Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 March 2014
Four Sentenced for Vee Quiva Casino Robbery AttemptRead the Press Release
PHOENIX – On March 5, 2014, Darvon Hibbler, 26, of Phoenix, was sentenced by U.S. District Judge James Carr to 24 months in prison. Hibbler pled guilty on Dec. 17, 2013, to conspiring to commit a robbery and theft. He was the final defendant to be sentenced in this attempted robbery of the Vee Quiva Casino on the Gila River Indian Community.
On May 31, 2013, Hibbler and Corey Wright, 42, of Phoenix, walked into the Vee Quiva Casino with the intent to steal money. Hibbler went up to the teller at the cashier’s cage and demanded money while Wright stood back as the lookout. Hibbler reached into his waistband as though he had a gun. Another teller saw what was happening and called for security. Hibbler and Wright left the casino without any money. Katrina Serna, 31, and Joseph Shope, 35, both of Laveen, Ariz., knew about the plan to rob the casino, failed to notify law enforcement, and helped Hibbler and Wright escape the casino after the robbery. On Feb. 14, 2014, Wright was sentenced to 14 months in prison for his part in the attempted robbery. Serna, on March 4, 2014, and Shope, on March 5, 2014, were each sentenced by U.S. District Judge James Carr to five years probation and four months home confinement for failing to report the conspiracy.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-829-PHX-NVW
RELEASE NUMBER: 2014-015_HibblerFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Fort Pierce Man Sentenced for Firearms ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announce the sentencing of Samuel George Brown, 49, of Fort Pierce, on charges of prohibited possession of firearms, in violation of Title 18, United States Code, Section 922(k); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Brown appeared in court on March 7, 2014, in Fort Pierce before U.S. Senior District Judge Donald L. Graham.
According to the indictment, as well as an earlier federal complaint, and facts agreed upon by the parties at sentencing, Brown was found in possession of a .380 caliber Hi-Point handgun, as well as a .22 caliber Marlin rifle and a 12-gauge Mossberg shotgun, with corresponding ammunition, in his home. Officers of the St. Lucie County Sheriff’s Office discovered the firearms and ammunition, together with marijuana packaged for sale, when they executed a search warrant at Brown’s Fort Pierce home on June 8, 2013. Brown is a previously convicted felon.
Brown pleaded guilty to two counts of the indictment, charging him with possession of a firearm with an obliterated or altered serial number; and possession of a firearm in furtherance of a drug trafficking crime. Judge Graham sentenced Brown to a term of 66 months in prison, to be followed by three years of supervised release, and payment of a $200 special assessment.
Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Former State Correctional Officer Charged with Civil Rights ViolationRead the Press Release
TALLAHASSEE, FLORIDA – Christopher Brunson, 38, of Perry, Florida, has been indicted for violating the civil rights of a Taylor County Correctional Institution inmate. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that on January 30, 2013, Brunson, who was then employed as a correctional officer at the Taylor Correctional Institution, struck and assaulted an inmate resulting in bodily injury. Brunson was arraigned in federal court today and a trial date was scheduled for April 14, 2014.
If convicted, Brunson faces a maximum sentence of ten years in federal prison.
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Florida Department of Corrections, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Rmbs Trader Convicted of Securities Fraud, Defrauding Tarp ProgramRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has convicted JESSE C. LITVAK, a registered broker-dealer and former managing director at New York investment bank Jefferies & Co., Inc., of multiple offenses involving a scheme to defraud customers trading in residential mortgage-backed securities (RMBS). The jury convicted Litvak on all counts, including 10 counts of securities fraud, one count of Troubled Asset Relief Program fraud and four counts of making false statements within the jurisdiction of the United States Government.
The trial before Chief U.S. District Judge Janet C. Hall began on February 18 and the jury returned its verdict today after deliberating for approximately two days.
“Today’s verdict shows plainly and powerfully that Wall Street professionals are not above the law,” said U.S. Attorney Daly. “A lie is a lie, and fraud is fraud. The jury rightly rejected Mr. Litvak’s shameful claim that he did nothing wrong because many on Wall Street engage in the same conduct. The defendant manipulated facts and made self-serving misrepresentations about the bonds he was buying and selling in a scheme that netted him and his employer more than $2 million in ill-gotten gain. His crime caught the attention of the Attorney General’s RMBS Working Group because much of that $2 million was from the defendant’s scheme to defraud a federal program created with taxpayer money to aid our nation in recovering from the 2008 financial meltdown. I want to acknowledge SIGTARP and the FBI for their incredible work on this ongoing investigation. The U.S. Attorney’s Office and our RMBS Working Group partners remain highly committed to investigating the fraud and abuse that helped lead to the 2008 financial crisis, particularly where that fraud is related to the government’s response to the crisis.”
“This afternoon at 2:30pm, Jesse Litvak, a former senior trader at New York investment bank Jefferies & Co., was convicted of lying through his teeth to defraud American taxpayers out of their hard-earned TARP investments,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “The defendant was the first person SIGTARP arrested for a crime related to the TARP bailout program known as PPIP, and he is now the first person convicted of a crime related to that program. Trading in mortgage securities can be a complicated business, but what the defendant did was simple – he lied to, defrauded, and illegally overcharged customers out of pure greed to benefit Jefferies and himself. Some of those customers were taxpayers who funded the TARP bailout. I would like to thank Assistant U.S. Attorneys Jonathan Francis and Eric Glover for their hard work and the deftness with which they prosecuted the case. SIGTARP and our law enforcement partners stand united in protecting taxpayers’ TARP investments, and we will track down perpetrators of TARP fraud and ensure they receive swift justice.”
“Today’s verdict was swift and just, and serves as a stern warning to those who defraud the Government for their own greed and avarice,” stated FBI Special Agent in Charge Ferrick. “TARP was designed to aid in the recovery from one of the worst recessions in U.S. history. Mr. Litvak orchestrated a scheme of deceit and prevarication to manipulate the program to the detriment of investors and the markets. The U.S. Attorney’s Office and all the other members of the RMBS Working Group form a highly effective partnership that will continue to identify and prosecute those who steal TARP funds.”
According to the evidence introduced during the three-week trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used more than $22 billion of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds. TARP infused between $1.4 billion and $3.7 billion of bailout money into each of the PPIP funds that was to be invested alongside private capital.
LITVAK, 39, of New York, N.Y., was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.
The jury found that LITVAK engaged in a scheme to defraud based on two types of misrepresentations. First, as a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. LITVAK exploited this information by misrepresenting the RMBS seller’s asking price to the buyer and by misrepresenting the buyer’s asking price to the seller. Having fraudulently manufactured a gap, LITVAK, on behalf of Jefferies, pocketed the difference in the price paid by the buyer and the price paid to the seller. Second, LITVAK took bonds held in Jefferies’ inventory and sold them to RMBS buyers only after inventing a fictitious third-party seller. This ruse allowed LITVAK to charge the buyer an extra commission that Jefferies was not entitled to because it was selling bonds it held in its own inventory.
Through these schemes, LITVAK defrauded numerous PPIP funds and multiple private investment funds of a total of more than $2 million.LITVAK was found guilty of ten counts of securities fraud, a charge that carries a maximum term of imprisonment of 20 years on each count, one count of TARP fraud, which carries a maximum term of imprisonment of 10 years, and four counts of making false statements to the federal government, a charge that carries a maximum term of imprisonment of five years on each count.
Judge Hall scheduled sentencing for May 30, 2014. LITVAK has been released on bond since his arrest on January 28, 2013.
This matter is being investigated by SIGTARP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Eric Glover.
This prosecution was brought in coordination with the RMBS Working Group, a joint federal and state initiative created to investigate those responsible for misconduct contributing to the 2008 financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, please visit: www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Owner of Trading Company Pleads Guilty to Multi-Million Dollar Fraud SchemeRead the Press Release
BOSTON – The former owner of Boston Trading and Research pleaded guilty today to charges stemming from his role in an investment scheme that defrauded more than 1,000 investors out of more than $30 million.
Craig A. Karlis, 53, of Hopkinton, pleaded guilty before U.S. District Court Senior Judge Mark L. Wolf, to nine counts of wire fraud and two counts of filing false tax documents. His sentencing is scheduled for June 2, 2014 at 3:00pm. His business partner, Ahmet Devrim Akyil, 41, formerly of Hingham, was charged with 10 counts of wire fraud. Akyil left the United States for Turkey in 2009 and remains a fugitive.
In 2007, Karlis and Akyil founded Boston Trading and Research (BTR) and recruited customers to open accounts in order to trade their money in the foreign currency exchange (FOREX) market. By July 2008, BTR had approximately 1,200 customers and more than $35 million under management.
Karlis and Akyil made a series of misrepresentations to customers about how BTR operated and about what they were doing with their money. While they told customers that BTR was compensated based on a percentage of the customers= trading profits, Karlis and Akyil in fact used millions of dollars from BTR customer accounts to pay business expenses, as well as their own personal expenses, such as houses, cars, and jewelry. Karlis and Akyil concealed this misappropriation from BTR's customers on BTR=s computerized customer platform and account statements, which, contrary to Karlis and Akyil =s representations, did not show all of the trades that BTR had placed using customer money.
Karlis and Akyil also told customers that BTR employed strategies to reduce risk, including a protection in the company=s computerized trading platform that automatically shut down all trading in a customer=s account if BTR=s trading lost 30% of the value in that account. However, the computerized platform did not have an automatic shut-down mechanism. In fact, over the course of BTR=s existence, Akyil repeatedly ignored the 30% Adraw-down@ limits. In August and September 2008, after Karlis had left BTR, Akyil continued trading long after he had lost more than 30% of the customer account funds. Ultimately, this trading caused BTR to lose approximately 90% of their customer=s money, or more than $30 million.
Karlis filed a false 2008 tax return in which he failed to report approximately $1.3 million in income he had received from BTR during that year. Karlis also filed another false document with the IRS in which he concealed the fact that he owned a second home which he had purchased with more than $600,000 from a BTR customer account.
AThe Department of Justice, along with our law enforcement and civil regulatory partners, is committed to protecting investors,” said U.S. Attorney Carmen M. Ortiz. “Especially during challenging financial times, we cannot, and will not, allow financial predators to mislead and take advantage of hard-working Americans.”
“Mr. Karlis chose greed over honesty,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation. “By doing so, he upended the lives of approximately 1200 people, many of whom were from Massachusetts and Florida. Others of his kind should know that our team always beats those who are not honest about their investment management.”
“IRS Criminal Investigation is committed to investigating individuals who use their corporations as personal piggy banks,” said William P. Offord, Special Agent in Charge. “High-ranking corporate officials hold positions of trust not only in their companies but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes.”
Karlis faces up to 20 years in prison, three years of supervised release, and a $250,000 fine on each of the wire fraud charges. Karlis also faces up to three years in prison, one year of supervised release and a $100,000 fine on the charges of filing false tax documents.
The Securities and Exchange Commission, which conducted a separate parallel civil investigation and cooperated with criminal authorities, has also filed a lawsuit alleging that Karlis and Akyil defrauded investors out of millions of dollars.
U.S. Attorney Ortiz; SAC Lisi of the FBI, Boston Field Division; and SAC Offord of the IRS’s Criminal Investigations in Boston, made the announcement today. The Commodity Futures Trading Commission also cooperated with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters of Ortiz's Economic Crimes Unit and Adam J. Bookbinder of Ortiz’s Cybercrime Unit.
Former New York City Comptroller Candidate Pleads Guilty in Manhattan Federal Court to Illegally Distributing Prescription PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that KRISTIN DAVIS, a former candidate for New York City Comptroller, pled guilty today in Manhattan federal court to illegally distributing prescription pills. DAVIS, who was arrested in August 2013, entered her plea today before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara said: “Kristin Davis now stands convicted of illegally selling hundreds of highly-addictive and dangerous prescription pills in exchange for cash. Abuse of illegally distributed prescription pills is the fastest-growing drug problem in the country, and this Office will do everything in its power to help combat this public health epidemic.”
