Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 21 January 2014
Four Sentenced for Involvement in A Straw Purchases RingRead the Press Release
McALLEN, Texas – Four people associated with making false statements in the acquisition of firearms from federal firearms licensees (FFL), commonly referred to as straw purchasing, have been sentenced to prison, announced United States Attorney Kenneth Magidson. Jose Maria Flores, 21, and Arnulfo Torres, 33, both of McAllen; Rene Rene Olivo, 25, of Alamo; and Mario Reynoso Jr., 39, of Mission, all pleaded guilty to making false statements and/or aiding and abetting the making of the false statements to FFLs on Aug. 7, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed prison sentences to each of the defendants. Flores received 60 months in federal prison, while Torres, Olivo and Reynoso received respective sentences of 60, 37 and 30 months. All were further ordered to serve two-year-terms of supervised release following completion of their prison sentences. At the hearing today, additional evidence was presented indicating a total of 125 firearms were purchased between all the defendants and co-conspirators.
In March 2011, agents with the Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) began an investigation into the purchase of high-powered rifles from local FFLs in McAllen. Through their investigation, agents identified the defendants as being involved in the straw purchasing of multiple firearms and admitted to doing so at their respective plea hearings.
The sentences imposed today were further enhanced as the court determined the firearms were being trafficked and used or possessed for another felony offense.Reynoso was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future, while Flores, Torres and Olivo have been and will remain in custody.
The investigation was conducted by the ATF and prosecuted by Assistant United States Attorney Juan Villescas.
Former Virginia Governor and Former First Lady Indicted on Public Corruption and Related ChargesRead the Press Release
RICHMOND, Va. – A federal grand today returned a 14-count indictment against former Virginia Governor Robert F. McDonnell and former First Lady Maureen G. McDonnell for allegedly participating in a scheme to violate federal public corruption laws.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
The indictment, returned in the Eastern District of Virginia, charges Robert McDonnell and Maureen McDonnell, both 59 and of Glen Allen, Va., with one count of conspiracy to commit honest-services wire fraud; three counts of honest-services wire fraud; one count of conspiracy to obtain property under color of official right; six counts of obtaining property under color of official right; and one count of making false statements to a federal credit union. Robert McDonnell is also charged with an additional count of making a false statement to a financial institution, and Maureen McDonnell is charged with one count of obstruction of an official proceeding.
“I thank the Assistant U.S. Attorneys, FBI, Virginia State Police and the Internal Revenue Service-Criminal Investigation for their exceptional efforts in the investigation of this case,” said Acting U.S. Attorney Boente. “We will continue to work tirelessly with our law enforcement partners to investigate and prosecute public corruption.”
“Today’s charges represent the Justice Department’s continued commitment to rooting out public corruption at all levels of government,” said Acting Assistant Attorney General Raman. “Ensuring that elected officials uphold the public’s trust is one of our most critical responsibilities.”
“One of the most important investigative responsibilities with which the FBI is tasked is ensuring that the integrity of our elected public officials has not been compromised,” said FBI SAC Mazanec. “The Richmond Division of the FBI and our law enforcement partners have diligently worked this lengthy, detailed and sensitive matter. I want to thank all those who have worked very hard and with great care on this investigation.”
“The state police and FBI agents assigned to this case have devoted an extensive amount of time and effort to this matter,” said Colonel Flaherty. “They are to be commended for their professionalism, objectivity and dedication to duty in conducting this highly complex and sensitive investigation.”
“Public officials hold positions of trust and must accept the transparency and accountability that our laws require and their constituents expect,” said IRS-CI Chief Weber. “IRS-CI stands committed to investigating those officials. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
According to the indictment, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific, a Virginia-based corporation, and “JW,” then Star Scientific’s chief executive officer. The McDonnells obtained the things of value in exchange for the former governor performing official actions on an as-needed basis to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc®.
As alleged in the indictment, the McDonnells obtained from JW more than $135,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous other things of value. As part of the alleged scheme, the official actions that Robert McDonnell performed included arranging meetings for JW with Virginia government officials, hosting and attending events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors for referral to their patients, contacting other Virginia government officials as part of an effort to encourage Virginia state research universities to initiate studies of Star’s products, and promoting Star’s products and facilitating its relationships with Virginia government officials.
The indictment further alleges that the McDonnells attempted to conceal the things of value received from JW and Star to hide the nature and scope of their dealings with JW from the citizens of Virginia by, for example, routing things of value through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements. Moreover, the indictment alleges that on Oct. 3, 2012, Robert McDonnell sent loan paperwork to a lender that did not disclose the loans from JW, and on Feb. 1, 2013, the McDonnells signed loan paperwork submitted to another lender that did not disclose the loans. Similarly, the indictment alleges that on Feb. 15, 2013, Maureen McDonnell was questioned by law enforcement about the loans and made false and misleading statements regarding the defendants’ relationship with JW. Three days later, on Feb. 18, 2013, Robert McDonnell is alleged to have sent loan paperwork to one of the previously mentioned lenders disclosing the loans from JW. Additionally, after her interview with law enforcement, Maureen McDonnell allegedly wrote a handwritten note to JW in which she falsely attempted to make it appear that she and JW had previously discussed and agreed that she would return certain designer luxury goods rather than keep them permanently, all as part of an effort to obstruct, influence and impede the investigation.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the McDonnells could each face a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the conspiracy to commit honest-services wire fraud count, the honest-services wire fraud counts, the conspiracy to obtain property under color of official right count, and the obtaining property under color of official right counts; a maximum statutory sentence of 30 years in prison and a fine of the greater of $1,000,000 or twice the gross gain or loss on the false statement counts; and a maximum statutory sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss on the obstruction of an official proceeding count.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI and the Virginia State Police.
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.
Former Philadelphia Resident Sentenced for Assaulting A Deputy US MarshalRead the Press Release
ERIE, Pa. - A former resident of Philadelphia, Pennsylvania has been sentenced in federal court to 27 months in jail on his conviction of assaulting a federal officer, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Ryan Bell, 27.
According to information presented to the court, on January 15, 2013, Bell assaulted a Special Deputy United States Marshal, a member of the U.S. Marshal’s Western Pennsylvania Task Force, who was engaged in official duties as the task force was executing an arrest warrant against Bell.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Bell.
Former Operator of Rehabilitation Therapy Clinic Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
WASHINGTON – A south Florida woman who had been the president of CORF National Development Inc. has pleaded guilty for her involvement in a Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Milagros Cruz, 42, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiring to commit health care fraud. She faces a maximum penalty of 10 years in prison when she is sentenced.
