoners. In 2010 alone, state and federal governments spent $80 billion on incarceration. And of the 216,000 current federal inmates, nearly half are serving time for drug-related crimes.
The Commission is expected to vote on the proposal endorsed by Holder in April. Until then, the Justice Department will direct prosecutors not to object if defendants in court seek to have the newly proposed guidelines applied to them during sentencing.
The complete text of the Attorney General’s statement to the Sentencing Commission, as prepared for delivery, is below.
Testimony by Attorney General Eric H. Holder, Jr.
U.S. Sentencing Commission
March 13, 2014Chief Judge [Patti] Saris and Members of the Commission: good morning, and thank you for the invitation to appear before you to discuss our shared goals – and to provide the Justice Department’s views on proposed changes to the Federal Sentencing Guidelines related to certain drug trafficking crimes.
In particular, I appreciate the opportunity to speak in support of the amendments under consideration today. The Justice Department strongly supports the Commission’s proposed change to the Drug Quantity Table. If adopted, this amendment would lower by two levels the base offense levels associated with various drug quantities involved in drug trafficking crimes. This would have the effect of modestly reducing guideline penalties for drug trafficking offenses while keeping the guidelines consistent with current statutory minimums – and continuing to ensure tough penalties for violent criminals, career criminals, or those who used weapons when committing drug crimes.
This straightforward adjustment to sentencing ranges – while measured in scope – would nonetheless send a strong message about the fairness of our criminal justice system. And it would help to rein in federal prison spending while focusing limited resources on the most serious threats to public safety. Let me be clear, my primary obligation as Attorney General is to ensure the safety of the American people. The changes that I have implemented over the past year are designed to do exactly that – while making our system more fair and more efficient.
This proposed amendment is consistent with the “Smart on Crime” initiative I announced last August. Its implementation would further our ongoing effort to advance commonsense criminal justice reforms. And it would deepen the Department’s work to make the federal criminal justice system both more effective and more efficient when battling crime and the conditions and behaviors that breed it.
As it stands – and as this Commission has recognized – certain types of cases result in too many Americans going to prison for too long, and at times for no truly good public safety reason. Although the United States comprises just five percent of the world’s population, we incarcerate almost a quarter of the world’s prisoners. One in 28 American children currently has a parent behind bars. State and federal governments spent a combined $80 billion on incarceration during 2010 alone. And as you know – of the more than 216,000 current federal inmates – nearly half are serving time for drug-related crimes.
This focused reliance on incarceration is not just financially unsustainable – it comes with human and moral costs that are impossible to calculate. That’s why, in recent years – under the leadership of President Obama and alongside members of this Commission; with the support of policymakers as well as prosecutors; and with the expertise of advocates and researchers, law enforcement officials, and government leaders on both sides of the aisle – we have taken significant steps to improve criminal justice policies and implement targeted reforms. I am particularly proud of the work we did together to reduce the inappropriate and unjust 100-to-1 sentencing disparity between crack and powder cocaine – a disparity that this Commission had correctly found to be unjustifiable, and which President Obama alleviated with the signing of the Fair Sentencing Act in 2010.
Just over a year ago, in an effort to take our collective work to a new level, I launched a targeted Justice Department review of the federal criminal justice system – to identify areas for improvement, and to seek ways to make the system more efficient, more effective, and more closely aligned with our highest ideals, while not sacrificing our duty to promote public safety. Last August, I announced a new “Smart on Crime” initiative – based on the results of that review – and it is already allowing the Justice Department to make critical improvements; to conserve precious resources; to improve outcomes; and to disrupt the destructive cycle of poverty, incarceration, and crime that traps too many Americans and weakens entire communities.
Among the key changes I mandated as part of this initiative is a modification of the Justice Department’s charging policies – to ensure that people convicted of certain low-level, nonviolent federal drug crimes will face sentences appropriate to their individual conduct – rather than stringent mandatory minimums, which will now be applied only to the most serious criminals. The Commission’s proposed amendment to the Federal Sentencing Guidelines would help to further advance and institutionalize this work, controlling the federal prison population and ensuring just and proportional sentences.
I’m pleased to note that this approach enjoys significant bipartisan support on Capitol Hill, where a number of leaders, including Senators Patrick Leahy, Dick Durbin, and Mike Lee – along with Representatives Bobby Scott and Raul Labrador – have introduced legislation that would give judges more discretion in determining appropriate sentences for those convicted of certain crimes. By reserving the most severe penalties for dangerous and violent drug traffickers, we can better promote public safety, deterrence, and rehabilitation while saving billions of dollars and strengthening communities. And as my colleagues and I work with Congress to refine and pass this legislation, we are simultaneously moving forward with a range of other reforms.
We’re investing in evidence-based diversion programs – like drug treatment initiatives and veterans courts – that can serve as alternatives to incarceration in some cases. We are working to reduce unnecessary collateral consequences for formerly incarcerated individuals seeking to rejoin their communities. And we are building on innovative, data-driven reinvestment strategies that have in many cases been pioneered at the state level.
In recent years, no fewer than 17 states – supported by the Department’s Justice Reinvestment Initiative, and led by officials from both parties – have directed significant funding away from prison construction and toward evidence-based programs and services, like supervision and drug treatment, that are proven to reduce recidivism while improving public safety. Rather than increasing costs, a new report – funded by the Bureau of Justice Assistance – projects that these 17 states will actually save $4.6 billion over a 10-year period. Many have already seen drops in recidivism rates – as well as overall crime rates – even as their prison populations have declined. And although the full impact of our justice reinvestment policies and other reforms remains to be seen, it’s clear that these efforts are bearing fruit – and showing significant promise across the country.
We can be encouraged by this ongoing work – which is enabling us to better promote public safety, deterrence, and rehabilitation while making our expenditures smarter and more productive. Yet each of us is here this morning because we recognize that we cannot yet be satisfied. And a great deal remains to be done.
By adopting these proposed amendments to the Federal Sentencing Guidelines, this Commission can take an important step to allow judges to make commonsense determinations; to provide legal professionals and law enforcement leaders with the 21st-century solutions they need to address 21st-century challenges; and to build on the progress we’ve already seen in constructing a criminal justice system that deters and punishes crime, keeps us safe, and ensures that those who have paid their debts have the chance to become productive citizens.
As the Commission considers these and other actions – and as you hear testimony from a diverse group of expert panelists over the course of today’s hearing – I urge you to seize this opportunity to make our criminal justice system more fair and to keep the American people more safe.
I look forward to continuing to work closely with each of you – and with leaders in Congress and throughout the Administration – to strengthen America’s criminal justice system and forge the more just society that everyone in this country deserves.
I thank you, once again, for the opportunity to appear before you today. And I would be happy to take a few questions at this time.
Ashland Man Sentenced to Five Years in Prison for Labor TraffickingRead the Press Release
An Ashland man was sentenced to five years in prison for his role in a holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor, law enforcement officials said today.
“The conduct laid out in this case is almost incomprehensible,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to prosecute human trafficking cases in all their various forms.”
"The manner in which this young lady and her small child were treated during two years of involuntary servitude is beyond disturbing," said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office. "The FBI hopes that the victims in this investigation can continue to heal and lead their own lives now that Daniel Brown and the others have been brought to justice."
Daniel J. Brown, 34, previously pleaded guilty to one count of conspiracy. He admitted that he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby from 2010 through 2012 to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.
Together, they used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over S.E. and B.E., according to court documents.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to trial testimony and court documents.
All four people have been found guilty of crimes related to the case. Silsby is scheduled to be sentenced later this month while Callahan and Hunt are scheduled to be sentenced in July.
The case is being handled by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
Army Soldier Sentenced for Facilitating <br /> Thefts of Fuel in AfghanistanRead the Press Release
A U.S. Army soldier was sentenced to serve 12 months and one day in prison for his role in stealing fuel at Forward Operating Base (FOB) Fenty near Jalalabad, Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David J. Hale of the Western District of Kentucky made the announcement after sentencing by U.S. District Court Judge Thomas B. Russell in the Western District of Kentucky.
According to court documents, in May and June 2010, U.S. Army Sergeant Kevin Bilal Abdullah, 40, of Clarksville, Tenn., was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. Abdullah created fraudulent documents called Transportation Movement Requests purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, these fraudulent documents were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures. In truth, the fuel was simply stolen, and Abdullah and his co-conspirators received payment in cash from a representative of the Afghan trucking company that allegedly stole the fuel.
Abdullah pleaded guilty on Aug. 29, 2013, to receiving payments from a representative of the trucking company in exchange for facilitating the theft of fuel in approximately 25 fuel trucks. He pleaded guilty to conspiracy to commit bribery and to the substantive count of bribery. At sentencing, he was ordered to pay $466,250 in restitution.
Abdullah’s sentencing was the fourth conviction arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah and others, pleaded guilty to similar charges. After cooperating with the government, he was sentenced on Oct. 28, 2013, to serve 27 months in prison. On Oct.10, 2012, Christopher Weaver, another conspirator, pleaded guilty to fuel theft charges and, after cooperating with the government, was sentenced on Oct. 28, 2013, to serve 37 months in prison. On Sept. 5, 2013, former Specialist Stephanie Charboneau pleaded guilty, and on Feb. 4, 2014, she was sentenced to serve 87 months in prison. Weaver, Hightower and Charboneau were prosecuted in the District of Colorado.
These cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR), the Department of the Army - Criminal Investigation Division, the Defense Criminal Investigative Service and the FBI.
The Abdullah case was handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Michael Bennett.Army Soldier Sentenced in Kentucky on Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
PADUCAH, Ky. – A U.S. Army soldier was sentenced to serve 12 months and one day in prison for his role in stealing fuel at Forward Operating Base (FOB) Fenty near Jalalabad, Afghanistan.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David J. Hale of the Western District of Kentucky made the announcement after sentencing by U.S. District Court Judge Thomas B. Russell in the Western District of Kentucky.
According to court documents, in May and June 2010, U.S. Army Sergeant Kevin Bilal Abdullah, 40, of Clarksville, Tenn., was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. Abdullah created fraudulent documents called Transportation Movement Requests purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, these fraudulent documents were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint to justify the trucks’ departures. In truth, the fuel was simply stolen, and Abdullah and his co-conspirators received payment in cash from a representative of the Afghan trucking company that allegedly stole the fuel.
Abdullah pleaded guilty on Aug. 29, 2013, to receiving payments from a representative of the trucking company in exchange for facilitating the theft of fuel in approximately 25 fuel trucks. He pleaded guilty to conspiracy to commit bribery and to the substantive count of bribery. At sentencing, he was ordered to pay $466,250 in restitution.
Abdullah’s sentencing was the fourth conviction arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Abdullah and others, pleaded guilty to similar charges. After cooperating with the government, he was sentenced on Oct. 28, 2013, to serve 27 months in prison. On Oct.10, 2012, Christopher Weaver, another conspirator, pleaded guilty to fuel theft charges and, after cooperating with the government, was sentenced on Oct. 28, 2013, to serve 37 months in prison. On Sept. 5, 2013, former Specialist Stephanie Charboneau pleaded guilty, and on Feb. 4, 2014, she was sentenced to serve 87 months in prison. Weaver, Hightower and Charboneau were prosecuted in the District of Colorado.
These cases were investigated by the Special Inspector General for Afghanistan Reconstruction (SIGAR), the Department of the Army - Criminal Investigation Division, the Defense Criminal Investigative Service and the FBI.
The Abdullah case was handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Michael A. Bennett from the Western District of Kentucky.
Apartment Complex Owner, Company Sentenced to Prison for Violations of Clean Air ActRead the Press Release
The owner of a Kent, Washington apartment complex and his company, were sentenced today in U.S. District Court in Seattle for violating the Clean Air Act by exposing residents and workers to airborne asbestos, announced U.S. Attorney Jenny A. Durkan. STANLEY XU, 53, was sentenced to 15 months in prison, 90 days of home confinement and ordered to make a $75,000 community service payment to the National Environmental Education Foundation. XU’s company, LONGWELL COMPANY, was fined to $159,850 and placed on five years of probation to ensure it complies with all environmental regulations. The defendants pleaded guilty in October 2013 for failing to protect residents of the Avante Apartments in Kent from asbestos exposure following a pipe rupture in December 2009. XU knew the ceiling material that rained into the apartments contained asbestos, but still hired a clean-up contractor who took no steps to protect the apartment residents or workers hired to clean up and dispose of the hazardous waste. At sentencing U.S. District Judge Thomas S. Zilly said this case concerned him “because of the terrible risks posed to people exposed to asbestos.”
“Asbestos has killed scores of people in our country and the rules are meant to protect against its dangers. Mr. Xu and his company were well aware of the regulations surrounding clean-up and disposal of asbestos contamination, and chose instead to put his tenants and workers at risk,” said U.S. Attorney Jenny A. Durkan. “Not only had Xu and his company been cited by the state before, he had obtained bids from qualified asbestos contractors; but to put money in his pocket, he instead hired someone on the cheap. Now he pays a hefty price.”
According to records filed in the case, in 2006 the Environmental Protection Agency filed complaints against XU for lead paint contamination at another apartment complex he owns. In 2007, he was cited by the Washington State Department of Labor and Industries for failing to do an asbestos survey before construction work at another complex. At a hearing in November 2009, XU stated he understood the code and that popcorn ceiling material contains asbestos. Despite those statements, less than a month later when the pipes burst, he took no steps to ensure the asbestos material that fell into the apartments was disposed of properly. In fact, after XU’s guilty plea in October 2013, he again failed to protect tenants and workers from airborne asbestos during another apartment repair project.
“Defendant Xu obstructed a federal investigation, potentially exposed workers and dozens of his tenants, including young families, to harmful asbestos fibers and repeatedly failed to follow the law,” said Tyler Amon, Special Agent in Charge with EPA's Criminal Investigation Division. “Because there's no safe level of asbestos exposure, business owners who knowingly put others at risk should expect tenacious prosecution.”
In asking that XU be sentenced to a prison term, prosecutors explained how the apartment residents were put at risk. “These tenants included families with young children, pregnant mothers, minorities, and low-income individuals. According to interviews, many of the tenants were specifically told that they were required to clean this asbestos-containing debris from their belongings. The tenants spent long hours – with their children in tow – over the course of several weeks cleaning and literally shaking this debris from their items. The apartments, although initially damp, quickly dried out, creating a dusty environment inside. Several tenants reported that they or their children, some of whom already had asthma, experienced difficulty breathing during this time. They did all of this never knowing that this “dust” in their apartments likely contained asbestos fibers,” prosecutors wrote in their sentencing memo.
The community service payment in this case goes to the National Environmental Education Foundation, a Congressionally mandated foundation established and dedicated to advancing environmental education.
The case was investigated by the U.S. Environmental Protection Agency Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Kathryn K. Frierson and Special Assistant United States Attorney Karla G. Perrin with the EPA.
Angel Cristobal-Sarmientos Sentenced for Illegal Reentry into the United StatesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls on March 5, 2014, before U.S. District Judge Donald W. Malloy, ANGEL CRISTOBAL-SARMIENTOS was sentenced to a term of:
- ison: 13 months and 1 day
Cristobal-Sarmientos was sentenced in connection with his guilty plea to Illegal Re-Entry into the United States.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
Cristobal-Sarmientos, who had previously been deported from the United States on multiple occasions, was involved in an alleged domestic dispute in Glendive, Montana on September 15, 2013, in which Dawson County Sheriff Deputies responded to the scene. The
United States Border Patrol was subsequently contacted and Cristobal-Sarmientos was
Cristobal-Sarimentos advised that he was a citizen of Mexico and in the United States illegally. There is no record that Cristobal-Sarimentos ever applied for or obtained the permission of the United States Attorney General or his successor the Secretary of the Department of Homeland Security to reenter the United States. Moreover, records indicate that Cristobal-Sarimentos had previously been deported subsequent to a felony conviction.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Sanchez-Gonzalez will likely serve all of the time imposed by the court. In the federal system, Sanchez-Gonzalez does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted primarily by the United States Border Patrol.
Albuquerque Man Sentenced to Five Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Curtis Caylor, 60, of Albuquerque, N.M., was sentenced today to five years in federal prison to be followed by five years of supervised release for his child pornography conviction. Caylor will be required to register as a sex offender after he completes his prison sentence.
Caylor was arrested on Dec. 20, 2012, on an indictment charging him with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct and two counts of possession of a visual depiction of minors engaged in sexually explicit conduct. The indictment alleged that Caylor received child pornography on three occasions in Sept. 2011 and that he possessed child pornography in Jan. 2012, in Bernalillo County.
On Aug. 21, 2013, Caylor entered a guilty plea to Count 2 of the indictment charging him with receipt of child pornography. In his plea agreement, Caylor acknowledged that investigators with Homeland Security Investigations (HSI) and the New Mexico Internet Crimes Against Children Task Force (New Mexico ICAC Task Force) executed a federal search warrant at his residence on Jan. 12, 2012 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by the New Mexico State Police that began in June 2011, and targeted individuals who possessed, received and distributed child pornography. The investigation revealed that an IP Address which was subscribed to Caylor’s residence was being used to download child pornography images and videos through a peer-to-peer file-sharing program.
Caylor also acknowledged that a forensic examination of his computers and computer-related media by HSI and the New Mexico Regional Computer Forensics Lab revealed thousands of images and videos consistent with child pornography. Caylor also acknowledged that HSI sent more than 1000 of these images and 600 of those videos to the National Center for Missing and Exploited Children (NCMEC) and the NCMEC has issued a preliminary report indicating they include 154 videos of 48 children who have been identified as child pornography victims and have been rescued.
This case was investigated by the Albuquerque office of HSI, the Online Predator Unit of the NMSP, the New Mexico Regional Computer Forensic Laboratory and other members of the New Mexico ICAC Task Force. It was prosecuted by Assistant U.S. Attorney Marisa A. Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
12 March 2014
Youngsville Company Owner Pleads Guilty to Negligently Discharging Pollutants into Vermillion RiverRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Robbie Mouton, 56, of Youngsville, La., pleaded guilty before U.S. Magistrate Judge C. Michael Hill to one count of negligent discharge of pollutants.
