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Thursday 23 January 2014
Former East Haven Police Officer Sentenced to Five Years in Prison for Criminal Civil Rights ViolationsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Officer DENNIS SPAULDING, 30, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by one year of supervised release, for violating the civil rights of members of the East Haven community.
“Dennis Spaulding repeatedly violated the civil rights of Latino members of the East Haven community,” said U.S. Attorney Deirdre Daly. “He arrested people for no good reason, used cruel and excessive force causing physical injuries and executed illegal searches. His actions assaulted, intimidated, demeaned and humiliated decent and hardworking people who came to fear their own police department. Today’s sentence properly reflects that this defendant abused vulnerable victims, undermined the legitimacy of the East Haven Police Department and damaged the public’s trust in law enforcement. This is a difficult day, but we are reminded that every day the vast majority of officers in East Haven and throughout this country serve their communities bravely and honorably. As this case nears the end, we remain hopeful that the East Haven community will continue to heal and their police department will continue to rebuild.”
“Spaulding’s efforts to harass, intimidate, and humiliate members of the East Haven community violated the rights afforded to them by our Constitution,” said FBI Assistant Director-in-Charge Venizelos. “Furthermore, his unethical behavior and illegal conduct threatened the character of a law enforcement community whose members take an oath to protect and serve with honor and integrity. Today’s sentencing is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished.”
This matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, SPAULDING, Sergeant John Miller and Officers Jason Zullo and David Cari were charged with various civil rights offenses.
According to the evidence presented during the trial of SPAULDING and David Cari, from approximately 2007 through 2011, SPAULDING conspired to injure, threaten, and intimidate various members of the East Haven community in violation of their Constitutional rights. SPAULDING and other members of the East Haven Police Department maintained and perpetuated an environment where the use of unreasonable force and unreasonable searches and seizures was tolerated and encouraged. SPAULDING engaged in unlawful arrests and searches, including the baseless arrests of a Catholic priest and several Latinos who lived or worked in the community. Additionally, SPAULDING used excessive force during an arrest when the victim was unarmed, neither resisting nor interfering with the police. Certain victims were particularly vulnerable because they were undocumented aliens and thus unlikely to raise objection to the abuse.
The evidence at trial further revealed that SPAULDING intimidated, harassed and humiliated members of the Latino community and their advocates, and conducted unreasonable and illegal searches at Latino-owned businesses. Trial testimony established that in November 2008, SPAULDING used excessive force against an individual in the parking lot of a Latino-owned restaurant and bar. SPAULDING then arrested the individual under false pretenses to cover-up the assault and prepared a false report to justify the false arrest. Later, in January 2009 in the same parking lot, SPAULDING and another officer arrested three individuals under false pretenses. SPAULDING also prepared a false report to justify these arrests.
In February 2009, SPAULDING and David Cari illegally searched a vehicle parked outside of a Latino-owned grocery store. Inside the store, David Cari then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses. The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment. In the days following the arrest, Cari drafted various false versions of an arrest report to cover up the false arrest of the religious leader.
On October 21, 2013, SPAULDING was found guilty of one count of conspiracy against rights, one count of use of unreasonable force by a law enforcement officer, two counts of deprivation of rights for making arrests without probable cause, and two counts of obstruction of a federal investigation for preparing false reports to justify the false arrests.
SPAULDING, who has been released on a $300,000 bond since his arrest on January 24, 2012, was ordered to report to prison on March 4.
Cari was found guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report. On January 21, 2014, he was sentenced to 30 months of imprisonment.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On September 21, 2012, John Miller pleaded guilty to one count of violating an individual’s civil rights by using unreasonable force during the course of an arrest. He awaits sentencing.
This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office, and is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
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[email protected]Former District of Columbia Schools Compliance Officer Pleads Guilty to Wire Fraud and Conflict-of-Interest ChargesDefendant’s Private Transportation Company Collected More Than $460,000 in Fraudulent PaymentsRead the Press Release
WASHINGTON – Donnie Dukes, a former compliance officer for the District of Columbia Public Schools, has pled guilty to charges in a scheme involving more than $460,000 in fraudulent payments to a private transportation company that he owned and controlled.
The plea was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Charles J. Willoughby, Inspector General for the District of Columbia, and Steven Anderson, Special Agent in Charge, Mid-Atlantic Regional Office, Office of Inspector General, U.S. Department of Education.
Dukes, 40, of Hyattsville, Md., pled guilty on Jan. 22, 2014, in the U.S. District Court for the District of Columbia, to wire fraud and conflict-of-interest charges. The Honorable Ketanji Brown Jackson scheduled sentencing for June 17, 2014. Under federal sentencing guidelines, the parties have agreed that Dukes faces a prison sentence of 27 to 33 months, as well as potential financial penalties. The plea agreement calls for Dukes to pay a total of $463,621 in restitution to the District of Columbia. He also has agreed to a forfeiture money judgment of $300,000.
According to the government’s evidence, Dukes worked from October 2008 until October 2010 as a compliance officer for the District of Columbia Public Schools (DCPS). His duties included making arrangements for transportation for the special needs students who received education services outside of the District of Columbia.
At the same time, however, Dukes owned and controlled a private company that provided, among other services, transportation to students who needed to travel from the District of Columbia to education centers outside of the District of Columbia for special services.
While working at DCPS, Dukes personally referred, or caused colleagues of his at DCPS to refer, 86 out-of-state student transports to his company, resulting in the firm receiving $325,000 in payments from the District of Columbia Office of the State Superintendent of Education. Of this, the government’s evidence showed, $163,621 involved illegitimate expenses.
Dukes was terminated from DCPS in October 2010 as part of an overall reduction in the workforce. He then schemed to obtain non-public lists of students needing transportation services from his former colleagues at DCPS. Dukes later used these lists to create false invoices and supporting documentation for payments to his company in the names of the students. Dukes created 60 false invoices and supporting documentation through this scheme, causing the District of Columbia Office of the State Superintendent of Education to pay his company $300,000 for transportation services that never were provided.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, Inspector General Willoughby, and Special Agent in Charge Anderson commended the work of those who investigated the case from the FBI’s Washington Field Office, the District of Columbia Office of Inspector General, and the U.S. Department of Education’s Office of Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Legal Assistant Nicole Wattelet and Assistant U.S. Attorney Seth B. Waxman, who is prosecuting the case.
14-021Former College President Indicted in Manhattan Federal Court for Campaign Finance FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today an Indictment charging DINESH D’SOUZA with violating the federal campaign finance laws by making illegal contributions to a United States Senate campaign in the names of others and causing false statements to be made to the Federal Election Commission in connection with those contributions. D’SOUZA is expected to be presented and arraigned tomorrow in Manhattan federal court before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara stated: “As we have long said, this Office and the FBI take a zero tolerance approach to corruption of the electoral process. If, as alleged, the defendant directed others to make contributions to a Senate campaign and reimbursed them, that is a serious violation of federal campaign finance laws.”
FBI Assistant Director-in-Charge George Venizelos stated: “Trying to influence elections through bogus campaign contributions is a serious crime. Today, Mr. D’Souza finds himself on the wrong side of the law. The Federal Election Campaign Act was written to limit the influence of money in elections; the FBI is fiercely committed to enforcing those laws to maintain the integrity of our democratic process.”
According to the allegations in the Indictment and statements made in court:
The Federal Election Campaign Act (the “Election Act”) is designed to limit financial influence in the election of candidates for federal office, including the Office of United States Senator, and provides for the public disclosure of the financing of federal election campaigns. In particular, the Election Act limits the amount and source of money that may be contributed to a federal candidate or that candidate’s authorized campaign committee. The Election Act specifically prohibits any person from making any contribution in the name of another, including reimbursing a third person, before or after that third person’s contribution, as inducement to make that contribution. The Federal Election Commission (“FEC”) is an agency and department of the United States with jurisdiction to compile and publicly report accurate information about the sources and amounts of election contributions.
In 2012, the Election Act limited both primary and general election campaign contributions to $2,500 for a total of $5,000 from any individual to any one candidate. In August 2012, D’SOUZA directed other individuals with whom he was associated to make contributions to the campaign committee for a candidate for the United States Senate (the “Campaign Committee”) that totaled $20,000. D’SOUZA then reimbursed those individuals for the contributions. By directing the illegal contributions to be made, D’SOUZA also caused the Campaign Committee to falsely report to the FEC the sources and amounts of those contributions to the campaign.
D’SOUZA, 52, of San Diego, California, is charged with one count of causing $20,000 in illegal campaign contributions to be made to a candidate for the United States Senate in calendar year 2012, which carries a maximum sentence of two years in prison. He also is charged with one count of causing false statements to be made to the FEC in connection with the illegal campaign contributions, which carries a maximum sentence of five years in prison.
The Indictment is the result of a routine review by the FBI of campaign filings with the FEC by various candidates after the 2012 election for United States Senator in New York. Mr. Bharara praised the investigative work of the FBI.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Rebecca Ricigliano are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Dinesh D'Souza Indictment
Former City of Sweetwater Mayor Sentenced in Corruption InvestigationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, announce that Manuel L. Maroño, the former Mayor of the City of Sweetwater, was sentenced to 40 months in prison and two years of supervised release by U.S. District Judge William J. Zloch for conspiring to commit honest services wire fraud involving a scheme to personally benefit himself through the use of his elected position as Mayor of Sweetwater.
U.S. Attorney Wifredo A. Ferrer stated, “The judge correctly likened political corruption to cancer. Today’s sentence sends a message to public officials: selling the public’s trust will put you in federal prison.”
"The sentence received by Manuel L. Marono today was not only for violating the law, but also for undermining the public’s trust in their elected official,” said Michael B. Steinbach, Special Agent in Charge of the Miami Division. "Marono was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force.”
According to documents filed with the court, in late November 2011, Maroño and his co-conspirator, Jorge Forte, a lifelong friend of Maroño and a lobbyist, agreed to aid a company known as Sunshine Universal to obtain federal grant funds for the stated reason of preparing an economic development study for Sweetwater, all in exchange for cash kickbacks to Maroño and Forte. Although Maroño and Forte were unaware, Sunshine Universal was, in fact, an undercover FBI entity. To aid the scheme, Maroño caused the passage of a resolution in Sweetwater that authorized the undercover agents’ company to apply for federal grant moneys using the authority of the City of Sweetwater. After the resolution was passed, Maroño and Forte personally met and negotiated with the undercover agents and accepted a series of cash payments in exchange for Maroño’s official actions in support of the grant scheme. During these negotiations and meetings, Forte acted as the front man for Maroño.
To further the scheme and avoid detection, Maroño also participated in what he believed to be audit telephone calls from the federal government to confirm the grantees’ performance on the grant. During two separate audit calls, both of which were recorded, Maroño lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. For their corrupt actions, Maroño and Forte received $45,000.
