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12 March 2014
New Jersey Man, Stanley Zdon, Iii, Pleads Guilty to Conspiracy to Produce Child PornographyRead the Press Release
STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, pled guilty today to conspiracy to produce child pornography, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, in November 2013, ZDON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that ZDON was responsible for creating and posting videos depicting the sexual exploitation of children on the Internet. ZDON has been in custody since his arrest.
Sentencing is scheduled for June 18, 2014, before U.S. District Judge Susie Morgan. Conspiracy to produce child pornography carries a mandatory minimum sentence of not less than fifteen (15) years and a maximum penalty of thirty (30) years imprisonment, supervised release of not less than five years up to life, and ZDON will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
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Nampa Man Sentenced to 80 Months in Prison in Meth Trafficking CaseRead the Press Release
BOISE – Daniel Eric Vaughan, 52, of Nampa, Idaho, was sentenced today to 80 months in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Vaughan to serve five years of supervised release following his release from prison. Vaughan pleaded guilty to the charge on November 18, 2013.
According to information presented in court, Vaughan and other co-defendants agreed to distribute methamphetamine. Vaughan admitted that he was aware of the ongoing distribution of methamphetamine from his residence and that he helped to distribute the methamphetamine. Vaughan has two prior convictions for felony drug offenses from 2003.
Vaughan and ten other individuals were indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and unlawful possession of firearms. All eleven defendants have pleaded guilty, including defendant Jeramie Mahler, who pleaded guilty last week to conspiracy to distribute methamphetamine and discharging a firearm in furtherance of a drug trafficking crime. Vaughan is the fourth defendant to be sentenced; co-defendants Wendy Harrison and Bobbi Eileen Woolsey were both sentenced previously to 84 months in prison and Nearia Pinnell was sentenced to 33 months in prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, with assistance from the Nampa Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Man Sentenced to 120 Months for Possession of Stolen FirearmRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that WILLIE LEE WARTSON, age 42, of Muskogee, Oklahoma, was sentenced to 120 months imprisonment, followed by 3 years of supervised release for Possession of Stolen Firearm, in violation of Title 18, United States Code, Section 922(j).
Charges arose from an investigation by the Muskogee Police Department the Bureau of Alcohol, Tobacco and Firearms and Explosives and the Drug Enforcement Administration. The defendant pled guilty in September, 2013.
The Information alleged that on or about February 13, 2013, within the Eastern District of Oklahoma, the defendant did knowingly possess in and affecting commerce, the following stolen firearm which had been shipped and transported in interstate commerce, to-wit: one Titan, model Tiger, .38 Special caliber revolver, serial number 0095230, knowing and having reasonable cause to believe the firearm was stolen.
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 the 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 Shannon Henson represented the United States.
Muskogee Man Sentenced to 105 Months for Marijuana and Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that HUR LEE BROWN, age 39, of Muskogee, Oklahoma, was sentenced to 105 months imprisonment for Possession of Controlled Substances with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
Charges arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in June, 2013 and pled guilty in July, 2013.
The Indictment alleged that on or about February 26, 2013, within the Eastern District of Oklahoma, HUR LEE BROWN, defendant herein, did unlawfully, knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II controlled substance, and a mixture of 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 the 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.
Mattawan Man Convicted of Multiple Counts of Attempted Sexual Exploitation of A Child and Other Related ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – James Alfred Beckman, Jr., 39, of Mattawan, Michigan was convicted by a jury of ten counts of attempting to sexually exploit a child by trying to make his own child pornography, one count of attempting to coerce and entice a child to commit a sex act, two counts of distributing child pornography, and two counts of receiving child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. The jury returned the guilty verdicts, and one acquittal on the eleventh charge of attempted sexual exploitation, after hearing testimony and reviewing evidence presented during a two-week trial. Beckman faces up to life imprisonment for these offenses; he will be required to serve a term of supervised release after his prison term has been completed; and he will also be required to register as a sexual offender. The date of Beckman’s sentencing has not been set.
The evidence presented at trial showed that Beckman sexually abused and exploited two young children during 2012. He streamed and attempted to stream live video of this abuse and exploitation to others. In exchange, he received child pornography and other things he deemed of value. Beckman’s conduct came to light when one of his victims disclosed the abuse to another adult. The Michigan State Police and the Federal Bureau of Investigation then launched an investigation. The investigation revealed a network of individuals trafficking in child pornography. Two of Beckman’s accomplices testified against him.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Federal Bureau of Investigation (FBI) and the Michigan State Police (MSP) investigated the case. Assistant U.S. Attorneys Sean M. Lewis and Timothy P. Verhey prosecuted the case.
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Maryland Man Pleads Guilty to Federal Drug Charge, Admits Role in A Network That Distributed Cocaine and Heroin-Arrest Followed DEA Investigation-Read the Press Release
WASHINGTON – Herman Curtis Malone, 45, of Upper Marlboro, Md., pled guilty today to a federal drug offense for his role in a network that distributed substantial quantities of cocaine and heroin in the Washington, D.C. area.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Karl C. Colder,Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
Malone pled guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine and heroin. The charge carries a mandatory minimum of five years in prison, and under the terms of the plea deal, the defendant may be sentenced to as many as ten years in prison. Given current federal sentencing guidelines, Malone faces an expected guideline range of 108 months to 120 months in prison as well as potential financial penalties. As part of the plea agreement, Malone must pay a forfeiture money judgment of $150,000.
The Honorable Ellen S. Huvelle scheduled sentencing for May 28, 2014.
Malone, who helped run youth basketball programs, had been convicted of a narcotics offense during the 1990s in Prince George’s County, Md. He was arrested on the current offenses on Aug. 9, 2013, following a DEA Group-43 Cross-Border-Task-Force investigation.
Two others have recently pled guilty to charges in the case. Clarence Redd, 34, of Washington, D.C., pled guilty to a charge of distribution of heroin that took place in August of 2012. Derico Williams, 36, of Seat Pleasant, Md., pled guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine. Both men are awaiting sentencing. A fourth defendant is awaiting trial.
According to the government’s evidence, Malone himself conspired with others from August 2012 to August 2013 to distribute cocaine and heroin in the Washington, D.C. area. Malone acknowledged that as part of the conspiracy he was responsible for at least five kilograms of cocaine and at least 100 grams of heroin.
On Aug. 9, 2013, the DEA found a loaded .40-caliber handgun in the upstairs bedroom of Malone’s home in Upper Marlboro. Downstairs in the basement, agents found approximately one kilogram of cocaine and approximately 84 grams of heroin; a bag of .40-caliber ammunition; and cocaine residue in a sink and trash can. Malone, as someone who had been previously convicted in 1991 of a felony offense for Possession with Intent to Distribute Cocaine in Prince George’s County, Maryland, was not lawfully able to possess a firearm.
“More than 20 years after he was first convicted of dealing cocaine, Curtis Malone returned to a life of drug trafficking,” said U.S. Attorney Machen. “He was perceived as a role model for our young people, but in truth he peddled heroin and cocaine and illegally possessed a firearm. Malone now faces a lengthy prison sentence that will send a clear message to the young men he sought to influence: joining the world of guns and drugs is a sure-fire way to ruin your future.”
In announcing the plea, U.S. Attorney Machen and Special Agent in Charge Colder commended the work of those who investigated the case for the DEA. They also expressed appreciation to the Metropolitan Police Department (MPD) the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Prince George’s County Police Department, the Maryland State Police, and the Maryland Park Police. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
U.S. Attorney Machen and Special Agent in Charge Colder also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Rommel Pachoca, Starla Stolk, Candace Battle, Teesha Tobias, Regan Gibson, Kim Hall and Mary Downing; former Paralegal Specialist Jeremy Stoller; Legal Assistants Jessica Moffatt, Tammy Scott, Latoya Wade, and Diane Brashears, and former Legal Assistant Niya Attucks. They recognized the work of Assistant U.S. Attorneys Allessandra Stewart, Zia Faruqui, and Arvind K. Lal, of the Asset Forfeiture and Money Laundering Section. Finally, they commended the efforts of Assistant U.S. Attorneys Stephen J. Gripkey, Darlene M. Soltys, and Nihar R. Mohanty, as well as former Assistant U.S. Attorney Michelle Zamarin, of the Violent Crime and Narcotics Trafficking Section, who investigated and prosecuted the case.
14-062Manhattan U.S. Attorney and EPA Announce Agreement with Eastman Kodak Company for Clean up of Rochester, New York, Business Park and the Genesee RiverRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith A. Enck, Regional Administrator of the U.S. Environmental Protection Agency, announced today that the United States has entered into settlement agreements with EASTMAN KODAK COMPANY (“KODAK”) that resolve environmental claims and liabilities asserted by the United States against Kodak. After Kodak filed for Chapter 11 bankruptcy protection on January 19, 2012, the United States filed a proof of claim asserting Kodak’s responsibility for significant environmental claims and clean-up obligations. The first settlement resolves environmental liabilities at the Eastman Business Park in Rochester, New York, which is a hazardous waste site regulated under the Resource Conservation and Recovery Act (“RCRA”). The second settlement resolves liabilities under the Comprehensive Environmental Response, Compensation and Liability Act (also known as the Superfund law) at the Mercury Refining Superfund site in Colonie and Guilderland, New York, and the Fair Lawn Well Field Superfund site in Fair Lawn, New Jersey.
U.S. Attorney Preet Bharara said: “Today’s settlements will lead to the clean-up of more than a century of pollution by Kodak at the Eastman Business Park and Rochester’s Genesee River, while clearing the way for economic development at the Eastman Business Park. Kodak will also pay for contamination it caused at Superfund sites in New York and New Jersey. These resolutions demonstrate the commitment of the United States to prevent even bankrupt companies from escaping responsibility for environmental contamination.”
EPA Regional Administrator Judith A. Enck said: “The proposed legal agreements will provide funding to clean up the toxic legacy that Kodak has left in Rochester. They are designed to protect public health and the environment, including cleaning up the Genesee River, while supporting the creation of scores of much needed new jobs in Rochester. I encourage the public to comment on the agreement.”
Three agreements were filed in bankruptcy court today. Two of them – a settlement agreement between the United States and Kodak and a related funding agreement between the United States and the New York State Department of Environmental Conservation (“DEC”) – relate to environmental clean-up at the Eastman Business Park and the Genesee River. Pursuant to these agreements, Kodak commits to fund a trust with $49 million for clean-up at the Eastman Business Park site and the Genesee River; DEC agrees to fund any additional costs of clean-up between $49 million and $99 million; and Kodak and DEC each agree to pay half of any costs above $99 million. As described in the settlement agreement, EPA and DEC have also entered a publicly available agreement that sets forth a plan for the investigation of contamination in the Genesee River and the selection and implementation of a clean-up remedy. These arrangements build upon and strengthen an agreement that Kodak and DEC originally proposed to the bankruptcy court in June 2013. The Eastman Business Park settlement agreement also provides that Kodak will pay the United States more than $4 million, and an additional amount pursuant to the terms of Kodak’s plan of reorganization, to satisfy environmental liabilities for damages to natural resources in the Genesee River.
Since 1891, the Eastman Business Park has been Kodak’s primary photographic product manufacturing facility. In the course of Kodak’s operations, releases of hazardous waste occurred at the business park and into the nearby Genesee River. Kodak is responsible under federal environmental law for the management of this hazardous waste and clean-up of historic contamination at the site, and it is also responsible for damages for injury to natural resources in the Genesee River. Today’s agreements relating to the Eastman Business Park ensure that Kodak’s legacy of contamination will be addressed. In addition, these agreements will promote economic development at the Eastman Business Park by providing opportunities for new businesses to move to the park without bearing the burden of Kodak’s historic contamination.