According to evidence presented at the guilty plea, Mouton, who owns Robbie’s Gauging Service Inc. of Youngsville and is its principal gauger, negligently discharged a mixture of produced water and crude oil into the Vermilion River during the period January 6, 2009 to January 19, 2009, at an oilfield exploration site in Milton, La. Mouton admitted that the discharge took place without a permit.Mouton faces a year in prison, a year of supervised release, and a fine of $2,500 to $25,000 per day of the violation or $100,000, whichever is greater. No sentencing date was set.
The U.S. Environmental Protection Agency, the Louisiana Department of Environmental Quality-Criminal Investigations Division, and the Louisiana State Police-Emergency Services Unit conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Wilmington Man Sentenced for Firearm CaseRead the Press Release
ELIZABETH CITY – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced IRVING BENNERMAN , 47, of Wilmington to 210 months imprisonment, followed by 5 years of supervised release.
BENNERMAN was named in an Indictment filed on August 20, 2013 charging him with Possession of a Firearm by a Felon. On November 14, 2013, BENNERMAN pled guilty to that charge.
According to the investigation, on May 21, 2013 law enforcement officers received information that BENNERMAN was attempting to sell an assault rifle out of the trunk of a car in the Jervay Housing Community in Wilmington. Law enforcement responded to the area and found BENNERMAN with two other individuals near a car. After consent was given to search the car by the driver, law enforcement found a Bushmaster, model XM15-E2S, .223-5.56mm semi-automatic rifle, 10 large capacity magazines capable of holding 30 rounds each and over 400 rounds of ammunition in the trunk of the car. The others with BENNERMAN told law enforcement they had driven BENNERMAN to Jacksonville where BENNERMAN had gone into a house and came out with the firearm. The three drove back to Wilmington and BENNERMAN was attempting to sell the firearm to people on the street. The firearm was stolen from a residence in Jacksonville. The owner of the firearm identified BENNERMAN as a friend of his who had knowledge of the firearm. BENNERMAN was sentenced as an Armed Career Criminal having three previous convictions for crimes of violence.
Investigation of this case was conducted by the Wilmington Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson served as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Westchester Registered Sex Offender SentencedTo 19 and ½ Years in Prison for Attempting to EnticeA Minor to Engage in Sexual ActivityRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT OKAMURA, 46, was sentenced to 19 years and 7 months’ imprisonment by United States District Judge Edgardo Ramos for his attempted enticement of a minor to engage in sexual activity. Judge RAMOS also imposed a 10-year term of supervised release to follow the imprisonment.
According to documents filed in this case and statements made in related court proceedings:
On November 27, 2011, OKAMURA, a registered sex offender on supervised release from an offense involving the repeated sexual abuse of a child, responded to an online advertisement placed by law enforcement and designed to appeal to pedophiles. At the time he was living in a shelter in Valhalla, Westchester County. Following a series of chats with an undercover agent posing as a pedophile, the undercover agent “introduced” OKAMURA to “Allison,” who purported to be a 15-year old girl but was, in fact, the same undercover agent. Following a series of explicit chats in which OKAMURA described the sexual acts he wanted to perform on the girl, OKAMURA made a plan to meet the girl at a hotel so that he could engage in sexual activities with her. On December 14, 2011, OKAMURA went to the hotel to meet the girl and was arrested.
OKAMURA pleaded guilty on July 18, 2013. At his guilty plea proceeding, OKAMURA admitted that he communicated via the internet with a person he believed was a 15-year-old girl and persuaded her to meet him for the purpose of engaging in sexual activity.
In imposing the sentence, Judge RAMOS underscored the seriousness of the offense. Judge RAMOS stated, “This shocking and flagrant course of conduct speaks to either a basic lack of respect for authority or an uncontrollable compulsion or both.”
Mr. Bharara praised the efforts and assistance of the Westchester County District Attorney’s Office and U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”).
This case is being handled by the White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
West Chester Man Charged with Threatening Federal Law EnforcementRead the Press Release
Justin Michael Credico, 32, of West Chester, PA, was charged by indictment, filed yesterday, with two counts of threatening Federal law enforcement officers and two counts of threatening the immediate family members of Federal law enforcement officers, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 32 years imprisonment.
The case was investigated by agents of the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Karen Fox.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Settles False Claims Act Allegations Against ImporterRead the Press Release
SAN FRANCISCO – Bizlink Technology, Inc. (BTI), an importer of computer cable assemblies located in Fremont, California, has paid $1.2 million to settle allegations that it violated the civil False Claims Act by underpaying customs duties owed on goods imported from China, announced United States Attorney Melinda Haag and Brian J. Humphrey, U.S. Customs and Border Protection Director of Field Operations, San Francisco.
The United States alleges that, from 2006 through 2008, BTI underpaid customs duties on goods that BTI imported into the United States from Bizlink International Electronics Co., Ltd., a factory in Shenzhen, China. BTI allegedly obtained two sets of invoices for each shipment from the Chinese factory: one true invoice that BTI paid, and a second invoice falsely stating a lower cost. The false invoices were allegedly used to calculate the customs duties that BTI paid on the imported goods, resulting in substantial underpayments.
“This office remains committed to fighting fraud against the federal Treasury in whatever form it appears. When a company fails to pay the customs duties it owes, it takes from the federal government, and unfairly burdens honest individuals and companies who pay their fair share.” U.S. Attorney Haag said.
“Customs and Border Protection enforces U.S trade laws that protect our nation’s economy and the safety of our citizens. Customs Duty helps control the flow of legitimate foreign manufactured goods entering the country. Attempting to circumnavigate those requirements by fraud carries serious repercussions,” said Brian J. Humphrey, CBP’s Director of Field Operations in San Francisco.
The settlement resolves a whistleblower lawsuit filed in the United States District Court for the Northern District of California. A manager who formerly worked at BTI filed the case pursuant to the qui tam provisions of the False Claims Act. Under those provisions, private citizens, known as “relators,” may file lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment. The relator will receive $252,000 as his share of the government’s recovery from BTI.
Assistant U.S. Attorney Sara Winslow handled the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from Financial Fraud Investigator Michael Zehr and Legal Assistant Kathy Terry. The matter was investigated by the DHS Offices of Inspector General and Homeland Security Investigations.
(Bizlink unsealing order )
U.S. Attorneys Booth Goodwin and Bill Ihlenfeld Recognize High School Juniors as Ambassadors for JusticeRead the Press Release
Third annual ceremony lauds students for exceptional character, commitment to social justice
CHARLESTON, W.Va. – United States Attorneys Booth Goodwin, Southern District of West Virginia, and Bill Ihlenfeld, Northern District of West Virginia, today recognized 88 high school juniors from throughout West Virginia as U.S. Attorney’s Ambassadors for Justice. The afternoon ceremony to honor the recipients took place at the Culture Center in Charleston. The U.S. Attorney’s Ambassador for Justice program is an initiative co-sponsored by the U.S. Attorney’s Office for the Southern and Northern Districts of West Virginia. It honors high school juniors who have shown outstanding leadership skills and a commitment to social justice.Today’s ceremony marked the third time that U.S. Attorney Goodwin has recognized leaders from high schools in the Southern District of West Virginia. This year, U.S. Attorney Ihlenfeld joined to recognize students from the Northern District of West Virginia as well.
“I am very pleased to honor these remarkable high school juniors from throughout the state of West Virginia as Ambassadors for Justice,” U.S. Attorney Goodwin said. “These 88 students have each demonstrated a powerful ethical compass and have shown tremendous leadership.” Goodwin continued, “ Their ideas and perspectives are invaluable in helping to identify and resolve common and important issues. These are students who are willing to step forward and do something if one of their peers makes a self-destructive decision or bullies someone else.”
Goodwin said that he and U.S. Attorney Ihlenfeld share concerns about problems facing young people in West Virginia. “This isn’t just an award or a title. This is an ongoing mission for us, for our offices, our communities and for each of these Ambassadors for Justice. Together, we can exert positive influence in our schools and communities,” said Goodwin.
The U.S. Attorney’s Ambassadors for Justice program was created by U.S. Attorney Goodwin two years ago in response to rising school bullying and social media threats involving young people. The program was also spurred by a February 2012 school shooting at Chardon High School in Chardon, Ohio, in which a student opened fire on his classmates, killing three and wounding two others. Other episodes involving planned violent attacks by young people that were prevented due to the swift actions of students and school Prevention Resource Officers here in the Southern District of West Virginia have also encouraged U.S. Attorney Goodwin’s initiative.
Nominations to be U.S. Attorney’s Ambassadors for Justice are made by school principals and administrative leaders. Goodwin said that outstanding character, devotion to citizenship, and a commitment to serving others are fundamentals for nomination. This year, 87 high schools in 46 counties in West Virginia nominated 88 outstanding students to be Ambassadors for Justice.