According to the Complaint, Superseding Information, other information in the public record, and today’s plea proceeding:
On multiple occasions from January 2013 to March 2013, DAVIS sold hundreds of prescription pills containing amphetamine, alprazolam, zolpidem, and carisoprodol to a person she knew from prior purchases and sales to be a drug dealer. Unbeknownst to DAVIS, the person was a cooperating witness (the “CW”) with the Federal Bureau of Investigation (“FBI”) and was equipped with a recording device. During these sales, DAVIS was recorded saying that the pills she was selling were “Ambien,” “Soma,” and “Xanax.” On a fourth occasion, in April 2013, DAVIS arranged for another individual to sell approximately 180 oxycodone pills to the CW.
There is an illegal market for all of the drugs DAVIS sold and assisted another to sell. Oxycodone is a powerful painkiller with a high potential for addiction and abuse, and it is often used as a substitute for, or adjunct to, other illegal drugs, such as heroin. Amphetamine is a psycho-stimulant, often referred to as “speed,” and it often used as a substitute for, or adjunct to, other illegal drugs, including methamphetamine and cocaine. Alprazolam is a psychoactive drug often used as a substitute for, or adjunct to, other illegal drugs, such as LSD, heroin or opiates. Zolpidem is a sedative/hypnotic drug often used as a substitute for, or adjunct to, other illegal drugs, including amphetamine, methamphetamine, cocaine, and MDMA (commonly known as ecstasy). Carisoprodol is a skeletal muscle relaxant often used in conjunction with painkillers and so-called “date rape” drugs.
DAVIS, 38, of New York City, pled guilty to one count of distributing and possessing with intent to distribute controlled substances, specifically alprazolam, zolpidem, and carisoprodol. She faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. DAVIS is scheduled to be sentenced by Judge Ramos on July 25, 2014.
DAVIS was one of several people arrested as part of an ongoing joint investigation conducted by the FBI, the New York City Police Department ("NYPD"), and the U.S. Attorney’s Office into the unlawful distribution of prescription drugs containing controlled substances in and around New York City:
- Thomas Rock was arrested on July 10, 2013, for distributing and conspiring to distribute oxycodone and alprazolam. He pled guilty on February 24, 2014, before U.S. District Judge Paul A. Engelmayer to distributing oxycodone and alprazolam, and is scheduled to be sentenced by Judge Engelmayer on June 6, 2014.
- Eugene Kurochkin was arrested on July 11, 2013, for distribution of oxycodone, alprazolam, amphetamine, and zolpidem. He pled guilty on November 1, 2013, to distributing oxycodone, alprazolam, amphetamine, and zolpidem, and was sentenced by U.S. District Judge Robert W. Sweet on February 10, 2014, to 12 months in prison.
- Raoul Goldberger and Rebecca Teman were arrested on July 29, 2013, for distributing and conspiring to distribute amphetamine, oxycodone, and vicodin. Goldberger pleaded guilty on August 21, 2013, to distributing amphetamine and oxycodone, and is scheduled to be sentenced by U.S. District Judge Colleen McMahon on March 12, 2014. Teman pleaded guilty on November 12, 2013, before U.S. Magistrate Judge Henry B. Pitman to misbranding a prescription drug, and is scheduled to be sentenced by Judge Pitman on March 11, 2014.
- Erik Pichardo, who was referred to as “Individual-1” in the Complaint against DAVIS, was arrested in August 2013 for distributing oxycodone. He pled guilty on December 12, 2013, before U.S. District Judge Harold Baer to conspiracy to distribute oxycodone, and is scheduled to be sentenced by Judge Baer on April 10, 2014.
- David J. Wright was arrested on October 3, 2013, in connection with this investigation on charges of distributing oxycodone, amphetamine, and carisoprodol, which charges are pending. The charges against Wright are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the FBI. He also thanked the United States Department of Health and Human Services, Office of Inspector General, and the NYPD for their assistance in the ongoing investigation.
The cases are being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Daniel C. Richenthal, Kristy J. Greenberg, and Edward A. Imperatore are in charge of the prosecutions.
U.S. v. Kristin Davis Superseding Information
Former Highland Park Police OfficerSentenced to Prison for Taking A $10,000 BribeRead the Press Release
A former Highland Park police officer was sentenced to prison today for taking a $10,000 bribe and for conspiring with three other police officers to protect shipments of cocaine, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Paul M. Abbate.
During a hearing today before U.S. District Judge Avern Cohn, Price Montgomery, 40, of Detroit, Michigan, was sentenced to 18 months in prison and two years of supervised release based on his plea of guilty to conspiring to accept bribes and to commit extortion. Montgomery, an officer with the Highland Park Police Department for two years, accepted a $10,000 bribe from a man he had arrested on gun charges in return for agreeing not to appear as a witness at the man=s November 2012 criminal trial. Montgomery accepted the bribe with his partner, former police officer Anthony Bynum. Montgomery and Bynum failed to appear at the trial, and the charges were dismissed. Later, Montgomery, Bynum, and two other Highland Park police officers accepted cash from an FBI informant in exchange for protecting a shipment that contained what the officers believed were four kilograms of cocaine. The officers used their police guns and badges to protect the shipment.
The sentencing of Montgomery completes the case against the four former Highland Park police officers. Defendant Craig Clayton was sentenced to 12 months in prison on June 27, 2013. Defendant Shawn Williams was sentenced to 15 months in prison on October 8, 2013. Defendant Bynum was sentenced to 18 months in prison on November 7, 2013.
United States Attorney McQuade said, “The court’s sentence today sends a strong message that public officials who use their positions of trust to personally profit will be punished. Police officers who take bribes and use their badges to make money will go to prison.”"Government officials who breach the public trust for their own selfish purposes - regardless of who they are - will be pursued aggressively and brought to justice," said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "Today's sentence sends another message that corrupt police officers who accept bribes and use their positions for personal financial gain will be punished."
The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorneys David A. Gardey.
Former Florida Resident Arrested for Attempted Sex TraffickingRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Patrick R. Minga (50, formerly of Cape Coral) was arrested today on a criminal complaint for attempting to induce and facilitate, for his own financial gain, the travel of an individual from Brevard County, Florida, to Quito, Ecuador, so that the individual could engage in illicit sexual conduct with minor girls. If convicted, Minga faces a maximum penalty of 30 years in federal prison.
According to the criminal complaint, Minga advertised, on Craigslist, a sex tourism business in Ecuador. Minga indicated that, for a fee, he could facilitate lodging, transportation, meals, and unlimited access to females from Ecuador and Colombia. An undercover agent with a U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Task Force observed the ad and contacted Minga. Over the course of several months, Minga tried to induce and arrange the travel of the undercover agent from Florida to Quito, where Minga advised that he could provide sexual encounters with minors as young as 13 and 14 years of age.
On March 2, 2014, Minga traveled from Ecuador to the United States, where agents subsequently arrested him in Huntsville, Alabama. He is currently detained, pending removal proceedings before a United States Magistrate Judge in Birmingham, Alabama. Thereafter, he will be transported to the Middle District of Florida for further proceedings.
This case is being investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
(Download Factual Basis )
Former Family Physician Sentenced to Probation, Community Service for Selling Drug SamplesRead the Press Release
PITTSBURGH – A Pittsburgh-area family doctor has been sentenced in federal court to one year of probation with 200 hours of community service and a $5000 fine on his conviction of the unlawful sale of pharmaceutical drug samples, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Douglas Dunham, 77, of McDonald, Pa.
According to information presented to the court, Dunham operated a family practice medical office in McDonald, Pa., for over 20 years. In his practice, Dunham received free samples of prescription drugs from pharmaceutical drug company representatives. The free samples were not intended to be sold, and were intended to be given free-of-charge to patients to promote the sale of the drugs. For roughly the past eight years, Dunham received the drug samples free-of-charge from the pharmaceutical drug company representatives and then sold the samples to his patients for a fee, instead of providing the samples free-of-charge.
Prior to imposing sentence, Judge Schwab stated that he considered the defendant’s voluntary surrender of his medical license to be part of the defendant’s punishment in this case.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Federal Agents with the Food and Drug Administration's Office of Criminal Investigations, the Federal Bureau of Investigation and the Department of Health and Human Services for the investigation leading to the successful prosecution of Dunham.
Former Army Sergeant First Class Sentenced for Government Theft ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise Wood Flanagan sentenced MAURICIO ESPINOZA, 34, of Modesto, California, to 51 months of imprisonment and 3 years of supervised release. The Court further ordered ESPINOZA to pay $114,034.80 in restitution and the forfeiture of criminal proceeds in the same amount.
After initially failing to appear for trial, ESPINOZA pled guilty to conspiring to commit mail fraud and wire fraud, to steal and convert monies belonging to the U.S. Government, and to smuggle currency into the United States as well as to theft and conversion of government property. ESPINOZA then failed to appear for his sentencing hearing originally scheduled for January 2014. He was subsequently arrested and placed in custody pending his hearing today.
According to the Indictment and information in the public record, between July, 2009 and January, 2010, while deployed to Afghanistan, former Sergeant First Class ESPINOZA, 34, and former-Staff Sergeant Philip Wooten, 36, (who previously pled guilty to the same offenses) stole federal monies entrusted to them and which were earmarked for operational and reconstruction efforts.
ESPINOZA deployed to Afghanistan from July 2009 through July 2010 with a small detachment from the United States Army 7th Special Forces Group. ESPINOZA’S duties included that of Paying Agent. Wooten, who was assigned to the same detachment, was the Field Ordering Officer (FOO). As the FOO, Wooten was responsible for contracting with local vendors for various operational and reconstruction efforts in Afghanistan. As the Paying Agent, ESPINOZA was responsible for making payments to the local vendors to whom Wooten awarded contracts and for properly accounting for the expenditure of federal funds under his control. Together, as the Paying Agent and the Field Ordering Officer, ESPINOZA and Wooten were entrusted with U.S. funds allocated for military operations and reconstruction efforts in Afghanistan. Before their deployment and thereafter, the two soldiers planned how they would steal those funds.
Beginning in or about July 2009, ESPINOZA signed for and withdrew U.S. funds in the form of Afghani currency from the U.S. Finance Office on the military installation known as Kandahar Air Field (KAF). The funds were meant to finance purchases (such as provisions for the Special Forces Team) and construction projects near the team’s forward operating base. ESPINOZA knew that he would have to periodically return to the United States Finance Office at KAF in Kandahar, Afghanistan, to review the status of the funds that he withdrew. In advance of each trip to the Finance Office, ESPINOZA and Wooten falsified receipts from Afghani vendors to reflect greater amounts than were actually paid for goods and services that the Afghans had provided. ESPINOZA then handed in the falsified, inflated receipts to the Finance Office and kept for himself and his co-conspirator the difference between the inflated numbers and the amounts actually paid. Thereafter, and while still at the military base in Kandahar, the conspirators arranged with an Afghani national to have the stolen funds converted into U.S. dollars.
Once in possession of the U.S. dollars, ESPINOZA and his co-conspirator then converted a portion of the stolen funds into U.S. postal money orders, $30,000 of which ESPINOZA shipped to the United States via an international carrier. ESPINOZA also purchased a Harley-Davidson motorcycle with some of the stolen funds.
In addition, ESPINOZA wired and caused to be wired some of the money electronically through Western Union to various locations in the United States and Peru. ESPINOZA directed at least one recipient of the wired money to transfer funds to his own bank account.
The total loss to the government exceeded $200,000.