The third agreement that the United States filed today is a settlement agreement between the United States and Kodak relating to Kodak’s environmental liabilities at the Fair Lawn Well Field Superfund Site and the Mercury Refining Superfund Site. Under this agreement, Kodak will provide the United States with $2,000,000 for the Fair Lawn site and approximately $750,000 for the Mercury Refining site, plus additional amounts for each site pursuant to the terms of Kodak’s plan of reorganization.
The settlement agreements will be filed with the Bankruptcy Court for a period of at least 30 days before their entry to provide public notice and to afford members of the public the opportunity to comment on the settlement agreements. Written comments must be submitted within 30 days of the publication of notice of the settlement agreements in the Federal Register and be emailed to [email protected] or mailed to Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.
Mr. Bharara praised the efforts of EPA and the Environment and Natural Resources Division of the U.S. Department of Justice in this case.
Assistant United States Attorneys Robert William Yalen and Christine S. Poscablo are in charge of the case, which has been handled by the Office’s Environmental Protection Unit and Tax and Bankruptcy Unit.
Lengthy Prison Sentences Handed Down for Two Individuals Involved in Conspiracy to Kidnap A MinorRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ernesto Martinez, age 20, was sentenced to 25 years imprisonment and Yaritza Contreras, age 20, was sentenced to 9 years imprisonment for their involvement in a conspiracy to kidnap a minor.
According to information disclosed during the court proceedings, during the early morning hours of May 10, 2013, Ernesto Martinez and Esmeralda Contreras entered a residence and abducted a fourteen year old boy. Martinez subsequently made several ransom calls to the victim's father. The victim's father quickly reported the crime to the Yakima County Sheriff's Office. The Yakima County Sheriff's Office and the Federal Bureau of Investigation immediately began working together with the goal of reuniting the victim with his parents. At approximately 2:00 p.m., due to the outstanding efforts of law enforcement Esmeralda Contreras and Yaritza Contreras were apprehended. The victim was found bound with duct tape and rope. The victim was unharmed and quickly reunited with his parents.
Senior United States District Judge Robert H. Whaley sentenced Ernesto Martinez to 25 years imprisonment, to be followed by 5 years of court supervision upon release from Federal prison. Yartiza Contreras was sentenced to 9 years imprisonment, to be followed by 5 years of court supervision upon release from Federal prison. Esmeralda Contreras, a third individual involved in the abduction, currently has a sentencing hearing scheduled for May 7, 2014.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, "The abduction of a child is an extremely serious offense and offenders will be subjected to long terms of incarceration. The United States Attorney's Office, the Federal Bureau of Investigation, and the Yakama County Sheriff's Office, have a zero tolerance policy regarding such egregious acts of violence and are committed to prosecuting individuals who engage in such horrific offenses."
The investigation was conducted by the Federal Bureau of Investigation, the Yakima County Sheriff's Office, the Wapato Police Department, and the Yakima Police Department. The case was prosecuted by Assistant United States Attorney Alison L. Gregoire and Thomas J. Hanlon, Assistance United States Attorneys for the Eastern District of Washington.
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Kingsport Woman Pleads Guilty to Filing False and Fraudulent Federal Income Tax ReturnsRead the Press Release
GREENEVILLE, Tenn. – On Mar. 10, 2014, Melissa Ann Nowlin, 28, of Kingsport, Tenn., pleaded guilty in U.S. District Court to one count of conspiracy to defraud the government with respect to claims and four counts of theft of public money.
According to supporting documentation for the plea agreement, Nowlin conspired with Devin Ray Horne, 24, of Kingsport, Tenn., to fraudulently obtain funds by filing false federal tax returns using personal identifying information which Horne stole from other individuals in the Eastern District of Tennessee.
Nowlin previously pleaded guilty in August 2013 to other charges involving her participation with Horne and numerous others in a conspiracy to distribute oxycodone pills. Sentencing for Nowlin on both the oxycodone conspiracy and the fraudulent income tax return case is set for Jun. 30, 2014, before the Honorable J. Ronnie Greer, U.S. District Court Judge.
The investigation leading to the charges and guilty plea was conducted by the IRS Criminal Investigations Division, Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office, Kingsport Police Department and Bristol Tennessee Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
Justice Department Seeks Temporary Restraining Order to Stop Ohio Department of Youth Services from Excessively Secluding Boys with Mental Health NeedsRead the Press Release
Today, the Justice Department sought a federal court order temporarily restraining the Ohio Department of Youth Services (DYS) from unlawfully secluding boys with mental health needs in its juvenile correctional facilities. The requested order would require DYS to abide by safeguards in its use of seclusion until a final ruling on the claims that DYS’ seclusion practices violate the constitutional rights of boys in DYS custody. In conjunction with its request for a temporary restraining order, the department sought to expand its existing complaint regarding the Scioto Juvenile Correctional Facility, to include claims of unlawful seclusion at all of the DYS facilities.
The department’s request for a restraining order detailed the state’s excessive use of seclusion, including the following information:
· In the second half of 2013, the state imposed a total of almost 60,000 hours of seclusion on 229 boys with mental health needs;
· One boy spent 1,964 hours in seclusion over six months; the state gave another boy 21 straight days of seclusion;
· Ten boys at one facility spent over 10 percent of their time in custody in seclusion;
· While secluded, several boys were on suicide watch, had suicidal thoughts or hurt themselves.
“The Ohio Department of Youth Services must stop violating the rights of youth in its custody through unlawful seclusion,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “The way in which Ohio uses seclusion to punish youth with mental health needs, victimizes one of the most vulnerable groups in our society.”
“Ohio’s juvenile correctional facilities must comply with the Eighth and 14th Amendments,” said U.S. Attorney Carter Stewart for the Southern District of Ohio. “We will remain vigilant in protecting the constitutional rights of all our citizens, particularly young people and those with mental illness.”
“The facts in this case reveal a serious disregard for the rights of young people with mental health needs in Ohio’s custody,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “The Ohio Department of Youth Services has a responsibility to ensure the health and safety of these young people, including providing appropriate mental health treatment, so that they can overcome challenging behaviors and return to the community to become successful adults.”
Following an investigation under the Violent Crime Control and Law Enforcement Act of 1994 and the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department issued findings in May 2007 detailing significant constitutional deficiencies regarding use of physical force, grievance investigation and processing and use of seclusion. In June 2008, the department entered into a consent decree with the state to correct these deficiencies at the Scioto Juvenile Correctional Facility. However, the recent discovery that DYS continued to unlawfully seclude boys with mental health needs at Scioto Juvenile Correctional Facility and had moved boys to other DYS facilities also using unlawful seclusion prompted the department today to seek a temporary restraining order and an order allowing it to add the remaining DYS facilities to its complaint.
This case is being litigated by attorneys from the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Ohio and the U.S. Attorney’s Office for the Northern District of Ohio. Copies of both motions and additional information about the Civil Rights Division will be available on its website.
Jury Convicts Texas Man of Attempting to Entice A Minor to Have SexRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Elton Ray Jones, 67, of Zavalla, Texas, guilty Tuesday of attempting to entice a minor to engage in criminal sexual activity. United States District Judge Elizabeth Foote presided over the trial.
Following the two-day trial, the jury found Jones guilty after deliberating for one hour. Based on witness testimony and documents admitted into evidence, it was shown that from September 11, 2012 to October 17, 2012, Jones made contact and conducted online chats with a law enforcement officer posing as a 14-year-old girl. Jones engaged in explicit conversations with the girl and planned a sexual encounter. Law enforcement officers arrested Jones on October 17, 2012 in Lafayette where Jones had planned to meet the girl.
Jones faces 10 years to life in prison, five years to life of supervised release, and a $250,000 fine for one count of attempting to entice a minor to engage in criminal sexual activity. He must also register as a sex offender.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.The Louisiana State Police and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and John Luke Walker are prosecuting the case.
Jury Convicts All Seven Defendants in <br /> $97 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Houston today convicted two owners of a former Houston mental health care company, Spectrum Care P.A. (Spectrum), several of its employees and the owners of certain Houston group care homes for their participation in a $97 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG), the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Joseph J. Del Favero of the Chicago Field Office of the Railroad Retirement Board, Office of Inspector General (RRB-OIG) and Special Agent in Charge Scott Rezendes of Field Operations of the Office of Personnel Management’s Office of Inspector General (OPM-OIG) made the announcement following a jury trial before U.S. District Judge Vanessa Gilmore in the Southern District of Texas.
Physicians Mansour Sanjar, 81, and Cyrus Sajadi, 66, the owners of Spectrum, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks as well as related counts of health care fraud and paying illegal kickbacks. Adam Main, 33, a physician’s assistant, was convicted of conspiracy to commit health care fraud and related counts of health care fraud. Shokoufeh Hakimi, 66, administrator of Spectrum, was convicted of conspiracy to commit health care fraud, conspiracy to pay kickbacks and a related count of paying an illegal kickback. Chandra Nunn, 35, a group home owner, was also convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and related counts of receiving illegal kickbacks. Sharonda Holmes, 40, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks and a related count of receiving an illegal kickback. Shawn Manney, 51, a group home owner, was convicted of conspiracy to pay and receive illegal kickbacks.
According to evidence presented at trial, Sanjar and Sajadi orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until their arrest in December 2011. Sanjar and Sajadi owned Spectrum, which purportedly provided partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness. The Medicare beneficiaries for whom Spectrum billed Medicare for PHP services did not qualify for or need PHP services. Sanjar, Sajadi, Main and Moore signed admission documents and progress notes certifying that patients qualified for PHP services, when in fact, the patients did not qualify for or need PHP services. Sanjar and Sajadi also billed Medicare for PHP services when the beneficiaries were actually watching movies, coloring and playing games–activities that are not covered by Medicare.
Evidence presented at trial showed that Sanjar, Sajadi and Hakimi paid kickbacks to Nunn, Holmes, Manney and other group care home operators and patient recruiters in exchange for delivering ineligible Medicare beneficiaries to Spectrum. In some cases, the patients received a portion of those kickbacks. According to evidence presented at trial, Spectrum billed Medicare for approximately $97 million in services that were not medically necessary and, in some cases, werenot provided.
Sanjar, Sajadi and Nunn are scheduled to be sentenced on Sept. 8, 2014. Main, Hakimi, Holmes and Manney are scheduled to be sentenced on Sept. 15, 2014.
The case was investigated by the FBI, HHS-OIG, Texas MFCU, RRB-OIG and OPM-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova and Trial Attorneys Jonathan T. Baum and William S.W. Chang of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov .Johnson County Tax Preparer Pleads Guilty to Filing False Tax Return, Wire FraudRead the Press Release
KANSAS CITY, KAN. - A tax preparer in Johnson County pleaded guilty today to federal tax fraud charges that cost a Kansas company more than $744,000, U.S. Attorney Barry Grissom said.
John M. Moore, 52, Lenexa, pleaded guilty to one count of filing a false tax return and one count of wire fraud. In his plea, he admitted a company he owns, Accent Payroll Services (APS), was hired to provide payroll processing services for Tytan International L.L.C. of Lenexa, Kan. From 2008 to 2010, APS was responsible for paying the wages of Tytan’s employees, withholding employment taxes, filing Tytan’s employment tax returns on Internal Revenue Service form 941 and paying withheld employment taxes to the IRS.
Moore transferred more than $2 million in employment tax withholdings from Tytan’s bank account to his company’s bank account. However, he only paid the IRS approximately $1.3 million. To keep Tytan from receiving notices from the IRS that taxes were not paid, Moore gave the IRS an address for Tytan at a post office box he controlled.Sentencing is set for May 29. He faces a maximum penalty of 3 years in federal prison and a fine up to $100,000 on the charge of filing a false tax return and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud count.