The 2013 U.S. Attorney’s Ambassadors for Justice are as follows (by county/student name/high school): Please note: Individual photos of each student are available at: www.justice.gov/usao/wvs/AforJ.html
Barbour County
Karlie Smallwood, Philip Barbour High School ComplexBerkeley County
Jacob Orlando, Martinsburg High School
Tyler Brewster, Musselman High SchoolBoone County
Cortney Belcher, Van Jr./Sr. High School
Lindsay Collins, Sherman High School
Michael Miller, Scott High SchoolBraxton County
Logan Frame, Braxton County High SchoolBrooke County
Paraag Gupta, Brooke High SchoolCabell County
Chantz Gould, Cabell Midland High School
Robert Senior, Huntington High SchoolCalhoun County
Erica Jones, Calhoun Middle/High SchoolClay County
Cayla Black, Clay County High SchoolDoddridge County
Wyatt Ford, Doddridge County High SchoolFayette County
Tyler Brandstetter, Meadow Bridge High School
Kaitlyn Akers, Valley High School
Aaliyah Sears, Oak Hill High School
Cody Zackoski, Midland Trail High SchoolGrant County
Brandon Streets, Union Educational ComplexGreenbrier County
Jordan Tincher, Greenbrier West High School
Allegra Browne, Greenbrier East High SchoolHampshire County
John Seldon, Hampshire High SchoolHancock County
Brennan Smith, Oak Glen High SchoolHardy County
Bekah Mongold, East Hardy High SchoolHarrison County
Bryan Van Norman, Liberty High School
Joseph Ellis, Notre Dame High School
Megan Talbott, South Harrison High SchoolJackson County
James Curry, Ravenswood High School
Matthew Groves, Ripley High SchoolKanawha County
Maura James, St. Albans High School
Ian Perry, Riverside High School
Hanna Fuller, Nitro High School
Aric Taylor, Sissonville High School
Logan Shomo, South Charleston High School
Joshua McClung, Herbert Hoover High School
James Lares, George Washington High School
Sarah Clifford, Capital High SchoolLincoln County
Mark Neace, Jr., Lincoln County High SchoolLogan County
Jonathan Collins, Man High School
James Frye, Logan Senior High SchoolMarion County
Colton Moor, East Fairmont High School
Morgan Pethtel, North Marion High SchoolMarshall County
Matthew Vucelik, Bishop Donahue High School
Jacqueline Gellner, John Marshall High SchoolMason County
Mary Workman, Point Pleasant Jr./Sr. High School
Ja’nae Cundiff, Wahama High School
Charles Mayes, Hannan Jr./Sr. High SchoolMcDowell County
Cody Adair, River View High SchoolMercer County
Hayley Parnell, Montcalm High School
Cody Goins, Bluefield High School
Lindsey Masters, PikeView High School
Caleb Robinette, Princeton Senior High SchoolMineral County
Micah Beachy, Frankfort High SchoolMingo County
Chase Justice, Mingo Central High School
Hayden Sturgell, Tug Valley High SchoolMonongalia County
Dominic Muttillo, Morgantown High School
John Kolar, University High SchoolMonroe County
Dillon Bradley, James Monroe High SchoolNicholas County
Rebecca Passarella, Nicholas County High School
Shanley Amick, Richwood High SchoolOhio County
Colin Kelly, Linsly School
Maria Miller, Wheeling Central Catholic High School
Megan Chacalos, Wheeling Park High SchoolPendleton County
Autumn Smith, Pendleton County Middle/High SchoolPutnam County
Brandon Stone, Winfield High School
John Hathaway, Winfield High School
Daria Seccurro, Hurricane High School
Christian Buckley, Poca High SchoolRaleigh County
Emily Fedders, Woodrow Wilson High School
Julie Castle, Liberty High School
Josef Heller, Shady Spring High School
Sean Worix, Independence High SchoolRandolph County
Linsey McCollam, Elkins High School
Luciano Casillas, Pickens Elementary/High School
Hannah Currence, Tygarts Valley Middle/High SchoolRitchie County
Nicholas Tate, Ritchie County High SchoolRoane County
Aaron Roberts, Roane County High SchoolTaylor County
Athena McMillen, Grafton High SchoolTucker County
Morgan Moss, Tucker County High SchoolUpshur County
Mikinna Poling, Buckhannon Upshur High SchoolWayne County
John Newman, Tolsia High School
Taylor Ward, Spring Valley High SchoolWetzel County
Soren Shade, Magnolia High School
Craig Allen, Paden City High School
Victoria Smallwood, Valley High SchoolWirt County
Elizabeth Adams, Wirt County High SchoolWood County
Jessie Pratt, Parkersburg South High School
Jordan Lallemont, Parkersburg High SchoolWyoming County
Aerial Deskins, Westside High SchoolTwo Individuals Arrested for Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico – Today, U.S. Magistrate Judges Bruce McGiverin and Silvia Carreño-Coll authorized two separate criminal complaints charging Efrain Rivera-Ramos and Jancarlos Velàzquez-Vàzquez for firearms violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Today, US Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Efrain Rivera-Ramos for violations of Title 18 U.S.C. Section 922(o) (possession of a machine gun) and Section 922(g)(1) (aiding and abetting a felon). The affidavit submitted with the complaint alleges that on or about March 14, 2013, the Puerto Rico Police Department (PRPD) along with the Caguas Special Arrest Units and members of the United States Marshals Service Puerto Rico Violent Offender Task Force executed an outstanding arrest warrant for violations of Puerto Rico weapons law against Efrain Rivera-Ramos in Juncos, PR. The Officers had received information of Rivera-Ramos’ whereabouts from the Bonds Company that had posted his bail for the pending local weapons case. Once the Officers gained entrance to the apartment at Colinas de Magnolias Public Housing Project, Rivera-Ramos was found hiding under a bed of one of the rooms. Inside the room where the defendant was arrested, a fully automatic Glock pistol, caliber .40, was seized.
Although the underlying facts from the March 14, 2013 incident described above served as the basis for a criminal state prosecution, the same did not result in either a conviction or acquittal, as the charges were dismissed for procedural reasons.
In a separate incident, on March 11, 2014, Rivera-Ramos was arrested by PRPD officers following a shooting between PRPD and some individuals on March 10, 2014, where PRPD agent Joaquin Correa-Ortega was murdered. According to the affidavit, on the night of March 10, 2014, Rivera-Ramos was with Jancarlos Velàzquez-Vàzquez and Rafael Rodríguez-Carrasquillo (deceased). They were at the “Plaza de Caballos” in Humacao, PR in order to conduct a weapons transaction.
The affidavit further alleges that each of the defendants possessed a “corta” (hand gun) and they also possessed two “palos” meaning long weapons that were in the center of the vehicle available for whoever needed them.
Following the shooting of PRPD agent Joaquin Correa-Ortega, defendants Rivera-Ramos, Velàzquez-Vàzquez and Rodríguez-Carrasquillo ran into the woods. According to the affidavit, Rivera-Ramos and Velàzquez-Vàzquez knew that Rodríguez-Carrasquillo was serving a ten year probation sentence for committing a murder in Juncos, PR.
At the site of the shooting officers recovered the following weapons: one empty 9 mm Glock handgun; one .40 caliber Glock handgun, Model 22, loaded with 20 rounds of ammunition; one .223 caliber, M-16 rifle, which had two magazines attached to it, one of the magazines was loaded with 30 rounds of ammunition and the other magazine was loaded with 14 rounds of ammunition; and one AK-47 rifle, that had two magazines attached to it. One of the magazines had 30 rounds of ammunition and the other had 40 rounds of ammunition.
The second complaint is against Jancarlos Velàzquez-Vàzquez, who was arrested on March 11, 2014, after another incident where he, together with others, interfered with federal law enforcement personnel while in performance of their official duties. He had in his possession one .40 caliber Glock handgun. He is charged with violations of Title 18 U.S.C. Section 111 (assaulting, resisting, or impeding a federal officer), Section 924(c) (possession of a firearm in furtherance of a crime of violence), and Section 2 (aiding and abetting).
If convicted, the defendants could face from 10 years up to life in prison. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Trumbull Man Admits Role in Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut announced that MOHAMMED N. ISLAM, also known as “Tanveer,” 38, of Trumbull, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Leslie G. Foschio in Bridgeport to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2006 and 2013, ISLAM participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport and Stamford. During the scheme, materially false information was provided to mortgage lenders by ISLAM and his co-conspirators. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
In pleading guilty, ISLAM admitted that he recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, ISLAM was the intended owner of the property, managed the property and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions.
ISLAM pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 4, 2014, and faces a maximum term of imprisonment of 30 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Trotwood Man Sentenced for Gun, Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Lamont Scott, 40, of Trotwood, Ohio was sentenced in U.S. District Court to eight years in prison after police found Scott, a convicted felon, in possession of eight firearms and drugs in two Dayton-area homes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Montgomery County Sheriff Phil Plummer announced the sentence imposed yesterday by U.S. District Court Judge Walter H. Rice.
According to court documents, task force officers with the Montgomery County Sheriff’s Office RANGE Task Force executed a search warrant at a residence in Trotwood on May 15, 2013. They found seven firearms (one of which was stolen), ten grams of heroin and approximately $61,000 in cash. That same day, police searched a second residence, this one within 1,000 feet of a school, and found another firearm, 272 grams of cocaine and 15 grams of heroin. Scott was arrested and has been in custody since his arrest.