In a letter to the Court, Major General Edward M. Reeder, Jr., United States Army, reflected on the impact of the ESPINOZA’s conduct on the Special Forces’ mission overseas, noting that “The success of a Special Forces unit when dealing with the local Afghan populace is based on trust and respect. The majority of the Afghan population views the United States as one more in a long line of interlopers. When a person they regularly do business with, in this case Espinoza, is exposed as a thief and a liar, the established trust and respect is destroyed and can only be regained, if ever, through extraordinary efforts.”
Wooten plead guilty to a criminal information on Dec. 13, 2011, which charged conspiring to commit mail fraud and wire fraud, to steal and convert monies belonging to the U.S. Government and to smuggle currency into the United States along with aiding and abetting theft and conversion of government property. Wooten, who provided significant cooperation during the course of the investigation, was sentenced to 15 months imprisonment on October 3, 2013 for his role in this crime.
The case was investigated by the Defense Criminal Investigation Service, United States Postal Inspection Service, Office of the Special Inspector General for Afghanistan Reconstruction, United States Army Criminal Investigation Command, and the FBI from Fayetteville, NC; Fort Walton Beach, FL; and Panama City, FL. Special assistance was provided by the U.S. Immigration and Customs Enforcement – Homeland Security Investigation. The case was prosecuted by Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Fraud Section Trial Attorney Wade Weems, on detail from the Special Inspector General for Afghanistan Reconstruction (SIGAR).
Federal Jury Convicts Twin Falls Woman of Conspiring to Sell Drug ParaphernaliaRead the Press Release
Defendant and Four Others Indicted in 2012 in Nationwide Law Enforcement Action
POCATELLO – Stephanie Nagel, 40, of Twin Falls, Idaho, was convicted yesterday in United States District Court in Pocatello of conspiracy to sell drug paraphernalia, U.S. Attorney Wendy J. Olson announced. A sentencing date has not been set. U.S. District Judge Fred L. Van Sickle of the Eastern District of Washington presided over the trial.
Evidence presented at trial showed that from 2007 to 2012, Nagel owned and operated a business called the Smoke N’ Head on Washington Street in Twin Falls, Idaho. Nagel sold various items of drug paraphernalia from the shop, including marijuana pipes and assorted paraphernalia used for marijuana and other controlled substances. Evidence also showed that Nagel had previously sold a substance commonly referred to as “spice,” which was subsequently determined to be a controlled substance analogue.
Nagel faces up to three years in prison, a maximum fine of $100,000, and one year of supervised release.
This case was part of a larger enforcement operation, which included 14 search warrants that were executed in July 2012 by law enforcement agencies at 11 locations in Twin Falls County, and three locations in Tigard, Oregon, and Vancouver, Washington. The warrants were related to a nationwide law enforcement action against the synthetic designer drug industry responsible for the production and sale of dangerous and deadly drugs that are often marketed as bath salts, “spice,” incense, or plant food, which are prohibited under the federal controlled substance analogue statute. Operation Log Jam targeted every level of the synthetic drug industry, including retailers, wholesalers, and manufacturers, in more than 80 U.S. cities.
In a related case, Joshua P. Becker, of Portland, Oregon, was sentenced in December 2013 to 48 months in prison for conspiracy to launder money. In October 2013, Gary E. Nagel and Joshua Cserepes, both of Twin Falls, Idaho, and Shyloh Becker, of Portland, Oregon, were each sentenced to 36 months’ probation and fined $500 for related charges, including possession with intent to distribute a controlled substance analogue, conspiracy to sell drug paraphernalia, and aiding and abetting in a monetary transaction in property derived from specified unlawful activity, respectively. Allen W. Nagel, of Twin Falls, is scheduled to be sentenced on March 17, 2014, by Judge Brian Ted Stewart of the District of Utah. He pleaded guilty in June 2013, to conspiracy to launder money.
The joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), is led by the Drug Enforcement Administration in conjunction with Twin Falls City Police Department, Twin Falls County Sheriff's Office, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Patrol, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Idaho State Police, Ada County Sheriff's Office, Nampa City Police Department, Meridian City Police Department, Gooding County Sheriff's Office, Cassia County Sheriff's Office, and Minidoka County Sheriff's Office.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Federal Jury Convicts Methamphetamine TraffickerRead the Press Release
Defendant Also Possessed An Illegal Short-Barreled Shotgun And Other Firearms
CHARLOTTE, N.C. B A Charlotte jury returned a guilty verdict against Martin Martinez Saldana, 44, of West Jefferson, N.C., following a four day trial that ended today, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Saldana was convicted of conspiracy to distribute and to possess with intent to distribute methamphetamine and possession of an illegal short-barreled shotgun.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Sheriff James Williams of the Ashe County Sheriff’s Office (ACSO).
According to court documents and evidence introduced at trial, from as early as 2011 through the end of 2012, Saldana and his co-conspirators distributed in Ashe County and elsewhere more than 20 pounds of near-pure crystal methamphetamine, also known as “ice.” According to trial evidence, the high level of purity of the methamphetamine indicates it originated from a Mexican “super lab” and had an estimated street-level value of more than $1 million. The evidence at trial also established that when law enforcement executed a search warrant at Saldana’s residence they seized four handguns, including a revolver hidden under his mattress, and an illegal short-barreled shotgun, as well as ammunition. Over the course of the investigation, law enforcement also seized five real properties in Ashe County worth over $500,000 combined, $50,000 in cash, one vehicle, one-quarter kilogram of methamphetamine “ice” and drug packaging materials. Among the seized items also were three images of Santa Muerte, who has been adopted by drug traffickers as folk “patron saint.”
Law enforcement arrested Saldana on December 12, 2012, as he was planning to leave for Mexico. He has been in federal custody since his arrest and will remain in custody until his sentencing date, which has not yet been set. The charges levied against Saldana carry a statutory mandatory minimum sentence of 10 years to life in prison, and a fine of up to $10,000,000.
U.S. Attorney Tompkins commended the DEA in Charlotte, ACSO, NC SBI, and ATF for the investigation leading to the successful prosecution of Martin Martinez Saldana. U.S. Attorney Tompkins also thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Alleghany Sheriff’s Office and the Boon Police Department for the assistance in this case. Assistant U.S. Attorney Steven R. Kaufman is handling the prosecution for the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the March 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Alfonso Delgado-Castorena. Alien in the United States After Deportation. Delgado-Castorena, 42, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2005 near San Luis, Arizona. If convicted, Delgado-Castorena would face a maximum of twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead agency.
Carl Don Floyd. Aiming a Laser Pointer at an Aircraft. Floyd, 42, of Tulsa, is charged with aiming the beam of a green laser pointer at the Tulsa Police Department helicopter on February 15, 2014. If convicted, the maximum penalty would be five (5) years in prison and a fine up to $250,000. The Federal Bureau of Investigation is the lead agency.
Curtis Leon Gann. Felon in Possession of Firearm and Ammunition, Possession of Methamphetamine with Intent to Distribute, and Possession of a Short-Barreled Shotgun. Gann, 41, of Tulsa, is charged with possessing methamphetamine with intent to distribute and possessing two shotguns, a rifle, a pistol, and ammunition after prior convictions of the same charges in August 2005. One of the shotguns is alleged to have an illegally shortened barrel. If convicted, the maximum penalty for Count 1 would be ten (10) years in prison and a fine of $250,000; Count 2 carries a maximum penalty of twenty (20) years in prison and a fine of $250,000; and for Count 3 the maximum penalty would be ten (10) years in prison and a fine up to $10,000. The Tulsa County Sheriff’s Office Drug Task Force is the lead agency.
Darrick Garner. Failure to Register as a Sex Offender. Garner, 37, of Tulsa, is charged with failing to register as a sex offender after a federal sexual assault conviction in 2010. If convicted, Garner would face a maximum penalty of ten (10) years incarceration and a fine of up to $250,000. The United States Marshals Service is the lead investigative agency.
Donald Lee Hill. Possession of Methamphetamine with Intent to Distribute. Hill, 33, of Tulsa, is charged with possessing methamphetamine with intent to distribute on January 12, 2014. If convicted, the maximum penalty would be twenty (20) years in prison and a $1,000,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the lead agencies.
Jose Abraham Jain-Vielmas. Alien in the United States After Deportation. Jain-Vielmas, 33, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in January 2000 near El Paso, Texas. If convicted, Jain-Vielmas would face a maximum of twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead agency.
Michael Anthony Llanos, Ramy McMann, Peppa Ann Smith, Alfredo Sustiata Jr., and Marcelo Alejandro Torres. Drug Conspiracy, Distribution and Possession with Intent to Distribute Methamphetamine, and Felon in Possession of Firearm and Ammunition. Llanos, 45, McMann, 37, Smith, 42, all of Tulsa, Sustiata, 29, and Torres, 36, both from California, are all charged with drug conspiracy and possessing 50 grams or more of methamphetamine with intent to distribute on January 6, 2014. Llanos is also charged with possessing a 9mm caliber pistol and ammunition after a prior felony conviction of beating/injuring children in 1997. If convicted, the maximum penalty each defendant would face for Counts 1 and 2 would be not less than five (5) years and not more than forty (40) years and/or a fine of $5,000,000. For the felon in possession of a firearm and ammunition charge, Llanos would face ten (10) years in prison and a fine up to $250,000. The Tulsa County Sheriff’s Office Drug Task Force is the lead agency.
Lazaro Lopez-Nava. Alien in the United States After Deportation. Lopez-Nava, 32, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in April 2012 near Del Rio, Texas. If convicted, Lopez-Nava would face a maximum of twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead agency.
David Santisteban. Felon in Possession of Firearm and Ammunition. Santisteban, 28, of Tulsa, is charged with possessing a firearm and ammunition after prior convictions including possession of controlled dangerous substance with intent to distribute in 2008. If convicted, the maximum penalty would be ten (10) years in prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the lead agency.
Jackson Dwain Shields. Possession of Stolen Mail Matter. Shields, 34, of Tulsa, is charged with possessing three checks on February 11, 2014, knowing that they had been stolen from mail placed in a residential mailbox for pickup by the Postal Service. If convicted, Shields would face a maximum penalty of five (5) years in prison and a fine of up to $250,000. The case has been investigated by the United States Postal Inspection Service, the Glenpool Police Department and the Creek County Sheriff’s Office.
Federal Court Sentences Former Davenport Man on Child Exploitation ChargesRead the Press Release
DAVENPORT, IA- On March 7, 2014, Samuel Henderson III, age 61, formerly of Davenport, was sentenced by United States District Court Judge John A. Jarvey to 156 months imprisonment, after pleading guilty to coercion and enticement of a minor and possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Henderson was also ordered to serve fifteen years of supervised release and pay $200 towards the Crime Victims Fund. Henderson will also be required to register as a sex offender. Between June 14 and July 11, 2013, Henderson used a cellular phone to persuade, induce, entice and coerce a 14 year old female to engage in criminal sexual offenses. During this same time period, Henderson knowingly possessed images of child pornography on his cellular phone.
This case was being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. This case was investigated by the United States Secret Service Cyber-Crimes Task Force, the Davenport Police Department and the Moline Police Department.
(Download Press Release )
Federal Authorities Continue Crackdown on Smuggling of Protected Marine Animals on Southwest BorderRead the Press Release
SAN DIEGO - United States Attorney Laura E. Duffy announced that yesterday Cheng Zhuo Liu, pled guilty to smuggling protected sea cucumbers. In pleading guilty, Liu admitted that he had smuggled 100 pounds of dried sea cucumber into the United States from Mexico on October 3, 2013, concealed in the spare tire area of his Hyundai. The smuggled sea cucumbers were members of the species Isostichopus fuscus, with a market value of between $5,000-$10,000.