Grissom commended the Internal Revenue Service, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.Johnson County Man Sentenced to 84 Months for Armed Drug TraffickingRead the Press Release
PIKEVILLE, KY - A Johnson County man, who previously admitted to trafficking prescription drugs, was sentenced on Tuesday to 84 months in prison.
U.S. District Judge Amul Thapar sentenced 43 year-old John Kline for armed drug trafficking. Under federal law, Kline will have to serve at least 85 percent of his prison sentence.
Kline admitted during his guilty plea, in December 2013, that he had sold Oxycodone pills to several undercover officers with the Kentucky State Police. Kline was also in possession of a loaded semiautomatic pistol at the time of one of the drug transactions. According to the plea agreement, authorities searched Kline’s residence and found hundreds of Oxycodone pills and 17 firearms.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, ATF; Rodney Brewer, Kentucky State Police Commissioner; and Dwayne Price, Johnson County Sheriff, jointly announced the sentence.
The investigation was conducted by ATF, the Kentucky State Police and the Johnson County Sheriff’s Office. Assistant U.S. Attorney Hydee Hawkins prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.
Jicarilla Apache Man Pleads Guilty to Involuntary Manslaughter Charges Arising out of DWI Collision Resulting in two DeathsRead the Press Release
ALBUQUERQUE – Isaiah Dean Trujillo, 24, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to a felony information charging him with two counts of involuntary manslaughter. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Chief Kendell Vicenti of the Jicarilla Apache Tribal Police Department.
Trujillo was arrested on May 6, 2013, on a criminal complaint alleging involuntary manslaughter charges arising out of a single motor vehicle collision occurring on April 24, 2013, in Dulce within the Jicarilla Apache Nation. Two women, both members of the Jicarilla Apache Nation, died as a result of injuries sustained during the collision. Trujillo, the driver of the vehicle, was intoxicated at the time of the collision.
In his plea agreement, Trujillo admitted that on April 24, 2013, he drove a vehicle in excess of 70 miles per hour on a road with a 35 mile per hour speed limit after consuming a large amount of alcohol. Trujillo further admitted that he lost control of the vehicle and the vehicle flipped over. Two of the four passengers in the vehicle were killed and the other two suffered serious injuries. Trujillo further admitted that his blood alcohol concentration was .29 following the collision.
Trujillo’s sentencing hearing has yet to be scheduled. Under the terms of his plea agreement, Trujillo will be sentenced to eight years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
Jefferies Llc Agrees to Pay $25 Million Related to Fraudulent Rmbs Trading ActivityRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that New York-based investment bank and broker-dealer Jefferies LLC (Jefferies) and the U.S. Attorney’s Office have entered into a non-prosecution agreement relating to Jefferies’ trading in residential mortgage-backed securities (RMBS), including with funds created and funded through the Troubled Asset Relief Program by the federal government. As part of this agreement, Jefferies will pay a monetary penalty of $25 million.
“Employees in Jefferies’ fixed income division repeatedly misled their own customers, said U.S. Attorney Daly. “The sole purpose of this deception was to increase profit to Jefferies and its employees. Not only did management tolerate these illegal practices, but the culture within the division encouraged the fraudulent conduct. By entering into this agreement, Jefferies recognized the seriousness of the problem and committed to change. While our investigation of individuals continues, we agreed to this corporate resolution in order to reflect the company’s cooperation and to avoid further damage to its many blameless employees and shareholders. Broker-dealers are on notice that lying to customers to increase profits is a crime, and are strongly encouraged to root out and report such misconduct to avoid significant consequences. We thank SIGTARP, Connecticut FBI and the Boston Regional Office of the SEC for their excellent work on this important case.”
“The government absolutely expects that businesses dealing with federal TARP programs, funded by taxpayers and designed to address the financial crisis, will ensure that they and their employees conduct themselves using strict adherence to the laws of this country and the highest standards of ethics, integrity, and cooperation,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When Jefferies learned of a suspected fraud scheme by one of its senior traders, Jesse Litvak, to cheat and overcharge TARP-funded entities and that Jefferies supervisors were aware of the lies but turned a blind eye, Jefferies chose to do the right thing. Jefferies cooperated with the government, conducted an internal investigation, acknowledged the harm done, agreed to pay for that harm, and took responsibility to make necessary changes to its staffing as well as to its compliance policies, procedures, and internal controls.”
“Perhaps most troublesome in this fraud scheme was that Jefferies management in the fixed income division learned of the fraud and did nothing to stop it, let alone report it,” said FBI Special Agent in Charge Ferrick. “Such egregious conduct supports the $25 million dollar penalty and underscores the need to investigate and prosecute all responsible parties. The U.S. Attorney’s Office, SIGTARP and the FBI make a formidable team in the pursuit of justice and will continue to thoroughly investigate this matter.”
In response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used more than $22 billion of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds. TARP infused between $1.4 billion and $3.7 billion of bailout money into each of the PPIP funds that was to be invested alongside private capital.
Jefferies’ Mortgage and Asset-Backed Securities Trading group traded RMBS on the secondary market by buying and selling RMBS to customers, including Legacy Securities Public-Private Investment Funds. In approximately 2009, certain Jefferies’ employees in that group fraudulently increased the profitability of certain RMBS trades for Jefferies in various ways, including by misrepresenting the RMBS seller’s asking price to the buyer and by misrepresenting the buyer’s asking price to the seller. Jefferies’ employees also concealed that RMBS were being sold from Jefferies’ inventory in order to charge buyers an extra commission to which Jefferies was not entitled.
At times, members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it.
Under the terms of the non-prosecution agreement, which was entered into on January 29, 2014, Jefferies agreed to pay a total penalty of $25 million. The penalty includes up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also agreed to address deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures include Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
The agreement announced today addresses only the corporate criminal liability of Jefferies LLC, not potential criminal charges for any individual. The criminal investigation of individuals associated with Jefferies’ RMBS trading activities remains active and ongoing. Jefferies has cooperated with the federal criminal investigation, and already implemented certain compliance improvements.
On March 7, 2014, a federal jury in New Haven found Jesse C. Litvak, a registered broker-dealer and former managing director at Jefferies, guilty of multiple offenses involving a scheme to defraud customers trading in RMBS.
This matter is being investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Eric Glover.
This matter was investigated in coordination with the RMBS Working Group, a joint federal and state initiative created to investigate those responsible for misconduct contributing to the 2008 financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, SIGTARP, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, please visit: www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 4, 2014 and entering pleas of Not Guilty were:
- ISA CHERYL BAILEY, a 28-year-old resident of North Carolina, appeared on charges of counterfeiting obligations of the United States and uttering counterfeit obligations. If convicted of the most serious charge contained in the indictment, BAILEY faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service and the Missoula Police Department. PACER Case Reference: 14-10
- EVEN M. GROVO, a 55-year-old resident of Massachusetts, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious charge contained in the indictment, GROVO faces life imprisonment, $250,000 in files and lifetime supervised release. The investigation was a cooperative effort of the Federal Bureau of Investigation, Homeland Security Investigations, Polson Police Department, Helena Police Department, Internet Crimes Against Children Task Force, and Montana Division of Criminal Investigation. PACER Case Reference: 13-30
- DNEY LIDE ROGERS a 29-year-old resident of North Carolina, appeared on charges of counterfeiting obligations of the United States and uttering counterfeit obligations. If convicted of the most serious charge contained in the indictment, ROGERS faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service and the Missoula Police Department. PACER Case Reference: 14-10
- VID DONALD SHEARER, a 67-year-old resident of Townsend, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, SHEARER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. PACER Case Reference: 13-19
Appearing before U.S. Magistrate Judge Ostby in Billings on March 6, 2014 and entering pleas of Not Guilty were:
- YES GUTIERREZ, a 44-year-old resident of Phoenix, Arizona, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, GUTIERREZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations. PACER Case Reference: 14-08
- MONA LOPEZ, a 44-year-old resident of Modesto, California appeared on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute meth, and possession with intent to distribute heroin. If convicted of the most serious offenses contained in the indictment, LOPEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. PACER Case Reference: 13-92
Appearing before U.S. Magistrate Judge Strong in Great Falls on March 11, 2014 and entering please of Not Guilty were:
- LLIAM T. AHENAKEW, a 23-year-old resident of Box Elder appeared on charges of sexual abuse. In convicted of the charge contained in the indictment, AHENAKEW faces life imprisonment, $250,000 in fines and lifetime supervised release. PACER Case Reference: 14-14
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Proceeds of Bank FraudDeposited in Former Legislator's Political AccountRead the Press Release
TOPEKA, KAN. - A federal grand jury indictment returned here today charges a former Kansas legislator with bank fraud and alleges some of the money went into his political account, U.S. Attorney Barry Grissom said today.
Trent K. LeDoux, 40, Holton, Kan., is charged with three counts of bank fraud and two counts of money laundering. The alleged crimes took place in 2011 and 2012 while LeDoux was a member of the Kansas House of Representatives.
The indictment alleges LeDoux received three loans -- $106,600, $175,500 and $183,000 – from Farmers and Merchants Bank of Colby, Kan. He told the bank he was going to use all the funds to purchase cattle that would serve as collateral on the loans. In fact, he did not intend to use all the funds to buy cattle, but to pay off existing debts and to make contributions to his political account.
In two money laundering counts, the indictment alleges LeDoux transferred $15,000 on Dec. 31, 2011, and $12,000 on Aug. 1, 2012, to his campaign account.
The indictment seeks a monetary judgment of $465,100.
If convicted, he faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each count of bank fraud, and a maximum penalty of 10 years and a fine up to $250,000 on each count of money laundering. The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.Identity Thief Sentenced for Filing Tax Returns in the Names of the Attorney General and OthersRead the Press Release
ATLANTA – A federal judge sentenced Yafait Tadesse to one year and one day in prison for using the identities of over ten individuals, including the Attorney General of the United States, to file false and fraudulent tax returns.
“Identity theft affects people from all walks of life, from hardworking taxpayers trying to make ends meet, to senior government officials,” said United States Attorney Sally Quillian Yates. “Identity thieves should be aware that we will continue to aggressively pursue them no matter who their victims happen to be.”
“Identity thieves have figured out that if they can obtain your Social Security Number they can file false tax returns with the IRS,” said Veronica Hyman-Pillot, IRS Special Agent in Charge IRS Criminal Investigation. “It does not matter your political position, economic status, or social standing, you are susceptible to identity theft. No one is immune.”
FBI Atlanta, Special Agent in Charge J. Britt Johnson said, “This investigation serves as a warning to those who conspire to devise schemes to defraud and steal money from hard-working citizens through embezzlement and identity theft. Regardless of whom the victims may be, the FBI takes these violations very seriously and will continue to work with our Federal law enforcement partners in investigating violations of income tax refund fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: From November 2012 through April 2013, Tadesse and co-defendant Eyaso Abebe carried out a scheme to obtain the names and social security numbers of unsuspecting victims from various websites and use this information on false tax returns that claimed fraudulent refunds. The tax returns falsely claimed that the victims earned similar wage and withholding amounts and worked at Wal-Mart. The returns all claimed fraudulent refunds that were to be loaded onto pre-paid debit cards. These pre-paid debit cards listed Tadesse’s apartment complex in Carrollton, Ga., as the mailing address.
While the IRS stopped several of the false returns from being fully processed, several fraudulent refunds were directed onto prepaid debit cards. Surveillance videos showed that Tadesse used one of these prepaid cards at stores in Carrollton, Ga.
One of the tax returns filed by Tadesse and Abebe used the name, social security number, and date of birth of U.S. Attorney General Eric H. Holder, Jr. There is no indication that the Attorney General was specifically targeted as a result of his position. The defendants obtained their victims’ information from publicly available websites that publicize the names, social security numbers, and other personally identifying information of unsuspecting individuals.