Mr. Ferrer commends the investigative efforts of the FBI. This case was prosecuted Assistant U.S. Attorneys Jared E. Dwyer and Robert K. Senior.
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.
Florida Man Sentenced in IRS Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Tampa, Florida, man convicted of Conspiracy to Defraud the United States and Aggravated Identity Theft was sentenced on January 17, 2014, by U.S. District Judge Karen E. Schreier.
Adams was involved in a scheme to defraud the United States by using personal identifying information, including names, Social Security numbers, and dates of birth of other individuals to file bogus income tax returns showing tax refunds due. The requested refunds total approximately $1 million, and the IRS paid fraudulent claims of over $400,000 before the fraud was discovered.
Charlie Frank Adams, age 23, was sentenced to 30 months in prison on the conspiracy charge and 24 months on the ID theft charge, to be served consecutively. Upon release from prison, he will be on supervised release for 3 years. Adams was also ordered to make restitution to the Internal Revenue Service (IRS) and ID theft victims in the total amount of $421,832.83.
Adams and 10 others were indicted on the above charges by a federal grand jury on May 8, 2013. Adams pled guilty on October 29, 2013.
Several of Adams’ co-defendants attended the University of South Dakota in Vermillion and are former members of the football team.
As his part in the conspiracy, Adams filed bogus tax returns using stolen identifying information received from a co-conspirator, kept the co-conspirator informed as to whether the returns were accepted by the IRS and, if so, to which address the refunds would be mailed. He also provided stolen identifying information to his co-conspirators.
This case was investigated by the Vermillion Police Department, the South Dakota Division of Criminal Assistance, and the IRS Criminal Investigation Division. Assistant U.S. Attorney John E. Haak prosecuted the case.
Adams was immediately turned over to the custody of the U.S. Marshals Service.
Florida Man Sentenced for Sending Interstate Threatening Communications to CEO of U.S. Anti-Doping AgencyRead the Press Release
DENVER – Gerrit Kuechle Keats, age 72, of Clearwater, Florida, was sentenced this afternoon by U.S. District Court Judge R. Brooke Jackson to serve 3 years’ probation for sending threatening communications via email to the Chief Executive Officer of the U.S. Anti-Doping Agency, Travis Tygart, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. In addition, Judge Jackson ordered Keats to pay a $5,000 fine and serve at least 540 hours of community service throughout probation. Keats was also ordered to undergo psychological treatment.
Keats was indicted by a federal grand jury on July 10, 2013. He pled guilty before Judge Jackson on October 7, 2013. He was sentenced today, January 23, 2014.
According to the stipulated facts contained in the plea agreement, in 2012, the United States Anti-Doping Agency (USADA) had been investigating allegations that cyclist Lance Armstrong had achieved his prodigious record by cheating; by “doping” and using drugs and other improper means to win. As the investigation heated up in the summer of 2012, Chief Executive Officer of USADA, Travis Tygart, received a barrage of negative public comment, mostly via emails, about USADA’s investigation. In August 2012, it was anticipated that USADA would announce its findings, including that Lance Armstrong would banned from cycling for life. On August 23, 2012, Lance Armstrong released a press statement that he would not challenge USADA’s findings. The negative emails intensified. On August 24, 2012, USADA, as predicted, made the announcement that Lance Armstrong would be banned from cycling for life and disqualified of all his competitive results from August 1, 1998, through August 24, 2012. This disqualification included being stripped of his seven Tour de France titles.
Among the members of the public who were angry over USADA’s methods and conclusions was the defendant, Keats. On October 24, 2012, Keats made threats to Tygart and his family. The email read, in part: “ . . . Travis Tygart is a f*&#ing pig who should be nailed to a tree and skinned while he watches his toady staff and filthy children being castrated.” The threatening email further said: “The greatest service I could do to mankind is kill that f*&#ing pig.”
As a result of the threatening emails, Mr. Tygart hired private security for himself and his family, and moved his family to a secure location while the FBI investigated the source of the threat.
In an unrelated case, Robert Hutchins of Sandy, Utah, pled guilty on November 4, 2013 to sending threatening communications over the internet to Mr. Tygart for similar reasons. Hutchins is scheduled to be sentenced by Chief U.S. District Court Marcia S. Krieger on February 10, 2014.
“When someone, such as the defendant, uses email to send a threat, the recipient has no way of knowing if the threat is real, resulting in severe stress,” said U.S. Attorney John Walsh. “Emailed threats are not anonymous. Law enforcement has the tools to determine who sent them, and will act to hold those responsible accountable.”
"Today's decision reaffirms the FBI's vigilance to pursue those who hide behind a computer and make death threats," said FBI Denver Special Agent in Charge Thomas P. Ravenelle.
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant was prosecuted by Assistant U.S. Attorney Valeria Spencer.
Five Indicted for Participation in Timeshare Telemarketing ScamRead the Press Release
Chedna Charles, 25; James Richard Currey, 54; Christopher Robert Garten, 23; Osvaldo Gonzalez, 39; all of Orlando, Florida, and Amber Lynn Jones, 27, of Rome, Georgia, were indicted by a federal grand jury for their roles in a nationwide telemarketing scheme which defrauded persons throughout the United States and Canada, including victims in seven counties in the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The grand jury charged the six with conspiracy to commit mail and wire fraud. If convicted, each is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The five were telemarketers who worked for National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International.
Telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. The company solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that were to be refunded to the owner at closing. Many timeshare owners were told that their closings would occur within a matter of days.
Despite collecting fees from these victims, the National Solutions companies were not successful in selling a single timeshare unit and indeed made little effort even to market the properties for sale. All advance fees collected were pocketed by the telemarketers.
Participation in the scheme began in April 2008 and continued through July 13, 2011, when the Federal Trade Commission raided the business pursuant to a court order.1 From 2007 to 2011, over 2,500 timeshare owners across the country were scammed by the National Solutions businesses to the tune of more than $6 million.
After being found guilty by a jury after a four-day trial in September 2013, Kathryn Garten was sentenced to 14 years in prison and ordered to pay $909,278.00 in restitution for her role in this scheme.
These prosecutions follow an investigation by the Midwest Region Office of the Federal trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. Theses prosecutions will be handled by Assistant United States Attorneys Michael J. Quinley and William E. Coonan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Federal Charges Filed in Multi-Million Dollar Telemarketing OperationRead the Press Release
On January 22, 2014, John C. Nicosia, 55, of Rochester, New York, was named in a one-count indictment for conspiracy to commit wire fraud and mail fraud in violation of Title 18, United States Code, Section 1349 the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. If convicted, Nicosia is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The charge arose out of a telemarketing scam which operated in Las Vegas, Nevada, which the indictment alleged bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve (12) victims in nine (9) of the thirty-eight (38) counties comprising the Southern District of Illinois. The indictment alleges that the scheme operated from December 5, 2006 until January 24, 2012.
The indictment alleges that Nicosia was a telemarketer at a telemarketing company, called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada. The indictment alleges that the company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The indictment alleges that the purported sales did not occur and that Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and is awaiting sentencing.
This case is one of several cases recently prosecuted by the United States Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud. The prosecution of the case is being handled by Assistant United States Attorney Bruce E. Reppert and Special Assistant United States Attorney Stuart J. Zander.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Father, Son Sentenced to Prison for Bank Fraud and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that two former residents of Destin, Florida, Gary Wayne Thomas, 64, of Daphne, Alabama, and Brian Keith Thomas, 40, of Birmingham, Alabama, were sentenced by Chief U.S. District Court Judge M. Casey Rodgers to serve time in a federal prison. Gary Wayne Thomas was sentenced to 72 months in prison and Brian Keith Thomas was sentenced to 24 months in prison.
Both men were charged with conspiracy to structure cash withdrawals and structuring cash withdrawals to avoid the Currency Transaction Reporting (CTR) requirement, conspiring to commit bank fraud, and conspiracy to commit money laundering. Gary Thomas was also charged with money laundering, failure to appear, possession of a firearm and ammunition by a person under indictment, and possession of a firearm and ammunition by a fugitive from justice.
Brian Thomas, the son, went to trial during the week of July 22, 2013, before Chief U.S. District Judge M. Casey Rodgers and was convicted of all counts. The father, Gary Thomas, pled guilty to all charges on October 30, 2013.
The evidence showed that between January 1, 2008, and November 1, 2008, Gary Thomas and Brian Thomas caused approximately $4,550,000 to be deposited into their domestic bank accounts and then wired to offshore bank accounts in the Cayman Islands and Belize. Shortly thereafter, Gary Thomas stopped making payments on the loans he and his various entities had obtained from New South Federal Savings Bank, now known as Beal Bank. The total amount of the loans was approximately $56 million. In the summer of 2009, the bank filed civil suits against Gary Thomas on these loans.
In a three-year period between 2010 and 2013, Gary Thomas wired approximately $2,150,000 from the offshore banks into several domestic accounts including five accounts that Brian Thomas opened in Destin banks. Thereafter, the father and son conspired to structure withdrawals of cash under $10,000 to avoid the CTR requirement and to hide Gary Thomas’s interest in the funds from his creditor bank. The structured withdrawals were done on roughly 194 occasions and totaled more than $1.6 million.
Gary Thomas used some of these funds to purchase five airplanes, numerous vehicles, and homes in Destin, Florida, and Fairhope, Alabama. Thus far, the government has successfully forfeited the five airplanes; approximately $387,413 in cash, which represents the proceeds of the sale of the home in Fairhope, Alabama; and a $60,000 Hyundai Equus. The government has also obtained monetary judgments of forfeiture against Gary and Brian Thomas in the amounts of $4,970,000 and $1,197,148 respectively.
Ms. Marsh credited the successful prosecution of this case to the joint efforts of the Internal Revenue Service – Criminal Investigation, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
Fairfax Man Indicted for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Padraic Collins, 46, of Fairfax, Va., was indicted today by a federal grand jury in the Eastern District of Virginia for production of child pornography after Collins allegedly was found to be in possession of child pornography videos while crossing the border into Canada.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the grand jury returned the indictment to United States Magistrate Judge T. Rawles Jones, Jr.
Collins faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison if convicted.
According to court documents, HSI Washington received information from HSI Toronto regarding Collins, a Fairfax resident, at the Lansdowne, Canada Port of Entry. Collins was arrested by the Canadian Border Services Agency for importing and possessing child pornography files on a handheld video camera and a laptop. The videos allegedly show Collins engaging in sexual activity with an underage girl. HSI Washington, in coordination with HSI Toronto and the Ottawa Provincial Police, determined the identity of the 11-year-old female in the videos. The victim identified Collins as her abuser and confirmed the details of the sexual abuse, including that it took place in Springfield, Va.
The investigation was conducted by HSI Washington, with assistance from HSI Toronto, HSI Buffalo, U.S. Customs and Border Protection, the Ottawa Provincial Police and the U.S. Marshals Service. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
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.