According to scholarly articles, sea cucumbers are marine animals with a leathery skin and an elongated body. They are found on the sea floor worldwide with the greatest number of species being located in the Asian Pacific Ocean. Sea cucumbers serve a useful role in the marine ecosystem as they help recycle nutrients, breaking down detritus and other organic matter after which bacteria can continue the degradation process. Due to overfishing, many species of sea cucumber (including Isostichopus fuscus) are protected under Appendix III of the Convention on International Trade in Endangered Species (CITES) and require a CITES permit from the country of origin and a U.S. Fish and Wildlife Import/Export permit to import them into the United States. Liu admitted that he had neither permit.
Unfortunately, there is presently a thriving black market in sea cucumbers driven by demand in Asia where a pound might sell for $300. In China, the sea cucumber is used in Chinese cuisine (as Hoi Sam) as well as for medicinal purposes. Our Southwest border is not the only area where smuggling sea cucumber is a problem. India has been grappling with sea cucumbers being smuggled in large quantity to Indonesia, Japan and Sri Lanka due to its alleged medicinal properties. Similarly, in the Caribbean Sea off the shores of the Yucatàn Peninsula near fishing ports such as Dzilam de Bravo, illegal harvesting devastated the population of sea cucumbers and resulted in conflict in the community as rival gangs struggled to control the illegal harvest.
According to the American Cancer Society, although it has been used in traditional Asian folk medicine for a variety of ailments, "there is little reliable scientific evidence to support claims that sea cucumber is effective in treating cancer, arthritis, and other diseases."
Liu agreed to forfeit the sea cucumber seized as part of the case and is scheduled to be sentenced on June 9, 2014, at 9:00 a.m. before the Honorable Roger T. Benitez.
DEFENDANT Criminal Case No. 13-CR-4347-BEN Cheng Zhuo Liu Age: 50 Chula Vista, California CHARGESSmuggling, a felony, in violation of Title 18, United States Code, Section 545
INVESTIGATING AGENCY
Maximum Penalty: 5 years in custody, a $20,000 fine and a $100 penalty assessmentNational Oceanic and Atmospheric Administration (NOAA); U.S. Fish and Wildlife Service
Facebook Post of Harassing Manatees Leads to Guilty Pleas in Federal CourtRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Taylor Blake Martin (22, Alabama) and Seth Andrew Stephenson (22, Rockledge) pleaded guilty before U.S. Magistrate Judge Gregory J. Kelly yesterday to taking (harassing) an endangered species. Each faces a maximum penalty of one year in prison and a $50,000 fine. A sentencing date has not yet been scheduled.
According to court documents, the U.S. Fish and Wildlife Service became aware of a video posted on Facebook that showed one individual luring two manatees to a dock with a water hose, and another individual jumping off of a boat dock, “cannonballing” an adult manatee and a calf. Further investigation revealed that Martin was the individual who “cannonballed” on top of the manatees. Stephenson was identified as the one who lured the manatees to the dock with the water hose. The video shows Martin landing on the back of the adult manatee as the manatees swim away. Stephenson then begins to use the water hose in an attempt to lure the manatees back as the video ends.
After the video was posted on Facebook, several people commented on it. In response to a post that expressed displeasure with Martin’s actions, Martin responded, “hahaha…in my debue [sic] as tayla the manatee slaya…im f---- ready to cannonball on every manatee living yewwww.”
"This case demonstrates our resolve to address the illegal harassment of Manatees, as well as the enforcement of speed zones, and other more serious forms of take which result in the death or injury of Florida's Endangered Manatees," said Special Agent in Charge Luis Santiago, Southeast Region, Office of Law Enforcement, U.S. Fish and Wildlife Service.
This case was investigated by the United States Fish and Wildlife Service and the Florida Fish and Wildlife Conservation Commission. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
El Departamento de Justicia Presenta una Demanda para Prohibir a Preparadores de Declaraciones de Impuestos de CaliforniaRead the Press Release
WASHINGTON – Estados Unidos inició una demanda civil en la que pidió a un juzgado federal de Fresno, California, que prohibiera a Ken Mendoza y Alice Mendoza preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. La demanda alega que los Mendoza solían preparar declaraciones de impuestos para terceros, en las que pedían al gobierno federal reintegros indebidos. De acuerdo con la demanda, los Mendoza prepararon desde 2010 más de 600 declaraciones de impuestos para personas del área de Fresno.
De acuerdo con la demanda, los Mendoza declaran indebidamente las obligaciones de impuestos federales de sus clientes al inventar gastos de negocios, pedir créditos falsos o inflados, especialmente créditos educativos, y deducir gastos personales de los clientes que no son legalmente deducibles. En total, la demanda alega que el Tesoro de EE.UU. pudo haber perdido debido a las actividades de los Mendoza hasta 2.8 millones de dólares para los años fiscales 2010 a 2011.
Además, la demanda busca prohibir a cualquiera que actúe en conjunto con los Mendoza preparar o presentar declaraciones de impuestos federales; prohibir a los Mendoza solicitar o instruir la preparación de declaraciones de impuestos federales para terceros; que se les exija a los Mendoza, en el plazo de 30 días a partir de la emisión de un interdicto en este caso, que se comuniquen con todas las personas para quienes prepararon una declaración de impuestos federales desde el 1° de enero de 2008, y que informen a todas dichas personas del interdicto permanente en su contra; que se les exija a los Mendoza que provean a Estados Unidos una lista de todas dichas personas; que se le permita a Estados Unidos controlar el cumplimiento de dicho interdicto por parte de los Mendoza; y solicita que el tribunal retenga jurisdicción sobre este caso para hacer valer cualquier interdicto emitido contra los Mendoza.
El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2013 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos para proveer detalles.
East St. Louis Man Pleads Guilty to Falsifying Firearm RecordsRead the Press Release
Follow @SDILNewsOn March 5, 2014, Mack Davis, Jr., a 22-year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, to one count of filing false firearm records, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis is scheduled for sentencing on June 27, 2014, at which time he faces a maximum sentence of 5 years’ in prison, a fine of up to $250,000, not more than 3 years supervised release, and a $100 special assessment.
Court proceedings revealed that on February 19, 2013, Davis pled guilty to a felony residential burglary charge in St. Clair County, Illinois. That same day he went to Ron and Jo’s Firearms and Sporting Supplies, Inc., attempting to purchase two firearms. In order to purchase, Davis filled out Federal Firearms Form 4473, marking “no” to a question asking whether or not he had been convicted in court of a crime punishable by imprisonment for a term exceeding one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Neal C. Hong is prosecuting the case.
East St. Louis Man Convicted of Selling Crack CocaineRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on Thursday, March 6, 2014, a federal jury found Frederick C. Addison guilty of two felonies relating to the sale of crack cocaine.
Addison, 32, of East St. Louis, was convicted following a three day jury trial in United States District Court in East St. Louis, IL. The jury found Addison guilty of distributing crack cocaine and possessing crack cocaine with the intent to distribute it.
According to evidence presented at his trial, Addison sold crack from a house in the 800 block of North 32nd Street in East St. Louis throughout the entire day on April 3, 2012. Police officers surreptitiously filmed Addison selling crack cocaine to multiple customers. When Addison and another man were arrested, police recovered approximately 17 grams of crack cocaine from an abandoned house where Addison and his associate had hidden it. The crack had a street value of about $12,000, according to police experts who testified at trial.
Addison is scheduled to be sentenced on June 27, 2014, in United States District Court in East St. Louis. He faces a possible maximum sentence of 20 years in prison. Addison has been confined since his arrest on April 3, 2012.
The investigation which resulted in Addison’s arrest and conviction was conducted by police officers assigned to the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
The case was prosecuted by Special Assistant United States Attorney Neal C. Hong and Assistant United States Attorney Robert L. Garrison.
Dutchess County Orthopedic Surgeon SentencedIn White Plains Federal Court to 54 Months ForMultimillion Dollar Health Care Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DR. SPYROS PANOS, an orthopedic surgeon, was sentenced today in White Plains federal court before U.S. District Judge Nelson S. Roman to serve 54 months in prison for operating a long-running health care fraud scheme in which PANOS defrauded Medicare, the New York State Insurance Fund, and numerous private health insurance providers (the “Health Insurance Providers”) out of over $2.5 million by systematically lying about the nature and scope of the surgical procedures that he performed. In addition, PANOS was ordered to forfeit $5 million. He was ordered to surrender to start serving his prison term in 30 days.
Manhattan U.S. Attorney Preet Bharara said: “Dr. Panos’s fraud was extensive, costing millions of dollars to federal, state, and private health insurance providers when he billed for thousands of surgical procedures that he falsely described or did not perform at all.”
According to the Information and other documents filed in this case:
PANOS was a board certified orthopedic surgeon licensed to practice medicine in the State of New York who was part a medical group with offices in Dutchess County, New York, (the “Medical Group”) and performed orthopedic surgical procedures (“Surgical Procedures”) at hospitals in Poughkeepsie, New York. From at least 2006 through July 2011, PANOS maintained a high-volume orthopedic practice, which enabled him to carry out his fraud scheme on a large scale. Panos performed thousands of Surgical Procedures, and often as many as 20 or more in a single day, for which he and the Medical Group submitted claims in excess of $35 million to Health Insurance Providers. Health Insurance Providers paid the Medical Group in excess of $13 million on these claims.
To receive payments for Surgical Procedures from the Health Insurance Providers, PANOS was required to submit, and caused the Medical Group to submit, information to the Health Insurance Providers regarding the nature and details of the Surgical Procedures. With respect to many of the Surgical Procedures he performed, PANOS furnished, and caused the Medical Group to furnish, false information to Health Insurance Providers that resulted in the Health Insurance Providers paying the Medical Group at least $2.5 million more than PANOS and the Medical Group were entitled to receive based on the true nature and details of the Surgical Procedures PANOS performed. Among PANOS’s false representations were the following:
a. PANOS claimed he performed open surgeries, when in fact PANOS performed the surgeries arthroscopically;
b. PANOS claimed he used certain techniques and procedures during the course of the Surgical Procedures, when in fact PANOS did not, either because they were not medically necessary or because PANOS used other techniques and procedures that would have resulted in lower payments, if any, from the Health Insurance Providers; and
c. PANOS removed body tissue, known in the medical field as loose bodies, in excess of certain size criteria, when in fact PANOS either removed no loose bodies or removed loose bodies that were smaller than the thresholds set by the Health Insurance Providers for payment.
PANOS, was compensated handsomely -- during the years 2007 through 2011, he was paid over $7.5 million by the Medical Group, a number that was inflated as a result of his fraud scheme.
Beginning in or about December 2010, PANOS attempted to conceal his scheme by, among other things, falsely representing to the Medical Group that the Fraudulent Claims were the result of clerical errors.
PANOS, 45, of Hopewell Junction, New York, also agreed to the entry of a $5 million order of forfeiture against him As a result of his conviction, PANOS is subject to mandatory exclusion from participation in any federal health care program, including Medicare and Medicaid. Following the uncovering of the scheme, Panos surrendered his New York State medical license. Judge Roman ordered PANOS to serve two years of supervised release upon completion of his prison term.
Mr. Bharara praised the work of the United States Postal Inspection Service, the United States Department of Health and Human Services – Office of Inspector General, and the Federal Bureau of Investigation, and thanked the United States Department of Health and Human Services, Office of Counsel to the Inspector General, the New York State Insurance Fund, the New York Workers’ Compensation Board Office of the Fraud Inspector General, and the National Insurance Crime Bureau for their extraordinary assistance in the investigation.
This case is being handled by the White Plains Division. Assistant United States Attorneys Lee Renzin and Daniel Filor are in charge of the prosecution.