Scott has prior felony convictions in Montgomery County Common Pleas Court of having a weapon under disability and intimidation of a crime victim. Both are felonies. Federal law prohibits convicted felons from owning or possessing firearms.
“Through his recidivism and non-compliance with lesser sanctions, Defendant has exhibited a lack of respect for the law and the need to be deterred from future crimes,” Assistant U.S. Attorney Andrew Hunt told the court prior to sentencing. “Furthermore, the Defendant’s continued involvement in drug and firearm offenses demonstrate a threat to the community’s safety, and require a significant term of incarceration to provide a just punishment.”
Scott pleaded guilty on November 19, 2013 to one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute cocaine.
Stewart acknowledged the cooperative investigation by ATF agents and the RANGE task force, along with Assistant United States Attorneys Andrew Hunt and Alex Sistla, who prosecuted the case.
Three Plead Guilty to Meth Trafficking ChargesRead the Press Release
POCATELLO – Three co-defendants pleaded guilty this week to federal methamphetamine trafficking charges, U.S. Attorney Wendy J. Olson announced.
Jose Guadalupe Juarez, 33, of Rupert, Idaho, and Anthony Juarez, 30, of Nampa, Idaho, pleaded guilty on Monday in United States District Court to distribution of methamphetamine; Alexander Villasenor, 34, of Heyburn, Idaho, pleaded guilty yesterday to conspiracy to distribute methamphetamine. The defendants were indicted by a federal grand jury in Pocatello, Idaho, on August 28, 2013.
According to their plea agreements, Jose Guadalupe Juarez and Anthony Juarez admitted that on July 24, 2013, they assisted in the delivery of methamphetamine to an undercover officer in Burley, Idaho. Alexander Villasenor admitted that from December 2012 to May 2013, he received methamphetamine from several other individuals in Rupert and subsequently distributed it.
The defendants each face up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Jose Juarez and Anthony Juarez are scheduled to be sentenced on May 21, 2014, and Villasenor on June 17, by Chief U.S. District Judge B. Lynn Winmill.
Three co-defendants, Juan Ramon Yuen-Rodriguez, 29, and Jose Fabian Felix-Burgos, 41, both of Rupert, and Jesus Burgos, 62, of Lennox, California, are set for trial on May 19, 2014, on related drug charges.
The case was 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, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, 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.
Three Men Federally Indicted for Armed Robbery of Milwaukee grocery StoreRead the Press Release
United States Attorney James L. Santelle announced today that three men were indicted for the January 28, 2014 armed robbery of Mother’s Foods (formerly Magic Foods) located at 2879 N. 16th Street in Milwaukee, Wisconsin. Joshua Mueller (age: 23) of Milwaukee, Sedrick Brown (age: 26) of Milwaukee and Steven Bugni (age: 23) formerly from Milwaukee, were charged with one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of discharging a firearm in furtherance of a crime of violence.
The indictment alleges that on January 28, 2014, the defendants, armed with firearms, stole U.S. currency from Mother’s Foods. During the robbery, a store employee was shot, causing serious bodily injury. If convicted, each man faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 10 years and up to life in prison on the charge of discharge of a firearm during a robbery.
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery of businesses involved in interstate commerce. Federal prosecution of these offenders is sometimes beneficial since the penalties may be tougher than under state law. To that end, the U.S. Attorney’s Office and its County Attorney partners are working together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
This matter is being investigated by the Federal Bureau of Investigation and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
Tax Preparer Sentenced to over Six Years in Prison for Filing Hundreds of False Tax ReturnsRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that today, U.S. District Judge Shelly D. Dick sentenced ASHLEY D. RICKS-STAMPLEY, of Baton Rouge, Louisiana, to 81 months imprisonment for wire fraud and aggravated identity theft. RICKS-STAMPLEY was also sentenced to serve three years of supervised release following her release from imprisonment and ordered to pay restitution in the amounts of $699,734.89 to the Internal Revenue Service (IRS), and $11,138 to the Louisiana Department of Revenue.
During her guilty plea hearing last year, RICKS-STAMPLEY admitted that she schemed to defraud the IRS by submitting hundreds of false tax returns in the names of other individuals for the purpose of receiving thousands of dollars in tax refunds. RICKS-STAMPLEY accomplished the scheme by fraudulently obtaining the names and personal identifying information, including social security numbers, of individuals without their knowledge or consent. Using the information, RICKS-STAMPLEY submitted false income tax returns to the IRS and the Louisiana Department of Revenue electronically via an internet tax program. The applications falsely represented that the individuals had worked for various companies during 2010 and 2011 and were eligible for income tax refunds. In fact, these individuals had not worked for or earned wages from the companies reflected in the fraudulent tax returns, nor had the victims authorized RICKS-STAMPLEY to submit any such returns on their behalf.
From in or about September 2011 through in or about July 2012, RICKS-STAMPLEY filed approximately 563 false federal returns claiming refunds totaling approximately $733,685. Additionally, RICKS-STAMPLEY filed over 56 false Louisiana State tax returns claiming refunds totaling approximately $14,625. In total, RICKS-STAMPLEY filed over 600 false federal and state tax returns falsely claiming refunds totaling approximately $748,310. As a result of her scheme, RICKS-STAMPLEY actually received more than $700,000.
United States Attorney Walt Green stated: “This sentence should send a clear message that the Louisiana Department of Revenue, IRS Criminal Investigation, and the U.S. Attorney’s Office will investigate and prosecute tax fraud and identity theft to the fullest extent of the law. During our annual tax filing season, this sentence should serve as a deterrent to others contemplating such criminal acts.”
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, New Orleans Field Office. “We are pleased with today’s sentencing of Ashley Ricks-Stampley, and thank the United States Attorney’s Office for their partnership in our continued efforts to put an end to identity theft and the victimization of our nation’s taxpayers.”
“Tax fraud is a nationwide problem that requires solutions at the federal, state, and local levels,” said Louisiana Secretary of Revenue Tim Barfield. “We appreciate the opportunity to work with the IRS and the Justice Department to identify, investigate, and prosecute the perpetrators of fraud.”
This investigation was conducted by IRS - Criminal Investigations Division and Louisiana Department of Revenue - Criminal Investigations Division. The matter is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Swiss Banker Pleads Guilty to Conspiring with U.S. Tax Evaders, Other Swiss Bankers and Bank ManagementRead the Press Release
Andreas Bachmann, 56, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.
Deputy Attorney General James Cole, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
“Today’s plea is just the latest step in our wide-ranging investigations into Swiss banking activities and demonstrates the Department of Justice's commitment to global enforcement against those that facilitate offshore tax evasion,” said Deputy Attorney General Cole. “We fully expect additional developments over the course of the coming months.”
Bachmann was charged in a one-count superseding indictment on July 21, 2011, and faces a maximum penalty of five years in prison when he is sentenced on Aug. 8, 2014.
In a statement of facts filed with the plea agreement, Bachmann admitted that between 1994 and 2006, while working as a relationship manager in Switzerland for a subsidiary of an international bank, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret Swiss bank accounts.
As part of that conspiracy, Bachmann traveled to the United States twice each year to provide banking services and investment advice to his U.S. customers. As a matter of practice, prior to traveling to the United States, Bachmann notified his executive management, including the head of the subsidiary’s private bank in Zurich and the chief executive officer of the subsidiary, of the planned trip and its objectives.
Although Bachmann had been informed of limitations under U.S. law on his ability to provide investment advice to U.S. account holders regarding U.S. securities, the highest ranking executive at the subsidiary was aware that Bachmann was violating U.S. law. According to the statement of facts, Bachmann was effectively told by the chief executive officer for the subsidiary, “Mr. Bachmann, you know what we expect of you, don’t get caught.”
According to the statement of facts, Bachmann also engaged in cash transactions while traveling in the United States. In the course of arranging meetings with U.S. customers, some clients would request that Bachmann either provide them with cash as withdrawals from their undeclared accounts or take cash from them as a deposit to their undeclared accounts. As part of that process, Bachmann agreed to receive cash from U.S. customers and used that cash to pay withdrawals to other U.S. clients. In one instance, Bachmann received $50,000 in cash from one U.S. customer in New York City and intended to deliver the money to another U.S. client in Southern Florida. Airport officials in New York discovered the cash but let Bachmann keep the money after questioning him. The client in Florida refused to take the money after the client learned about the questioning by New York airport officials, and Bachmann returned to Switzerland with the $50,000 in cash in his checked baggage. Bachmann advised the executive management of the subsidiary about the incident with the cash.
Bachmann also understood that a number of his U.S. customers concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities, or structures, which were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Bachmann dealt with Josef Dӧrig, a co-defendant, regarding the formation and/or maintenance of structures for U.S. customers, among others. In approximately 1997, the international bank instructed Dӧrig to form his own company specializing in the formation and management of nominee tax haven entities because it was “too risky” to have Dörig perform that work from inside the international bank. The international bank then directed the subsidiary and others to use Dӧrig and his Swiss trust company, Dӧrig Partner AG, as the preferred choice for the formation and management of structures.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Tax Division Trial Attorneys Mark F. Daly, Nanette L. Davis and Jason Poole are prosecuting the case.