Erath Woman Pleads Guilty to Wire FraudRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Hue Bui, 27, of Erath, La., entered a guilty plea on Wednesday before U.S. Magistrate Judge C. Michael Hill, to one count of wire fraud involving theft from Walk-On’s Bistreaux and Bar in Lafayette.
According to evidence presented at the guilty plea, from February 2012 to August 2012, while employed as a server at Walk-On’s, Bui stole approximately $30,222. She devised a scheme using $25 prepaid American Express, VISA, and Master Card gift cards that she bought herself. During her shift, she would create a fake food or beverage order costing approximately $25, pay for the fake order with the gift card, write in a gratuity amount on the bill, and collect the tips at the end of her shift. When the credit card companies realized the $25 limit was exceeded, they charged the transactions back to Walk-On’s.Bui faces 20 years in prison, a $250,000 fine, restitution, and three years of supervised release for the count of wire fraud. A sentencing date of May 16, 2014 was set.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.Elkton Man Pleads Guilty to Solicitation to Commit KidnappingRead the Press Release
Baltimore – Andres Dorantes Flores, age 43, of Elkton, Maryland pleaded guilty today to soliciting others to kidnap a 10 year old boy.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Cecil County Sheriff Barry A. Janney, Sr.; and Cecil County State’s Attorney Ellis Rollins.According to his plea agreement, beginning in at least July 2012 Flores solicited others to kidnap a 10 year boy. The families of Flores and the boy had been friends. Flores approached an acquaintance and suggested kidnaping the boy and demanding a $300,000 ransom from the boy’s father. Flores continued to solicit the acquaintance to help with the kidnapping in subsequent meetings. Flores provided pictures of the boy and his family to the acquaintance.
On August 15, 2012 Flores arranged a meeting with the acquaintance and two men that Flores believed were from Philadelphia who had come to kidnap the victim as part of Flores’ plot. Flores told the men that he had thought the plan through and provided them with instructions to carry out the kidnapping. Flores arranged for the men take the boy from his home in Maryland to Philadelphia where Flores believed the men resided. Flores told the men that after they received the $300,000 ransom, they would each get $75,000. Flores was arrested following the meeting.
Flores and the government have agreed that if the Court accepts the plea agreement Flores will be sentenced to 175 months in prison followed by three years of supervised release. U.S. District Judge William D. Quarles has scheduled sentencing for May 8, 2014 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Cecil County Sheriff’s Office and Cecil County State’s Attorney’s Office for their work in the investigation and thanked the New Castle County, Delaware Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Eagle Butte Woman Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Kenna Bridwell, age 28, was indicted on January 14, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Bridwell is alleged to have assaulted a woman in November 2013 as a result of a car crash near Eagle Butte. The charge is merely an accusation and Bridwell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bridwell was released on bond pending trial. A trial date has not been set.
Drug Trafficker to Serve 13 Years in PrisonRead the Press Release
Oklahoma City, Oklahoma – Today, OMERO CORDOVA, 32, of Oklahoma City, was sentenced by United States District Judge Joe Heaton to serve 156 months in federal prison for money laundering, drug trafficking and gun charges, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Following an extensive investigation, a search warrant was executed at 2412 SW 78th Street, a residence owned by Cordova, and police located multiple handguns, large amounts of cash, and marijuana. Cordova was indicted and charged with six counts: (1) distribution of less than 50 kilograms of marijuana, (2) possession of marijuana with intent to distribute, (3) possession of firearms in furtherance of a drug trafficking crime, (4) maintaining a drug-involved premises, (5) falsifying a material fact, and (6) money laundering. A jury trial was held in September of 2013 and, after three days of evidence, the jury deliberated less than three hours before finding Cordova guilty of all counts.
Today, Judge Heaton sentenced Cordova to serve 156 months in prison, followed by three years of supervised release. He was immediately remanded into custody to begin serving his sentence.
This case is the result of a joint investigation including IRS Criminal Investigation, the Oklahoma City Police Department, Oklahoma County District Attorney’s Office, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Edward J. Kumiega.
Denver Man Who Promoted Credit Services Scheme to Fraudulently Obtain Business Lines of Credit Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A Denver man who billed himself as “The Credit Line Millionaire” was sentenced today to 21 months in federal prison as a result of his role in a scheme to obtain lines of credit worth hundreds of thousands of dollars through a host of misrepresentations and falsified documents.
Christopher Robert Wise, 35, was sentenced today by United States District Court Judge John Kronstadt in Los Angeles. Wise has been in federal custody since his arrest by the United States Secret Service at Los Angeles International Airport last August after he arrived on a flight from Mexico.
Wise pled guilty in October to conspiracy to commit bank fraud, admitting that he conspired to fraudulently obtain lines of credit from Wells Fargo Bank, Union Bank and City National Bank.
According to prosecutors, Wise maintained a significant online presence, which included his websites www.creditlinemillionaire.com and http://chriswise.com/, and he billed himself as a credit guru who could help clients obtain loans for their small- and medium-size businesses. Wise referred his clients to several co-conspirators who controlled Inland Empire companies and who promised to help acquire financing.
As part of his guilty plea, Wise admitted attempting to obtain business lines of credit for himself through loan applications submitted to the victim banks on behalf of one of his companies. Wise also admitted he used a co-conspirator as a “credit partner” to pose as a “personal guarantor” for the loans – in essence, using a “straw borrower” to apply for loans in exchange for giving the credit partner a percentage of the loan proceeds.
At sentencing, prosecutors relied on an online video of defendant speaking at one of his seminars where he summarized his scam, saying, among other things:
“My credit is messed up. I’m getting over a million dollars. I have leveraged over a million dollars in the past. I’m getting ready to get another million dollars in one shot . . . My business doesn’t qualify for the revenue documentation, because as a business owner I like to write everything off. Right, that is one of the advantages of being a business owner. And so when you go to the bank and you show them everything is written off, they don’t really like to see that. So my business doesn’t qualify. And so by leveraging other people’s credit and by leveraging other people’s entities, I’m now in the process of getting a million dollars line of credit.”
Previously in this investigation, five co-conspirators pleaded guilty, four of whom are pending sentencing. Last month, Avedis Abraham Hagopian was sentenced to two years in federal prison for his role in the scheme.
This case is the result of an investigation by the United States Secret Service.
Release No. 14-009
Columbia Man Sentenced for Arsons at Mu, Stephens CollegeRead the Press Release
JEFFERSON CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for two arsons that caused more than $1 million in damages to the Ellis Library at the University of Missouri–Columbia and a building on the Stephens College campus in Columbia.
Christopher Curtis Kelley, 28, of Columbia, was sentenced by U.S. District Judge Beth Phillips to six years and six months in prison without parole. The court also ordered Kelley to pay $591,114 in restitution.
On April 24, 2013, Kelley was found guilty of two counts of arson. Evidence presented during the trial indicated that Kelley deliberately set fires at 10 different locations inside the Ellis Library, which is the main library at the University of Missouri, at approximately 3:30 a.m. on Sept. 10, 2011. Some of the fires didn’t take or caused minimal damage, while other fires caused significant damage. Kelley also used a metal pipe to destroy and vandalize property at the library, including computer monitors, security cameras and windows. Human feces and urine were found on top of one of the study desks.
The overall cost to repair the damage to the library was estimated between $750,000 and $1 million. Cleanup costs alone have amounted to $531,294, and property loss amounts are still being determined. As a result of the fire, university faculty, staff, students, and the public in general suffered a major disruption in services. Employees lost personal possessions and were displaced while repairs were made. Users were denied access and services for a total of 43 lost hours. Reference services were unavailable for 35 hours. International student instruction classes were cancelled. Library staff spent numerous hours moving bottom shelves of reference books away from damaged and wet floors.
In addition, the Ellis Library building houses the Missouri State Historical Society, which serves as the repository for books, maps and other documents with historical importance. That area of the library suffered extensive water damage as a result of the fires. Property damage to that area was separately estimated to be between $60,000 and $75,000. The Society was completely closed to the public for three days following the fires. Society employees put in thousands of hours packing, cleaning, moving and rearranging work space as the Society was renovated. Members of the public were unable to conduct research, and many individuals who had traveled to conduct research were turned away. Five staff members, whose desks and computers were water-damaged, had to pack up their work areas and move across campus to be housed in temporary work space for approximately four months. Additional staff members had to be relocated for several months due to the damage. Tens of thousands of journals and periodicals had to be boxed up and relocated because of renovations required from the water damage, and countless staff hours were expended drying original, primary-source documents. Each page/sheet had to be individually dried with blotting paper to save the documents and prevent the formation of mold. Approximately 1,000 hours were spent taking down, repairing and replacing the art/exhibit panels that were in the corridor gallery.
The Ellis Library also operates a federal documents repository, which suffered major disruption as a result of the arson.
Photos taken from the library’s security cameras were distributed to the media and the college community. Law enforcement officials received several telephone calls in response from individuals who identified Kelley. At about noon on the same day as the arson, Kelley turned himself in to the University of Missouri Police Department.During the investigation into the Ellis Library arson, law enforcement officers recovered stolen computer equipment at Kelley’s residence that had been taken from Stephens College during an earlier arson on that campus.
Kelley was also convicted of starting a fire in a classroom of the Audrey Webb Child Study Center on the Stephens College campus at approximately 4 a.m. on May 18, 2011. The Audrey Webb Learning Center is an educational facility, providing a laboratory to train students to become educators.
Kelley broke into the school and stole a computer after starting the fire. The building sprinkler system malfunctioned; however, firefighters quickly responded to the alarm and extinguished the fire before the entire structure burned. There was moderate smoke damage in the basement area directly below the classroom. Damages to the Audrey Webb Child Center amounted to $54,819.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the University of Missouri Police Department, the Columbia, Mo., Police Department, the Columbia, Mo., Fire Department, the Stephens College Security Department, the University of Missouri Ellis Library Security Department, the U.S. Department of Education and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Cocaine Trafficker Pleads to Drug ChargeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tremec Jeffries, 38, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Jeffries and others purchased large quantities of powder cocaine that they processed into crack cocaine, packaged, and resold it in various quantities in the City of Rochester. Jeffries was arrested on August 1, 2013 after he was surveilled by officers arriving at 35 Wakefield Street in Rochester operating his 2004 Chevrolet Avalanche. The defendant unlocked the location with a key and entered. Officers then raided the location and Jeffries, the only person inside, was arrested after attempting to jump out a second story window.
Inside the residence, officers seized 50 grams of crack cocaine, 31 grams of powder cocaine, processing and packaging paraphernalia, a .12 gauge shotgun, and a loaded, Glock .45 caliber semi-automatic pistol that had been reported stolen out of North Carolina in 2010. Jeffries had $1,640 in U.S. currency on his person and the Avalanche contained $15,000 in U.S. currency bundled in $1,000 increments. The cash has been forfeited by the Drug Enforcement Administration as drug money.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Jamie J. Hunt, New York Field Division, with assistance provided by the Greater Rochester Area Narcotics Enforcement Team (GRANET), and the Rochester Police Department under the direction of Acting Chief Michael Ciminelli, the Monroe County District Attorney’s Office, under the direction of Sandra Doorley, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge, Scott Heagney.