The other individuals targeted in this scheme were not government officials and were located across the United States. One of the victims wrote in a letter to the sentencing judge that at the time of the offense, his wife was pregnant with the couple’s seventh child and that the defendant’s actions prevented the couple from getting their legitimate tax refund, causing a financial burden to the family.
Tadesse, 21, of Dekalb County, Ga., was sentenced by United States District Judge Amy Totenberg to one year and one day in federal prison and three years of supervised release, and ordered to pay $4,014 in restitution to the IRS. The Court also ordered Tadesse to forfeit his interest in computers that were used to carry out this offense. Tadesse pleaded guilty on November 13, 2013, to theft of government funds. The co-defendant in this case, Eyaso Abebe, pleaded guilty on October 16, 2013, to theft of government funds and will be sentenced on August 7, 2014.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. If you believe you may be a victim of tax return-related identity theft, please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Thomas J. Krepp and Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
INTERPOL Washington Director Shawn A. Bray Presents at the 2014 Symantec Government SymposiumRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 12, 2014INTERPOL Washington Director Shawn A. Bray Presents at the 2014 Symantec Government Symposium
WASHINGTON - On Tuesday, March 11, 2014, Director Bray attended the annual Symantec Government Symposium where he presented on the topic “Fighting Cybercrime in a Borderless World.” The theme for this year's symposium was “Resilient Security for Today's World.” Other distinguished members of the panel included Department of Justice's Principal Deputy Chief Richard Downing, Computer Crime and Intellectual Property; Catherine Lotrionte, Director of the Institute for Law, Science and Global Security from Georgetown University; and Senior Advisor for Cybercrime James Vigil, Bureau for International Narcotics and Law Enforcement Affairs at the Department of State. The Symantec Government Symposium is the world's largest annual information security event for government audiences where the nation's top IT leaders can discuss how government and industry can collaborate and best secure America's critical infrastructure.
Hogsett Announces Public Corruption Charges Against Former City of Bloomington Public OfficialRead the Press Release
Senior Project Manager alleged to have embezzled over $800,000 from Bloomington taxpayers
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that federal criminal charges have been filed against a former City of Bloomington Senior Project Manager. Specifically, Justin Wykoff, 43, has been charged with 24 counts of embezzlement and one count of conspiracy. Two other accomplices, Roger D. Hardin, 51, and his son, Zachary, 25, both of Bedford, have also been charged.
It is alleged that the three men bilked hundreds of thousands of dollars from public works projects by submitting and approving fraudulent invoices. Wykoff was arrested early this morning at his home by federal agents. The Hardins were also arrested and face charges of conspiracy to commit a federal crime.
The criminal complaint alleges that from May 13, 2011 to February 14, 2014, acting as the Manager of Engineering Services and, thereafter, as a Senior Project Manager for the City of Bloomington, Wykoff approved false invoices which caused the City to pay more than $800,000 for work on concrete projects that was never completed at all or actually done by other construction companies. In furtherance of this scheme, the co-conspirators sent false invoices to the City for payment to Reliable Concrete Construction (RCC), a company owned by the Hardins. Once paid by the City, the money was then deposited into an account held by Roger and Zachary Hardin.
The complaint further alleges that the Hardins would then make cash payments to Wykoff. Invoices were presented and paid at least 24 times over a two and one half year period. Wykoff received thirty-three percent (33%) of each fraudulent invoice. The cash returned to Wykoff were alleged kickbacks for his approval of the invoices. The case involved projects for concrete work to be performed on Rogers Street and College Avenue. The investigation is ongoing and the final amount of loss has not yet been determined.
These arrests come at a time when the United States Attorney’s Office and the Federal Bureau of Investigation have significantly increased efforts to root out public corruption. In April of 2012, Hogsett announced the formation of the U.S. Attorney’s Office’s Public Integrity Working Group (“PIWG”), a collaborative effort between federal, state and local law enforcement agencies to rid Indiana of the “culture of corruption” that all too often rears its ugly head.
Since its creation, the PIWG has charged 30 public officials for various crimes committed at the local, state and federal levels. Ten of the 30 charged are scheduled for trial in this upcoming year. Individual defendants include two former Indianapolis City-County Councilors, the former Chief Deputy Prosecutor of the Marion County Prosecutor’s Office, local police officers and sheriff’s deputies, township level officials, employees of the Indiana Bureau of Motor Vehicles, as well as employees of the Internal Revenue Service and the United States Postal Service.
“Our message has been consistent, but bears repeating: it doesn’t matter what your politics are or who you know,” Hogsett noted, “if you violate the public trust, our investigators will find you, will investigate you and the U.S. Attorney’s Office will then prosecute you to the fullest extent of the law.”
FBI Special Agent in Charge Robert A. Jones stated, “Contract cheating in the form of bribery and conspiracy is public corruption that violates the trust of the community and unfairly burdens honest taxpayers. The FBI will continue to work with our law enforcement partners to preserve the integrity of public contracting.”
According to Steven DeBrota, Senior Litigation Counsel for the United States Attorney’s Office and who is prosecuting the case for the government, Wykoff could face up to 10 years on each count if convicted. The Hardins could face five years if convicted.
The investigation is being conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.
A complaint is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
Henrico Man Convicted of Armed Robbery at Chesterfield Towne Center MallRead the Press Release
RICHMOND, Va. – Samuel G. Mamudu, 25, of Henrico, Va., was convicted yesterday by a federal jury on charges for his role in the October 9, 2013, gun-point robbery of Prince Jeweler’s jewelry store in the Chesterfield Towne Center Mall.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field office; and Colonel Thierry Dupuis, Chesterfield County Police Department, made the announcement after the verdict was accepted by United States District Judge Henry E. Hudson.Mamudu was convicted on one count of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence. Mamudu faces a mandatory minimum sentence of seven years of incarceration and a maximum penalty of life imprisonment when he is sentenced on June 13, 2014.
Mamudu was indicted on December 17, 2013, by a federal grand jury on interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. According to court records and evidence at trial, Mamudu entered into the Prince Jeweler’s jewelry store, located in Chesterfield Towne Center Mall, brandished a firearm, robbed the clerk of several items of jewelry, and fled the scene. Several days later, Mamudu was identified as the armed robber and arrested by the Chesterfield County Police Department with several of the stolen pieces of jewelry in his possession. At trial the government’s evidence included fingerprints, surveillance video, and testimony from the victim, who identified the defendant and described the handgun he brandished during the robbery. Mamudu testified in his own defense at trial, admitting that he stole the jewelry but denied committing an armed robbery. Assistant United States Attorney Erik Siebert cross-examined Mamudu, highlighting the multiple versions of events he had previously given to law enforcement, including his initial denial that he was even in the store during the robbery.This case was investigated by the FBI and Chesterfield County Police Department. Assistant United States Attorneys Erik S. Siebert and Peter S. Duffey 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.Hazelwood Man Sentenced on Sex Trafficking ChargesRead the Press Release
St. Louis, MO – BARRY WIMBERLY was sentenced to 57 months in prison, followed by supervised release for life, on charges of transporting five female victims from five states to Missouri and back for prostitution.According to court documents, Wimberly served as a pimp for numerous women whom he transported between Missouri, Illinois, North Dakota, Minnesota, Georgia and Florida. Wimberly ran his business out of various locations in Hazelwood, Missouri.
Wimberly, Hazelwood, Missouri, pled guilty last December to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation, the Kirkwood Police Department and the Maryland Heights Police Department. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Hallandale Resident Charged with Attempted ExtortionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Aaron T. Ford, Special Agent in Charge, Federal Bureau of Investigation, New Jersey Field Office, and Scott Israel, Sheriff, Broward Sheriff's Office (BSO), Bomb Squad, announce the unsealing of an indictment charging Brian Henderson, 49, of Hallandale. The indictment, which was returned in the Southern District of Florida, is the result of a joint investigation conducted by the FBI Miami Field Office, the Tampa Field Office and the New Jersey Field Office.
Brian Henderson is scheduled to make his initial appearance in the Southern District of Florida before U.S. Magistrate Judge Alicia O. Valle on Friday, March 14, 2014.
According to the eleven-count indictment, which was returned on February 25, 2014, Henderson is charged with attempting to extort money from Publix Super Markets, Inc. (Publix), by the use of actual and threatened force, violence and fear of economic loss.
As set forth in the indictment, Henderson attempted to obtain money from Publix by sending several threatening emails to Publix in which he threatened to damage Publix stores through the use of explosive devices. In furtherance of his attempt to extort money from Publix, Henderson placed, and caused to be detonated, a pipe bomb at the Publix store located in Dania Beach.
If convicted, Brian Henderson faces the following potential penalties: up to 20 years in prison, followed by five years of supervised release, and a possible $250,000 fine as to Count 1, attempted interference with commerce by extortion, and as to count 10, attempting to destroy property by explosives; up to 10 years in prison, followed by three years of supervised release, and a possible $250,000 fine on counts 2, 4, 6 and 8, using an instrument of interstate and foreign commerce to make a threat to destroy property by explosives; up to two years in prison, followed by three years of supervised release, and a possible $250,000 fine, on counts 3, 5, 7 and 9, transmitting a communication in interstate and foreign commerce to extort money by damaging and destroying buildings; and, a mandatory minimum term of 30 years in prison, followed by five years of supervised release, and a possible $250,000 fine on count 11, using and carrying a firearm during and in relation to a crime of violence.
A separate criminal complaint charging Henderson in connection with alleged product tampering threats made to a consumer products company was unsealed today in the District of New Jersey.
Mr. Ferrer commended the investigative efforts of the FBI Tampa Field Office, the New Jersey Field Office, and the Miami Field Office, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Walleisa.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Grand Jury Returns Four-Count Indictment Charging Moab Resident in Dinosaur Track CaseRead the Press Release
SALT LAKE CITY - A federal grand jury returned a four-count indictment Wednesday afternoon charging Jared Ehlers, age 35, of Moab, with violations of federal law in connection with the excavation and removal of a three-toed dinosaur track from the Hell’s Revenge area of the Sand Flats recreation. The land is administered by the U.S. Bureau of Land Management.
A summons will be issued to Ehlers to appear in federal court.
The first count of the indictment, removal of paleontological resources, alleges Ehlers knowingly excavated, removed, damaged or otherwise altered or defaced the three-toed dinosaur track, located on federal land. The potential maximum penalty for this count is five years in prison.
Ehlers is charged with theft of government property in the second count of the indictment. The indictment alleges he took the dinosaur print, which was property of the United States, and converted it to his own use. The potential maximum penalty for this count is 10 years in prison.
The third count of the indictment alleges depredation of government property. According to the indictment, Ehlers damaged property of the United States by excavating and altering paleontological resources. This count also carries a potential 10-year prison sentence,
The final count of the indictment, destruction of evidence, alleges Ehlers tried to destroy or conceal the dinosaur track in an effort to obstruct or influence the investigation. The potential penalty for this count is 20 years in prison.
The case is being investigated by BLM special agents and the Grand County Sheriff’s Office. The Utah Department of Public Safety also assisted in the case.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Jury Indicts Wife of Former Executive at Collin Street Bakery on Conspiracy, Money Laundering and False Statement Felony OffensesRead the Press Release
Defendant Sandy Jenkins Allegedly Embezzled More than $16 Million from Corsicana Business, Which Sandy and Kay Jenkins Used on a Lavish Lifestyle
DALLAS — A federal grand jury returned a 22-count superseding indictment today charging Sandy Jenkins, 65, and his wife, Kay Jenkins, 63, both of Corsicana, Texas, with various felony offenses stemming from Sandy Jenkins’s alleged embezzlement of approximately $16 million from his former employer, the Collin Street Bakery (Bakery) in Corsicana, which was used by Sandy and Kay Jenkins to maintain an extensive and lavish lifestyle. This indictment supersedes a 10-count indictment, returned in September 2013 that charged Sandy Jenkins with 10 counts of mail fraud stemming from the alleged embezzlement. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
Jenkins served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. On June 21, 2013, Jenkins was terminated after the Bakery discovered the alleged fraud. He has been in custody since his arrest in August 2013 on related charges outlined in a criminal complaint. Kay Jenkins is expected to self-surrender and make her initial appearance on Tuesday, March 18, 2014. Sandy Jenkins will appear in court at date to be determined.