David Lawrence Honored as Indian Country Officer of the YearRead the Press Release
United States Attorney Brendan V. Johnson announced that David Lawrence has been named the 2013 Indian Country Officer of the Year by the International Association of Chiefs of Police. Lawrence is Chief of Police with the Bureau of Indian Affairs on the Standing Rock Sioux Reservation.
Chief Lawrence has been working in Indian country for approximately 18 years, spending much of that time working complex cases involving murder, kidnapping, violent sexual assaults, and child abuse. Additionally, for several years, Chief Lawrence was the sole criminal investigator for the Standing Rock Sioux Reservation during a time when there was a significant increase in teen suicides. He went to the tragic scenes and dealt with the evidence of the death, but also compassionately worked with the devastated family members.
The Standing Rock reservation covers both South and North Dakota, which necessitates that Lawrence work with the U.S. Attorney’s offices in both states on major crime cases.
“Along with U.S. Attorney Tim Purdon from the District of North Dakota, it was my privilege to nominate David Lawrence for the 2013 Indian Country Officer of the Year,” said Johnson. “I have the utmost respect for him, and the judgment and commitment he takes to work every day. As federal prosecutors, our offices rely on the investigative skills of our partner agencies to help ensure public safety and deliver justice. Chief Lawrence is top-notch in his field, and we’re fortunate to have him as a law enforcement partner on Standing Rock.”
In a recent case, Chief Lawrence courageously risked his life to try and save a disabled young adult from a residential house fire in McLaughlin, South Dakota. Chief Lawrence was in McLaughlin on other law enforcement duties, when he monitored a call for assistance at a house fire. He was one of the first responders on the scene, and learned there was a disabled male in the house, which was engulfed in flames and smoke. In a heroic attempt to save the young man, Chief Lawrence broke the window to the room where he was thought to be located. Although he could not locate the victim on the first attempt and had to retreat the house due to the smoke, Chief Lawrence made a second entry into the smoke-filled bedroom and removed the man from the burning residence. Sadly, the victim subsequently died from smoke inhalation.
In addition, Chief Lawrence has been an important teacher to new special agents and Assistant U.S. Attorneys, helping them to become culturally sensitive to the art of investigating major crimes in Indian country.
The Indian Country Officer of the Year Award provides international recognition of police officers that demonstrate exceptional valor in service to the people of Indian country. Chief Lawrence was recently bestowed the honor by Darren Cruzan, Director of the Bureau of Indian Affairs Office of Justice Services, and Joseph LaPorte, Chairman of the IACP Indian Country Law Enforcement Section, during a banquet at the Las Vegas Paiute Tribe Resort in connection with the Indian Country Law Enforcement Section’s Mid-year Meeting.
Couple Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant John A. Cruz, age 47, and Defendant Mae Tedtaotao Cruz, age 45, husband and wife, and residents of Yona, were sentenced on March 6, 2014, by Chief Judge Frances Tydingco-Gatewood, in the District Court of Guam. John A. Cruz received 78 months for his conviction of conspiracy to distribute more than 50 grams of methamphetamine and an additional five years for using, carrying or possessing a firearm during a drug trafficking crime. The five years are consecutive to the conspiracy charge. John A. Cruz was assessed a $200 special assessment fee, 400 hours community service and five years supervised release. Mae Tedtaitao Cruz was sentenced to 27 months imprisonment on the conspiracy charge, 400 hours community service, a $100 special assessment fee and five years supervised release.
On October 27, 2011, postal inspectors intercepted an Express Mail package and searched it pursuant to a federal search warrant; the package contained 86 grams of 91.1% pure ice. Agents secured a warrant to search the defendants’ residence, where they were arrested. Agents seized, among other things, $38,000 cash, five firearms (all registered); a Toyota Forerunner, an FJ Cruiser and two all-terrain vehicles. They later seized a Lexus SUV. All these items have been forfeited.This case was investigated by special agents from the U.S. Postal Inspection Service (USPIS); Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Department of Homeland Security/Homeland Security Investigations (HSI); and officers from the Guam Police Department and Guam Customs and Quarantine Agency. The case was prosecuted by Assistant U.S. Attorney Clyde Lemons.
Co-Leader of Illegal Drug Company Gallant Pharma Sentenced to 3 YearsRead the Press Release
Company smuggled and sold over $12 million in non-FDA-approved chemotherapy drugs and injectable cosmetic drugs and devices
ALEXANDRIA, Va. – Talib Khan, 43, of Montreal, Quebec and Barbados, co-founder of Gallant Pharma International Inc., an unlicensed wholesale drug distributor headquartered in Arlington, Va., was sentenced today to 3 years in prison, 2 years of supervised release, and $3.4 million in forfeiture and restitution to victims.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by United States District Judge Claude M. Hilton.
On Oct. 15, 2013, Khan pleaded guilty to conspiracy and sale of misbranded drugs. According to court documents, between August 2009 and August 2013, Gallant Pharma smuggled into the United States and sold more than $12.4 million in non-FDA-approved chemotherapy drugs and injectable cosmetic drugs and devices, generating profits of $3.4 million. Many of these drugs were subject to strict temperature controls to protect drug potency. Gallant Pharma shipped and received such drugs with ice packs, not dry ice used by legitimate distributors, and on at least one occasion, a shipment containing such drugs took more than two weeks to arrive in Virginia from overseas during a July 2012 heat wave.
Many drugs sold by Gallant Pharma also were required to carry a FDA “black box” warning, which indicates that a drug carries a significant risk of serious or life-threatening adverse effects. The versions sold by Gallant Pharma did not meet this or other FDA labeling requirements.
Also sentenced today was Gallant Pharma sales representative Harvey Whitehead, 68, of Cadillac, Michigan. Whitehead, was sentenced to 2 years of probation, to include 6 months of home confinement, following his Oct. 3, 2013 guilty pleas to unlicensed wholesale prescription drug distribution and sale of misbranded drugs. Whitehead also agreed to pay $36,795.85 in restitution to victims.
Nine additional co-defendants, including co-founder Syed “Farhan” Huda, 38, of Arlington, Va., previously pleaded guilty, and eight are awaiting sentencing. A jury trial is scheduled for March 31, 2014, for alleged co-conspirators Anoushirvan Sarraf, 48, and Eva Montejo Pritchard, 48, both of Rockville, Md. Sarraf, the owner of Aphrodite Skin Care Clinic in McLean, Va., and Pritchard, the office manager, are alleged to have knowingly received illegal shipments intended for Gallant Pharma, in exchange for a discounted price on non-FDA-approved drugs and devices that they used on Aphrodite patients without the patients’ knowledge or consent.
This case was investigated by FDA’s Office of Criminal Investigations, the Drug Enforcement Agency’s Group 33 Diversion Task Force, HSI Washington and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant United States Attorneys Lindsay Kelly, Maya Song and Jay Prabhu 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.Chicago Woman Convicted of Money Laundering, Making False Statements to Law Enforcement and Federal Grand JuryRead the Press Release
Springfield, Ill. – A jury in Springfield, Ill., deliberated for less than two hours this evening before returning guilty verdicts on all counts against Jeri L. Wright, 48, of Hazel Crest, Ill. Wright was convicted of money laundering, making false statements to federal law enforcement officers, and giving false testimony before a grand jury, related to an ongoing investigation of fraudulent use of Illinois Department of Commerce and Economic Opportunity grant funds. Sentencing is scheduled on July 7, 2014, before U.S. District Judge Sue E. Myerscough.
During the trial, which began on Mar. 4, the government presented evidence that Wright participated in a fraud scheme led by her friend, former Country Club Hills, Ill., police chief Regina Evans, and then repeatedly lied about her involvement to law enforcement and a federal grand jury.Evans is scheduled for sentencing on Mar. 24, 2014, after pleading guilty to wire fraud, money laundering, witness tampering, and obstruction of justice, related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program that Evans owned with her husband, Ronald W. Evans, Jr. Ronald Evans has also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Apr. 21, 2014. The grant agreement was purportedly to provide bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses. In fact, little, if any, of the training provided in the grant agreement was ever completed.
“Jeri Wright chose to participate in the fraud, chose to receive and launder a portion of the proceeds of the fraud, and chose to repeatedly lie to law enforcement and a federal grand jury,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “If you take and misuse government money, and then lie about it, you will be held accountable in a court of law.”
U.S. Attorney Lewis further expressed his appreciation to the federal law enforcement officers assigned and the agencies who support the Central District of Illinois U.S. Attorney’s Office’s Public Corruption Task Force: Tony Gomez, Postal Inspector in Charge, U.S. Postal Inspection Service, Chicago Division; James Lee, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Chicago Field Office; and Jim Burns, Inspector General, Illinois Secretary of State Office of Inspector General. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois.
At sentencing, the maximum statutory penalty for each of the counts against Wright is money laundering (two counts), up to 20 years in prison, and a fine of up to $500,000 or twice the value of the transactions, whichever is greater; and for making false statements to federal law enforcement officers (two counts) and giving false testimony before a grand jury (seven counts), the statutory penalty is up to five years in prison.
Canadian Man Sentenced for Bank FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Ali Haddad, 31, of Montreal, Quebec, Canada, who was convicted of bank fraud, was sentenced to 48 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the prosecution, stated that Haddad, a citizen and resident of Canada, opened a business bank account at an M&T Bank branch in Buffalo in the name of Symcore, Inc. Between January 15, 2009, and February 19, 2009, the defendant deposited false and fraudulent pre-authorized debits (APADS@) into the account. The PADS deposited to the Symcore account purportedly represented money owed to Symcore by the payers listed on the PADS. M&T Bank relied upon the deposited PADS to calculate the daily cash balance of funds in the Symcore business checking account.
On February 19, 2009, the defendant withdrew money from the Symcore account by electronically transmitting funds from the account by means of wire communication to bank accounts in Canada. Haddad caused two separate wire transactions to transmit funds from the Symcore account in the following amounts: $10,000, and $18,000 totaling $28,000. This money represented funds from the deposit of the false and fraudulent PADS.
Between December 24, 2008, and January 26, 2009, the defendant committed similar fraudulent acts against Bank of America. However, Bank of America discovered the fraud before the defendant was able to unlawfully transmit funds from the Bank of America account.The total loss to M&T Bank and Bank of America was $28,000.
The sentencing is the result of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Brookings Man Sentenced in Firearm CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Brookings, South Dakota, man convicted of Possession of a Firearm by a Convicted Felon was sentenced on March 6, 2014, by U.S. District Judge Karen E. Schreier.
Larry Steven Jordan, Jr., age 46, was sentenced to time served and put on supervised release for two years with the first seven months on home confinement. He was fined $500 and required to forfeit two firearms and ammunition.
Jordan was indicted for two counts of Possession of a Firearm by a Convicted Felon by a federal grand jury on May 8, 2013. He pled guilty to one count on December 16, 2013, and the other count was dismissed.
Jordan was found in possession of a rifle in Brookings on February 28, 2011.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney John E. Haak prosecuted the case.
Ashland Couple Convicted of Labor Trafficking ConspiracyRead the Press Release
A federal jury convicted an Ashland couple of engaging in a labor trafficking conspiracy and other crimes related to them holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Jordie L. Callahan, 27 and Jessica L. Hunt, 32, were convicted following a three-week trial before U.S. District Judge Benita Y. Pearson. Callahan and Hunt were both convicted on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.
They are scheduled to be sentenced in July.
“These defendants inflicted unspeakable cruelty upon this mother and her child,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “This case provides another stark reminder that human trafficking takes place all around us, and that we need to be better neighbors to one another.”
“We are pleased with the guilty verdict delivered today for the incomprehensible treatment and involuntary servitude of another human being and her small child,” Anthony said. “The FBI will continue to partner with other law enforcement agencies to aggressively investigate and bring to justice those individuals that force others into unlawful labor or sex practices.”