Sentencing is scheduled for May 21, 2014 at 3:00 pm before Judge Larimer.Child Molestation Draws Ten Year SentenceRead the Press Release
The United States Attorney's Office announced that on Wednesday, January 22, 2014, during a federal court session in Billings, Senior District Judge Donald Molloy sentenced AARON ROSS TURNSPLENTY, JR, of Crow Agency, to 10 years in prison and three years supervised release for molesting a young girl in 1996.
According to an offer of proof filed by Assistant United States Attorney Laura Weiss, Turnsplenty sexually abused the victim, who was under 12-years-old, in the basement of a friend's home in Pryor, Montana, on the Crow Indian Reservation. The victim was playing by herself with toys when Turnsplenty "came out of nowhere." He molested her then threatened to hurt her family if she told anyone.
Although the crime occurred in 1996, the United States Attorney's Office was able to prosecute this case after the victim's disclosure in 2012 because federal sex abuse statutes were revised to allow prosecution of certain crimes against children before the standard statute of limitations based upon when the violation was disclosed. For most federal crimes, an indictment must be brought within five years of the commission of the offense regardless of when the crime is made known to law enforcement authorities.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Turnsplenty will likely serve all of the time imposed by the court. In the federal system, Turnsplenty does have the opportunity to earn a limited reduction in time served for (good behavior(; a reduction for good conduct while incarcerated will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Chief of Mount Pleasant Police Department Arrested for Possession of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Office of the United States Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), announced today the arrest of BRIAN FANELLI for possession of child pornography. FANELLI, the Chief of the Mount Pleasant, New York, Police Department, was arrested by HSI agents today at his residence in Mahopac, New York and presented in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Preet Bharara stated: “Given the allegations, this case is particularly disturbing and sad. A senior law enforcement officer, sworn to uphold the law, stands accused of breaking the law. And it is the law designed to protect the youngest and most vulnerable of our population from vile exploitation.”
HSI Special Agent-in-Charge James T. Hayes, Jr. stated: “Police officers – and especially police executives – are understandably held to a higher standard of conduct than ordinary citizens. The defendant’s alleged acquisition and viewing of sexually explicit images of children irrevocably breached the trust the public had in him. The widespread exploitation of children in the United States is nothing short of an epidemic that requires the coordinated focus of law enforcement agencies, prosecutors, and the general public alike. HSI is committed to devoting the necessary resources to protect the children in our communities from those intent on victimizing them.”
According to the allegations in the criminal Complaint filed today in White Plains federal court:
From at least as early as October 2013, through in or about January 2014, FANELLI used a Peer-to-Peer File Sharing Program (“the “P2P Network”) to download more than 120 files containing images and videos believed to be child pornography and made those files available to other P2P Network users through his computer’s shared folder on the P2P Network program. Additionally, on three occasions, DHS agents acting in an undercover capacity and using the P2P Network downloaded from FANELLI’s computer files containing images and videos believed to contain child pornography.
Acting pursuant to a search warrant, DHS agents searched FANELLI’s residence today and located three computers. During the execution of the search warrant, FANELLI was advised of his Miranda rights, after which he voluntarily told DHS agents, among other things, that he has taught sexual abuse awareness classes to elementary and middle school-age students for more than one year, and that approximately one year ago, he began viewing child pornography from his home using the P2P Network – at first as research for the classes he was teaching, but shortly thereafter for personal interest.
FANELLI, 54, of Mahopac, New York, is charged with one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. The count also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security. He added that the investigation is continuing.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com
The prosecution is being overseen by the Office’s White Plains Division and the Public Corruption Unit. Assistant United States Attorneys Andrew D. Goldstein and Lee Renzin are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Brian Fanelli Complaint
Canadian Man Pleads in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Parminder Sidhu, 39, of Brampton, Ontario, pleaded guilty to conspiracy to export from the United States five kilograms or more of cocaine before Chief U.S. District Judge William M. Skretny. The charge carries a minimum sentence of 10 years in prison, a maximum of life, a $10,000,000 fine or both.
“This case stands for more than the largest seizure of cocaine in this District’s history,” said U.S. Attorney Hochul. “Of equal importance, this prosecution demonstrates that American and Canadian law enforcement partners can work seamlessly together to protect the citizens of both countries. For while it may have be true that crime knows no borders, now criminals should realize that our ability to apprehend them also has no geographic limitations.”
“Investigations of this scope and caliber would not be possible without the partnerships we have built under the Border Enforcement Security Task Force model, including with our Canadian law enforcement partners,” said James C. Spero, Special Agent in Charge of HSI Buffalo. “With these guilty pleas, the Buffalo BEST team and the Peel Regional Police Service have dismantled one of the biggest cocaine smuggling organizations to have ever operated in Western New York.”
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2009 and May 10, 2011, the defendant conspired with Michael Bagri and Ravinder Arora to export cocaine from the United States to Canada. In September 2010, Sidhu hired defendant Bagri to travel to California to pick up cocaine. Defendant Bagri then hid 97 kilograms of cocaine in a false compartment in the floor of a tractor trailer. The tractor trailer was then driven to Cheektowaga, N.Y. where it was turned over to defendant Ravinder Arora. Defendant Arora then proceeded to Canada. At the Lewiston-Queenston Bridge, Special Agents with the Department of Homeland Security and Customs and Border Patrol seized the 97 kilograms of cocaine from the false compartment during a secondary inspection.
On May 1, 2011, Sidhu directed defendant Bagri to travel once again to California. After hiding another 26 kilograms of cocaine in another tractor trailer, the rig was driven to a truck stop in Pembroke, N.Y. The tractor trailer was then picked up by a driver hired by Parminder Sidhu. As the driver exited the truck stop, Bagri followed behind in another vehicle. Agents later stopped the tractor trailer and Sidhu’s vehicle and seized the 26 kilograms of cocaine.
During the execution of a search warrant at Sidhu’s residence in Canada, agents discovered drug ledgers which detailed nine addition smuggling trips in 2009 and 2010. These trips involved approximately 1,617 kilograms of cocaine being transported from the United States into Canada.
Defendants Ravinder Arora and Michael Bagri have been convicted of similar charges and are awaiting sentencing which is scheduled for April 9, 2014.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Randy Howe, Acting Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.
Sidhu will be sentenced on May 28, 2014, at 9:00 a.m. before Chief Judge Skretny.California Man Conspired to Distribute MethRead the Press Release
PITTSBURGH - A resident of Elk Grove, Calif., pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Joseph Rojas, 28, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Rojas conspired to distribute in excess of 50 grams of methamphetamine.
Judge Conti scheduled sentencing for 10 a.m. on May 15, 2014. The law provides for a total sentence of not less than 10 years or more than life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court revoked Rojas’s bond and ordered him to be detained.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Rojas.
Cahokia Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Karashia A. Tabbs, 46, of Cahokia, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
Tabbs was sentenced to five years’ probation, a special assessment of $100, and ordered to pay restitution in the amount of $4,594. Tabbs previously pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Tabbs was submitting bills claiming to care for a person who was at the time residing in the state of Texas, while Tabbs was living in Cahokia, Illinois.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Bunch Man Sentenced to 48 Months for Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JEFFERY A. LOPEZ, age 30, of Bunch, Oklahoma, was sentenced to 48 months imprisonment, followed by 24 months of supervised release for being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Oklahoma Highway Patrol and the Department of Homeland Security Investigations. The defendant was indicted in April, 2013 and pled guilty in September, 2013.
The Indictment alleged that on or December 11, 2012, within the Eastern District of Oklahoma, the defendant, JEFFERY A. LOPEZ, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Winchester model 1897 pump shotgun, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing.
Assistant United States Attorney Kyle Waters represented the United States.
Brockport Financial Advisor Indicted on Mail Fraud and Bankrupcy Fraud ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a two-count indictment charging Eduardo Galan, 63, of Brockport, N.Y., mail fraud and bankruptcy fraud. The charges carry a maximum sentence 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Galan promised to invest $75,000 for a client in a private mortgage loan through his business, S&G Unlimited Services. In fact, the defendant spent the money for his own benefit to repay creditors and on other expenses. After the client obtained a civil judgment against Galan and S&G Unlimited Services, the defendant misused his Chapter 7 bankruptcy proceeding to try to obtain a discharge for the debt, falsely characterizing the debt as a personal loan.
This indictment is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Bonanno Family Captain Vincent Asaro Indicted for Participation in the 1978 Lufthansa $5 Million Robbery at JFK Airport and the Murder of Paul Katz Who Disappeared in 1969Read the Press Release
Five Defendants Arrested and Charged Variously with 45-Year Racketeering Conspiracy, Including Predicate Acts of Murder, Solicitation to Murder, Robbery and Extortion, and Other Crimes
BROOKLYN, NY – Earlier today, an indictment was unsealed charging five members of the Bonanno organized crime family of La Cosa Nostra (the “Bonanno family”) variously with racketeering conspiracy, including predicate acts of murder, conspiracy to commit murder, solicitation to murder, robbery and extortion, and other crimes.1 Bonanno family administration members and captains Vincent Asaro and Thomas Di Fiore, Bonanno family captain Jerome Asaro, Bonanno family acting captain Jack Bonventre, and Bonanno family soldier John Ragano were arrested earlier today and are scheduled to be arraigned this afternoon before U.S. Magistrate Judge Marilyn D. Go at the federal courthouse in Brooklyn.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“As alleged, Vincent Asaro devoted his adult life to the Bonanno crime family, with a criminal career that spanned decades. Far from a code of honor, theirs was a code of violence and brute force. Those suspected of cooperating with law enforcement paid with their lives. Asaro helped pull off the 1978 Lufthansa robbery - still the largest bank robbery in New York history. Neither age nor time dimmed Asaro’s ruthless ways, as he continued to order violence to carry out mob business in recent months. The arrests and charges announced today are a testament to the relentless pursuit of justice by law enforcement,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the FBI for its extraordinary work in bringing these defendants to account for the charged crimes.
“These ‘goodfellas’ thought they had a license to steal, a license to kill, and a license to do whatever they wanted. However, today’s arrests of the five members of the Bonanno crime family brings an end to their violent and ruthless ways. As alleged in the indictment, Vincent Asaro and his co-conspirators were not only involved in typical mob activities of extortion and murder, but Asaro himself was in on one of the most notorious heists - the Lufthansa robbery in 1978. It may be decades later, but the FBI’s determination to investigate and bring wiseguys to justice will never waver,” stated FBI Assistant Director-in-Charge Venizelos.