According to court documents, Cruz conspired with others to execute a health care fraud scheme involving the submission of claims for reimbursement to Medicare for rehabilitation therapy services that were not legitimately prescribed by physicians and not legitimately provided to Medicare beneficiaries. Cruz, as president of CORF National Development, located in Doral, Fla., paid cash kickbacks to Medicare beneficiaries who came to CORF National Development in exchange for using the beneficiaries’ identifying information in the fraud scheme. Cruz would combine the Medicare beneficiaries’ identifying information with other billing information and provide the information to other conspirators. These conspirators then converted the information into reimbursement claims submitted to Medicare in the name of a completely different clinic known as Renew Therapy Centers of Port St. Lucie LLC. From January through August 2008, Cruz’s clinic received approximately $90,950 from Renew Therapy in connection with the fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Madera Resident Sentenced for Fraudulent Sale of WebsitesRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Phillip Jacob Shinen, 33, formerly of Madera, today to 27 months in prison for wire fraud relating to the fraudulent sale of websites, United States Attorney Benjamin B. Wagner announced.According to court documents, between February 2007 and March 2008, Shinen advertised and sold various websites to the public. He guaranteed to purchasers that the websites would produce a certain threshold income and promised that he would train purchasers to use the websites. The websites, however, did not generate the level of income or Internet traffic claimed by Shinen. In order to make it difficult for the website purchasers to contact him, Shinen used a number of aliases.
This case was the product of an investigation by the Federal Bureau of Investigation’s Cyber Crimes Task Force, which is made up of law enforcement officers from the FBI, Fresno Police Department and the Fresno County Sheriff’s Office. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Former IRS Employee Pleads Guilty to Claiming More Than $1,745,000 in False Tax ReturnsRead the Press Release
FRESNO, Calif. — Monica Nanette Hernandez, 41, of Fresno, pleaded guilty today to one count of filing false income tax returns, one count of wire fraud, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.According to court documents, Hernandez worked for the IRS Service Center in Fresno as a part-time data entry clerk. While employed in that capacity, Hernandez filed three tax returns for herself claiming excessive federal tax withholdings as a result of falsely claimed interest and dividend income. Based on these fraudulent returns, Hernandez obtained more than $175,000 in refunds from the IRS.
In addition, in April 2010, Hernandez stole 68 tax returns from the IRS Service Center and filed fraudulent tax returns using information contained on the stolen tax returns to claim excessive federal tax withholdings. In total, Hernandez attempted to claim more than $1,745,000 in fraudulent tax refunds.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said IRS Special Agent-in-Charge José M. Martinez, “especially in those situations where individuals with positions of trust commit fraud by taking taxpayer information to file fraudulent tax returns in the name of the stolen identity to obtain a larger tax refund. This resulted in significant harm to those taxpayers whose identities were stolen, as well as a monetary loss against the U.S. Treasury.”
“Identity theft has become a modern-day scourge in American society, for the damage it inflicts on its victims can be personally, professionally, and financially devastating,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, Treasury Inspector General for Tax Administration (TIGTA). “Those who engage in such crimes need to know that TIGTA and its law-enforcement partners will actively investigate IRS-related identity theft cases, and work with the U.S. Attorneys’ offices where perpetrators will be prosecuted to the fullest extent of the law.”
This case is the product of an extensive investigation by the Internal Revenue Service, Criminal Investigation and TIGTA. Assistant United States Attorneys Grant B. Rabenn and Christopher D. Baker are prosecuting the case.
Hernandez is scheduled to be sentenced by U.S. District Judge Anthony W Ishii on April 14, 2014. She faces a maximum statutory penalty for filing false income tax returns of three years in prison and a $250,000 fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a minimum mandatory term of two years in prison to be served consecutively with any other sentence and it carries a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Plea Agreement
Former Executive Indicted for Defrauding Health Care Company of Nearly $3 MillionRead the Press Release
HOUSTON – Joseph S. Antonucci, 41, of Houston, has been charged with defrauding his former employer, Patriot Managed Health Care Systems Inc., and causing a loss of more than $2.9 million, announced United States Attorney Kenneth Magidson.
Antonucci was charged in a sealed indictment, returned Jan. 14, 2014, and unsealed today upon his arrest. He made his initial appearance before U.S. Magistrate Judge Mary Milloy this morning and was ordered into custody pending a detention hearing set for tomorrow afternoon.
The indictment alleges Antonucci was employed by Patriot as executive vice president and treasurer at the company’s Houston headquarters. In this position, Antonucci ran the daily operations of the company, including soliciting and retaining clients, supervising other employees and controlling the company’s bank accounts, according to the indictment.
From at least January 2007 through September 2012, Antonucci allegedly defrauded Patriot by embezzling approximately $2.9 million from the company’s bank accounts. The indictment alleges Antonucci made unauthorized withdrawals and transfers from Patriot’s bank accounts using a corporate debit card and wrote checks from these accounts to himself. Antonucci further caused Patriot’s account to transfer money by wire into both his own accounts and the accounts of third parties who provided services to Antonucci personally, according to the allegations.
Antonucci allegedly executed the scheme by creating false financial documents. The indictment alleges these documents misrepresented key accounting figures for the company and overstated the company’s net worth while concealing Antonucci’s embezzlement. Antonucci allegedly sent these false documents via email to the managing partner of the investment fund that owned Patriot. Antonucci also used emails to request additional capital investment from the managing partner, falsely claiming the funds were needed for legitimate business operations and concealing that the company actually needed money because of his own embezzlement.
The indictment charges Antonucci with 15 counts of wire fraud based on these emails and personal expenses paid by Antonucci (with Patriot’s money) for his American Express bill, gambling at the Palms Casino in Las Vegas and private jet travel. The indictment also charges Antonucci with five counts of engaging in a monetary transaction with the proceeds of specified unlawful activity based on his use of Patriot funds to pay for additional personal expenses, including repayment of an Internal Revenue Service lien and a down payment on his home. The indictment also alleges one count of making false a statement, based on alleged false statements Antonucci made when FBI agents interviewed him in February 2013.
A conviction for wire fraud carries as possible punishment a maximum penalty of 20 years in federal prison on each count and a $250,000 maximum fine or twice the pecuniary gain or loss. Engaging in monetary transactions with the proceeds of specified unlawful activity carries as possible punishment a maximum penalty of 10 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss. If convicted of making a false statement, Antonucci also faces up to five years in federal prison and another $250,000 maximum fine.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Former East Haven Police Officer Sentenced to 30 Months in Federal Prison for Civil Rights OffensesRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Officer DAVID CARI, 36, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, this matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, CARI, Sergeant John Miller and Officers Dennis Spaulding and Jason Zullo were charged with various civil rights offenses.
According to the evidence presented during the trial of CARI and Dennis Spaulding, in February 2009 the defendant officers illegally searched a vehicle parked outside of a Latino-owned grocery store. Inside the store, CARI then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses. The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment. In the days following the arrest, CARI drafted various false versions of an arrest report to cover up the false arrest of the religious leader.