This superseding indictment charges Sandy Jenkins with 10 counts of mail fraud and three counts of money laundering. In addition, Sandy and Kay Jenkins are also each charged with one count of conspiracy to commit money laundering; six counts of money laundering and aiding and abetting; and two counts of making a false statement to a financial institution.
This indictment alleges that from December 2004 until June 21, 2013, Sandy Jenkins schemed to embezzle funds from the bakery for his and Kay’s self-enrichment. Between 2005 and 2013, Sandy Jenkins allegedly caused approximately 888 fraudulent checks to be written on the Bakery’s account and mailed to his personal creditors, resulting in losses to the Bakery of approximately $16,649,786.
Starting in at least December 2004 and continuing through approximately August 12, 2013, Sandy and Kay Jenkins conspired together to maintain an extensive and lavish lifestyle through expenditures of the money embezzled from the Bakery. During this time, Sandy and Kay Jenkins maintained a vacation home in Santa Fe, New Mexico, a multi-million dollar watch and jewelry collection, luxury automobiles, and took numerous trips on private jets, among other things, funded with money Sandy Jenkins stole from the Bakery.
During that time, Sandy and Key Jenkins incurred more than $11 million in charges on American Express credit cards, which were subsequently paid with monies embezzled from the Bakery. Those charges included, among other things, approximately $3.3 million in payments for approximately 223 trips on private jets contracted through North Dallas Aviation to various locations including Santa Fe; Napa, California; and Aspen, Colorado. The Jenkins also used funds Sandy Jenkins embezzled to deposit into their joint bank accounts, purchase a 2010 Mercedes-Benz, a 2013 GMC Yukon Denali, and a $25,000 men’s Patek Philippe 18 karat rose gold watch.
The indictment further alleges that Sandy and Kay Jenkins knowingly made false statements, i.e., overstating their monthly income, to financial institutions in connection with their applications for a mortgage loan to purchase a residence in Santa Fe.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalties, per count, are: mail fraud – 20 years in federal prison and a $250,000 fine; conspiracy to commit money laundering and money laundering – 10 years in federal prison and a $250,000 fine, or alternatively, not more than twice the amount of the criminally derived property involved in the transaction; and making false statements to a financial institution – 30 years in federal prison and a $1 million fine.
The indictment also includes a forfeiture allegation that would require Sandy and Kay Jenkins to forfeit not only the total proceeds derived from the offense ($16,649,786), but also property including: real estate in Corsicana and Santa Fe; vehicles, including a Mercedes, a Lexus, a GMC Denali and a BMW; more than $440,000 in currency seized or surrendered to date; one Steinway piano; electronic equipment; six firearms; furs, jewelry, precious gems and metals, watches, handbags, luggage, shoes, crystal and miscellaneous collectables; a wine and liquor collection; artwork seized from the residence in Santa Fe; and two watches seized from deBoulle Diamond & Jewelry, Inc.
The FBI is conducting the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.
(Download Factual Basis)
Frederick, Maryland Man Pleads Guilty to Defrauding Two Government Contractors of More Than $635,000Read the Press Release
ALEXANDRIA, Va. – John Spangler, 43, of Frederick, Md., pleaded guilty today to mail fraud for a scheme to defraud two government contractors of more than $635,000.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.
Spangler pleaded guilty to one count of mail fraud. Spanglerfaces a maximum penalty of 20 years in prison and fines totaling the greater of $250,000 or twice the gross gain or loss when he is sentenced on June 6, 2014.
In a statement of facts filed with the plea agreement, Spangler admitted that from 2007 to 2012, he defrauded two government contractors out of approximately $635,000 to $735,000 by using his position as an information technology (“IT”) manager for those contractors to funnel funds intended for IT supplies to a shell company run by Spangler. Over the course of the scheme, Spangler created fraudulent documentation for 19 purported purchases of IT supplies from the shell company that he owned. In reality, however, Spangler did not provide the supplies at the agreed-upon prices and instead used the funds for personal expenses. Spangler has agreed to forfeiture and restitution of between $635,843.06 and $735,843.06.
This case is being investigated by the FBI’s Washington Field Office. Assistant United States Attorney Ryan Faulconer and Special Assistant United States Attorneys Jennifer Ballantyne and Emily Mintz are prosecuting 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.Four Individuals Indicted in March Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the March 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JUSTIN SLATE THRONEBERRY, age 32, of Ardmore, OK
Delay Or Destruction Of Mail By Postal Employee
The Indictment alleges that on or about December 19, 2013, in the Eastern District of Oklahoma, the defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully secrete, destroy, detain and open a package entrusted to him and which came into his possession to be conveyed by mail, while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service, Office of Inspector General. The charge is in violation of Title 18, United States Code, Section 1703, punishable by up to 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson
BILLY DON FULLER, age 47, of Spiro, OK
DONNA JEAN SCHAFER, age 53, of Spiro, OK
Drug ConspiracyPossession of a Controlled Substance with Intent to DistributeDrug Forfeiture
The Indictment alleges that in or about the beginning of 2011, the exact date being unknown to the Grand Jury, and continuing until on or about December 31, 2013, within the Eastern District of Oklahoma, the defendants did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the District 16 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Section 846, punishable by not less than 20 years imprisonment and/or up to a $20,000,000.00 fine.
Assistant United States Attorney Shannon Henson
DANIEL RAY JOHNSON, age 31, of McAlester, OK
Possession with Intent to Distribute MethamphetaminePossession of a Firearm in Furtherance of a Drug Trafficking Crime
The Indictment alleges that on January 6, 2014, the defendant, did knowingly and intentionally possess with intent to distribute 5 grams or more of actual methamphetamine, a Schedule II Controlled Substance and from on or about January 6, 2014, to January 11, 2014 the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of actual methamphetamine, a Schedule II Controlled Substance within the Eastern District of Oklahoma, while knowingly possessing firearms.
The charges arose from an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A) and 841(b)(1)(B), punishable by not less than 20 years imprisonment and/or up to a $20,000,000.00 fine and Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment to be served consecutively to any other sentence imposed and/or up to a $250,000.00 fine.
Assistant United States Attorney Shannon Henson
Former Treasurer and Chairman of Board Sentenced for Kickback SchemeRead the Press Release
BOSTON – The former treasurer and chairman of the board of directors of a Nevada-based publicly traded company was sentenced yesterday for his role in a fraudulent kickback scheme.
U.S. District Court Judge Denise J. Casper sentenced Albert Reda, 67, of Tustin, Calif., to 26 months in prison, one year of supervised release, a fine, and forfeiture of his illegal earnings. In November 2013, following a six-day trial, a jury convicted Reda of wire fraud and mail fraud.
Reda was involved in a scheme to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in the Reda’s company, First Global Financial Corporation, which traded on the over-the-counter securities market. The kickbacks were concealed through the use of a sham consulting agreement and other fraudulent documents, such as bogus invoices. What Reda did not know was that the purported investment fund representative was actually an undercover federal agent.
Reda’s conviction and sentence followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities Exchange Commission.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the undercover operation, cooperated with criminal authorities in bringing these charges, as well as charges against other defendants who participated in the kickback scheme. To date, 14 other individuals have been convicted for their participation in the scheme.United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Vassili Thomadakis, Eric P. Christofferson, and Sarah E. Walters of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Former Fci Danbury Employee Sentenced to Prison for Sexually Abusing InmateRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Ronald G. Gardella, Special Agent-in-Charge, Department of Justice Office of the Inspector General, New York Field Office, announced that STEVEN WOLFF, 46, of the Bronx, N.Y., was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to five months of imprisonment, followed by five years of supervised released, for sexually abusing an inmate at the Federal Correctional Institution in Danbury. WOLFF was also ordered to serve the first five months of his supervised release in home confinement under electronic monitoring.
According to court documents and statements made in court, WOLFF, while employed as a Utilities Systems Repair Operator Foreman by the Federal Bureau of Prisons at the Federal Correctional Institution in Danbury, engaged in sexual acts with a female inmate at the prison. On multiple occasions between July 2011 and November 2011, WOLFF and the victim met privately in the boiler area of the prison facility and engaged in sexual intercourse. In addition, WOLFF provided contraband including hair dye, candy, greeting cards and over-the-counter medication to the inmate. Contraband was also provided to another inmate who acted as a lookout during the illicit sexual activity.
On August 6, 2013, WOLFF pleaded guilty to one count of sexual abuse of a ward.
This case was investigated by the Department of Justice Office of Inspector General and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Cleveland Job Corps Center Director Faces Tax ChargesRead the Press Release
A three-count indictment was filed charging the former director of the Cleveland Job Corps Center with withholding more than $872,000 in federal taxes from employees but never paying the money over to the Internal Revenue Service, law enforcement officials said.
Clark V. Hayes, 53, of Richfield, Ohio, was the owner of Applied Technology Systems, Inc. or ATSI, in Cleveland. The U.S. Department of Labor contracted with ATSI to operate the Cleveland and Jacksonville Job Corps Centers, according to the indictment.
“This defendant was hired to make sure struggling workers learned new job skills, but instead used it as an opportunity defraud his workers and the government,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Business owners have an inescapable obligation to withhold income taxes for employees and remit those taxes to the IRS,” said Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues those who violate employment tax laws.”
Under the terms of the agreement, ATSI staffed and maintained the centers, subject to reimbursement by the Department of Labor for their costs based on a budget. The reimbursable costs included the wages ATSI paid to the centers’ employees, including amounts to be withheld and paid over to the IRS, according to the indictment.
The Labor Department paid ATSI more than $15.5 million between from on or about July 1, 2010, through August 16, 2011, according to the indictment.
For the quarter ending Sept. 30, 2010, Hayes withheld but did not pay over $138,208. For the quarter ending Dec. 31, 2010, Hayes withheld but did not pay over $483,495. For the quarter ending March 31, 2011, Hayes withheld but did not pay over $250,307, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Antoinette T. Bacon following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Labor -- Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Campaign Treasurer Indicted on Federal Charges, Accused of Stealing More Than $115,000-Defendant Allegedly Used Money for Trips, Retail Goods, Limousine Services-Read the Press Release
WASHINGTON - Hakim J. Sutton, 32, of Washington, D.C., has been indicted on federal charges accusing him of stealing more than $115,000 from a District of Columbia political campaign in which he served as the treasurer and custodian of records.
The indictment, unsealed today in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Sutton was named in a sealed indictment returned by a grand jury on Feb. 21, 2014. The charges include five counts of wire fraud, two tax offenses, six counts of filing false and misleading campaign finance reports, and one count of first-degree theft. The indictment includes a forfeiture allegation seeking a money judgment representing proceeds from the crimes.
According to the indictment, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. The candidate, identified in court documents as “Candidate A,” ultimately lost in the November 2012 election.
According to the indictment, between September 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, while serving as the campaign treasurer and in his capacity as a signatory on the campaign bank account, Sutton allegedly wrote 36 checks payable to himself and drawn from the campaign bank account.
Sutton used the money at various retailers, the indictment alleges, such as Gucci, Armani Exchange, and the Apple Store; to pay for limousine and car services, and to pay expenses for various trips, including to Martha’s Vineyard, Mass., Las Vegas, Miami, and other places.