Dezerah L. McGuire (formerly Silsby), 32, and Daniel J. Brown, 34, both of Ashland, previously pleaded guilty to crimes related to the conspiracy. Both are scheduled to be sentenced later this month.
Callahan and Hunt used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the court documents and trial testimony.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the court documents and trial testimony.
According to court documents and trail testimony:
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts.
The conspiracy between Callahan, Hunt, McGuire and Brown took place between August 2010 and October 2012. The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug craving.
Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. has a cognitive disability and that S.E. and B.E. received monthly public assistance payments.
In August 2011, McGuire, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and McGuire then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room.
In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators.
Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules.
Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and McGuire to find S.E. and B.E. and bring them back to the apartment. Brown and McGuire lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment.
On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside.
In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply.
One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.
The case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
Another New Yorker Pleads Guilty to Federal Marijuana Trafficking ChargesRead the Press Release
ALBUQUERQUE – Eric Bernard Harris, 46, of St. Albans, N.Y., pleaded guilty this afternoon to a conspiracy to distribute marijuana charge. The plea was entered without the benefit of a plea agreement. Eric Harris’s co-defendant, Gary Anthony Harris, 50, of Carle Place, N.Y., entered a guilty plea to a marijuana trafficking charge earlier this week.
Eric Harris and Gary Harris were charged by criminal complaint on Aug. 8, 2013, with conspiracy to distribute marijuana. On Aug. 13, 2013, Homeland Security Investigations (HSI) agents arrested Eric Harris in New York, N.Y., and Gary Harris in Carle Place, N.Y. The two men subsequently appeared in Las Cruces federal court to face the charges against them. On Nov. 13, 2013, they were indicted and charged with conspiracy and possession of marijuana with intent to distribute.
According to court filings, Carl Francis Carter, 60, of Deptford, N.J., was arrested on July 27, 2011, after an officer of the New Mexico Department of Public Safety Motor Transportation Division found 527 kilograms (1163 pounds) of marijuana concealed in Carter’s commercial vehicle during a routine inspection at a checkpoint on Interstate 10 in Hidalgo County, N.M. Subsequent investigation by HSI revealed that Carter had been in communication with Gary Harris on the night of his arrest, and that Eric Harris had attempted to contact Carter the morning after his arrest. Investigation also revealed that Eric Harris and Gary Harris traveled from New York to Phoenix, Ariz., on July 17, 2011, allegedly to facilitate the purchase of the marijuana and to transport it from Tucson, Ariz., to New York. Eric Harris and Gary Harris traveled back to New York on July 27, 2011, following Carter’s arrest.
Today, Eric Harris pleaded guilty to both counts of the Indictment charging him with conspiracy to distribute marijuana and possession of marijuana with intent to distribute, and admitted conspiring with Gary Harris, Carter and others to distribute the 527 kilograms of marijuana found in Carter’s commercial vehicle.On March 5, 2014, Gary Harris pleaded guilty to possession of marijuana with intent to distribute under a plea agreement with the U.S. Attorney’s Office. In entering his guilty plea, Gary Harris acknowledged possession of 300 pounds of 527 kilograms of marijuana that was found in Carter’s commercial vehicle on June 27, 2011. He also admitted that Eric Harris and he traveled from New York to Arizona to facilitate the purchase and transportation of the marijuana from Arizona to New York. As part of his plea agreement, Gary Harris agreed to forfeit $52,882.97 in drug proceeds which were seized from two bank accounts and a safe deposit box by HSI pursuant to seizure warrants.
Carter pled guilty to a marijuana trafficking charge on Jan. 31, 2012, and admitted knowingly possessing 527 kilograms of marijuana on July 27, 2011. Carter admitted knowing that the marijuana was concealed in his commercial vehicle and that he expected to be paid for delivering the marijuana for further distribution.
Sentencing hearings for Eric Harris, Gary Harris and Carter have yet to be scheduled. At sentencing, each man faces a sentence of not less than five years and not more than 40 years in prison.
This case was investigated by the Deming office of HSI with assistance from the New Mexico Department of Public Safety Motor Transportation Division, and is being prosecuted by Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Anne Arundel County Cocaine Dealer Exiled to over 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Daryell M. Rexrode, age 56, of Pasadena, Maryland, today to 160 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his plea agreement, from November 2012 through July 24, 2013, Rexrode conspired with Paul Rodney Cain and others to distribute cocaine. On November 16, 2012, Rexrode was arrested in Baltimore upon arriving to accept a controlled delivery of a kilogram of cocaine that he intended to split with Cain. Rexrode had an additional 344 grams of cocaine and more than 700 grams of methamphetamine in the trunk of his car.
In May 2013, law enforcement initiated wiretaps on two cell phones belonging to Cain and learned that Rexrode and Cain were building their inventory of cocaine. For example, on May 23 law enforcement overheard Rexrode and Cain discussed purchasing cocaine from multiple sources of supply. During this call, Cain told Rexrode that he had arranged to purchase a large quantity of cocaine from an individual whom law enforcement subsequently identified as Allan Ferdock. Law enforcement arrested Ferdock on May 24 after witnessing Ferdock purchase a kilogram of cocaine which he intended to re-sell to Cain. Law enforcement seized the cocaine.
Following Ferdock’s arrest, law enforcement intercepted many calls in which Rexrode and Cain, who did not believe that law enforcement had seized the cocaine, discuss confronting Ferdock about the cocaine that Ferdock had agreed to deliver. The conspirators devised a plan to have Cain take Rexrode’s brother to Ferdock’s residence to confront Ferdock.
On May 26, 2013, law enforcement intercepted a call in which Cain informed Rexrode that he had just left Rexrode’s brother at Ferdock’s home. In the early morning hours of the next day, law enforcement arrested Rexrode’s brother on Ferdock’s property. At the time of his arrest, Rexrode’s brother was wearing latex gloves and carrying a mallet, a knife and a roll of duct tape.
Daryell Rexrode conspired to distribute more than five kilograms of cocaine.
Paul Rodney Cain, age 48, and Allan Clay Ferdock, age 56, both of Pasadena, previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on May 8 and April 3, 2014, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Anne Arundel Police Department and Anne Arundel County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Ana Alliegro Charged with Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Granada, Nicaragua, was arrested and brought back to the United States from Nicaragua, having been previously indicted for having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District. Alliegro’s initial appearance is scheduled for March 10, 2014 at 1:30 p.m. before U.S. Magistrate Judge Patrick White.
The indictment charges Alliegro with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4). If convicted, Alliegro faces a maximum term of up to five years in prison on each count and a fine of up to $250,000 on each count.
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force, the Legal Attaché Panama City, Panama and Diplomatic Security Service. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
An Indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Attachment:
Indictment (PDF)
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.
Albuquerque Man Pleads Guilty to Armed Bank Robbery SpreeRead the Press Release
ALBUQUERQUE – James Charles Mollohan, 36, of Albuquerque, N.M., pleaded guilty today to four armed bank robbery charges and to using a firearm in relation to a crime of violence. Under the terms of his plea agreement, Mollohan will be sentenced to a prison term within the range of 322 months (26.83 years) to 387 months (32.25 years) followed by a term of supervised release to be determined by the court.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department.
Mollohan was arrested on Feb. 1, 2013, on a criminal complaint charging him with the armed robbery of the New Mexico Educators Federal Credit Union branch located at 3205 Coors Blvd. NW in Albuquerque. According to court filings, Mollohan approached a bank teller, pointed a handgun at the teller, and demanded money. As the teller opened the cash drawer in response to Mollohan’s demand, the teller surreptitiously activated an alarm before handing cash to Mollohan. Mollohan was arrested in the vicinity of the bank shortly thereafter by officers of the Albuquerque Police Department who responded to a radio transmission alerting them of the bank robbery. Mollohan was in possession of a loaded semi-automatic handgun and a significant amount of cash when he was arrested.
During today’s hearing, Mollohan pled guilty to a five-count felony information charging him with four counts of armed bank robbery and possession of a firearm in relation to a crime of violence. In entering his guilty plea, Mollohan admitted robbing at gunpoint the following Albuquerque-area banks: the Bank of Albuquerque branch located at 3301 Coors Blvd. NW on Jan. 12, 2013; the New Mexico Bank and Trust branch located at 6201 Riverside Plaza Lane on Jan. 29, 2013; and New Mexico Educators Federal Credit Union located at 3205 Coors Blvd. NW on Jan. 29, 2013 and again on Feb. 1, 2013.
Mollohan has been in federal custody since his arrest on Feb. 1, 2013. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the New Mexico Corrections Department Probation and Parole, and is being prosecuted by Assistant U.S. Attorney Charles L. Barth. This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this 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.
6 March 2014
Wisconsin Man Pleads Guilty to Production of Child PornographyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that David Whitworth, 42, of Madison, Wisconsin, pleaded guilty to production of child pornography and receipt of child pornography before Chief U.S. District Court Judge William M. Skretny. The charges carry a maximum sentence of 35 years in prison, a $500,000 fine, or both.
Assistant U.S. Attorneys Marie P. Grisanti and Maura K. O’Donnell, who are handling the case, stated that the defendant posed as a modeling agent online to induce minors in the Western District of New York and elsewhere to produce pornographic images of themselves. The minors then emailed the images to Whitworth via the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Cheektowaga Police Department under the direction of Chief David Zack, and Lancaster Police Department under the direction of Chief Gerald Gill.
Sentencing is scheduled for July 23, 2014, at 9:00 a.m. before Chief Judge Skretny.Wanblee Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 5, 2014, by U.S. District Judge Roberto A. Lange.
Jayme Lee Rivers, a/k/a Jayme Two Crow, age 34, was sentenced to 12 months and 1 day in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Rivers was indicted by a federal grand jury on August 21, 2013, and pled guilty to Failure to Register as a Sex Offender on December 11, 2013.
The conviction arose as a result of Rivers’ failure to register as a sex offender between July 2009 and March 2010. Due to his federal conviction in June 2000 for Sexual Abuse of a Minor, Rivers is required to register as a sex offender by the Sex Offender Registration and Notification Act. He knowingly failed to register and update his residential registration as required by federal law.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Rivers was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
U.S. Attorney's Office Launches "Fresh Start" Federal Prison Re-Entry ProgramRead the Press Release
TULSA, Okla. — A new Federal Prison Re-Entry program, named “Fresh Start,” will assist and provide individuals with felony convictions with resources for jobs, housing, and counseling services, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The re-entry program is another component of U.S. Attorney General Eric H. Holder’s “Smart on Crime” initiative.
Participating agencies joining the U.S. Attorney's Office are: the Tulsa County District Attorney's Office; the United States Probation Office; and the Oklahoma Department of Corrections.
“The Department of Justice’s Anti-Violence Strategy, which is led by the U.S. Attorneys, prioritizes reentry as one of its three principal components, along with prevention and enforcement,” said U.S. Attorney Williams. “We are working collaboratively with federal and state correctional agencies in assisting individuals with felony convictions with re-entry into the community.”
Approximately 700,000 people are released from federal and state prisons every year. It is estimated that two-thirds of those released will likely be rearrested within three years of release.
Initial participants in the “Fresh Start” program will be GPS-monitored individuals from the Oklahoma Department of Corrections and those individuals who are on a parolee status. Later, the State’s participation in the federally-sponsored program will expand to include those individuals who are on probation.
Individuals will participate in an informational panel session which includes a representative of the U.S. Attorney’s Office, Tulsa County District Attorney’s Office, law enforcement, and a Success Speaker, an individual with a criminal history who has turned his/her life around. The “Fresh Start” program is designed not only to provide individuals with felony convictions with resources, but also to provide them with motivation for success within the community.