“David Cari was entrusted to protect the people of East Haven,” said U.S. Attorney Daly. “Instead, he violated that trust by arresting a priest when there was no basis to do so and attempting to cover up that illegal arrest with a false police report. Today’s sentence is appropriate as corrupt law enforcement cause great harm to the integrity of the legal system. It is always a sad day when a police officer is sentenced to prison as the vast majority of officers in East Haven and in this country serve honorably and bravely.”
“There is a basic trust the public has in those who are sworn to enforce the law – they are there to keep the public safe, not promote their own agenda,” said FBI Assistant Director-in-Charge Venizelos. “It is our hope that today's sentencing allows the community of East Haven to rebuild the trust they have with their police department.”
On October 21, 2013, the jury found CARI guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report to justify the false arrest. He has been detained since that date.
Spaulding was also found guilty of the same offenses, as well as use of unreasonable force by a law enforcement officer. He is scheduled to be sentenced on January 23.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On September 21, 2012, John Miller pleaded guilty to one count of violating an individual’s civil rights by using unreasonable force during the course of an arrest. He awaits sentencing.
This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office, and is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Connecticut Resident Indicted for Attempting to Ship Sensitive Military Documents to IranRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Bridgeport returned an indictment today charging MOZAFFAR KHAZAEE, also known as “Arash Khazaie,” 59, formerly of Manchester, Conn., with two counts of interstate transportation of stolen property. The indictment stems from KHAZAEE’s alleged attempt to ship to Iran proprietary material relating to military jet engines and the U.S. Air Force’s F35 Joint Strike Fighter program that he had illegally retained from defense contractors where he had been employed.
As alleged in court documents, federal law enforcement agents began investigating KHAZAEE in November 2013 when officers with U.S. Customs and Border Protection Service (“CBP”), assisted by Homeland Security Investigations (“HSI”) special agents, inspected a shipment that KHAZAEE sent by truck from Connecticut to a freight forwarder located in Long Beach, Calif., which was intended for shipment from the U.S. to Iran. The documentation for KHAZAEE’s shipment indicated that it contained household goods. Upon inspecting the shipment, however, CBP officers and HSI personnel discovered that the content of the shipment primarily contained numerous boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines. Upon further investigation, law enforcement learned that KHAZAEE holds Iranian and U.S. citizenship and, as recently as August 2013, worked as an engineer for defense contractors, including firms that are the actual owners of the technical and proprietary documents and materials in KHAZAEE’s shipment.
KHAZAEE, who became a naturalized U.S. citizen in 1991 and holds a valid U.S. passport, recently moved from Connecticut to Indianapolis.
On January 9, 2014, KHAZAEE was arrested by HSI and FBI agents at Newark Liberty International Airport in New Jersey after flying from Indianapolis to Newark, before he was able to board a connecting flight to Frankfurt, Germany. KHAZAEE’s ticketed destination was Tehran, Iran.
KHAZAEE is detained pending his transport to Connecticut. His arraignment is not yet scheduled.
The indictment charges KHAZAEE with two counts of transporting, transmitting and transferring in interstate commerce goods obtained by theft, conversion, or fraud. Each charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Daly stated that there is an ongoing investigation in this matter and encouraged anyone with information that may be relevant to that investigation to call HSI at 203-773-2155, or the FBI at 203-503-5000.
This matter is being investigated by Homeland Security Investigations in New Haven and Los Angeles, the New Haven Division of the Federal Bureau of Investigation, the Defense Criminal Investigative Service in New Haven, the U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, and the Department of Commerce’s Boston Office of Export Enforcement.
U.S. Attorney Daly also commended the efforts of the many other agencies and offices that have been involved in this investigation, including the U.S. Attorney’s Offices for the Central District of California, the Southern District of Indiana and the District of New Jersey, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.
This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES).
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Clayton County Police Officer Assigned to U.S. Marshal’s Service Fugitive Task Force Pleads Guilty to Drug TraffickingRead the Press Release
ATLANTA – Dwayne Penn, formerly a police officer with the Clayton County Police Department assigned to the U.S. Marshals Service Fugitive Task Force, has pleaded guilty to conspiring to distribute over five kilograms of cocaine.
“This Office is committed to protecting the public’s trust in law enforcement,” said United States Attorney Sally Quillian Yates. “Penn was a drug dealer with a badge. He used his official position to traffic drugs and now faces a significant sentence for his betrayal of trust.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea brings to an end one man’s law enforcement career while providing an opportunity for those many others working within the criminal justice system to re-examine their own oaths and re-dedicate themselves to those oaths. The FBI will continue to make public corruption matters, in particular those involving law enforcement officers, a priority investigative matter.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case is a reminder that law enforcement officers are held to a higher standard and are not above the law. This officer is not representative of the honest and hard-working men and women in law enforcement who do not violate their oaths, but faithfully protect and serve the public daily.”
According to United States Attorney Yates, the charges, and other information presented in court: In August 2013, Penn, who was employed with the Clayton County Police Department at the time, conspired with Adrian Austin, an Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains. Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin.
In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation. Penn drove his police car to the planning meetings. While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply. Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement. They would divide up the seized cocaine among themselves according to the plan. As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location. During one of the meetings, Penn even drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day. Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.
As planned, on the morning of August 28, 2013, Penn and Austin arrived at the appointed Decatur parking lot. Penn drove his police car and parked it in view of where the drug deal was to occur. While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases. Penn also called task force officers with the DeKalb County Police Department and DeKalb County Sheriff’s Office and asked if DeKalb County had any surveillance vehicles that fit the description of vehicles Penn saw in the parking lot that morning. Penn rebuffed offers of assistance from his fellow officers, claiming he was just doing surveillance.
Before the deal’s consummation, the confidential informant met with Austin in Austin’s car in the parking lot. Austin relayed information between the confidential informant and Penn over his cellphone. The confidential informant and Austin discussed the imminent deal, with the confidential informant’s describing where s/he would put the drugs after receiving them.
The confidential informant exited Austin’s car and shortly thereafter met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn. The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat.
After the confidential informant emerged from his/her vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving. Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant. Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat. Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did. Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down. Penn then ushered the confidential informant into Penn’s police car. The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag. Penn walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car. Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.
Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot. Each had a loaded firearm with a round in the chamber. The shopping bag with substituted cocaine was recovered from Penn’s vehicle.
On August 28, 2013, Penn was terminated from the Clayton County Police Department and the Marshals Service Task Force. His codefendant, Adrian Austin, pleaded guilty to the same charge on January 14, 2014.
Pursuant to the negotiated plea agreements into which Penn and Austin entered, they each have agreed to a binding ten-year term of imprisonment, to be followed by five years of supervised release.