As alleged in the indictment and a detention memorandum filed by the government, over the last 45 years Vincent Asaro and various co-conspirators, including his son Jerome Asaro, engaged in a pattern of violence and threats of violence in order to profit from their illegal activity and evade prosecution. The indictment announced today is the result of a long-term investigation by the Federal Bureau of Investigation that utilized, among other law enforcement techniques, consensual recordings, cooperating witnesses and confidential sources, and electronic and visual surveillance.
1978 Lufthansa Heist
Vincent Asaro is charged for his participation in the 1978 robbery at the Lufthansa Terminal at John F. Kennedy Airport of over $5 million in United States currency and approximately $1 million in jewelry. Asaro, Lucchese crime family associate James “Jimmy the Gent” Burke, and their co-conspirators each expected to receive approximately $750,000 in cash and large quantities of gold jewelry from the proceeds of the robbery.
Murder of Paul Katz
Vincent Asaro is charged with the murder of Paul Katz, who disappeared in 1969, and Asaro and his son Jerome are also charged with accessory after the fact for their roles in moving Katz’s body to prevent its discovery by law enforcement. Vincent Asaro and Burke allegedly strangled Katz with a dog chain because they believed he was cooperating with law enforcement. They then buried his body in the basement of a vacant home in Queens, New York, where it remained until the mid-1980s when, alerted to a state law enforcement investigation into Katz’s murder, Vincent Asaro directed Jerome Asaro and another individual to dig up Katz’s body and move it. Almost 35 years later, in June of 2013, the FBI executed a search warrant at the Queens residence, which was still owned by the Burke family, and recovered remnants of Katz’s remains buried in the basement. Katz’s identity was confirmed through DNA testing.
Solicitation to Murder
Vincent Asaro and Jerome Asaro are charged with solicitation to murder their cousin, identified in the indictment as “John Doe #1,” because he was perceived to be a “rat” for testifying against another family member in a federal trial on fraud charges.
Armed Robberies
Vincent Asaro and Jerome Asaro are charged variously with participating in additional armed robberies and armed robbery conspiracies, including the robbery of approximately $1 million in gold salts.
Extortion
All five defendants, including Thomas Di Fiore, the highest ranking member of the Bonanno family at liberty, are charged with using and conspiring to use extortionate means to collect an extension of credit from a Bonanno family associate. During an April 26, 2013, consensual recording of Vincent Asaro and John Ragano, Ragano asked Asaro, “When do we stab this guy [ ] in the neck? That’s what I want to know.” Asaro responded, “Stab him today.” Asaro continued, “I told you to give him a [ ] beating. Give him a [ ] beating, I told you that. Listen I sent three guys there to give him a beating, already, so it won’t be the first time he got a beating from me.”
The case has been assigned to United States Senior District Judge Allyne R. Ross. If convicted, Vincent Asaro faces life imprisonment, and each of his co-defendants faces a statutory maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Nicole M. Argentieri and Alicyn Cooley.
The Defendants:
VINCENT ASARO
Age: 78
Howard Beach, New York
JEROME ASARO
Age: 55
Bethpage, New York
JACK BONVENTRE
Age: 45
Campbell Hall, New York
THOMAS DI FIORE, also known as “Tommy D”
Age: 70
Commack, New York
JOHN RAGANO, also known as “Bazoo”
Age: 52
Rockaway, New York
E.D.N.Y. Docket No. 14-CR-26 (ARR)
1 The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Asaro Indictment
Asaro Detention Memo
Biomat USA Employee Sentenced for Identity Theft ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Bridgette Williams, aged 31, of Macon, Georgia, was sentenced by Chief U.S. District Court Judge C. Ashley Royal on Thursday, January 23, 2014, to serve six (6) months imprisonment in a case of conspiracy to commit fraudulent claims, identity theft and receiving stolen government property. Ms. Williams was also ordered to make restitution to the Internal Revenue Service.Ms. Williams entered a plea of guilty to the charges on April 18, 2013. As part of her plea agreement, Ms. Williams admitted that she was an employee of BioMat USA, a facility where individuals donate blood plasma for compensation. From January to June 2012, she obtained the personal identification information for more than 130 BioMat USA clients and transferred that information to co-conspirators. The co-conspirators would then create false W-2 forms using the personal information and file false income tax returns in the names of the clients. Ms. Williams’ address was used as the address on the false tax returns. Refund checks were mailed to her at that address. Ms. Williams admitted that the total amount of fraudulent tax returns wrongfully obtained from BioMat USA was $191,985.00. The total amount of fraudulent refunds actually issued by the Internal Revenue Service was $23,879.86.
“Identity theft is an increasing problem. Those who engage in this type of criminal activity should know that it will be investigated and prosecuted with increased vigor,” said U.S. Attorney Michael Moore.
“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat theft and fraud against the United States Treasury and will continue to support these types of investigations along with our law enforcement partners,” said John L. Phillips, Assistant Inspector General for Investigations.
“IRS Criminal Investigation will remain proactive in the investigation of individuals and groups who commit crimes and ruin the lives of innocent citizens,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Today’s sentence clearly demonstrates that taking advantage of, manipulating, and stealing from the American people will not be ignored or go unpunished.”“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims. Those nefarious individuals ultimately affect us all,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
The investigation of the case was a joint effort by the Federal Bureau of Investigation, United States Secret Service, Internal Revenue Service – Criminal Investigations, U.S. Treasury Office of Inspector General and Bibb County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Graham A. Thorpe.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Bank Robber SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Kyle Clemons, aged 38, of an unknown address in Macon, Georgia, was sentenced by Chief U.S. District Court Judge C. Ashley Royal on Thursday, January 23, 2014, to serve sixty three (63) months in federal prison for bank robbery.Mr. Clemons entered a plea of guilty to the charge on September 26, 2013. As part of his plea agreement, Mr. Clemons admitted that on August 5, 2013, he entered the State Bank located at 614 Shurling Drive in Macon, Georgia where he asked a bank teller if robbing a bank was a federal offense, slammed a book on the counter and demanded money. The teller gave approximately $620 to Mr. Clemons who then fled the bank.
“My office takes bank robbery seriously, even if the robber only gets a small amount of cash. It is the act of committing the crime, not the amount stolen, that has sent Mr. Clemons to federal prison,” said U.S. Attorney Michael Moore.
The case was investigated by Bibb County Sheriff’s Office. Assistant United States Attorney Michael T. Solis prosecuted the case for the government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Baltimore Felon Sentenced to 10 Years in Prison for Illegal Possession of A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Malick Green, age 30, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to Green's plea agreement, on March 17, 2012, Baltimore City Police Detectives were observing the area around the 1800 block of North Broadway in Baltimore, and saw Malick Green enter an alley in that area. Green was holding his waistband as he ran through the alley to the rear yard of 1812 Register Street. Detectives observed the defendant move a piece of plywood that covered the rear basement stairs to 1812 Register, place a metallic object that officers believed to be a handgun on the steps, and return the plywood to its original location. Green then continued south down the alley.
Detectives located Green on Register Street and detained him as they went to the rear yard of 1812 Register. Detectives moved the plywood and found a.45 caliber handgun, loaded with a magazine containing six rounds of .45 caliber ammunition. Green was prohibited from possessing a firearm and ammunition due to previous felony drug convictions
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Attorney General Eric Holder Urges Congress to Pass Bipartisan 'Smarter Sentencing Act' to Reform Mandatory Minimum SentencesRead the Press Release
U.S. Attorney General Eric Holder on Thursday urged Congress to pass the bipartisan Smarter Sentencing Act, introduced by Senators Dick Durbin and Mike Lee. A copy of the Attorney General's statement, which was recorded as an online video, appears below:
“Our criminal justice system works only when all Americans are treated equally under the law.That’s why, in 2010, Congress passed the landmark Fair Sentencing Act, marking the culmination of persistent efforts – with the leadership of President Obama – to reduce unjust disparities in sentencing for similar offenses involving different types of drugs.
More recently, President Obama took another step by commuting the sentences of eight individuals who were sentenced under the outdated sentencing regime.
And at the Justice Department, we’ve announced additional reforms – under our “Smart on Crime” initiative – to ensure that individuals accused of certain low-level federal drug crimes no longer face excessive mandatory minimum sentences that are out of proportion with their alleged conduct – and serve no deterrent purpose.
These reforms have the potential to help make our criminal justice system not only fairer, but also – by reducing the burden on our overcrowded prison system – more efficient.
And now, we have the opportunity for leaders from both parties to come together to do even more.
Today, I’m urging Congress to pass common-sense reforms like the bipartisan Smarter Sentencing Act, introduced by Senators Dick Durbin and Mike Lee – which would give judges more discretion in determining appropriate sentences for people convicted of certain federal drug crimes.
This bill would also provide a new mechanism for some individuals – who were sentenced under outdated laws and guidelines – to petition judges for sentencing reductions that are consistent with the Fair Sentencing Act.
Thanks to the leadership of Senators Durbin and Lee – along with Chairman Patrick Leahy and Senator Rand Paul – it’s clear that these and similar proposals enjoy bipartisan support on Capitol Hill.
These reforms would advance the goals of the Smart on Crime initiative – and other efforts that are currently underway – by fundamentally improving policies that exacerbate, rather than alleviate, key criminal justice challenges.
And such legislation could ultimately save our country billions of dollars in prison costs while keeping us safe.
I look forward to working with members of both parties to refine and advance these proposals in the days ahead.
And I pledge my own best efforts – and those of my colleagues throughout the Justice Department – to continue to strengthen America’s criminal justice system, and to build the more just society that everyone in this country deserves.”
The full video message can be viewed online at: http://www.justice.gov/agwa.php.
Atlantic Iowa Resident Sentenced to 122 Months in Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On January 22, 2014, Paul William Jessen, a 44 year-old resident of Atlantic, Iowa, was sentenced by United States District Court Judge Stephanie Rose to 122 months in prison followed by four years of supervised release for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt.
On September 4, 2013, Jessen pled guilty to the charge which was the result of an investigation conducted into methamphetamine distribution in and around the Atlantic, Iowa area. Jessen was part of a drug trafficking group who distributed methamphetamine obtained from a source in Omaha, Nebraska.
The investigation was conducted by the Atlantic, Iowa, Police Department, the Cass County Sheriff’s Office and the Iowa Division of Narcotics Enforcement.
(Download Press Release )
Armed Career Criminal from Corrales Sentenced to Fifteen Years in Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Walter Lee Deiter, 55, of Corrales, N.M., was sentenced this morning to 15 years in federal prison followed by five years of supervised release for being a felon in possession of a firearm, announced Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Allen Banks of the Albuquerque Police Department.
Acting U.S. Attorney Steven C. Yarbrough said that Deiter was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Firearms in the hands of convicted felons are a serious threat to public safety. A big thanks to the law enforcement community and the U.S. Attorney’s Office for making our communities safer and putting Walter Deiter where he belongs,” Said 2nd Judicial District Attorney Kari E. Brandenburg.