A copy of this press release may be found on this website for the United States 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 here and here.
Related Materials:
United States v. Andreas M. Bachmann, etc.
Plea Agreement
Statement of FactsSwiss Banker Pleads Guilty to Conspiring with U.S. Tax Evaders, Other Swiss Bankers and Bank ManagementRead the Press Release
Defendant Helped U.S. Customers Conceal Assets in Secret Swiss Bank Accounts and Tax Havens
WASHINGTON – Andreas Bachmann, 56, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.
Deputy Attorney General James Cole, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
“Today’s plea is just the latest step in our wide-ranging investigations into Swiss banking activities and demonstrates the Department of Justice's commitment to global enforcement against those that facilitate offshore tax evasion,” said Deputy Attorney General Cole. “We fully expect additional developments over the course of the coming months.”
Bachmann was charged in a one-count superseding indictment on July 21, 2011, and faces a maximum penalty of five years in prison when he is sentenced on Aug. 8, 2014.
In a statement of facts filed with the plea agreement, Bachmann admitted that between 1994 and 2006, while working as a relationship manager in Switzerland for a subsidiary of an international bank, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret Swiss bank accounts.
As part of that conspiracy, Bachmann traveled to the United States twice each year to provide banking services and investment advice to his U.S. customers. As a matter of practice, prior to traveling to the United States, Bachmann notified his executive management, including the head of the subsidiary’s private bank in Zurich and the chief executive officer of the subsidiary, of the planned trip and its objectives.
Although Bachmann had been informed of limitations under U.S. law on his ability to provide investment advice to U.S. account holders regarding U.S. securities, the highest ranking executive at the subsidiary was aware that Bachmann was violating U.S. law. According to the statement of facts, Bachmann was effectively told by the chief executive officer for the subsidiary, “Mr. Bachmann, you know what we expect of you, don’t get caught.”
According to the statement of facts, Bachmann also engaged in cash transactions while traveling in the United States. In the course of arranging meetings with U.S. customers, some clients would request that Bachmann either provide them with cash as withdrawals from their undeclared accounts or take cash from them as a deposit to their undeclared accounts. As part of that process, Bachmann agreed to receive cash from U.S. customers and used that cash to pay withdrawals to other U.S. clients. In one instance, Bachmann received $50,000 in cash from one U.S. customer in New York City and intended to deliver the money to another U.S. client in Southern Florida. Airport officials in New York discovered the cash but let Bachmann keep the money after questioning him. The client in Florida refused to take the money after the client learned about the questioning by New York airport officials, and Bachmann returned to Switzerland with the $50,000 in cash in his checked baggage. Bachmann advised the executive management of the subsidiary about the incident with the cash.
Bachmann also understood that a number of his U.S. customers concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities, or structures, which were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Bachmann dealt with Josef Dorig, a co-defendant, regarding the formation and/or maintenance of structures for U.S. customers, among others. In approximately 1997, the international bank instructed Dӧrig to form his own company specializing in the formation and management of nominee tax haven entities because it was “too risky” to have Dörig perform that work from inside the international bank. The international bank then directed the subsidiary and others to use Dorig and his Swiss trust company, Dorig Partner AG, as the preferred choice for the formation and management of structures.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Tax Division Trial Attorneys Mark F. Daly, Nanette L. Davis and Jason Poole are prosecuting the case.
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 here and here.Swansea Man Sentenced for Stealing Funds from Railroad Retirement BoardRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Mark A. Lewis, 31, of Swansea, was sentenced in the federal district court in East St. Louis on the charge of Theft of Unemployment Benefits from the United States Railroad Retirement Board and on the related violation of his conditions of supervised release. The district court sentenced Lewis to a total of six months in prison, to be followed by three years of supervised release. The court also ordered Lewis to pay $1,995.37 in restitution to the U.S. Railroad Retirement Board and to pay a $100 special assessment.
From January 2013 through May 2013, Lewis fraudulently obtained monies belonging to the U.S. Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive unemployment benefits.
The case was investigated by agents of the U.S. Railroad Retirement Board, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board’s Office of Inspector General by calling 800.772.4258 or by e-mailing a complaint or information to: [email protected].
St. Francis Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on March 11, 2014, by U.S. District Judge Roberto A. Lange.
Cyrus Black Spotted Horse, age 32, was sentenced to 18 months in custody, 2 years supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Black Spotted Horse was indicted for Assaulting a Federal Officer by a federal grand jury on November 14, 2013. He pled guilty on December 11, 2013.
On September 25, 2013, an officer responded to a call about a fight, and when the officer arrived he made contact with Black Spotted Horse. During conversation with Black Spotted Horse, the officer learned that he had two warrants for his arrest. The officer attempted to arrest Black Spotted Horse, during which time he tried to pull away from the officer, resisting having handcuffs placed on him. Black Spotted Horse then resisted being placed in the squad car and made physical contact with the officer by pushing on the officer’s torso with his feet. Black Spotted Horse also attempted to kick the officer, which the officer was able to avoid.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Black Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Spring Lake Man Sentenced for Federal Firearms ViolationsRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard sentenced AL TYRONE HILL, 37, of Spring Lake, North Carolina, to 108 months imprisonment followed by 5 years of supervised release. HILL also was ordered to pay a $5,000 fine and a $100.00 special assessment.
On July 10, 2013, HILL pled guilty to one count of felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g)(1) and 924.
According to the investigation, on May 20, 2012, Cumberland County Sheriff’s Deputies responded to several emergency calls regarding the threatened use of a firearm by HILL. HILL fled the house prior to the Deputies arrival and could not be found. Later, the Cumberland County Sheriff’s Office received another emergency call and Deputies again dispatched to the victim’s home. HILL was located in the home and a subsequent search of his person revealed two shotgun shells in his pants pocket. Deputies also located a sawed-off shotgun in the bedroom. HILL previously had been convicted of multiple felony offenses.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cumberland County Sheriff’s Office. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Sioux Falls Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on March 11, 2014, by U.S. District Judge Roberto A. Lange.
David Andrews, age 32, was sentenced to time served (222 days), 1 year of supervised release, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on July 18, 2012. He pled guilty to an Information on February 21, 2013.
The conviction stems from an incident wherein a South Dakota Highway Patrol Trooper came upon a vehicle with its hood up, located along the side of Highway 44. There was smoke coming from under the hood and the vehicle's hazard lights were on. The trooper stopped to provide assistance. There were three men with the vehicle, and Andrews was sitting in the back seat. During the trooper's contact with the three men, a pack of Newport cigarettes stuffed with a plastic bag containing 12.8 grams of methamphetamine was found near the air intake near the front left fender of the vehicle. Additionally, trace amounts of marijuana were located inside the head band of a baseball cap located in the back seat. A glass pipe was also found stuffed in between the rear seat cushions. A urine sample was obtained from Andrews who tested positive for methamphetamine, amphetamine, and marijuana.
The investigation was conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Sharon, Pa., Tobacco Businesses, Owner Charged with Fraud, Filing False ReportsRead the Press Release
PITTSBURGH – Two tobacco wholesale businesses located in Sharon, Pa., and their owner and manager have been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and filing false reports of cash transactions, United States Attorney David J. Hickton announced today.
The 32-count Superseding Indictment named Tareq Alasadi, 38, of Youngstown, Ohio, Raid Zaghari, 41, of Brooklyn, New York, and USA Trading Corporations I and V, both located at on West Budd Street, in Sharon as the defendants. The Superseding Indictment describes Zaghari as the owner of those corporations and Alasadi as the on-site manager.
According to the Superseding Indictment, Alasadi and USA Trading Corporation I, pursuant to federal regulations pertaining to the obligations of businesses to report receipts of cash in excess of $10,000, submitted 28 reports to the United States Government between July and September of 2011. The Superseding Indictment also alleges that those reports related to USA Trading's receipt of approximately $579,000 in cash between July and September of 2011. The Superseding Indictment charges that the reports filed by Alasadi and USA Trading Corporation contained false information regarding the sources of that cash.
The Superseding Indictment charges that Zaghari and his Pennsylvania based corporations defrauded the State of North Carolina and the State of New York by falsely representing the amounts of tobacco products that those two corporations distributed in North Carolina and New York. According to the Superseding Indictment, the false representations were made in tax forms which Zaghari submitted, or caused to be submitted, to the State of New York and the State of North Carolina. Alasadi is also charged in the scheme to defraud the State of North Carolina.
Alasadi faces a maximum sentence of five years imprisonment and a fine of $250,000 for each of the 28 counts that charge him with filing false reports, and a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the two counts in which he is charged with defrauding the State of North Carolina.
Zaghari faces a maximum of 20 years imprisonment and a fine of $250,000 for each of the four counts in which he is charged with defrauding the State of North Carolina and the State of New York.