Sentencing for Penn is scheduled for February 21, 2014, at 2:00 p.m., before United States District Judge Amy Totenberg. Sentencing for Austin is scheduled for April 10, 2014, at 2:00 p.m. also before United States District Judge Totenberg.
The case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.
Assistant United States Attorney Scott Ferber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Baptist Missionary Sentenced for Wire FraudRead the Press Release
RICHMOND, Va. – Brady Nurse, 38, of Bothell, Washington, was sentenced today to 24 months in prison, followed by 3 years of supervised release for his role in connection with the fraudulent reimbursement of expense invoices while he served as a Baptist missionary in Portugal.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Richmond Division, made the announcement after sentencing by U.S. District Judge James R. Spencer.
Nurse pleaded guilty on October 21, 2014, to wire fraud. According to court documents, Nurse admitted that from 2008 to 2012, while working in Portugal as a Baptist missionary for the International Mission Board (“IMB”), he fraudulently obtained $284,479.74 through 135 fraudulent reimbursement requests. The IMB is an entity of the Southern Baptist Convention, the nation's largest evangelical denomination, with more than 40,000 churches and nearly 16 million members. It is headquartered in Richmond, Virginia. The IMB is dedicated to evangelizing around the world with approximately 4,800 missionaries worldwide.
During the course of the fraud, Nurse served as the Logistics Coordinator (“LC”) in Portugal, responsible for ensuring the payment of certain expenses for himself, other missionaries, and the IMB overall while overseas. He was also responsible for the financial support activities for IMB field personnel assigned to Portugal. As a Logistics Coordinator, Nurse was paid on an as-needed basis, for field personnel housing, car maintenance, applicable taxes, and major purchases.
IMB LC’s located overseas conducted business from both IMB bank accounts and personal accounts. Nurse acknowledged that when an authorized expense was incurred, he would prepare a request for reimbursement, supported by appropriate documentation. He would then submit the reimbursement request by wire transfer/email from Portugal to the IMB offices in London, U.K., which were then routed to IMB offices in Richmond, Virginia. Once the reimbursement requests were approved by the IMB, Nurse was paid by electronic funds transfers to his overseas bank account through on line banking from Richmond. The internal auditing and control staff of the IMB initially detected, and then determined the extent of Nurse’s fraudulent scheme, subsequently reporting it to the FBI.
In pleading guilty, Nurse admitted using a variety of techniques to submit for, and fraudulently receive, funds from IMB. For instance, he increased amounts on valid documents/invoices submitted on expense reports to fraudulently increase his reimbursement; submitted fraudulent, manufactured, and/or duplicated documentation on expense reports for reimbursement; submitted inadequate documentation, such as quotes and estimates for services to be performed by vendors rather than actual paid invoices, but falsely represented them as services actually provided; altered documentation; and was reimbursed for non-reimbursable expenses such as a jewelry purchase disguised as vehicle painting.
On January 30, 2014, Nurse officially resigned from IMB.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney S. David Schiller prosecuted the case on behalf of the United States.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-138.
Tweet
Former Afro Dogs President Sentenced on Drug Conspiracy and Other ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dewey Taylor, a/k/a Road Rash, 42, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute cocaine and structuring financial transactions following a five week jury trial, was sentenced to 144 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Eric M. Opanga, who handled the prosecution of the case, stated the Government’s evidence established that the defendants in this case used the Afro Dogs Motorcycle Clubhouse as a front for a cocaine trafficking operation. Dewey Taylor was the former president of the Afro Dogs Motorcycle Club. Between 2006 and March 2, 2011, Taylor supplied Afro Dogs National Vice-President John C. Smith, a/k/a Kazoo, with cocaine for distribution to members and non-members throughout the Buffalo area. The evidence presented by the Government at trial included five months of wiretap conversations recorded on John Smiths’ cellular phone. The Government also presented evidence of 14 undercover purchases of cocaine from Smith. John Smith was awaiting sentencing in June 2013 when he died.
In addition to being found guilty of drug conspiracy, Taylor was also convicted of seven counts of structuring financial transactions to evade currency reporting requirements. On seven separate occasions, Taylor deposited funds into personal and business accounts in the name of DT Liquors at the Erie Metro Federal Credit Union. The individual deposits totaled more than $10,000 which requires the filing of a Currency Transaction Report with the Internal Revenue Service. But the defendant split the transactions into smaller amounts in an attempt to evade the reporting requirements.
Co-defendant Dale Lockwood pleaded guilty to conspiracy to possess with intent to distribute cocaine in August 2013 and was sentencing to 60 months in prison. Co-defendants William Szymanski, Anthony Burley, and Van Miller were acquitted of the same charge.
The five defendants were arrested in March 2011 along with seven other defendants who were previously convicted of related charges.Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Wayne Olson, the Buffalo Police Department under the direction of Commissioner Daniel Derenda, the Amherst Police Department, under the direction of Chief John Askey, the Tonawanda Police Department under the direction of Chief Anthony Palombo, the Lockport Police Department under the direction of Chief Lawrence Eggert, and the Internal Revenue Service, under the direction of Toni M. Weirauch, Special Agent in Charge.
Forest Marijuana Cultivation Supplier Pleads GuiltyRead the Press Release
FRESNO, Calif. — Javier Rios Morales, 25, of Jalisco, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute 3,405 marijuana plants and 350 pounds of processed marijuana seized from a grow site in Inyo National Forest, announced United States Attorney Benjamin B. Wagner.According to court documents, U.S. Forest Service agents found a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. They set up trail cameras and photographed Rios making supply drops at a drop point to the site. Rios also picked up processed marijuana from the site. One of the load vehicles was tracked to several stash houses in Riverside County. Ultimately, agents executed four search warrants at the grow site and three residences in Riverside County.
Agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, and 2,200 pounds of trash from the Hogback Creek grow site. In pleading guilty, Rios agreed to pay $6,572.14 to the U.S. Forest Service for removal and dumping fees associated with eradication of the site. Agents in Riverside County seized two pounds of methamphetamine, a methamphetamine laboratory, five firearms, $10,000 in cash, and two pounds of marijuana from a residence in Moreno Valley. Agents seized another 450 marijuana plants and marijuana cultivation at a stash house in Homeland. At another stash house in Romoland, they seized a firearm, marijuana shake and residue, and shipping labels consistent with the shipment of marijuana to Chicago.
Rios is scheduled for sentencing on April 14, 2014, by United States District Judge Lawrence J. O’Neill. He faces a sentence of five years to 40 years in prison and a $5 million fine. He is also subject to deportation to Mexico, upon completion of any prison term. The actual 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.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Plea Agreement
Florida Man Arrested, Charged in New Jersey with Sale of Deadly Toxin on Underground Online MarketplaceRead the Press Release
NEWARK, N.J. - A Florida man is expected in court today after federal agents arrested him on Jan. 18, 2014, in LaBelle, Fla., on New Jersey federal charges alleging he sold the potentially deadly toxin abrin through an underground, Internet-based marketplace, New Jersey U.S. Attorney Paul J. Fishman announced.