Deiter was indicted in March 2010, and charged with unlawfully possessing a firearm and ammunition on Nov. 12, 2009, in Bernalillo County, N.M. At the time, Deiter was prohibited from possessing firearms or ammunition because he previously had been convicted of 13 felony offenses, including burglary, grand theft, drug trafficking and bank robbery offenses in Florida; a drug trafficking offense in Oklahoma; and being a felon in possession of a firearm in federal court in New Mexico. Deiter was on supervised release after having served a 46-month prison sentence for his first federal conviction when he was arrested in this case.
A federal jury convicted Deiter in Aug. 2012, after a four-day trial. According to the evidence at trial, when Albuquerque Police Department officers responded to a domestic violence call to 911 made by Deiter’s wife shortly after midnight on Nov. 12, 2009, they observed a man, later identified as Deiter, and a woman standing outside in the cold. When Deiter and the woman saw the officers approaching, they separated and began walking in opposite directions. Although the officers attempted to speak to Deiter, he continued to walk away from them. Moments later, an officer observed Deiter, who was standing on the second floor balcony of a nearby apartment complex, bend down and place something on the balcony floor. Deiter then complied with the officers’ orders to come down from the balcony. When an officer started towards the apartment complex to check the balcony, Deiter became visibly nervous and bolted away from the officers. After Deiter was apprehended, an officer went up to the balcony and found a revolver in a holster on the balcony floor. Deiter’s DNA subsequently was found on both the revolver and the holster.
Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives said, “Today’s sentencing of Deiter should serve as a harsh reminder to habitual criminals that gun crime will equal hard time. ATF will not tolerate the illegal possession of firearms by prohibited persons. I want to commend Acting U.S. Attorney Steven Yarbrough and Chief Allen Banks of the Albuquerque Police Department for their partnership and support.”
“The Albuquerque Police Department would like to thank the U.S. Attorney and his dedicated staff for the successful prosecution of this career criminal,” said Chief Allen Banks of the Albuquerque Police Department. “Today’s sentencing sends a clear message to habitual criminals that local law enforcement is working closely with federal prosecutors will find a way to hold them accountable for their crimes in our community. The sentence handed down today is also a victory for victims of domestic violence everywhere, showing that their aggressors will face significant jail time when they commit their crime while being a prohibited possessor of a firearm.”
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office and was prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and Kimberly A. Brawley.
Amherst Woman Pleads Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Amanda Hollmer, 36, of Amherst, N.Y., pleaded guilty to bank fraud before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that Hollmer executed what is sometimes referred to as a “check kiting” scheme between December 2009 and December 2010 which defrauded various financial institutions. Specifically, the defendant opened up various checking accounts at local banks and deposited checks from other checking accounts that either had no funds or had been closed. By then withdrawing cash from the institution before the bank could learn of the insufficient funds underlying the deposit, Hollmer stole funds, or attempted to steal funds from at least seven different financial institutions. In total, the financial institutions incurred a total loss of $27,552.
Sentencing is scheduled for April 29, 2014, at 1:00 p.m. before Judge Arcara.
The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.7 Former Bank Officers Plead Guilty in Loan-Fraud Scheme That Preceded Collapse of First National Bank of SavannahRead the Press Release
SAVANNAH, GA: Alan Robert Fleming, 37, from Savannah, Georgia, pled guilty Tuesday before United States District Court Chief Judge Lisa Godbey Wood for his role in a massive loan-fraud scheme against First National Bank of Savannah and other federally-insured banks. Fleming was the last of 7 former officers of First National Bank to plead guilty to charges in a 47-count indictment returned by a federal grand jury sitting in Savannah in January 2013.
The 7 convicted former officers of First National Bank include:
- Heys Edward McMath III, 59, the former President and CEO of First National Bank, pled guilty on November 12, 2013 to conspiring to defraud First National Bank and other federally-insured banks;
- Stephen Michael Little, 65, the former Executive Vice President and CFO of First National Bank, pled guilty on January 15, 2014 to 2 counts of bank fraud;
- Robert Wilson Dailey, 52, the former City President and Senior Lending Officer of First National Bank, pled guilty on January 17, 2014 to 2 counts of bank fraud;
- Jay Patrick Gardner, 63, the former Vice President of Credit Administration of First National Bank, pled guilty on October 25, 2013 to a single count of bank fraud.
- Isaac Jefferson Mulling, 53, a former Senior Vice President and commercial loan officer of First National Bank, pled guilty on January 16, 2014 to 2 counts of bank fraud.
- Alan Robert Fleming, 37, the former City President of the Tybee Island branch and a commercial loan officer of First National Bank, pled guilty on January 21, 2014 to 2 counts of bank fraud;
- Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch and a commercial loan officer of First National Bank, pled guilty on January 15, 2014 to a single count of false entries made in bank records.
United States Attorney Edward J. Tarver said, “These Defendants chose to hand out millions of dollars in fraudulent loans and to falsify numerous bank records, all in an effort to gamble with other people’s money and to hide the true condition of the bank that they ran. Their fraudulent conduct put at risk the deposits of those who sought a safe place to keep their money, and ultimately caused a payout of losses by the Federal Deposit Insurance Corporation (FDIC). As the nation continues to recover from a banking crisis of epic proportions, citizens should know this: no matter the complexity of the scheme, bank officers who place FDIC-funds at risk through fraud and other criminal conduct will be brought to justice.”Matt Alessandrino, FDIC Assistant Inspector General for Investigations, stated, “The FDIC Office of Inspector General is proud to join our law enforcement colleagues in announcing the pleas of seven former bank officials for their roles in a complex loan-fraud scheme that contributed to the failure of First National Bank and caused losses to the Deposit Insurance Fund. It is especially important to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
“Bank executives who deliberately falsify and fabricate bank records to fraudulently deceive regulators, bank boards of directors, and the public must be brought to justice for their actions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We will continue to work with our law enforcement partners to vigorously pursue wrongdoers whose fraudulent actions impact any bank or bank-holding company regulated by the Federal Reserve Board’s supervision program.”“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat bank fraud which affects the U. S. Treasury," said John L. Phillips, Assistant Inspector General for Investigations.
According to evidence presented during the guilty plea hearings, as First National Bank’s financial condition began to deteriorate, the Defendants schemed to hide from the bank, members of the bank’s Board of Directors, and from federal regulators millions of dollars in non-performing loans. The Defendants accomplished their scheme by unlawfully loaning money to unqualified nominees to make interest and other payments on other non-performing loans; by enticing others to take over non-performing loans with hidden promises, side deals, and other terms unfavorable to First National Bank; and by recruiting other banks to fund non-performing loans based upon fraudulent misrepresentations about the quality of the loans. To assist in their scheme, the Defendants falsified and fabricated numerous bank documents and records. First National Bank failed and was taken over by the FDIC on June 25, 2010. The FDIC estimates that First National’s failure will cost the Deposit Insurance Fund over $90 million.
The Defendants will be sentenced after the United States Probation Office completes their presentence investigations. All of the Defendants remain on bond pending sentencing.
This case is the result of a joint investigation conducted by Special Agent Amy Whitcomb of the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Special Agent Lance Endy of the FDIC Office of Inspector General; Assistant Special Agent In Charge Anthony Scott of the U. S. Department of Treasury Office of Inspector General; and Forensic Auditor Karen Hartley of the United States Attorney’s Office. First Assistant United States Attorney James Durham and Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States.
10th Street Gang Member Sentenced on RICO and Firearm Charges; Two Associates Plead Guilty to Drug ChargesRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Justin Augus, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) and possession of a firearm in furtherance of drug trafficking, was sentenced to 228 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that Augus, a 10th Street Gang member, participated in three shootings. On July 14, 2008, the defendant and another gang member shot a rival member of the 7th Street Gang. On August 11, 2009, Augus and another gang member shot at rival 7th Street Gang associates. And on November 8, 2009, the defendant was in a vehicle being driven by another 10th Street Gang member when he fired several rounds from a semi-automatic weapon which struck a 7th Street Gang member. In addition, Augus distributed marijuana in the territory controlled by the gang between 2000 and 2010. He also possessed firearms during his drug trafficking activities.
Darnell McIntosh, and Jonathan Serrano, both of Buffalo, N.Y., each pleaded guilty before Judge Arcara. Darnell McIntosh pleaded guilty to conspiracy to distribute crack cocaine, cocaine and marijuana, which carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both. Jonathan Serrano pleaded guilty to conspiracy to distribute marijuana, which carries a maximum penalty of five years in prison, a fine of $250,000, or both.
Between 2006 through 2011, Darnell McIntosh obtained quantities of cocaine and crack cocaine from members of the 10th Street Gang which he then re-distributed in the City of Buffalo. At various times, McIntosh also obtained quantities of marijuana which he also sold.
Jonathan Serrano, along with members and other associates of the 10th Street Gang, sold marijuana in the territory controlled by the gang in 2009.
The defendants are among 44 10th Street Gang members and associates charged in this case. A total of 29 have been convicted.
The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Jonathan Serrano will be sentenced on April 28, 2014, at 1:00 p.m. before Judge Arcara. Sentencing for Darnell McIntosh is scheduled for July 24, 2014, at 12:30 p.m., also before Judge Arcara.
Wednesday 22 January 2014
pANAMA cITY mAN sENTENCED TO 97 mONTHS ON cHILD eXPLOITATION cHARGESRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that Daniel Freiwald, 29, was sentenced today by the Honorable Judge Smoak to 97 months in prison for 3 counts of child exploitation offenses.
Between December 7, 2012, and January 23, 2013, Friewald, who was then an active duty Air Force member stationed at Tyndall Air Force Base, knowingly and intentionally possessed and received images and videos of child pornography, the majority of which depicted prepubescent children, including infants and toddlers.
Freiwald was also sentenced to a five-year term of supervised release, which he will be required to serve upon completion of his prison sentence.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pensacola Police Department.
This case was prosecuted by Assistant United States Attorney Kathryn Risinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who 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.pANAMA cITY mAN sENTENCED TO 97 mONTHS ON cHILD eXPLOITATION cHARGESRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that Daniel Freiwald, 29, was sentenced today by the Honorable Judge Smoak to 97 months in prison for 3 counts of child exploitation offenses.
Between December 7, 2012, and January 23, 2013, Friewald, who was then an active duty Air Force member stationed at Tyndall Air Force Base, knowingly and intentionally possessed and received images and videos of child pornography, the majority of which depicted prepubescent children, including infants and toddlers.
Freiwald was also sentenced to a five-year term of supervised release, which he will be required to serve upon completion of his prison sentence.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pensacola Police Department.
This case was prosecuted by Assistant United States Attorney Kathryn Risinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who 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.Yolando Blount Sentenced to 27 Years for Nursing Home Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Yolando Blount, aka Yolanda King, 32, of Macon, Georgia was sentenced on Friday, January 22, 2014, to serve 324 months (27 years) imprisonment in a case of wire fraud, mail fraud, conspiracy, theft of public money, aggravated identity theft and access device fraud. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia. The Court also ordered Ms. Blount to pay restitution to the Internal Revenue Service in the amount of $493,506.60.