The indictment alleges that Sutton omitted references to the checks that he had written to himself in a series of six reports he filed with the District of Columbia Office of Campaign Finance. Sutton also is accused of tax evasion and failing to file a tax return for calendar 2011.
“Hakim Sutton is charged with looting a political campaign of more than $115,000,” said U.S. Attorney Machen. “According to the indictment, Sutton stole political donors’ money to go shopping at Gucci and Ferragamo and to travel to Las Vegas, Miami Beach, and Greece. This indictment reflects our commitment to ensuring integrity and transparency in the way political campaigns operate in the District of Columbia.”
“The theft of campaign funds impacts the donors’ right to participate in the election process, and the constituents are the ultimate victim,” said Special Agent in Charge Kelly. “This indictment reaffirms that IRS-CI is committed to working with the US Attorney’s Office and the Metropolitan Police Department to ensure political campaigns in the District of Columbia are transparent.”
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Metropolitan Police Department and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Bryan Seeley and David A. Last, of the Fraud and Public Corruption Section, and Anthony Saler, of the Asset Forfeiture and Money Laundering Section. Assistance was provided by former Paralegal Specialist Shanna Hays and Nicole Wattelet, Legal Assistant Angela Lawrence, and former Paralegal Specialist Lenisse Edloe.
14-063Former Accounting Firm Partner Sentenced in Manhattan Federal Court to 54 Months in Prison for Stealing Nearly $4 Million in Client PaymentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CRAIG B. HABER, a former partner of a global accounting firm, was sentenced today in Manhattan federal court to 54 months in prison for stealing nearly $4 million in client payments intended for the accounting firm. HABER pled guilty in August 2013 to one count of mail fraud before U.S. District Judge P. Kevin Castel, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Craig Haber abused his position as partner of an accounting firm, stealing millions of dollars in client payments to fund his own personal expenses, including the mortgage on his Manhattan apartment. Haber’s efforts to conceal his fraud failed and, with today’s sentence, he will pay for his fraud with time in a federal prison and the forfeiture of his ill-gotten gains, including his apartment.”
According to the documents filed in Manhattan federal court and statements made in related court proceedings:
From 1993 through July 2012, HABER was a partner at a global accounting firm headquartered in Chicago, Illinois, (the “Accounting Firm”) that provided a variety of auditing, accounting, and tax preparation services to businesses and individuals in the U.S. and abroad. HABER worked at the Accounting Firm’s office in New York, New York, and provided tax preparation and advisory services to clients of the Accounting Firm.
The Accounting Firm’s bills to clients ordinarily included payment instructions directing clients to pay the firm by wire transfer or by sending checks to its headquarters in Chicago. However, on multiple occasions from 2004 through July 2012, HABER sent bills to clients containing payment instructions directing them to send checks to him at the Accounting Firm’s New York, New York, office instead of the Chicago headquarters.
Upon receiving those checks, HABER deposited a number of them into a bank account that he had opened in the name of a sham business that was very similar to the name of the Accounting Firm. HABER opened the bank account specifically to receive checks from clients that were intended for the Accounting Firm. After depositing the clients’ checks into that account, HABER then transferred the money from that account to two personal bank accounts which he used to pay various personal expenses, including mortgage payments for his residence in New York, New York. In total, HABER stole nearly $4 million in client payments.
In addition to his prison term, HABER, 60, of New York, New York, was sentenced to two years of supervised release, and ordered to forfeit $3,970,000 in cash, his Manhattan apartment, and his brokerage account.
Mr. Bharara praised the outstanding investigative work of the United States Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Joseph Facciponti is in charge of the prosecution.
Folk Nation Gang Leader Sentenced to 20 Years in PrisonRead the Press Release
Earlier today, Devon Rodney, also known as “D-Bloc,” a former leader of the violent Brooklyn street gang “Six Tre Outlaw Gangsta Disciples Folk Nation,” also known as the “Folk Nation,” was sentenced to 20 years in prison at the federal courthouse in Brooklyn, New York. Rodney pled guilty on November 15, 2013 to charges of racketeering, including attempted murder and robbery conspiracy as predicate racketeering acts, and brandishing a firearm.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“The defendant led the Folk Nation gang in committing senseless acts of violence, including shootings and robberies, which terrorized the residents of the Ebbets Field Houses in Brooklyn. The gang shooting of an innocent 10-year old girl attending a neighborhood block party highlights the moral depravity of the gang life,” stated United States Attorney Lynch. “Every community, including the Ebbets Field Houses community, deserves the opportunity to raise its children without the specter of gang violence.”
The Folk Nation is a nationwide gang active in numerous cities and prisons across the United States. The Six Tre set of the Folk Nation operated out of the Ebbets Field Houses in the Flatbush area of Brooklyn for years. In order to fund its illegal activities, the defendant and other members of the gang committed violent robberies of individuals and commercial establishments, including the Lee Perla jewelry store at the Riverside Square Mall in Hackensack, New Jersey, where they made off with hundreds of thousands of dollars’ worth of luxury watches. In his role as the leader of the Folk Nation, Rodney ordered his subordinates in the gang to commit numerous acts of violence, which often missed their intended targets – perceived rivals or enemies of the gang – and severely injured innocent bystanders. In the attempted murder to which the defendant pled guilty, Rodney ordered the killing of a rival Crips member upon learning that the rival had been spotted near the Ebbets Field projects. In the chaos that ensued when gang members rushed to implement the orders of their leader, an innocent 10-year old girl attending a block party was shot in the neck.
Rodney is one of nine defendants charged in connection with this case by the United States Attorney’s Office for the Eastern District of New York for crimes they committed as members of the Folk Nation. Ms. Lynch thanked the FBI and the New York City Police Department for their outstanding investigative efforts.
The sentence was imposed by United States District Judge Nicholas G. Garaufis.
The government’s case was prosecuted by Assistant United States Attorneys Zainab Ahmad, Berit Berger and Kristin Mace.
The Defendant:
DEVON RODNEY, also known as “D-Bloc”
Brooklyn, New York
Age: 26
TweetFlorida Man Charged in New Jersey with Threatening to Poison Consumer ProductsRead the Press Release
NEWARK, N.J. – Federal charges are filed in Newark against a man who allegedly contacted a consumer products company and claimed he poisoned its products and would return them to store shelves if his demands were not met, New Jersey U.S. Attorney Paul J. Fishman announced today.
Brian Henderson, 49, of Hallendale, Fla., is charged by criminal complaint with two counts of threatening to tamper with a consumer product. Henderson is already in custody on bank robbery charges filed Dec. 19, 2013, in the Southern District of Florida, and will appear in Newark federal court on a date to be determined.
An additional indictment was unsealed today in the Southern District of Florida charging Henderson with a scheme to extort Publix Super Markets Inc., by threatening to bomb its stores.
According to the District of New Jersey complaint made public today and statements made in court:
On July 28, 2013, Henderson contacted the company, headquartered in New Jersey and referred to in court documents as “Company 1,” by sending a message through its online customer care center. In the message, Henderson threatened to place 20 poisoned packages of the company’s products on the shelves of 20 different stores unless he was paid an unspecified sum of money. The message was addressed to the chairman of the board of directors and the company’s chief executive officer.
Henderson sent another message on Aug. 5, 2013, saying:
“I am the angel of death. I have put poison in 20 packages of your products. I will put them back on the shelves unless you pay me what you owe me. Last week I gave you an e-mail address that no longer works. You will have until Thurs 8/8 at 5pm to reply to my new e-mail address or I will replace the products and alert the media. You can handle this quietly and cheaply or publicly and very very expensive [sic].”
The complaint does not allege that Henderson actually poisoned any consumer product.
The second threat was transmitted from an internet protocol address which, at that time, was assigned to the wireless network of a restaurant in Dania, Fla. Security footage retrieved from the restaurant shows an individual believed to be Henderson.
Law enforcement executed a search warrant at Henderson’s residence on Dec. 14, 2013, recovering what appeared to be a draft of an extortion demands.
Each count of threatening to tamper with consumer products carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in Florida, under the direction of Special Agents in Charge George Piro in Miami and Paul Wysopal in Tampa, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Henderson Complaint
Federal Jury Convicts Gregg County Man of Drug ChargesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 72-year-old Longview, Texas man has been convicted of drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
This case was investigated by the Drug Enforcement Administration and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####
Jerry Don Castleberry was found guilty by a jury on March 11, 2014, of conspiracy to possess with intent to distribute and distribution of methamphetamine, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of drug trafficking activity, following a two day trial before U.S. District Judge Michael H. Schneider.
According to information presented in court, up until May 1, 2013, Castleberry conspired with other persons to acquire and distribute large quantities of methamphetamine from a source in Dallas, Texas to dealers throughout the Longview, Texas area. Evidence indicated that Castleberry was distributing methamphetamine manufactured in Mexico. Castleberry was also in possession of numerous firearms and ammunition, which are subject to forfeiture. Castleberry is a former member of the Bandidos motorcycle gang. As a result of his crime, Castleberry will also forfeit 2 Harley Davidson motorcycles and a Corvette Stingray.
A federal grand jury returned an indictment on June 27, 2013, charging Castleberry and others with the federal violations.
Castleberry faces a minimum of 15 years in federal prison. A sentencing date has not been set.Eleven People Indicted for Conspiring to Traffic Oxycodone and Heroin in BoiseRead the Press Release
BOISE – Austin Serb, 20, Christopher Snyder, 24, and Andrew Colwell, 23, of Boise, Idaho, appeared in federal court yesterday on a nine-count federal indictment charging them and eight others with conspiracy to distribute oxycodone and heroin; distributing oxycodone, and distributing heroin, U.S. Attorney Wendy J. Olson announced today.
“Prescription drug abuse, indeed the addiction to opiates and heroin, is a growing national problem and a growing Idaho problem,” said Olson. “The U.S. Attorney’s Office and its federal, state and local law enforcement partners are prepared to vigorously investigate and prosecute those who distribute these dangerous drugs in our community.”
In addition to Serb, Snyder, and Colwell, the defendants named in the federal indictment, returned yesterday by the grand jury sitting in Boise, are:
- Jeffery Manchester, 28, of Boise, Idaho
- Jordan Baptista, 19, of Boise, Idaho
- Travis Fraser, 19, of Boise, Idaho
- Kekai Wachi, 19, of Boise, Idaho
- Jared Hicks, 22, of Boise, Idaho
- Jordan Grainger, 24, of Meridian, Idaho
- Ellen McDaniel, 44, of Boise, Idaho
- James Acarregui, 29, of Boise, Idaho
A trial date has been set for May 6, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The remaining defendants have not yet made their initial appearances in court, and no dates have been set.
The indictment alleges that between September 1, 2012, and March 10, 2014, the defendants conspired together to distribute oxycodone and heroin. The indictment alleges that on various dates beginning on August 29, 2013, one or more of the defendants distributed oxycodone or heroin in the Idaho.
The charge of conspiracy to distribute oxycodone and heroin carries a maximum term of 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. Each charge of distribution of oxycodone and heroin is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. A criminal forfeiture allegation contained in the indictment also seeks to forfeit cash proceeds of $1 million as to all defendants.
Olson also announced that the indictment marks the first large-scale prosecution involving investigation by the Drug Enforcement Administration’s Tactical Diversion Squad. The Tactical Diversion Squad, based in Boise, began operating in January of this year and includes law enforcement personnel from DEA, U.S. Department of Health and Human Services, Office of Inspector General, the Ada County Sheriff’s Office, the Boise Police Department, the Nampa Police Department, the Meridian Police Department and the Idaho State Police. According to Olson, the Tactical Diversion Squad will target prescription drug crime from all angles, including criminal distribution schemes, health care provider abuse and burglaries.