Jesse William Korff, 19, of LaBelle, was arrested as a result of an investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the FBI. The criminal complaint charges Korff with one count of possession and transfer of a toxin for use as a weapon and one count of smuggling goods from the United States. Korff, who had posted a listing for the sale of the toxin on a website known as “Black Market Reloaded” (BMR), was unaware the customer who responded was an undercover HSI agent.
The defendant is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Douglas N. Frazier in Fort Myers, Fla.,federal court. He will be brought to New Jersey to appear in Newark federal court on a date to be determined.
“The criminal complaint alleges Jesse Korff was willing to sell a potentially deadly toxin to a stranger over the Internet,” said U.S. Attorney Fishman. “He allegedly peddled the poison on a virtual black market of illegal and dangerous goods, hidden in the shadow of a secretive computer network favored by cybercriminals. Had this been an actual sale to a real customer, the consequences could have been tragic. Fortunately, an undercover law enforcement officer posing as a buyer was able to get a dangerous chemical weapon and its alleged seller off our streets.”“HSI has worked tirelessly with the FBI and other law enforcement partners to combat underground websites such as BMR,” said Andrew McLees, Special Agent in Charge of HSI Newark. “Anyone who can sell abrin, a potential agent for chemical terrorism, must be stopped. The arrest of Korff shows HSI’s commitment to protecting the public from individuals who show a callous disregard for their safety in the interest of making a buck.”
According to the criminal complaint:
Beginning in April 2013, HSI special agents conducted an investigation of illicit sales activity on BMR. The website provides a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including biological agents, toxins, firearms, ammunition, explosives, narcotics and counterfeit items. Unlike mainstream e-commerce websites, BMR is only accessible via the Tor network – a special computer network designed to enable users to conceal their identities and locations. Transactions on BMR are conducted using Bitcoin, a decentralized form of electronic currency that only exists online.
Korff maintained a seller’s profile on BMR, through which he negotiated the sale of two liquid doses of abrin to the undercover agent. During their online conversations, Korff told the buyer about his delivery methods – concealing vials in a carved-out and re-melted candle – and discussed how much abrin was needed to kill a person of a particular weight and how best to administer the toxin. Korff also assured the buyer that a victim’s death would appear to be a bad case of the flu.
Korff and the buyer agreed on a total purchase price of $2,500 for two doses of the poison. The undercover transferred a deposit – the equivalent of $1,500 in Bitcoin – from a bank account in New Jersey to Korff on Jan. 6, 2014. The pair agreed that the buyer would travel from Canada on Jan. 15, 2014, to retrieve the abrin from a prearranged location. Korff sent the agent pictures of a specific spot at a rest stop approximately 10 miles outside Fort Myers where he planned to leave the package.
On the arranged day, Korff dropped off a fast food bag containing two wax candles at the location. An undercover agent collected the bag and left behind an additional deposit toward the remaining payment. Law enforcement had Korff under surveillance throughout the transaction.
The candles were found to contain vials of liquid containing a detectable amount of abrin. Even small doses of abrin are potentially lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge McLees in Newark, and FBI Special Agent in Charge Paul Wysopal, Tampa Division, with leading the ongoing investigation. He also thanked special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, and HSI in Ft. Myers, under the direction of Special Agent in Charge Susan McCormick, for their work. The U.S. Attorney also recognized the FBI’s Joint Terrorism Task Force, including and along with the U.S. Postal Inspection Service and the Glades County, Hendry County and Lee County Sheriff’s Offices for their assistance. Vital support was provided by the Justice Department’s National Security Division Counterterrorism Section in Washington and the U.S. Attorney’s Office for the Middle District of Florida.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.14-024
Korff, Jesse William Complaint
Five North Side Residents Sentenced on Drug and Firearm Related ChargesRead the Press Release
RICHMOND, Va. – Christopher Canty, 33, of Richmond, Virginia was sentenced today to 27 months in prison, followed by 3 years of supervised release for distribution of heroin from his family home on Montrose Avenue. Canty was the last of five men sentenced for drug trafficking and/or firearms offenses arising out of activities at and around the residence on Montrose Avenue.
Chawn Beale, 21, a half-brother to Canty, was sentenced on January 15, 2015 to 15 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 15, 2014 to distribution of crack cocaine; Corey Beale, 25, also a half-brother to Canty, was sentenced on January 15, 2015 to 90 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 16, 2014 to possession of a firearm by a convicted felon, arising out of the sale of a firearm from the Montrose Avenue residence; Quintrell Smith, 19, was sentenced on January 16, 2015 to 37 months’ imprisonment followed by 3 years of supervised release after pleading guilty on October 20, 2014 to distribution of crack cocaine; and Corey Mayo, 24, who was determined to be a career offender, was sentenced on January 16, 2015 to 151 months’ imprisonment followed by 5 years of supervised release after pleading guilty on October 20, 2014, to distribution of crack cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the sentencings by U.S. District Judge James R. Spencer.According to court documents and statements made at the sentencings, each of the defendants admitted to being involved in a conspiracy for several months in 2014 to sell either crack cocaine or heroin. Many of the sales occurred at the Montrose Avenue residence. Additionally, Corey Beale admitted selling two firearms during the course of this conspiracy. Mayo also admitted to possessing a firearm during the course of this conspiracy, which was recovered by law enforcement officers on May 30, 2014. According to a witness who testified today, that neighborhood used to be a peaceful area, but over the last several years crime has increased, including shootings. On May 28, 2014, there was a drive-by shooting at the Montrose Avenue residence. However, information presented at sentencing indicated that the shootings in the area have decreased since the May arrests of the defendants.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:14-cr-81 and 3:14-cr-83.
This case was investigated by ATF and the Richmond Police Department. Assistant U.S. Attorney Olivia L. Norman prosecuted the case on behalf of the United States.Tweet
Federal Jury Convicts Husband and Wife on Conspiracy and Health Care Fraud ChargesRead the Press Release
Defendants Owned/Operated a Medical Supply Business and Lab in Arlington
DALLAS — Following a one-week trial before U.S. District Judge Jorge A. Solis, a federal jury has convicted Pamela Adenuga, 39, and her husband, Kehinde (Kenny) Adenuga, 46, both of Arlington, Texas, on all counts of a superseding indictment charging them with one count of conspiracy to commit health care fraud and seven substantive health care fraud counts, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Solis remanded the defendants into custody. Each defendant faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each count; restitution could also be ordered. A sentencing date was not set.