Two Men Plead Guilty to $1 Million Scheme to Defraud ArmyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two men have pleaded guilty to their roles in a $1 million fraud scheme to sell counterfeit and modified computer equipment to the U.S. Army.
Mark Morgan, 46, of Newport Coast, Calif., pleaded guilty today before U.S. District Judge Gary A. Fenner to the charge contained in a May 22, 2013, federal indictment. Roland Evans, 44, of Lee’s Summit, pleaded guilty to his role in the conspiracy on Wednesday, March 5, 2014.
Evans was an employee of Missouri Office Systems and Supplies, Inc. (MOSS), in Kansas City, Mo., which sold all types of office machines, including computers, software and other office furniture and supplies.
In August 2010, MOSS received a $2.1 million contract from the Army Recreation Machine Program (ARMP) for more than 2,500 Cisco parts – including network hardware, such as transceivers and switches, which allow computers to communicate with other computers. The network hardware was shipped to numerous locations, including ARMP headquarters at Fort Carson in Colorado Springs, Colo., as well as approximately 19 other ARMP locations in the United States and three international ARMP locations.
After receiving that contract, MOSS provided more than $1 million worth of counterfeit products and Cisco products that were used and modified post-manufacture and were obtained outside Cisco’s authorized distribution channels.
Evans handled all of the contracts MOSS had for Cisco products, including all of the contracts MOSS had with ARMP for Cisco products. MOSS provided 2,013 computer products that were improperly sourced, for which ARMP paid $1,073,022. Due to the products being improperly sourced, they were not eligible for Cisco warranties nor were the SMARTnet contracts legitimate. The products were unusable for ARMP and cannot be used in any portion of its computer network.
Evans admitted that he solicited equipment bids from Morgan’s firm, PRM Technology Equipment, LLC, knowing that it was outside of Cisco’s authorized distribution channels. Between August and December 2010, Morgan obtained counterfeit Cisco products and Cisco products which were used and modified post-manufacture outside of Cisco authorized distribution channels. Morgan shipped these products to ARMP, which paid MOSS $1,073,022. MOSS then paid Morgan $856,651 for the products.
Between September 2010 and August 2011, Evans and Morgan continued to insist to ARMP and to Cisco – in emails, phone conferences and meetings – that MOSS had supplied new, genuine Cisco goods and services which were sourced from Cisco authorized distribution channels and protected by full Cisco warranties as required by the contract. Evans and Morgan altered purchase orders and invoices, which they sent to Cisco to make it appear that the products were sourced properly.
Under the terms of today’s plea agreement, Morgan and Evans must pay $1,073,022 in restitution, for which they are jointly and severally liable. Under federal statutes, Morgan and Evans are subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, the Department of Defense – Office of Inspector General and the Department of Homeland Security.Two Men Charged with Extensive Counterfeit Media Scheme in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Emilio Perez-Solis, 39, of Oakland, and Hernan Cortes, 53, of Tulare, charging them with criminal copyright infringement for private financial gain, criminal copyright infringement, trafficking in counterfeit labels, documentation and packaging, and conspiracy, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendants used an agriculture building in Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. Cortes assisted Perez-Solis in distributing counterfeit media from the building. On February 21, 2014, the building in Fresno County was found to contain approximately 70,000 counterfeit music CDs and movie DVDs.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Fresno County Sheriff's Department. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty are prosecuting the case.
"Commercial piracy and product counterfeiting undermine the U.S. economy, rob Americans of jobs, stifle American innovation and promote other types of crime," said Mike Prado, resident agent in charge of HSI Fresno. "Intellectual property theft amounts to economic sabotage, which is why HSI will continue to aggressively pursue product counterfeiters and those who sell counterfeit products."
Perez-Solis and Cortes are currently in custody, and are scheduled to be arraigned in Fresno on March 10, 2014, at 1:30 p.m. If convicted, Perez-Solis and Cortes face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy, copyright infringement for financial gain, and trafficking in counterfeit labels charges. Criminal copyright infringement carries a maximum statutory penalty of three years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Individuals can provide invaluable assistance to HSI by reporting suspicious criminal activity to the HSI Tip Line at 866-DHS-2ICE (866-347-2423).Two Former Puerto Rico Law Enforcement Officers Sentenced for Scheme to Smuggle Heroin to InmatesRead the Press Release
A former state marshal and a correctional officer in Puerto Rico were sentenced today for attempting to smuggle heroin to inmates in exchange for payment, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Joel Torres-Velazquez, 49, of Guánica, Puerto Rico, was sentenced to serve 37 months in prison, followed by three years of supervised release, by U.S. District Judge Francisco A. Besosa of the District of Puerto Rico. He pleaded guilty on Nov. 6, 2013, to a one-count indictment charging him with attempt to distribute a controlled substance.
Jessica Moreno-Alicea, 39, of Ponce, Puerto Rico, was sentenced to serve 37 months in prison, followed by four years of supervised release, by U.S. District Judge Daniel R. Dominguez of the District of Puerto Rico. She pleaded guilty on Dec. 6, 2013, to a one-count indictment charging her with attempt to distribute a controlled substance.
Torres-Velazquez was paid $600 to deliver a package of heroin to an inmate at the Ponce Superior Court, where Torres-Velazquez worked as a state marshal. On March 30, 2011, Torres-Velazquez met with an undercover agent, who he believed was a drug dealer, and was given what he believed to be a package of heroin. He delivered the purported heroin to an inmate in the courthouse that same day.
Moreno was paid $800 to deliver a package of heroin to an inmate at the Ponce State Penitentiary, where Moreno worked as a correctional officer. On Feb. 3, 2011, Moreno met with an undercover agent, who she believed was a drug dealer, and was given what she believed to be heroin. She delivered the purported heroin to an inmate in the prison on Feb. 8, 2011.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico and Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section.Two Convicted in Multi-Million Dollar Advance Fee and Alaskan Gold Mine Investment SchemesRead the Press Release
Brad Russell was convicted today by a federal jury in Brooklyn on all three counts of the indictment for defrauding developers and their clients of more than $9 million through an advance fee scheme and for defrauding investors through an Alaskan gold mine investment scheme. Kristofor Lange, the Vice President of Black Sand Mine, Inc. (“BSMI”), was also convicted on both counts charging him for his role in the gold mine investment scheme.1 The jury’s verdict followed a six-week trial in United States District Court held before the Honorable Dora L. Irizarry. The trials of co-defendants William Lange and Frank Perkins are scheduled to take place on September 22, 2014.2
The guilty verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and W. Jay Abbott, Acting Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).
“Through lies and deceit, the defendants took advantage of a national tragedy and unsuspecting investors and stole millions of dollars so they could line their own pockets. Their representations and assurances were not worth the price of the paper used to print the loan documents and stock certificates. We will vigorously pursue and bring to justice those who would defraud the investing public,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of the investigation and prosecution. Ms. Lynch also extended her grateful appreciation to the United States Attorney’s Office for the Western District of Washington for their assistance in the case.
The evidence at trial established that Russell, together with others at Harbor Funding Group Inc. (“HFGI”), executed an advance fee scheme by targeting regions affected by Hurricane Katrina. Russell and his co-conspirators told land developers and their clients that HFGI had lenders and funds available to provide financing for their real estate projects. As a condition for financing, HFGI required its clients to place ten percent of the loan amount in an attorney escrow account. Contrary to their representations, HFGI did not have lenders or funds available to finance the loans and stole the deposit money placed in escrow. Russell was the loan processor at HFGI and prepared and maintained the loan documents and escrow agreements. Through this fraudulent scheme, Russell and his co-conspirators stole more than $9 million from approximately 300 individuals.
At trial, the government also proved that Russell and Kristofor Lange, together with others, also executed an investment scheme and induced investors to invest in BSMI through lies and deceit. BSMI claimed that it was going to mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls and “webinars,” Russell, Lange, and their co-conspirators, convinced investors to invest in BSMI by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI.
When sentenced by Judge Irizarry, Russell faces a sentence of up to 20 years’ imprisonment for wire fraud conspiracy for the HFGI scheme. Russell and Lange also face a sentence of up to 20 years’ imprisonment for securities fraud and a sentence of up to five years’ imprisonment for conspiracy for the BSMI scheme.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, David C. Woll, Jr. and Alixandra E. Smith.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendants:
BRAD A. RUSSELL
Age: 42
Residence: Gig Harbor, Washington
KRISTOFOR J. LANGE
Age: 30
Residence: Gig Harbor, Washington
E.D.N.Y. Docket No. 10-CR-968
__________________________________________________________________________
1 Kristofor Lange was not charged in the advance fee scheme.
2 The charges against the co-defendants William Lange and Frank Perkins are merely allegations, and they are presumed innocent unless and until proven guilty.
Titusville Police Officer Indicted for Participating in A Drug Deal While Carrying A FirearmRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Richard Irizarry (45, Viera) with attempting to aid and abet the distribution of cocaine, possessing a firearm in furtherance of the drug distribution, and using a telephone to facilitate the drug distribution. If convicted on all counts, Irizarry faces a minimum of 10 years, up to a maximum penalty of 40 years in federal prison. According to the indictment, Irizarry allegedly committed these offenses on or about January 19, 2014. Irizarry will make his initial appearance in federal court, in Orlando, at 1:30 p.m. today before United States Magistrate Judge Karla R. Spaulding.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Vincent A. Citro.
(Download Factual Basis )
Texas man Charged with Traveling to Missouri for Illicit Sex with ChildrenRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Texas man has been charged in federal court with traveling to Missouri to engage in illicit sex with two minor sisters whose “father” (an undercover officer) he met online.
John Paul Christian, 40, of Texas, was charged in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo., on Wednesday, March 5, 2014.
According to an affidavit filed in support of the federal criminal complaint, a Kansas City Police Department detective created an undercover profile on an online social media site. Christian contacted him on Feb. 19, 2014, the affidavit says, and he told Christian that he had two daughters (11 and 15 years old) with whom Christian could have sex for $400. Christian allegedly replied that he would pay to have sex with both of them.
Christian sent a text message to the undercover officer, the affidavit says, informing him that he had purchased an 18-karat gold “Hello Kitty” necklace and earrings and an iPod as gifts for the girls. On Feb. 26, 2014, Christian allegedly sent a text message with details about the sexual acts he wanted to perform on the 11-year-old daughter. Christian allegedly asked about the 15-year-old daughter joining in as well, for a total of “$400 for both girls.”
On Feb. 28, 2014, Christian allegedly wired $200 to the undercover detective, which was half of the amount he was going to pay to have sex with the two sisters.
According to the affidavit, Christian said he was going to drive to Kansas City on Saturday, March 1, 2014, and texted updates of his travel during the day. (Law enforcement officers later found evidence in his hotel room that he had flown from Texas to Kansas City.)
At about 4:34 p.m. on Saturday, March 1, 2014, Christian sent a text message saying he had arrived in Kansas City and was at the airport, the affidavit says. The undercover detective provided an address and arranged for them to meet at a nearby apartment complex. Christian arrived in a taxi at about 8:10 p.m. and was arrested as he got out of the taxi.
When he was taken into custody, Christian was in possession of two bags. One of the bags contained a “Hello Kitty” backpack doll, two “Hello Kitty” underwear outfits for young girls, two pairs of young girls’ panties, two cans of Red Bull, rope necklaces, Q-Tips and a teal iPod Nano with headphones. The other bag contained an Acer Chromebook laptop computer with power cables, a Samsung flip phone, and a bottle of Astroglide lubricant.