“Opiate addiction is a dangerous path,” said DEA Special Agent in Charge Matthew G. Barnes. “Many young Americans start out abusing opiate based pain killers then switch to a cheaper and deadly alternative, heroin. This trend is alarming. These arrests represent a significant stride in Boise area law enforcement's concerted effort not only to combat this growing trend but to get ahead of it.”
“This is a great example of how a citizen tip to Crime Stoppers can lead to a major federal case on an urgent threat to public safety, prescription drug abuse,” said Deputy Chief William Bones of the Boise Police Department. “Prescription drug dealers have the capacity for getting hundreds if not thousands of people addicted creating a market for their criminal activity. They often target young people who have everything to lose by an addiction to drugs like oxycodone and Heroin. As we increase targeted enforcement we also hope this case leads to a greater awareness of the incredible dangers of these drugs before we lose more lives.”
Olson noted that U.S. Attorney General Eric Holder earlier this week made national comments highlighting the alarming rise nationally in overdose deaths from heroin and prescription pain-killers. Attorney General Holder vowed that the Justice Department would combat the epidemic through a mix of enforcement and treatment efforts. Speaking in a video posted on the Justice Department’s website, Holder noted that between 2006 and 2010, heroin overdose deaths increased by 45 percent. “As part of the law enforcement community in Idaho, we must direct appropriate resources and focus our attention on the most dangerous drugs,” said Olson. “As prescription pain-killer abuse and heroin abuse increase, we must target the trafficking of those drugs. I commend the outstanding work of the Boise Police Department, the DEA Tactical Diversion Squad and the local agencies that are working with us to address this serious community and public safety threat.”
In addition to involving work by the DEA Tactical Diversion Squad, the indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). The investigation was initiated by the Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
East St. Louis Man Sentenced for Cocaine DistributionRead the Press Release
Follow @SDILNewsDione J. Joyce, 31, from East St. Louis, Illinois, was sentenced on March 7, 2014, in federal district court, in East St. Louis, Illinois, on three counts of cocaine distribution, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Joyce was sentenced to 60 month concurrent prison terms for each count, four years of supervised release, fined $300, and ordered to pay $300 special assessment. Court proceedings revealed that Joyce sold over 100 grams of cocaine base in the form of “crack” on April 26, 2013, May 1, 2013, and May 22, 2013, to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
East St. Louis Man Sentenced for "Crack" Cocaine DistributionRead the Press Release
Follow @SDILNewsDeAnthony Tillman, 27, from East St. Louis, Illinois, was sentenced on March 7, 2014, in federal district court, in East St. Louis, Illinois, for distribution of cocaine, in the form commonly known as “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Tillman was sentenced to 30 months in prison, three years of supervised release, fined $200, and ordered to pay $100 special assessment. Tillman, who previously pled guilty, admitted that on June 27, 2013, he sold two grams of cocaine base in the form of “crack” cocaine to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Eagle Butte Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Larceny was sentenced on March 10, 2014, by U.S. District Judge Roberto A. Lange.
Torin DeWitt, age 25, was sentenced to 10 months in custody, 2 years of supervised release, $3,310.07 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
DeWitt was indicted by a federal grand jury on November 14, 2013. He pled guilty on December 18, 2013.
The conviction stems from an incident occurring on October 23, 2013, wherein DeWitt stole a 2007 gray Jeep Laredo from someone’s driveway.
This case was investigated by the Cheyenne River Sioux Tribe Police Department. Assistant U.S. Attorney Jay Miller prosecuted the case.DeWitt was immediately turned over to the custody of the U.S. Marshals Service.
Drug Trafficking Organization Manager Sentenced to Twelve Years for Heroin Overdose of Milwaukie ManRead the Press Release
PORTLAND, Ore. - On March 12, 2014, U.S. District Court Judge Michael Simon sentenced Charly Aguayo-Caro to 12 years in prison for his role in distributing heroin that resulted in the death of Michael Rael. Aguayo-Caro, 24, of Xalisco, Nayarit, Mexico, was responsible for managing the day-to-day operations of an active heroin distribution business operating out of Portland, Oregon. Aguayo-Caro managed the business and accepted telephone orders for heroin from customers. Aguayo-Caro then employed couriers to distribute the heroin throughout the Portland metro-area beginning in 2008 and continuing until 2012.
On September 10, 2012, Michael Rael, 23, of Milwaukie, Oregon, was found deceased from a heroin overdose near his residence. Rael recently moved to Oregon from New Mexico to pursue higher-education and full-time employment. Following Rael's death, Clackamas County Interagency Task Force officers specializing in overdose investigations began re-tracing the heroin ingested by Rael. Investigators were able to trace the heroin to the drug-trafficking organization managed by Aguayo-Caro. On September 18, 2012, investigators arrested Aguayo-Caro in Wilsonville, Oregon where he was returning from California.
At sentencing, Judge Simon acknowledged the "national emergency" communities are facing from heroin overdoses. Simon referenced United States Attorney General Eric Holder's recent public statement about the "urgent and growing public crisis" heroin is having in communities across the country where heroin overdose deaths have increased 45 percent nationally between 2006-2010. U.S. Attorney Amanda Marshall echoed Simon and Holder by affirming her commitment to prosecuting drug trafficking organizations that are responsible for saturating the Portland market with heroin that led to the heroin overdose deaths of 147 Oregonians in 2012. Marshall stated: "We will continue to use every tool at our disposal to actively dismantle these drug trafficking organizations that are responsible for the devastating effects of heroin in our communities." This case was prosecuted under the "Len Bias" sentencing enhancement which increases mandatory sentences for individuals and organizations that distribute heroin which ultimately results in an overdose death.
The federal charges stem from an investigation led by state and federal law enforcement agencies including the Clackamas County Inter-Agency Task and the Federal Bureau of Investigation with the assistance of the Clackamas County District Attorney's Office.
The case was prosecuted by Special Assistant U. S. Attorney Steve Mygrant.
Defendant in Los Zetas Money Laundering Case, His Son, and A Business Associate Plead Guilty to Conspiring to Bribe A Federal JudgeRead the Press Release
In Austin, 53-year-old Veracruz, Mexico businessman Francisco Colorado Cessa, his son, 25–year-old Francisco Colorado Cessa, Jr., and a business associate, 52–year-old Ramon Segura Flores face up to five years in federal prison after pleading guilty to attempting to bribe a federal judge announced United States Attorney Robert Pitman, Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.
Appearing before United States Magistrate Judge Andrew Austin this morning, all three defendants pleaded guilty to one count of conspiracy to bribe a federal judge. By pleading guilty, the defendants admitted to conspiring last year to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado Cessa. According to the criminal complaint filed in this case, at no time before or during this investigation was the judge involved in the alleged criminal activity. Colorado Cessa is currently serving a 20-year federal prison term for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States.
All three remain in federal custody at this time. No sentencing date has been scheduled.
This case was investigated by the FBI and IRS-Criminal Investigation.
Criminal Enterprise Results in Multiple Arrests in Cherokee County, TexasRead the Press Release
Department of Justice
Office of Public AffairsOn February 26, 2014, a federal grand jury returned a sealed 6‑count indictment charging 7 individuals with multiple counts of federal drug and firearms violations. The indictment resulted from a lengthy investigation launched by the Federal Bureau of Investigation, the Cherokee County Sheriff’s Office, and the Jacksonville Police Department. The Rusk Police Department assisted in the apprehension and arrest of four of the suspects. At the time of the arrests, over 100 grams of methamphetamine, 10 firearms, and cash was seized.
If convicted, the defendants face between 5-40 years in prison and fines of up to $5,000,000 on the drug charges and additional incarceration on the weapons charges.
All of the defendants are residents of Cherokee County and are currently in custody. Initial appearances were held before U.S. Magistrate Judge Nicole Mitchell in Tyler, Texas, on March 11, 2014.
Those named in the indictment are:
Eric Scott Smart, 30
Steven Ray Davis, 42
Michael Wayne Christopher, 52
Jimmy Royce Stafford, aka “Jimmy Loven,” 28
Karl Dwayne Underwood, 23
Jimmy Chance Guillen, 23
Darren Michael Massey, 20Assistant U.S. Attorney Richard L. Moore is prosecuting the case. It is important to note that an indictment is merely a charge and should not be considered as evidence of either innocence or guilt.
####Colorado Man Sentenced to 63 Months in Federal Prison for Defrauding Elderly VictimRead the Press Release
DENVER – Akihiko Siegfried, age 55, formerly of Denver, Colorado, was sentenced Monday, March 10, 2014, by U.S. District Court Judge Philip A. Brimmer to serve 63 months in federal prison for mail fraud and money laundering, federal law enforcement authorities announced. Siegfried was also ordered to serve a 3 year term of supervised release following his prison sentence. Judge Brimmer also ordered him to pay $512,341.97 in restitution to the victim. Siegfried is currently in custody and will ultimately be designated to a Bureau of Prisons facility to complete service of his term of imprisonment.
Siegfried was indicted by a federal grand jury in Denver on June 17, 2013. He pled guilty on October 28, 2013 to one count of mail fraud and one count of money laundering. According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, in January of 2008, Siegfried knocked on the door of the elderly victim’s residence and when the door opened Siegfried pretended to be distraught and was crying. Siegfried falsely told the victim that Siegfried’s parents had just died in a car crash and that he had no money and no family to turn to for help. Siegfried asked to borrow money. The victim was then an 89-year-old widower of Japanese descent with little family, asked Siegfried if he was Japanese which he replied that he was. He felt sorry for Siegfried and, in part because of their shared Japanese heritage, decided to help Siegfried.
Siegfried borrowed from the victim several times and in the middle of 2008 falsely told the victim he would inherit substantial money as a result of his parents’ death, but that it would be tied up in probate for some time and he needed money for paying the associated fees and taxes. During the entire scheme, Siegfried told the victim he would repay all of the money when Siegfried received his inheritance. In fact, Siegfried’s father died in the 1990s, his mother died in 2002, and there was never any inheritance held up in probate; however, from mid-2008 through March of 2013 Siegfried repeatedly falsely told the victim the inheritance was held up in probate.
From March of 2009 through March of 2013, Siegfried frequently spent time as an inmate in the Colorado Department of Corrections. When he was in jail during that time frame, he repeatedly called and sent letters through the mail asking for money, directing the victim to deposit and wire transfer money to Siegfried’s inmate account with the Colorado Department of Corrections. Siegfried told the victim he needed the money because he was required to pay for his diabetes medicine while he was in jail and because he needed to pay more probate fees and taxes for his purported inheritance. In fact, Siegfried has never been diagnosed with diabetes, has never taken medication for diabetes, and inmates of the Colorado Department of Corrections are not required to pay for medicine prescribed to them while they are in custody.
In October of 2012, when Siegfried was released from prison, he received a check payable to himself in the amount of $49,655.30 from the State of Colorado, Department of Corrections. At least $10,000 of this money was proceeds of the fraud scheme involving the elderly victim.“In this case, the defendant targeted his victim not only because he was a senior, but by manipulating his victim’s Japanese-American heritage,” said U.S. Attorney John Walsh. “By that cold, calculating manipulation, the defendant stole a lifetime of savings. The lengthy prison sentence handed down by Judge Brimmer was appropriate and just.”
“We hear all too often of elderly victims robbed of their life’s savings,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “Let this sentencing be a reminder, those who prey on elderly victims will be put in jail.”
“The FBI is confident the outcome of this case will deter future con-artists who seek to get rich by preying on elderly victims,” said FBI Denver Special Agent in Charge Thomas P. Ravenelle.
This case was investigated by agents with IRS Criminal Investigation, Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA) and the Colorado Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne. AUSA James Russell is handling the asset forfeiture.