Since approximately 2007, the Adenugas were the co-owners and operators of His Grace Medical Supply & More (HGMS), located in Arlington. The business also consisted of a lab component that drew and tested blood for Medicare and Medicaid beneficiaries. The defendants’ business was primarily adult incontinence supplies (diapers, wipes, cream, etc.). In fact, 98% of their business was billing Medicaid for these supplies.
Evidence revealed that several Medicaid beneficiaries, who HGMS billed for incontinence supplies, did not need them or they were never delivered the supplies. HGMS falsified files with forged prescriptions from doctors and forged delivery receipts of beneficiaries. The investigation revealed that HGMS billed in excess of $2 million solely for adult incontinence supplies.
During trial, the government called doctors and Medicaid beneficiaries to testify that the documents found at HGMS during a search were false and fraudulent. The government also introduced evidence that HGMS billed these Medicaid beneficiaries 96 times for adult incontinence supplies – each and every billing was false and fraudulent.
Dozens of other doctor forgeries were found at HGMS. These forgeries were accompanied by affidavits prepared by the defendants to attest to the accuracy of patient files that were the subject of a Medicaid audit. Medicaid had identified some issues with HGMS billing in 2010, and asked HGMS to substantiate its claims with proper documentation. This documentation was forged and false. More than 100 of those affidavits were prepared on the same day and notarized by a parent of one of the defendants.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Attorneys Mindy Sauter and Michael C. Elliott are in charge of the prosecution.
Defendant Sentenced in Manhattan Federal Court to Five Months in Prison for Role in Gambling RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN TING was sentenced today in Manhattan federal court to five months in prison and ordered to forfeit $2 million for conducting an illegal gambling business. TING was charged in April 2013 along with 33 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included charges of racketeering, money laundering, extortion, and various gambling offenses. He was sentenced by U.S. District Judge Jesse M. Furman.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
From 2010 through 2013, TING ran what was likely the largest and highest-stakes illegal poker game in New York City. At these games, the pots frequently reached tens, or even hundreds, of thousands of dollars or more. TING collected percentages of the pots, known as “rakes.” He made millions of dollars in profits from operating his illegal poker games. These poker games employed at least five or more people to assist with the operation of the games, payments of debts, and collection of debts.
In addition to the prison term and forfeiture, TING, 42, of New York, New York, was sentenced to two years of supervised release.
Twenty-five defendants in this case have pled guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $68,000,000.00. The following defendants have pled guilty, and have been sentenced or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014;
- Justin Smith pled guilty to gambling charges on September 4, 2013, and was sentenced on January 6, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013;
- Eugene Trincher pled guilty to gambling charges on November 14, 2013;
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013;
- Illya Trincher pled guilty to gambling charges on November 15, 2013;
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013;
- Moshe Oratz pled guilty to gambling charges on December 3, 2013;
- Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013;
- Noah Siegel pled guilty to gambling charges on December 5, 2013;
- Molly Bloom pled guilty to gambling charges on December 12, 2013; and
- Alexander Katchaloff pled guilty to gambling charges on January 16, 2014.
The charges against the remaining eight defendants are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Defendant Charged in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce the unsealing of an indictment charging Louis A. Francois, 44, of Margate, with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. The defendant was arraigned today before U.S. Magistrate Judge Dave Lee in West Palm Beach.
According to the indictment, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park, Florida. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals' names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois' “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
If convicted, Francois faces a maximum sentence of twenty years in prison for each wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for each aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
An Indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Davenport Man Sentenced to 12 Months and One Day in Prison for Wire Fraud and Money LaunderingRead the Press Release
DAVENPORT, IA – On January 17, 2014, Charles Arthur Ruhl, Jr., age 59, of Davenport, Iowa, was sentenced to twelve months and one day of imprisonment for wire fraud and money laundering, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also imposed a $144,000 fine and a two-year term of supervised release.
From 2008 to 2012 Ruhl embezzled over $1.3 million from four limited liability companies that he managed. Ruhl used the stolen money for business expenses related to NAI Ruhl and Ruhl Commercial Company, and for personal expenses such as property taxes on a vacation home, real estate investments, and his daughter’s college tuition. For years, Ruhl concealed his fraud by directing his employees to generate false financial statements and distribute them to the members of the defrauded LLC’s. Ruhl’s fraud was discovered on May 31, 2012, after he had so depleted the bank accounts of the Lincoln Healthcare Building, LLC, that there was not enough money to pay the taxes on the property owned by the company. Over the next eighteen months Ruhl repaid all of the money that he had taken.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Couple Sentenced to Federal Prison for Selling Guns, Drugs to Prohibited PersonRead the Press Release
POCATELLO —Marilee Taylor Love, 45, of Rexburg, Idaho, and Rodney Lewis Hall, 55, of Rigby, Idaho, were sentenced today for conspiring to distribute marijuana and methamphetamine, and unlawfully possessing and selling various firearms, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Love to 32 months in prison followed by five years of supervised release. Hall was sentenced to 21 months in prison followed by three years of supervised release. They pleaded guilty to the charges on September 30, 2013.
According to the plea agreements, Love and Hall sold methamphetamine to another person in Madison County, Idaho, three times between February 2011 and February 2012. During one of the sales, Love and Hall also sold the individual a .22 caliber pistol, a .22 caliber rifle, and a silencer not registered in the National Firearms Registration and Transfer Record. On another occasion, Love sold the same individual a .45 caliber pistol and a loaded magazine of ammunition. Love’s plea agreement states that she knew the individual who purchased the firearms was prohibited from possessing firearms due to a conviction for a crime punishable by more than one year of prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office.
“Drug trafficking and firearms are a dangerous combination,” said Olson. “Where guns are unlawfully transferred to persons prohibited by law from possessing them, federal law enforcement and its cooperating state and local partners will act swiftly and aggressively to ensure that those responsible are fully prosecuted.”
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Columbus Man Pleads Guilty to Sex Trafficking of JuvenileRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Valerio V. Alexander, 45, of Columbus, pleaded guilty in U.S. District Court today to one count of sex trafficking involving a juvenile.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Commander Paul Pride and Columbus Police Chief Kim Jacobs announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
The plea agreement includes a sentence of 15 years in prison for Alexander. The court will conduct a pre-sentence investigation prior to determining whether or not to accept the plea agreement and the sentence. The court will determine the length of any term of supervised release and the amount of any fine or restitution. Judge Sargus will set a date for sentencing.
“The investigation began following a tip called in to the National Human Trafficking Hotline,” U.S. Attorney Stewart said. “Prostitution of a juvenile is human trafficking as defined by federal law. We will prosecute it aggressively.”
According to court documents, a task force officer working for HSI received information in March 2013 that a 16-year-old child had been the victim of sex trafficking. Further investigation found that Alexander had taken photographs of the victim in February 2013 and used the pictures to create advertisements for prostitution on a website.