Ms. Blount entered a plea of guilty to the charges on September 4, 2013. In her plea agreement, the defendant admitted that beginning in 2010, she obtained stolen identities of nursing home patients and used that information to file fraudulent income tax returns. Some federal tax refunds were processed in the names of the patients and mailed to Ms. Blount’s address. Others were directly deposited into a bank account belonging to the defendant.The tax returns found on the Defendant’s laptop computer represent refund claims filed against the Government in the amount of $511,951.00. From those claims, the Internal Revenue Service actually paid out $460,692.00 in false claims. The total amount of actual loss to the United Sates, including the nursing home patient refunds and the Capital City Bank refunds, was $493,506.60. The total amount of fraudulent refund claims is $550,150.60.
U.S. Attorney Michael Moore said, “Ms. Blount’s actions represent the worst kind of greed accompanied by criminal conduct. Not only did she use the stolen identification of nursing home patients to advance her scheme, she stole from the American people when she obtained the fraudulent refunds. Ms. Blount’s fraud was far-reaching, and she is deserving of this harsh sentence. Identity theft and fraud are not victimless crimes; when you want to know who the victims are, all you have to do is look in the mirror.”
“The United States Secret Service and our law enforcement partners work tirelessly to thoroughly investigate cases like this. We will continue to take an aggressive approach to arrest those who violate the faith and trust of victims such as the unsuspecting nursing home patients in this case,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
"Today's sentencing of Ms. Blount should serve as a stark reminder to others that such greed based criminal behavior as seen in this case comes with a cost," stated Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation is united with the law enforcement community to continue with the aggressive pursuit of individuals who commit crimes against our society and the United States Treasury."
“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat identity theft and fraud against the U.S. Treasury,” said John L. Phillips, Assistant Inspector General for Investigations.
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI will continue to provide investigative resources toward such cases as this that victimize so many, to include the elderly, through identity theft. Anyone with information regarding such activities should contact their nearest FBI field office."
The case was investigated by the Internal Revenue Service Criminal Investigation, United States Secret Service, Federal Bureau of Investigation, U.S. Treasury Department – OIG, and Macon Police Department. The case was prosecuted by Assistant United States Attorney Graham A. Thorpe.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Wilkes-Barre Men Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal informations yesterday charging three men from Luzerne County separately with drug trafficking offenses.
Richard Hall, age 38, of Wilkes-Barre, was charged with conspiracy to distribute cocaine hydrochloride and cocaine base (crack) between 2009 and April 2013. Hall is also charged with distributing marijuana to a seventeen year old.
Alfred Oglesby, age 45, of Wilkes-Barre, was charged with distributing cocaine on numerous occasions between 2010 and April 2, 2013.
Robert Tolbert, age 39, of Wilkes-Barre, was charged with possession with the intent to distribute cocaine hydrochloride and cocaine base (crack) on April 2, 2013.
United States Attorney Peter J. Smith stated that the charges are the result of an investigation conducted by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is thirty years’ imprisonment for Richard Hall, and twenty years’ imprisonment for Alfred Oglesby and Robert Tolbert. Each also faces a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Wellsville Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Justin J. McPherson, 28, of Wellsville, N.Y., who was convicted of conspiracy to manufacture, possess with intent to distribute and distribute, 50 grams or more of methamphetamine, was sentenced to time served (24 months) in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that during the execution of a search warrant on January 26, 2012 at a residence on South Main St. in Wellsville, law enforcement officers discovered items used to manufacture methamphetamine and a quantity of methamphetamine. A search warrant was later executed at a residence on Madison Ave. in Wellsville. During that search, officers discovered an active methamphetamine laboratory.
The defendant was arrested along with Jason Patterson, his wife April Patterson, Anthony Kidd, and John Faber. April Patterson, Kidd and Faber have been convicted and are awaiting sentencing. Charges are pending against Jason Patterson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the result of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto, the Wellsville Police Department, under the direction of Chief Timothy Walsh, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Wellsburg Man Convicted of Heroin DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wellsburg, West Virginia, man has admitted to distributing heroin that caused the death of another.
United States Attorney William J. Ihlenfeld, II, announced that JUSTIN A. WITHERS, 29 years old, entered a plea of guilty to “Aiding and Abetting the Distribution of Heroin.” WITHERS, who is presently in custody, faces a binding term of 150 months in prison. This term of imprisonment must still be approved by Judge Frederick P. Stamp, Jr., who took the plea from WITHERS this week but deferred acceptance of the terms of the plea agreement until the time of sentencing. The sentencing hearing will be scheduled after a pre-sentence report has been prepared by the U.S. Probation Office.WITHERS and his co-defendant Curtis ADAMS were indicted by a federal grand jury last year for allegedly delivering heroin that caused the death of a Brooke County man in 2011. ADAMS pleaded guilty to “Interstate Travel in Aid of Racketeering” after traveling to Steubenville, Ohio, to acquire heroin and then bringing it back to Brooke County to distribute. ADAMS was sentenced to 60 months in prison as a result of his conviction.
The case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the Hancock-Brooke-Weirton Drug Task Force, Follansbee Police Department, the Wellsburg Police Department and the Brooke County Sheriff’s Department.
Washington, DC Drug Dealer Pleads Guilty to Heroin DistributionRead the Press Release
Defendant sold heroin that resulted in three overdose deaths in northern Virginia
ALEXANDRIA, Va. – Eugene Asomani Williams, also known as “Shine,” 35, of Washington, DC, pleaded guilty today to conspiracy to distribute one kilogram or more of heroin and to using and possessing a firearm during and in furtherance of drug trafficking.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Williams was indicted on November 21, 2013 by a federal grand jury on the charges to which he entered guilty pleas. Williamsfaces a mandatory minimum term of 15 years of incarceration and a maximum penalty of life in prison when he is sentenced on April 18, 2014.
In a statement of facts filed with the plea agreement, Williams admitted to selling over one kilogram of heroin in the Washington metropolitan area since 2004. Williams further admitted that heroin he distributed in 2012 and 2013 led to three overdose deaths in Virginia. As detailed in the indictment and statement of facts, in January 2012, an Army Private stationed at Fort Belvoir died of an overdose after using heroin sold by the defendant. In February 2012 and April 2013, two other individuals died as a result of using heroin sold by the defendant.
The defendant also admitted to regularly carrying a firearm in furtherance of his heroin trafficking activities. The defendant stated that the firearm he used most recently was a .38 caliber revolver. Additionally, DEA seized .45 caliber ammunition from the defendant’s home during the execution of a search warrant in September 2013.
This case was investigated by the DEA’s Washington Field Division, with assistance from the U.S. Army’s Criminal Investigation Division and the Fairfax County Police Department. Assistant United States Attorneys Michael P. Ben’Ary and Julia K. Martinez 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.
Visalia Man Sentenced to 10 Years in Prison for Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Alejandro Manuel Perez, 28, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years in prison for participating in a sex trafficking venture involving a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February 4, 2010, and March 13, 2010, Perez knowingly benefitted, financially or otherwise, from his participation in a sex-trafficking venture which involved a minor female victim. Perez was charged with sex trafficking on March 8, 2012, and pleaded guilty to this charge on October 30, 2013. He has been in custody since March 27, 2012.
“The FBI and its partners work tirelessly to identify and rescue young sex trafficking victims, investigating these deplorable crimes to ensure that those who commercially exploit children face justice,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field office. “By disrupting these illicit ventures and removing traffickers from our communities, we hope to offer the victims a chance at a normal life and to prevent other children from falling prey to such predators who feed on the vulnerabilities of the young.”
This case was the product of an extensive investigation by the Fresno Office of the FBI and the Visalia Police Department. Assistant United States Attorney Brian W. Enos is prosecuting the case.
Vacaville Man Sentenced for Defrauding Three Federal AgenciesRead the Press Release
SACRAMENTO, Calif. — United States District Judge Lawrence K. Karlton sentenced Robert Daniel Castillo, 50, of Vacaville, today to one year and one day in prison for workers’ compensation and disability benefits fraud, United States Attorney Benjamin B. Wagner announced. Judge Karlton ordered Castillo to pay $138,997 in restitution.
This case was the product of an investigation by the United States Postal Service, Office of Inspector General and the Social Security Administration, Office of Inspector General. Assistant U.S. Attorney Jared C. Dolan prosecuted the case.
“The American public expects Postal Service employees to be diligent and honest. Through its investigations, the Office of Inspector General helps to maintain that integrity. When US Postal Service employees’ actions turn to criminal violations, such as the abuse of the workers’ compensation program, those individuals are aggressively investigated by USPS OIG Special Agents,” said Scott Pierce, Special Agent in Charge, US Postal Service Office of Inspector General, Pacific Area Field Office.”
According to court documents, on October 15, 1998, Castillo, while working for the U.S. Postal Service in Fresno, claimed that he had injured his lower back while on the job. He submitted a claim for workers’ compensation benefits. For more than 10 years, Castillo received federal workers’ compensation benefits based on that injury. Castillo also received Social Security Disability and Veterans Benefits based on claims of 100 percent disability. Altogether, Castillo received more than $6,000 a month based on his claimed disability. Castillo was observed playing basketball and softball, driving, shopping, washing a boat, performing yard work, and performing volunteer work. At doctor’s appointments and meetings with officials from the Department of Labor and Social Security, Castillo claimed an inability to do all of these things.
A federal grand jury indicted Castillo on July 19, 2012, and on April 24, 2013, he pleaded guilty to theft of United States property and false statements made to the government in seeking compensation payments the charges.
United States Attorney for the Western District of Virginia Collects over $500 Million in Civil and Criminal Penalties in 2013Read the Press Release
ROANOKE, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that the United States Attorney’s Office for the Western District of Virginia collected $501,452,563 in criminal and civil penalties in fiscal year 2013. Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,155,045,898 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“In 2013, our office collected more than 75 times our annual budget in criminal and civil penalties and asset forfeitures,” United States Attorney Timothy J. Heaphy said today. “I am proud of the AUSAs and staff in our district, who continue to achieve unprecedented success in recovering assets from those who commit fraud and other crimes. This money helps provide restitution and other victim services, and supports law enforcement activities around the district.”
For Fiscal Year 2013, the United States Attorney’s Office for the Western District of Virginia, collected more criminal, district-only, money than any other United States Attorney’s Office in the country. The $501,333,280, collected in 2013 is the highest total collection money collected to date in the Western District of Virginia. A large portion of this FY13’s collections stem from the criminal fine levied against Abbott Labs, announced in 2012.Our office was again near the top of the list in terms of shared collections in civil cases. The $1.155 billion collected civilly includes $818 million from the Abbott Labs case brought in the Western District of Virginia, as well as $335 million in shared collections in nationwide cases brought by other United States Attorney’s Offices. In these “shared collections” cases, employees of the USAO-WDVA personally contacted local victims to make them aware of prosecutions in other districts and gave them the information they needed to enforce their rights and obtain relief. Our work on these shared collection matters helped ensure that local victims received the restitution they deserve.