Colorado Horse Breeder Sentenced to Prison for Income Tax EvasionRead the Press Release
DENVER – Nikitis A. Mangeris, age 70, of Berthoud, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 4 months in federal prison for tax evasion the U.S. Attorney’s Office and Internal Revenue Service - Criminal Investigation (IRS CI) announced. Mangeris was also ordered to serve 24 months home detention following his prison sentence as part of a 3 year term of supervised release. Mangeris was also ordered by Judge Jackson to pay a $1,200 fine and $891,955.28 in restitution to the IRS. He will report to a Bureau of Prison facility within 15 days from the date of his designation.
Mangeris was indicted by a federal grand jury in Denver on January 9, 2013 and pled guilty to tax evasion on October 1, 2013. According to the indictment and plea agreement, Mangeris owned and operated several vitamin businesses since the mid-1990s. In 1992 he owned twenty-five percent of a vitamin business called Kaire International. The company generated on average between $5 million and $6 million in monthly gross proceeds and Mangeris receive income from Kaire International until approximately 1997 to 1999 when he left the company. He also owned and operated a horse business during this time period.
Beginning as early as 1994, Mangeris began investing in Arabian horses with the intent of breeding them for a profit. The values of the horses were linked to their lineage; therefore, each horse had to be verified and registered with the Arabian Horse Association. Mangeris registered the horses under business names Les Beaux Chevaux and Tenet Investment Group in order to avoid having to disclose his interest in them in public records. He further disguised his ownership interest in Tenet Investment Group by using a nominee name. There were two horses that generated significant proceeds for Mangeris. These horses were named MHR Nobility and Bentlee and Mangeris utilized the Colorado State University Equine Reproductive Laboratory to assist him in extracting and storing semen from MHR Nobility and Bentlee for future sales. Based upon its lineage, Mangeris was able to sell MHR Nobility's semen for, on average, $2,500 to $3,000 per breeding.
In 2002 Mangeris was audited by the IRS for calendar years 1997-1999. In February 2004 he agreed to with the IRS assessment and collection of back taxes, penalties, and interest for calendar years 1997-1999 in the amount of $891,955.28. Within 5 months of agreeing to the IRS assessment, Mangeris opened back accounts in nominee names and started depositing money into these accounts to conceal money. In December 2004 and January 2007 Mangeris falsified IRS Forms 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, which is a form that lists income and assets for an individual.
Particularly, in January 2007 Mangeris falsified Form 433-A and made false verbal representations during a meeting with a revenue officer. He stated on the form that he was self-employed, had no real assets, had no income, lived with friends and relatives, and maintained no bank accounts. This information was false when in fact, Mangeris owned and operated a horse business, earned over $80,000 from this business in calendar year 2006, and controlled a bank account into which he made over $375,000 in deposits in 2006. Furthermore, he and his wife were renting a residence for $3,450 per month at the time of his meeting with the revenue officer. To this day Mangeris has made no voluntary payments towards his tax debt and has also taken overt acts to evade the payment of his tax debt.
This case was investigated by agents with IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon and Department of Justice Tax Division Trial Attorney Kevin Sweeney.
Chicago Area Man Sentenced on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – JAMALL BROWN was sentenced to 51 months in prison, followed by supervised release for life, on charges of transporting two female victims from Chicago to Missouri to Colorado and back for prostitution.
According to court documents, in June 2013, St. Louis Metropolitan Police contacted a victim at a local hospital. The victim advised police that Brown had assaulted her and fractured her nose. The victim had initially met Brown in Chicago, Illinois, and advised that Brown was physically assaultive and he directed that she and another female engage in prostitution by advertising on Backpage.com online service. After spending a few days in Chicago, the defendant transported them to St. Louis where they engaged in acts of prostitution. After a few days he transported them to Denver, then eventually back to St. Louis. Later in June, the victim told Brown that she wanted to stop prostituting and leave. They began to argue and Brown beat her and later dropped her off at the emergency room.
Brown, Chicago, IL, pled guilty last September to one felony count of transportation for purposes of prostitution. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), and the St. Louis Metropolitan and Hazelwood Police Departments. Assistant United States Attorney Howard Marcus handled the case for the U.S. Attorney’s Office.
Chicago Area Man Convicted of Running West Side Heroin Distribution and Money Laundering ConspiraciesRead the Press Release
CHICAGO — A federal jury deliberated approximately an hour last night and this morning before convicting a Chicago area man on all charges against him for directing a six-year conspiracy to distribute at least a kilogram of heroin on the city’s west side. Attorneys for the defendant, DAVID PRICE, 34, conceded that Price possessed and sold heroin and laundered the cash proceeds by purchasing expensive suburban properties, automobiles, and jewelry, but they denied he conspired to traffic heroin during the week-long trial in U.S, District Court.
The jury’s guilty verdict on the conspiracy count alone means that Price is facing a mandatory minimum of 20 years in prison and a maximum of life in federal prison. U.S. District Judge Harry Leinenweber set sentencing for July 30.
Price, also known as “Shorty,” “Lil Dave,” and “Hot Sauce,” was convicted on 13 counts, including the heroin conspiracy, using a telephone to facilitate a drug-trafficking crime, money laundering conspiracy, nine counts of money laundering totaling approximately $448,000, and being a convicted felon-in-possession of an Uzi-style 9 millimeter semi-automatic pistol that was loaded with a 30-round extended magazine.
Originally from Chicago, Price was living in Brookfield at the time of his arrest in August 2012 and he remains in federal custody without bond. At various times, Price has lived in homes or apartment buildings in Country Club Hills, Darien, Lombard, Bolingbrook, and high-rises in downtown Chicago, which he purchased or rented in the names of other individuals, including his father, with drug proceeds. Evidence at the trial also established that Price bought at least six luxury vehicles, including a Corvette and a motor cycle, and expensive jewelry with drug money. Jurors were shown a $35,000 watch with 1,018 diamonds, totaling approximately 22 karats, which was seized from Price.
The government’s bid to forfeit the watch, vehicles, and properties, as well as $1.1 million in proceeds, remains pending and will be decided later by Judge Leinenweber.
Evidence showed that Price ran the heroin distribution ring from 2005 through 2011, but focused on 2007-08. Price “fronted” wholesale quantities of heroin to be sold at various west side drug spots and rotated sharing the profits with the supervisors of those locations, which included street corners along Augusta at Keeler, Lawler, and Laramie/Leamington; Kostner and Cortez; Iowa and Lamon; and Erie and Kilptarick, among others.
Price and others involved in the conspiracy ― all of whom have been convicted separately ― used an apartment at 5242 West Division, which they referred to as “Up Top,” to mix heroin with the sleeping pill Dormin, and package it for sale in retail packages and bundles. Three co-conspirators testified as government witnesses, including James Brown. The evidence established that Price directed two members of his crew to shoot and kill Brown on Jan. 25, 2008, because Brown owed a drug debt to Price and believed he was cooperating with law enforcement. Brown survived the shooting.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Carl Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Chicago Police Superintendent Garry McCarthy.
The government is being represented by Assistant U.S. Attorneys Angel Krull, Erik Hogstrom, and Ryan Fayhee.
Bridgewater Man Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A Bridgewater man was sentenced yesterday for possessing more than 2000 images and videos of child pornography.
Kevin J. Balzarini, 38, was sentenced by U.S. District Court Judge Rya W. Zobel to 36 months in prison and five years of supervised release. In December 2013, Balzarini pleaded guilty to possession of child pornography.
An officer, acting in an undercover capacity, signed onto a peer-to-peer network and observed that Balzarini was offering files indicative of child pornography to share with network users. The officer requested and received an image containing child pornography. A search warrant was then executed at Balzarini’s residence, where computer media containing more than 2000 images and videos of child pornography was seized. At the time of the search, Balzarini admitted to agents that he had been looking at child pornography for a number of years and stated that his interest was in children 13 years old and younger. Printed images of child pornography were recovered from Balzarini's bedroom, as well as a container of girls' underwear that Balzarini admitted he took from homes when he made deliveries as part of his employment.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Bridgewater Police Chief Christopher D. Delmonte, made the announcement today. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
Birmingham Man Sentenced to Five Years in Prison for Manufacturing and Selling Synthetic MarijuanaRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man to five years and three months in prison for manufacturing synthetic marijuana and distributing it across the country from his apartment in Birmingham's Southside community, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
U.S. District Judge Abdul K. Kallon sentenced ROBERT JAMES PRESSLER, 28, one count of conspiracy to manufacture with intent to distribute the controlled chemical substance XLR11, or "Spice." Pressler pleaded guilty to the charge in December. Judge Kallon ordered Pressler to forfeit $238,428 to the government as proceeds of illegal activity. Pressler must report to prison May 16.
Pressler used his apartment as a laboratory for mixing dried plants and herbs with the XLR11, and used the U.S. Postal Service to ship the synthetic marijuana across the country - cash on delivery, according to court records. He used websites, including "bobsbud" and "bobswackytobacky," to take orders for the substance and conducted the transactions under the business name, Ninja Foot LLC, which had a Birmingham post office box.
Although Pressler's websites noted that the product was not for human consumption, the government introduced e-mails during Wednesday's hearing that showed he knowingly sold the Spice for smoking as synthetic marijuana.
On the websites, Pressler presented the synthetic marijuana as "herbal incense" and also advertised and sold 5FUR144 -- the XLR11 controlled substance -- in bulk as a "research chemical," according to his plea agreement with the government. Prices for 5FUR144 were listed on one site in a range from $50 for five grams to more than $5,000 per kilogram.
Among mail Pressler received at his apartment in 2012 and 2013 were several large packages from China with shipping labels indicating they contained various chemicals, and some listed weights of at least three kilograms, or nearly seven pounds, according to his plea agreement. The agreement also noted that China is a known source for purchase of chemicals used in the production of synthetic marijuana.
Postal inspectors found COD records for Pressler and Ninja Foot between December 2012 and June 2013 that totaled more than $100,000, according to court records.
A second Birmingham man, Seth Alexander Batten, 30, also pleaded guilty in December to the conspiracy to manufacture and distribute XLR11. Batten worked with Pressler to manufacture and ship synthetic marijuana, according to Pressler's plea agreement. Batten is scheduled for sentencing April 23.
The U.S. Postal Inspection Service, along with the Alabama Alcohol Beverage Control Board's state narcotics team, and the Birmingham Police Department, investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
Bangor Man Sentenced to 18 Years as an Armed Career CriminalRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lauren
MacArthur, 29, of Bangor, was sentenced today in U.S. District Court in Bangor to 18 years in prison and five years of supervised release for possessing stolen firearms. Because the defendant possessed the firearms after having been convicted of at least three violent felonies, he was sentenced as an Armed Career Criminal under federal law and faced a mandatory minimum prison term of 15 years. He pleaded guilty to a two-count indictment on November 26, 2012.Court records reveal that on the evening of January 20, 2012, a Maine State Police trooper was traveling southbound on I-95 in Old Town. He drove up behind a grey sedan and noticed that the license plate was covered with dirt and difficult to read. When the trooper activated his emergency lights, the defendant accelerated away at a high rate of speed, passing several vehicles. The trooper activated his siren and a prolonged chase followed during which the defendant drove at speeds of up to 90 miles per hour, ran red traffic lights, and crossed intersections at high rates of speed. At one point, the defendant crossed over an oncoming lane of traffic and drove into a bridge guardrail. The vehicle returned to its proper travel lane and the chase continued for a short distance before the trooper was able to ram it off the road. The defendant fled, but the trooper caught and arrested him. Law enforcement officers recovered two loaded rifles that the defendant had thrown from the vehicle during the chase. Their investigation showed that the defendant had stolen those firearms on the day of the chase from a home in Medway.
The investigation was conducted by the Maine State Police, the Penobscot County
Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.