Alexander instructed the victim to stay at a Columbus apartment he provided and offered her condoms and marijuana to “calm her nerves.” The victim followed Alexander’s instructions and engaged in sexual activity for money.
Agents arrested Alexander on March 8, 2013. He has been in custody since his arrest. A federal grand jury indicted Alexander and a woman involved in the human trafficking, Thomasina Howard in April 2013. Howard pleaded guilty on August 9, 2013 to one count of conspiracy to commit sex trafficking of children and is scheduled for sentencing on February 13. Alexander was scheduled to go on trial today.
“Human trafficking is a horrendous crime, especially when it affects children, and this case shows why it is so important to work together to fight this problem,” said Ohio Attorney General Mike DeWine. “The task force has done an exemplary job, and I am proud of the work that my office, our local partners, and federal officials are doing to further awareness and expand efforts to fight human trafficking.”
The National Human Trafficking Resource Center (NHTRC) is a national, toll-free hotline, available to answer calls and texts from anywhere in the country, 24 hours a day, 7 days a week, every day of the year. The NHTRC is a program of Polaris Project, a non-profit, non-governmental organization working exclusively on the issue of human trafficking. Call the hotline at 1-888-373-7888or text HELP or INFO to BeFree (233733).
U.S. Attorney Stewart commended the investigation by HSI, Columbus Police and Ohio Attorney General DeWine’s Ohio Organized Crime Investigations Commission.U.S. Attorney Stewart also commended Assistant U.S. Attorneys Heather Hill and Deborah Solove, who prosecuted the case.
Co-Conspirator of Arlington Doctor Pleads Guilty to Oxycodone Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – Donald Alvin Petties, 51, of Sterling, Virginia, pleaded guilty today to conspiracy to distribute and dispense a controlled substance and to possession with intent to distribute and dispense controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Petties faces a maximum penalty of 20 years in prison and a $1 million fine for the conspiracy offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.In a statement of facts filed with the plea agreement, Petties admitted that during the course of the conspiracy, which began in February 2013, an Arlington, Virginia doctor, Derron McRae Simon, wrote numerous oxycodone prescriptions for Petties that were not for a legitimate medical purpose and were beyond the bounds of medical practice. Simon also wrote fraudulent oxycodone prescriptions in the names of Petties’s mother and children, without their knowledge or authorization, and Petties then filled these fraudulent prescriptions. Petties and Simon would sell the oxycodone to other co-conspirators for further distribution. Petties conspired to distribute at least 6,540 oxycodone 30 mg pills, while Simon conspired to distribute at least 11,000 oxycodone 30 mg pills.
Simon pleaded guilty on December 18, 2014, to conspiracy to distribute and dispense, and to possession with intent to distribute and dispense controlled substances. Simon also pleaded guilty to distributing a controlled substance to a person under the age of 21. In addition to Petties, seven other co-conspirators of Simon have previously pleaded guilty as a result of the investigation.
On July 28, 2014, Simon signed a consent order with the Virginia Board of Medicine and voluntarily and permanently surrendered his license to practice medicine and perform surgery in Virginia. The consent order states Simon will not be eligible for reinstatement of his license at any future date.
This case was investigated by the FBI’s Washington Field Office. Special Assistant U.S. Attorneys Adam Ptashkin, Jennifer A. Clarke, and Jason M. Scheff are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-300.
Tweet
Campaign Services Professional Arraigned for Role in Campaign Finance CrimesRead the Press Release
As part of conspiracy, Former SDPD Detective Ernesto Encinas Allegedly Sought to Fire the SD Chief of Police and Pick His Replacement
SAN DIEGO, CA - Ravneet Singh, the proprietor of Washington, D.C.-based ElectionMall, Inc., was arraigned today on charges that he conspired to finance political campaigns using money from an illegal foreign source. Singh was arrested by FBI Agents on Friday, January 17, 2014, pursuant to an arrest warrant. According to the complaint, filed by an FBI Special Agent, unsealed by U.S. Magistrate Judge William V. Gallo, Singh conspired with former San Diego Police detective Ernesto Encinas and others to funnel more than $500,000 of illegal foreign money into San Diego municipal and federal campaigns, primarily in 2012 and 2013. Singh’s company, ElectionMall, Inc., was also charged as a defendant.
According to the complaint, Singh, who styled himself the “campaign guru,” was the President, Chief Executive Officer and founder of ElectionMall, Inc., a company that provided social media services and other campaign and election products to political candidates throughout the world. Encinas was the owner of a private security and consulting business in San Diego who oversaw the protection detail of a person identified in the complaint only as “the Foreign National.” Between approximately 2011 and 2013, Singh and Encinas helped the Foreign National donate hundreds of thousands of dollars to a series of candidates for elective office—including during the 2012 San Diego mayoral election, a 2012 Congressional campaign and the 2013 San Diego special mayoral election (up to, but not after, December 2013).
Despite the Foreign National’s willingness to contribute funds, he could not legally donate to any of these campaigns. Under federal law, “foreign nationals” are prohibited from making any contributions or expenditures in connection with any American electoral campaign—whether at the federal, state or local level. Knowing this, Singh and Encinas allegedly used a series of increasingly complex techniques to hide the fact that the Foreign National was the true source of these illicit campaign funds.
According to the complaint, Encinas—among other devices—helped mask the Foreign National’s contributions through the use of shell companies.
Similarly, Singh used his expertise to facilitate the donation of social media services to political candidates that the Foreign National favored. The complaint alleges that these contributions—sometimes classified as “in-kind contributions”—were not reported in any campaign filings and totaled nearly $300,000.
According to the complaint, the Foreign National’s illegal contributions included:
A $100,000 contribution to a SuperPAC
$100,000 in unreported compensation for campaign services
A $30,000 contribution to a political party committee
Another $190,000 in unreported compensation for campaign services
A $150,000 contribution to another SuperPAC
A $30,000 contribution to another political party committee
The promise of a “mill” in additional contributionsAccording to the complaint, Encinas wanted the next mayor to fire the Chief of Police and replace him with a person of Encinas’s choosing in exchange for the Foreign National’s financial help.
Complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Case Number: 14MJ0201Ravneet Singh
Age: 41
Washington, D.C.ElectionMall, Inc.