The corporations face penalties ranging from fines and/or forfeitures to divestiture of assets
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Saxton, Pa., Woman Helped Gun Store Burglar Avoid CaptureRead the Press Release
JOHNSTOWN, Pa. - A Bedford County resident pleaded guilty in federal court to a charge of accessory after the fact, United States Attorney David J. Hickton announced today.
Kelley L. Foster, 23, of Saxton, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 28, 2013, Foster assisted Garrett G. Sherlock in his attempt to avoid apprehension by law enforcement authorities for the theft of firearms from Saxton Outdoor Supply, Inc.
Judge Gibson scheduled sentencing for July 17, 2014, at 10 a.m. The law provides for a total sentence of five years in prison, a fine of $125,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Foster on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks conducted the investigation that led to the prosecution of Foster.
According to Mr. Hickton, Foster is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Sarasota Felon Sentenced to More Than 9 Years for Possessing FirearmRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody today sentenced Michael T. Rivers (32, Sarasota) to 9 years and 7 months in federal prison for being a felon in possession of a firearm. Rivers pleaded guilty to the offense on October 23, 2013.
According to court documents, after executing a search warrant at Rivers’s residence, law enforcement officers found two loaded firearms, ammunition, and drug paraphernalia inside the residence. Laboratory analysis revealed that one of the firearms found in the search had a fingerprint on it, belonging to Rivers. At the time of the offense, Rivers had been previously convicted of multiple felonies, including home invasion robbery and battery on a corrections officer. Therefore, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and Sarasota Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
San Antonio Woman Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
In San Antonio this morning, 20-year-old Amber Doak pleaded guilty to her role in prostituting a 15-year-old female in August of last year announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division.
Appearing before United States Chief District Judge Fred Biery this morning, Doak pleaded guilty to one count of sex trafficking of children. By pleading guilty, Doak admitted to knowingly enticing and encouraging a minor into engaging in sexual acts for money. She also admitted to using a mobile phone provided by 38–year-old co-defendant Marcus Deshawn Wright to take pictures of the victim so that Wright and another co-defendant, 21-year-old Malcom Deandre Copeland of San Antonio, could use them to promote the minor on an Internet website which advertised prostitution services under the pretext of "escorts." Furthermore, Doak admitted that she fielded inquiries from individuals responding to the prostitution advertisement on Backpage.com and also traveled with Wright and Copeland as they transported the victim to multiple locations to engage in commercial sex.
Doak, who remains in federal custody, faces between ten years and life in federal prison when she is sentenced by Judge Biery on September 12, 2014.
Copeland and Wright, who are also in federal custody, are set for jury selection and trial on April 7, 2014, before Judge Biery on the sex trafficking of children charge.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
San Antonio Man Pleads Guilty to Shooting Intimate Partner on Fort Sam HoustonRead the Press Release
A San Antonio man faces up to 20 years in federal prison after admitting to shooting his intimate partner multiple times on Fort Sam Houston Army Post in June 2013 announced United States Attorney Robert Pitman, Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division, and United States Marshal Robert Almonte.
Appearing before United States Chief District Judge Fred Biery this morning, 52-year-old Alvin Leon Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon. By pleading guilty, Roundtree admitted that on the afternoon of June 10, 2013, he entered Fort Sam Houston and proceeded to the Medical Training Facility where his intimate partner was an instructor. After a verbal altercation regarding her decision to leave the defendant, Roundtree pulled out a .45 caliber handgun and began firing at his victim.
According to court records, the victim suffered a total of seven gunshot wounds. The victim was immediately taken into surgery. She survived the incident. Authorities subsequently apprehended Roundtree while still on Fort Sam Houston and recovered the firearm.
Roundtree, who remains in federal custody, is scheduled to be sentenced by Judge Biery on September 12, 2014.
Roundtree’s nephew and co-defendant, 29-year-old Leonard Roundtree, Jr. of Richardson, TX, is awaiting his April 21, 2014, trial date on charges that he conspired with Alvin Roundtree to hire someone to kill Alvin’s intimate partner to prevent her testimony and in retaliation for providing information to law enforcement. According to court records, Leonard Roundtree allegedly agreed to deliver a pre-payment of $1,000 to the individual solicited to commit the murder plus $9,000 more after the murder was carried out.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the U.S. Army Criminal Investigation Division, United States Marshals Service and the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Retired Turnpike Commission Employee Facing Federal Child Pornography ChargesRead the Press Release
PITTSBURGH - A resident of Jeannette, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to produce material depicting the sexual exploitation of a minor and production, distribution and receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The eight-count indictment, returned on March 5 and unsealed today, named John S. Longo, 57, as the sole defendant.
According to the indictment, Longo, a retired employee of the Pennsylvania Turnpike Commission, during the period June 5, 2009 through Nov. 12, 2010, conspired with another person to produce material depicting the sexual exploitation of a minor. He is also charged with producing images of child pornography on January 30, 2010, distributing images of child pornography on June 5, 2009, and receiving images of child pornography on Jan. 31, 2010, Feb. 16, 2010, March 28, 2010, May 26, 2010, and Nov. 12, 2010.
The law provides for a maximum total sentence of 140 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Psychologist Found Guilty in Manhattan Federal Court of Mail and Health Care Fraud Charges in Connection with Multi-Year, No-Fault Automobile Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAY SEITZ, a psychologist licensed to practice in the State of New York, was found guilty yesterday in Manhattan federal court of one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud in connection with his participation in a multi-year, no-fault automobile insurance fraud scheme. SEITZ was convicted after a six-day jury trial presided over by U.S. District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “Jay Seitz was found by a unanimous jury not only to have betrayed the ethical obligations of his profession but to have committed fraud. His scheme reaped millions of dollars in unjust compensation. Now he may pay for that with the loss of his liberty.”
According to the Indictment filed in Manhattan federal court, other court documents, and statements made during related court proceedings:
Between 2006 and 2008, SEITZ purported to provide psychological services to patients at medical clinics located in the Bronx and Brooklyn, New York. SEITZ signed treatment notes that described the diagnoses he purportedly made and the services he purportedly provided to patients treated at these clinics. These treatment notes were used to generate claims that were submitted to no-fault insurance companies for reimbursement. These claims reflected that the psychological services for which reimbursement was sought were provided by SEITZ. In fact, SEITZ did not diagnose or treat the patients on whose behalf claims were submitted to no-fault insurance providers. Although the patients at the clinics with which SEITZ was associated sometimes received psychological screening and treatment, this treatment was provided by individuals who were not licensed psychologists or licensed social workers. In addition, the treatment duration reflected on the claims forms often exceeded the actual duration of services provided. No-fault insurance providers reimbursed over $3 million of claims submitted on behalf of two professional corporations associated with SEITZ, for patients purportedly treated by SEITZ.
SEITZ, 62, of New York, New York, faces a maximum sentence of 20 years in prison for each of the three counts on which he was convicted, and is scheduled to be sentenced by Judge Stein on June 18, 2014. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office=s Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Kristy Greenberg are in charge of the prosecution.
U.S. v. Margaret Kinder and Jay Seitz Indictment
Prior Sex Offender Sentenced to Ten Years in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – James Olsson, 60, of Albuquerque, N.M., was sentenced today to ten years in federal prison followed by a lifetime of supervised release for his child pornography conviction. Olsson will be required to register as a sex offender after he completes his prison sentence.
Olsson was indicted on June 12, 2013, and charged with two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to court filings, on April 11, 2013, that day, a state probation officer learned that Olsson possessed child pornography during a routine field visit with Olsson at his residence. At the time, Olsson was on probation for failure to register as a sex offender as required by his 2009 state court conviction for possession of child pornography. Olsson was arrested on state charges that day and was in state custody until he was transferred to federal custody on June 26, 2013.
On Dec. 2, 2013, Olsson pled guilty to the indictment and admitted obtaining child pornography images and videos from the Internet. Olsson further admitted that he had been collecting child pornography for approximately six months prior to his arrest in April 2013. Olsson was subject to an enhanced sentence of not less than ten years in prison because of his prior child pornography conviction.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico Corrections Department’s Division of Probation and Parole, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga.
The case was filed as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Pittsburgh Man Charged with Possessing Crack and Powder CocaineRead the Press Release
PITTSBURGH - A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on March 11, named Kenyatta Robinson, 33.
According to the indictment, on Nov. 1, 2013, Robinson possessed with intent to distribute 280 grams or more of crack cocaine and less than 500 grams of powder cocaine.
The law provides for a maximum total sentence of not less than 10 years to up to life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Bureau of Police, and the Western Pennsylvania Fugitive Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pediatrician Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A former Boston Children’s Hospital pediatric endocrinologist was sentenced today in U.S. District Court in Boston for purchasing child pornography.
Richard Keller, M.D., 57, of Andover, was sentenced by U.S. District Judge F. Dennis Saylor IV to 78 months in prison and five years of supervised release. Upon release, Keller must register as a level 3 sex offender. In November 2013, Keller pleaded guilty to two counts of receipt of child pornography and possession of child pornography. At the time of his arrest in 2012, Dr. Keller was a pediatric endocrinologist at Boston Children=s Hospital and a pediatrics instructor at Harvard Medical School. Before stepping down in 2011, Keller was the Medical Director at Phillips Academy for 19 years.