When officers searched Christian’s hotel room, they found a notebook with what appears to be a letter written to the 15-year-old daughter. According to the affidavit, the letter details the various sex acts that Christian was going to be engaged in with the sisters. Christian allegedly wrote that he wanted to get the 15-year-old girl pregnant so that they could have a “little baby girl together” that they in turn would sexually molest.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Tax Preparer Indicted for Preparing Returns with Fraudulent Claims and Filing Own False Tax ReturnsRead the Press Release
HONOLULU - A federal grand jury yesterday indicted Melanau Fohe Haiola, age 52, for preparing false tax returns for her clients and for failing to report income she earned. The indictment charges that Haiola, of Kahuku, prepared 17 Federal Income Tax returns that fraudulently claimed the American Opportunity Credit, a deduction for undergraduate education expenses; personal property rental expense deductions; or medical, dental, or employee expenses. In addition, the indictment charges that Haiola filed false tax returns for herself for the 2009 and 2010 tax years by underreporting her income by a total of $114,315.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, Haiola, as owner and operator of Nau’s Tax Preparation, personally prepared, and supervised others in the preparation of, hundreds of federal income tax returns, many of which claimed the American Opportunity Credit and the personal property rental expense deduction when neither was legally applicable.
If convicted, Haiola faces up to three years in prison and a fine of up to $250,000 for each of the 19 charges. The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution resulted from an investigation conducted by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Marshall Silverberg.
Staten Island, N.Y., Tax Preparer Sentenced to Prison for Preparing False Tax ReturnsRead the Press Release
Ranti Azeez-Taiwo of Staten Island, N.Y., was sentenced to serve 18 months in prison to be followed by one year of supervised release, the Justice Department and Internal Revenue Service (IRS) announced today. Azeez-Taiwo was also ordered to pay $24,802 in restitution. On Sept. 30, 2013, a federal jury in the Eastern District of New York convicted Azeez-Taiwo of 16 counts of aiding or assisting in the preparation of false income tax returns for clients.
According to evidence introduced at trial, the defendant operated a tax preparation business called Lot Associates Inc., located in Staten Island. Evidence showed that the defendant aided, advised and prepared false individual income tax returns for clients during the 2006 through 2010 tax years. These false individual income tax returns claimed unreimbursed employee expenses and charitable donations that taxpayers testified the defendant claimed on their returns without the taxpayers’ knowledge. Several taxpayers testified they paid fines and interest to the IRS as a result of the false income tax returns Azeez-Taiwo had prepared and submitted to the IRS.
This case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Mark Kotila and Mark McDonald of the Tax Division.
Statement of United States Attorney Carmen M. OrtizRead the Press Release
United States vs. John J. O’Brien, et al.
1:12cr40026We are disappointed at the disruption and delay of this trial that has been caused by the defense's untimely recusal motion. The Court's rulings throughout this case have been well-reasoned and based on the law. We nevertheless remain committed to bringing this case to trial as soon as possible. This case must move forward without delay, not only because it is in the interest of justice to have that happen, but because we must instill public confidence in the criminal justice system and limit the continued expense of taxpayer dollars.
Springfield Man Pleads Guilty to Trafficking Counterfeit GoodsRead the Press Release
BOSTON – A Springfield man was convicted today in U.S. District Court in Springfield of selling counterfeit goods.
Josue Rivera, 38, pleaded guilty before U.S. District Judge Michael A. Ponsor to trafficking in counterfeit and unauthorized goods. As part of his plea agreement, Rivera agreed to pay $29,000 in restitution and forfeiture of two bank accounts worth approximately $79,000.
Rivera operated a retail merchandise business in Springfield called Main Source. From April 11 until June 25, 2012, Rivera stocked and sold counterfeit merchandise, including clothing, footwear, and accessories that bore a variety of brand names and trademarks, including Gucci, Nike, Coach, Chanel, and Oakley. Rivera also stocked and sold unauthorized reproductions of digital video discs of movies and compact discs of music.
United States Attorney Carmen M. Ortiz; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, and Springfield Police Commissioner William Fitchett, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Spencer Man Sentenced for Unlawful Taking of WildlifeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spencer, South Dakota, man convicted of Unlawful Taking of Wildlife was sentenced on March 3, 2014, by U.S. Magistrate Judge John E. Simko.
Dennis L. Rowley, age 63, was sentenced to 3 years of probation. His sentence also included a $3,000 fine, $3,050 restitution, and the loss of hunting privileges for 3 years.
An information was filed against Rowley on July 24, 2013, charging him with Unlawful Taking of Wildlife. He was found guilty of the charge at a trial held on January 27, 2014, before the Honorable Judge Simko.
In June of 2012, a person taking photographs of Double-crested Cormorants nesting on an island on a lake near Spencer called the South Dakota T.I.P.S. Hotline to report a person shooting the cormorants. Conservation officers with the South Dakota Game, Fish and Parks Department learned that the shooter was Dennis Rowley. They went to the island and found 61 dead cormorants.
This case was investigated by the South Dakota Game, Fish and Parks, and the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Sioux Falls Woman Sentenced in Embezzlement CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman convicted of Bank Embezzlement was sentenced on March 6, 2014, by U.S. District Judge Karen E. Schreier.
Kellie Cunningham, age 28, was sentenced to time served (one day) and 3 years of supervised release. She was also ordered to make restitution in the amount of $5,600.
Cunningham was indicted for Bank Embezzlement by a federal grand jury on August 13, 2013. She pled guilty on December 4, 2013.
Between May 2012 and March 2013, Cunningham was employed as a bank teller. During this timeframe, she stole money from her teller drawer for personal use and took steps to conceal the theft.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Shreveport Man Sentenced to 24 Months in Prison for Failing to Appear for SentencingRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today thatLeo Cortez Vinson Jr., 40, of Shreveport, was sentenced Monday by U.S. District Court Judge Elizabeth Foote, to 24 months in prison with one year of supervised release for failing to appear for sentencing on a tax fraud charge.
According to evidence presented at the guilty plea on February 20, 2014, Vinson pleaded guilty in September of 2011 to filing fraudulent tax returns and was allowed to remain free on bond. He failed to appear for sentencing on November 30, 2011. A warrant was issued for Vinson’s arrest, and he was arrested on October 3, 2013 in South Dakota. Vinson had been traveling on a bus headed for Seattle, Washington.
On November 14, 2013, Vinson was sentenced by U.S. District Court Judge Tom Stagg, to 36 months in prison and one year of supervised release for one count of making false and fraudulent statements to the Internal Revenue Service (IRS). He was also ordered to pay $6,958 in restitution.. The failure to appear and the tax fraud prison terms will run consecutively for a total of 60 months in prison. The supervised release terms will run concurrently.
According to evidence presented at the guilty plea on September 1, 2011, Vinson prepared 22 Form 1040 tax returns containing false information in early 2009 for tax year 2008. He claimed $91,141 in refunds, but received $79,396 from the IRS. Vinson received between $1,000 and $1,500 per tax return on average. He would recruit inmates from different prisons to supply Social Security Numbers for the false returns and paid them $100 for their information.
“Tax fraud has consequences,” Finley stated. “The defendant thought he could run from justice, but because of the hard work of the prosecutor and law enforcement officers, he was apprehended. We will continue to prosecute those who try to manipulate the system for their gain.”
The IRS, U.S. Marshals Service, and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the cases.
Seven Individuals Sentenced for Federal Supervised Release and Probation ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of February, seven individuals had their supervised release or probation revoked for violating terms and conditions imposed by the United States District Court.
ELKINS DIVISION REVOCATIONS (Chief Judge John Preston Bailey)
ARCHIE RAY ARBOGAST, age 37, of Dunmoore, West Virginia, was sentenced to 24 months in prison and three years of supervised release for committing another crime; possession of a controlled substance; frequenting places where controlled substances are illegal sold, used, distributed or administered; and, associating with persons engage in criminal activity. ARBOGAST was originally sentenced on May 8, 2013, to 5 years probation for possession of material used in the manufacture of methamphetamine. ARBOGAST was remanded to the custody of the United States Marshal pending designation to a Federal institution.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
BRYAN KNORR, age 36, of Clarksburg, West Virginia, and formerly of Wheeling, was sentenced to 18 months in prison for testing positive for the use of marijuana and cocaine. KNORR was originally sentenced on March 7, 2011, to 21 months in prison and six years of supervised release for the distribution of ecstasy within 1,000 feet of a protected location. KNORR was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MICHAEL SHANE HENRICK, age 35, of Newell, West Virginia, was sentenced to 6 months in prison and 12 months of supervised release for committing additional offenses of shoplifting, domestic battery, failure to report to the United States Probation Officer and absconding from supervision. HENRICK was originally sentenced on June 24, 2008, to 32 months in prison and three years of supervised release for the distribution of heroin. HENRICK was remanded to the custody of the United States Marshal pending designation to a Federal institution.
SCOTT NALE, age 44, of Weirton, West Virginia, was sentenced to forty-five days in prison for failure to update sex offender registration and unauthorized contact with a minor child. NALE was originally sentenced on August 21, 1995, to 168 months in prison and three years of supervised release for car jacking, use and carry of a firearm in relation to a crime of violence, and felon in possession of a firearm. NALE will self-report to the designated Federal institution on March 14, 2014.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
DEVON GORDON, age 23, of Martinsburg, West Virginia, was sentenced to 22 months in prison for associating with known felons, being untruthful with probation officer and fleeing from the Martinsburg Police. GORDON was originally sentenced on July 18, 2011, to 24 months in prison and three years of supervised release for possession with intent to distribute crack cocaine. GORDON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JOMO KENYATTA MORRIS, age 24, of Martinsburg, was sentenced to 10 months in prison and 12 months of supervised release for testing positive for the use of marijuana and cocaine, being untruthful with probation officer and being arrested for disorderly conduct and open container. MORRIS was originally sentenced on December 11, 2009, to 37 months in prison and three years of supervised release for possession with intent to distribute crack cocaine. MORRIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
LATEEF JABRALL MCGANN, age 23, of Martinsburg, was sentence to 7 months in prison and 29 months of supervised release for testing positive for the use of marijuana, being untruthful with probation officer and being arrested for fleeing from the Martinsburg police. MCGANN was originally sentenced on December 10, 2009, to 57 months in prison and three years of supervised release for possession with intent to distribute crack cocaine and felon in possession of a firearm. MCGANN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Robert H. McWilliams, Jr., Stephen D. Warner and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Sentencing for February 27 - March 6, 2014Read the Press Release
Randy W. Ayers, 36, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 6, 2014, for being a felon in possession of a firearm. Ayers was arrested in Gillette, Wyoming. He received 40 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Victor David Villagomez-Duarte, 21, of Denver, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 27, 2014, for conspiracy to possess with intent to distribute, and to distributing at least 200 grams of a mixture or substance containing a detectable amount of methamphetamine and for distribution of methamphetamine and aiding and abetting. Villagomez-Duarte was arrested in Albany County, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Sacramento Woman Gets 18 Months in Prison for Conspiracy to Traffic in Counterfeit Viagra and Cialis via CraigslistRead the Press Release
SACRAMENTO, Calif. — Susan Yvonne Eversoll, 46, of Sacramento, was sentenced this morning by U.S. District Court Judge Troy L. Nunley to 18 months in prison, to be followed by three years of supervised release and a $5,000 fine, for conspiring to traffic in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, law enforcement received information about “Viagra” and “Cialis” being offered for sale through the Internet on Craigslist. Law enforcement later conducted controlled drug purchases of counterfeit Viagra from co-defendant Rickey Lee Campbell, 60, of Sacramento, who used the alias “Diamond Jim.” Eversoll and Campbell’s residences were searched and more than 6,000 counterfeit tablets resembling Viagra and Cialis in shape, size, and color were found. Authorities also recovered computers and electronic devices the conspirators used to sell the counterfeit goods.
Campbell has pleaded guilty to the conspiracy and is scheduled to be sentenced on May 8, 2014. He faces up to 10 years in prison for his leadership role in the conspiracy. His sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.