“Our participation in these shared collection actions reinforces the notion that we must work with the Department, and other districts, to successfully prosecute some of these large, complex fraud cases,” U.S. Attorney Heaphy said today.
In terms of asset forfeiture, the USAO-WDVA collected assets totaling $6,345,519, more than any other similarly-sized United States Attorney’s Office in the nation. In addition, the USAO-WDVA has more assets under seizure than 91 other districts, with a value of seizures higher than 80 other districts.
“Our asset forfeiture unit does an unbelievable job in identifying and seizing those assets derived from the ill-gotten gains of the convicted,” said Assistant United States Attorney Sharon Burnham, Chief of the Asset Forfeiture Unit. “These forfeited assets help compensate victims and provide a needed supplement to the local law enforcement community. It’s gratifying to use a criminal’s assets to fight crime.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Two Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Grand Jury in Scranton returned Indictments on January 21, 2014 charging Rasheen Smith, age 25, of Endicott, New York, and Tasmiyah Sharif, age 23, of Wilkes-Barre, Pennsylvania, separately with conspiring to distribution of cocaine, cocaine base and marijuana. The Indictments also charged the each defendant with distributing controlled substances in Luzerne County during 2012 and 2013.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is forty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Two Assistant U.S. Attorneys Receive Award from the Drug Enforcement AdministrationRead the Press Release
Montgomery, Alabama - The Drug Enforcement Administration presented Assistant U. S. Attorneys Verne Speirs and Gray Borden the Spartan Award, announced George L. Beck, Jr., United States Attorney Middle District of Alabama. The Spartan award recognizes prosecutors for their dedication and extraordinary effort to investigate and prosecute large-scale drug dealers and money launderers.
This year’s award is presented to Assistant U.S. Attorneys Speirs and Borden due to the long hours they have invested and the success they achieved in combating the ever-growing scourge of drug dealing in the Middle District of Alabama. The DEA chose Speirs and Borden for this award after examining the work of all federal prosecutors in the State of Alabama.
“The DEA in Alabama was pleased to present the 2013 Spartan Award for Excellence in Drug Investigations to AUSA’s Speirs and Borden,” stated Clay Morris, Assistant Special Agent in Charge of DEA in Alabama. “The award was named after the Spartan Warrior Society. AUSAs Speirs and Borden were selected by DEA management to receive the award because they exhibited many traits of a Spartan Warrior: a relentless pursuit of justice, tenacity, loyalty and dedication. Throughout 2013, AUSA’s Speirs and Borden tirelessly worked alongside our agents and task force officers in many long term and complex investigations. Because of the dedication of AUSAs Speirs and Borden, many drug trafficking organizations were completely dismantled and dangerous criminals were removed from the streets of our communities. I cannot say enough about the outstanding efforts of AUSAs Speirs and Borden and the entire staff of the Unites States Attorney’s Office. One thing is certain, as long as AUSAs Speirs and Borden are prosecuting drug trafficking organizations, those who target and sell poison to our children should be very afraid.”
“I am very pleased that the extraordinary success of AUSAs Speirs and Borden are receiving the recognition they truly deserve,” stated U.S. Attorney George Beck, “They have worked tirelessly to prosecute these criminals. I believe it is essential that these types of crimes be vigorously prosecuted and that we continue to combat the drug problem facing this district and this nation.”
“I am truly humbled to receive this award, but the real credit goes to the DEA Agents and Task Force Officers who risk everything to combat drug traffickers across this country,” stated Verne Speirs, Assistant U.S. Attorney. “The safety of our families and communities depend upon their selfless service.”
“I consider this award to be one of the great achievements in my career in the U.S. Attorney’s Office, but the credit goes to our dedicated and professional staff and the DEA’s stable of tireless agents,” stated Gray Borden, Assistant U.S. Attorney. “I am proud to be associated with a team of this caliber.”
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Troy Man Sentenced to 10 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActsRead the Press Release
Attempted to Arrange a Sexual Encounter with a Twelve-Year-Old-Girl
ALBANY, NEW YORK – MICHAEL HEPPELLE, age 42, of Troy, New York was sentenced to ten (10) years of imprisonment for attempted online enticement of a minor on January 21, 2014 in Albany by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. HEPPELLE, who had entered a guilty plea on September 19, 2013, was also ordered to serve a 15-year term of supervised release, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between September 24, 2012 and October 3, 2012, HEPPELLE called a cooperating witness and offered to pay $500 if the cooperating witness could arrange for HEPPELLE to have a sexual encounter with a twelve-year-old girl. The cooperating witness reported his/her concerns to law enforcement, who in turn, told the cooperating witness to tell HEPPELLE that if he was serious about engaging in sexual acts with the twelve-year-old girl, he could meet the child on October 3, 2012 at a particular time, at a pre-arranged location in Rensselaer County. On October 3, 2012, HEPPELLE arrived at the pre-arranged location at the pre-determined time to meet with and engage in sexual acts with the girl. HEPPELLE was then arrested and was found to be in possession of $500 in U.S. currency, a cellular telephone, two condoms, and a lubricant typically used during sexual intercourse.
This case was investigated by the Federal Bureau of Investigation and the Rensselaer County Sheriff’s Office.
Three-Hour Manhunt Results in Drug ConvictionRead the Press Release
LAREDO, Texas – Rodolfo Aranda, 25, of Laredo, has been ordered to prison for possession with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. Aranda pleaded guilty Sept. 10, 2013.
Today, U.S. District Judge Diana Saldana ordered Aranda to federal prison for 60 months which will be immediately followed by a five-year-term of supervised release. He was further ordered to pay a $2,000 fine.
On July 11, 2013, U.S. Border Patrol (BP) agents arrested Aranda for absconding from authorities on Highway-44 near Laredo. He had been driving a pick-up truck with tampered oil-field numbers, at times drastically increasing and decreasing his speed. BP requested a registration check of the vehicle and learned the license plates did not match the vehicle. Suspicious of illegal activity, agents initiated an immigration inspection and activated their overhead lights.
Aranda then accelerated his vehicle and abruptly turned off the highway, driving his truck through a ranch fence and into the brush. He exited his vehicle on foot and fled through the ranch.
A three-hour manhunt ensued and involved both air and ground patrol. He was arrested within the brush as a result of the search.
At the time of his arrest, Aranda’s fingerprints were found within the vehicle as well as matching footprints near the crime scene. Agents also discovered 20 bundles of marijuana, weighing 202.8 kilograms and valued at $357,760 within the truck.
Aranda will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration and US Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker prosecuted the case.
Three People Charged in Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Philadelphia residents and a state prison inmate were indicted by a federal grand jury yesterday for participating in a drug trafficking conspiracy that distributed heroin during November 2013 to the present.
According to United States Attorney Peter J. Smith, the grand jury alleges that Eudy Gonzalez, age 24, an inmate at State Correctional Institution Waymart, Linda Reyes, age 23, and Luis Morales, age 31, conspired to distribute and possess with intent to distribute more than 100 grams of heroin during a two-month time period.
The Indictment alleges that the defendants arranged to obtain heroin in Philadelphia and had the heroin transported to the Allentown area for further distribution into the Hazleton area. The indictment alleges that the suspects communicated with each other and drug customers by phone and text messages.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
If the defendants are convicted of the charges, they each face a mandatory minimum sentence of five years in prison and a possible maximum sentence of 40 years in prison.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Georgia Men Charged in Alleged Widespread <br /> Corruption Schemes at Local Military BaseRead the Press Release
Three Georgia men have been charged in a 51-count indictment for their alleged participation in fraud and corruption schemes at the Marine Corps Logistics Base (MCLB) in Albany, Ga., resulting in the loss of millions of dollars to the United States government.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia made the announcement after the indictment was unsealed in the Middle District of Georgia today.
Christopher Whitman, 48, co-owner of United Industrial of Georgia Inc. (also known as ULOC), an Albany-based trucking company and freight transportation broker , was indicted on 43 counts of money, property and honest services wire fraud, five counts of bribery and one count of theft of government property. Shawn McCarty, 36, of Albany, a former employee at the MCLB-Albany, was charged with 30 counts of money, property and honest services wire fraud and one count of bribery; and Bradford Newell, 43, of Sylvester, Ga., also a former employee at the MCLB-Albany, was charged with 13 counts of money, property and honest services wire fraud, one count of bribery, and one count of theft of government property.
The three men were arrested earlier today and appeared before U.S. Magistrate Judge Thomas Q. Langstaff. Judge Langstaff ordered the three men detained pending further hearings next week.
According to the indictment, Whitman paid nearly $1 million in bribes to Mitchell Potts, the former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, Jeff Philpot, the former lead transportation assistant in the traffic office, and Shawn McCarty, another transportation assistant in the traffic office, to obtain commercial trucking business from the DLA. The indictment alleges that Potts, Philpot and McCarty used their official positions to defraud the government and benefit ULOC by helping ULOC obtain transportation contracts loaded with unnecessary premium-priced requirements – including expedited service; removable gooseneck trailers, which do not require a loading dock and are therefore more expensive than standard trailers; and exclusive use, which requires that freight be shipped separately from other equipment – even if that results in a truck not being filled to capacity. The indictment alleges that Whitman and ULOC brokered these shipments for service without the premium specifications and on fewer trucks than requisitioned by DLA, but they billed the government at rates approved by the corrupt officials. These actions are alleged to have resulted in ULOC profits grossing more than $20 million over less than four years.
Whitman is accused of orchestrating a scheme to steal and sell surplus equipment from MCLB-Albany worth more than $1 million. Whitman allegedly paid approximately $200,000 in total bribes to Shelby Janes, the former inventory control manager of the Distribution Management Center (DMC) at MCLB-Albany, and Newell, an assistant to Janes, who used their official positions to help Whitman steal surplus equipment from the base, including bulldozers, cranes and front-end loaders. The indictment alleges that Whitman improved and painted the stolen equipment.
An indictment is merely a charge and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face up to 20 years in prison for each wire fraud count and 15 years in prison for each bribery count. The theft count carries a maximum prison term of 10 years. Each charged count carries a maximum fine of $250,000 or twice the gross gain.
Prior to this indictment, one former ULOC employee and three DLA officials pleaded guilty in connection with the fraud and corruption schemes alleged in the indictment. On Oct. 10, 2013, Kelli Durham, ULOC’s former manager, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services ULOC did not perform, resulting in losses ranging from $7 million to $20 million, and for receiving $905,685 for her role. She faces a maximum penalty of five years in prison. In May 2013, Potts and Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes; and in February 2013, Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes. The three former officials each face up to 15 years in prison.
The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.