“Any crime that preys upon children, the most vulnerable and precious population, is reprehensible,” said United States Attorney Carmen M. Ortiz, “but when the predator is in a position of trust, as Mr. Keller was as a pediatrician, it is particularly disturbing. The U.S. Attorney’s Office will continue to work alongside our law enforcement partners to unveil the cloak of anonymity that these defendants seem to think the Internet provides them.”
“The demand that creates the market for child pornography can only be satisfied by sexually abusing more children,” stated Inspector in Charge Shelly Binkowski. “For this reason, the Postal Inspection Service will continue to aggressively identify, target and arrest those who dare prey on our children.”
Keller possessed visual depictions of minors engaged in sexually explicit conduct, including males between the ages of approximately seven to 16 years old. In October 2012, the U.S. Postal Inspection Service and foreign law enforcement began an investigation into a Toronto company that sold child pornography, specifically movies of nude young minor boys. Foreign law enforcement seized the company’s customer database, which revealed Keller as a customer. Specifically, between July 2009 and January 2011, Keller purchased and ordered videos and images from this company on 19 different occasions. These orders included over 50 separate titles totaling over $2,695 in purchases.
Federal agents obtained a search warrant for Keller’s residence and seized multiple items of computer media. In addition, more than 500 high-gloss print-outs of child pornography and approximately 60 to 100 DVDs of child pornography were seized from Keller’s bedroom, which depicted naked boys from approximately 10 to 14 years old engaged in lewd and lascivious displays of their genitalia.
In addition, Keller possessed a DVD containing child pornography, including images and videos that depicted naked boys from approximately age seven to 16 engaged in sexual activity, including oral and anal sex, as well as sadomasochistic conduct. As part of his plea agreement, Keller admitted that he has had a long-standing sexual interest in adolescents since the early 1970s. Keller further admitted to viewing child pornography on the Internet and that he had previously tried to stop, but failed to do so.
US Attorney Ortiz, Inspector Binkowski, and Andover Police Chief Patrick Keefe made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz=s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Orleans Man, Anthony R. Thomas, Pleads Guilty to 2007 and 2009 Arsons, Insurance Fraud and False StatementsRead the Press Release
ANTHONY R. THOMAS, age 48, a resident of New Orleans, Louisiana, pled guilty today to a nine-count superseding bill of information charging him with multiple criminal counts for his involvement in a 2007 scheme to burn his rental property for fire insurance, a 2009 scheme to burn another rental property for his accomplice to collect fire insurance and his attempt at covering up his involvement in the 2009 fire, announced United States Attorney Kenneth Allen Polite, Jr.
Specifically, THOMAS pled guilty to: one count of conspiracy to commit arson; two counts of arson; one count of conspiracy to commit mail and wire fraud; three counts of wire fraud; one count of using arson to commit conspiracy, mail, and wire fraud; and one count of making false statements.
According to court documents, THOMAS and others attempted in 2007 to defraud his homeowner’s fire insurance company and their rental fire insurance companies by engaging in sham leases and filing inflated claims for property allegedly burned in the fire. THOMAS and others were involved in a similar scheme in 2009 where a renter filed inflated claims for property allegedly burned in the arson fire. THOMAS, who was burned in the 2009 fire, concocted a false story to federal agents to explaining his burns.
U.S. District Court Judge Susie Morgan scheduled THOMAS’s sentencing for June 18, 2014. He faces a minimum term of imprisonment of seventeen (17) years and a maximum term of imprisonment of fifty (50) years.
This case was investigated jointly by Special Agents of the Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and arson investigators of the New Orleans Fire Department. This case is being prosecuted by Assistant U.S. Attorney Tony Sanders.
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Oklahoma City Man Sentenced to 140 Months for Marijuana and Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ANTHONY DEXTER WASHINGTON, II, a.k.a. Tony Washington, age 28, of Oklahoma City, Oklahoma, was sentenced to 140 months imprisonment, followed by 3 years of supervised release for Possession of Controlled Substances with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B)(viii) and 841(b)(1)(C) and Title 18, United States Code, Section 2.
Charges arose from an investigation by the McAlester Police Department, the Pittsburg County Sheriff’s Department and the Drug Enforcement Administration - Drug Task Force. The defendant was indicted in January, 2013 and was found guilty in September, 2013 by a federal jury along with co-defendant, MAURICE ELON EDWARDS, age 29, of Spencer, Oklahoma.
The evidence presented at trial proved that on or about January 14, 2012, in McAlester, Oklahoma, the defendants, did aid and abet one another to unlawfully, knowingly and intentionally possess with the intent to distribute five (5) grams or more of actual Methamphetamine, a Schedule II controlled substance, a Schedule II controlled Substance and a mixture or substance containing a detectable amount of Marijuana, a Schedule I controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Odessa Businessman Pleads Guilty to Underpaying Taxes OwedRead the Press Release
Jose Luis Suarez, owner of Air One Mobile Welding Supply Company in Odessa, TX, faces up to 20 years in federal prison and full restitution after admitting to underpaying taxes owed to the federal government and the State of Texas announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
Appearing yesterday in Midland before United States Magistrate Judge David Counts, Suarez pleaded guilty to six counts of wire fraud and two counts of filing fraudulent federal Income Tax Returns.
By pleading guilty, Suarez admitted that he knowingly filed Income Tax Returns for 2011 and 2012 in which he did not include all of Air One’s gross receipts. According to court records, Suarez still owes more than $151,000 in federal taxes for 2011 and more than $77,000 in federal taxes for 2012 according to an Internal Revenue Service assessment.
Suarez, as company owner, was also ultimately responsible for all quarterly sales tax filings with the Texas Comptroller of Public Accounts. According to court records, beginning on or about the first quarter of 2011, and continuing through at least the first quarter of 2013, Suarez intentionally devised a scheme to defraud the State of Texas of sales taxes collected by Air One in the course of its business, and properly owed to the State. As part of this scheme, Defendant Suarez filed, or caused to be filed with the Texas Comptroller of Public Accounts a series of six Sales and Use Tax Returns that materially and fraudulently underreported the amount of taxable sales achieved by Air One. The aggregate underpayment of sales taxes to the State of Texas by Air One is estimated by the Texas Comptroller of Public Accounts to be $264,314.03.
Suarez remains on bond pending sentencing. No sentencing date has been scheduled.
This case was investigated by HSI and IRS-Criminal Investigation together with the Texas Comptroller of Public Accounts. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
Newport News Man Sentenced for Receiving Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Gregory L. Tropea, 52, of Newport News, Va., was sentenced yesterday to 336 months and a lifetime of supervised release for his convictions on three counts of receipt of child pornography and one count of making a false statement to an agent of the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, FBI Special Agent in Charge Royce E. Curtin, and Richard Myers, Chief of Newport New Police, made the announcement after sentencing by United States District Judge Robert Doumar.
Tropea pleaded guilty on November 7, 2013. According to court documents, on May 8, 2013, police responded to the Host Inn where Tropea was living, after a friend of his had not heard from him in several days. Upon arriving at the hotel, the manager informed them that a surveillance tape showed Tropea leaving the hotel on May 5, 2013, on his bicycle but not returning. Police entered the room to investigate the missing persons report and found numerous phone numbers inside the room. Officers called several people to try and locate Tropea, including his probation officer whose business card was located in the hotel room. While in the room officers found a laptop computer as well as a coffee can full of thumb drives. After speaking to the probation officer police learned that Tropea was on federal supervised release, for fraud and possession of child pornography, and barred from having a computer. The search was stopped when they discovered he was in violation of his supervision. FBI agents obtained a search warrant and numerous items were seized including the computer and thumb drives. Tropea was later located at an area jail. A forensic exam of the computer and thumb drives was conducted and over 40,000 images of child pornography were found.
This case was investigated by FBI and Newport News Police. Assistant United States Attorney Lisa R. McKeel prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Newark Man Pleads Guilty to 14 Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – A Newark man admitted today to committing 14 armed robberies of commercial establishments throughout Union, Essex, Hudson and Bergen counties, U.S. Attorney Paul J. Fishman announced.
Jamar Darby, aka “Rhino,” 27, pleaded guilty before U.S. District Judge William H. Walls to two counts of an indictment charging him with conspiracy to commit Hobbs Act robberies and with brandishing a firearm during one of those robberies.
According to documents filed in this case and statements made in court:
Darby conspired with others to rob commercial establishments as follows:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Darby and his conspirators robbed each of these establishments at gunpoint, stealing cash, cigarettes and other items. In 13 of the 14 robberies, Darby and his conspirators used zip ties or duct tape to restrain their victims. During the Pat’s Deli robbery on Feb. 19, 2013, Darby and a conspirator restrained several victims with duct tape after threatening one victim with a .45 caliber semi-automatic handgun.
The Hobbs Act conspiracy to which Darby pleaded guilty carries a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a violent crime carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine or twice the gross gain or loss arising out of the offense. Sentencing is scheduled for June 17, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the N.J. State Police and the Essex County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
14-084
Defense counsel: Anthony C. Mack Esq., Newark
Darby Indictment