Ernesto Encinas
SUMMARY OF CHARGES AND MAXIMUM PENALTIES
Age: 57
San Diego, CACount 1: Conspiracy to Commit Offenses against the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
INVESTIGATING AGENCIESFederal Bureau of Investigation
Internal Revenue Service Criminal Investigation
San Diego Police DepartmentBurlington Man Sentenced on Federal Cocaine ConspiracyRead the Press Release
DAVENPORT, IA – On January 21, 2014, Shane Francis Culbertson, age 29, of Burlington, Iowa, was sentenced by United States District Judge John A. Jarvey to 30 months of imprisonment for conspiracy to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. Culbertson was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately March 2012 and continuing until about April 24, 2013, Culbertson conspired with other persons to distribute cocaine in the Burlington, Iowa area. Specifically, during the above-mentioned time period Culbertson personally sold cocaine in quantities ranging from one to nine ounces to undercover law enforcement. Over the course of the conspiracy Culbertson was responsible for over 500 grams of cocaine. Culbertson’s three co-defendants, Zachary Robert Shullaw, Corey Damon Keys, and Akeem Levelle Eison, have each plead guilty to conspiracy to distribute cocaine and are awaiting sentencing.
This case was investigated by the Iowa Department of Narcotics Enforcement; the United States Drug Enforcement Administration; the Burlington, Iowa, Police Department; and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Bakersfield Woman Sentenced to 2.5 Years in Prison for Counterfeiting U.S. CurrencyRead the Press Release
FRESNO, Calif. —Shannon Nicole Johannsen, 35, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O’Neill to two and a half years in prison for counterfeiting U.S. currency and possessing images of currency for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.According to court documents, from October 2012 to March 2013, Johannsen counterfeited Federal Reserve Notes in $100 and other denominations. She possessed computers, printers, paints, powders, cleaning agents, and numerous digital images of U.S. currency. On several occasions, Johannsen passed the counterfeit currency at retail stores and at a casino in Kern County.
This case was the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney prosecuted.
Attempting to Smuggle More Than $2 Million Lands Illinois Man in PrisonRead the Press Release
LAREDO, Texas – Octavio Orizaba, 38, a legal permanent resident from Illinois, has been ordered to prison for attempting to smuggle more than $2 million to Mexico, announced United States Attorney Kenneth Magidson. Orizaba entered a guilty plea Sept. 6, 2013.
Today, U.S. District Judge Diana Saldana handed Orizaba a sentence of 37 months in federal prison and ordered the forfeiture of $2,147,985. In handing down the sentence, Judge Saldana noted the sentence takes into account the need to protect the public, noting “where there is money of this magnitude, there are people willing to protect it…which means danger.” Orizaba will also be required to serve a term of three years of supervised release following completion of the prison term.
On June 30, 2013, Orizaba attempted to exit the United States from Laredo with his wife and two children. At that time, he provided a negative declaration as to whether he was transporting weapons, ammunition or currency over the sum of $10,000 into Mexico. However, further inspection resulted in the discovery of 144 plastic-wrapped, vacuum-sealed bundles, which were concealed in the sofa and futon he was hauling in the bed of his pick-up truck. Specifically, 47 bundles were discovered in the sofa, while 97 were found in the futon. The hidden currency totaled $2,147,985.
At the time of the guilty plea, Orizaba acknowledged he concealed the currency and failed to report it to authorities. He further admitted he was hired by someone in the Illinois area to take the money to Guanajuato, Mexico, and expected to be paid for doing so.
Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S. However, if the quantity is more than $10,000, they are required to report it to Customs and Border Protection (CBP) officer. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.
Orizaba will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by CBP and Homeland Security Investigations and is being prosecutes by Assistant United States Attorney Suntrease Williams.
Alabama Medical Clerk and Another Indicted in Stolen Identity Tax Refund Fraud SchemesRead the Press Release
Montgomery, Alabama - Sasha Webb and Charlie Jackson have each been indicted for stolen identity refund fraud crimes, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. Webb was arrested on December 20, 2013, and Jackson’s arrest took place on January 15, 2014.
Webb was charged with conspiracy to file false claims, mail fraud and aggravated identity theft. According to the indictment, Webb worked as a medical records clerk at an Alabama Department of Corrections facility in Elmore County, Ala. Webb had access to inmate identification data and sold the information to Jacqueline Slaton and Harvey James, who then used the inmates’ information to file hundreds of false tax returns that claimed over one million dollars in false refunds. Slaton and James knowingly paid Webb for stolen identities.
Charlie Jackson, a resident of Montgomery, Ala., was charged with wire fraud and aggravated identity theft. According to the indictment, between October 2010 and April 2013, Jackson obtained stolen identities and used those identities to file false tax returns. Jackson directed the tax refunds to prepaid debit cards in the names of other individuals.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson and Webb each face a statutory maximum potential sentence of 20 years in prison for each wire and mail fraud count and a statutory mandatory two-year sentence for the aggravated identity theft counts. Webb also faces a statutory maximum potential sentence of five years in prison for the conspiracy count. Both defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The cases were investigated by special agents of the Internal Revenue Service - Criminal Investigation, U.S. Postal Inspectors and the Elmore County Sheriff’s Office. Trial Attorneys Jason Poole, Charles Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the cases with the assistance of Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Monday 20 January 2014
Estill Man Sentenced to Prison for Identity Theft Tax FraudRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Angel Masdeu, age 52, of Estill, SC was sentencedin federal court in Charleston, South Carolina, for aggravated identify theft, a violation of Title 18, United States Code, Section 1028A. United States District Judge Richard M. Gergel of Charleston sentenced Masdeu to 24 months imprisonment and one year of supervised release.
Evidence presented in this case established that Masdeu stole the identifying information of individuals, and using this stolen identifying information, he filed fraudulent tax returns that claimed false tax refunds. After a thorough investigation, the IRS determined that Masdeu’s identify theft caused more than $260,000 in loss to the United States Treasury due to fraudulent tax refunds.
“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation,” said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.”
The case was investigated by agents of the IRS-Criminal Investigative Division. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.# # #
Saturday 18 January 2014
St. Louis Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO - ANTHONY LAMONT WINTERS, of St. Louis, was sentenced to two years imprisonment for aggravated identity theft. Winters appeared before Judge Stephen N. Limbaugh, Jr. in St. Louis. Winters admitted to stealing credit card numbers from patrons of a Maplewood restaurant at which he was employed in January 2013. Winters charged more than $12,000 to the stolen credit cards. Winters had fled to New York City by the time he was apprehended and awaits trial on other stealing and identity theft related charges in New York City; Pittsburgh, Pennsylvania; Arlington, Virginia; Chesapeake, Virginia; and Anne Arundel County, Maryland. In addition to the term of imprisonment, Winters will be ordered to repay the stolen funds.
This case was investigated by the Maplewood Police Department with the assistance of Amtrak Police Department and the United States Marshals Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Jury Finds Shreveport Men Guilty of Robbing Businesses in Louisiana and Texas at GunpointRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Myles W. Robinson, 20, and Halston M. Smith, 22, both of Shreveport, guilty of taking part in a string of robberies in Louisiana and Texas. United States District Judge Elizabeth E. Foote presided over the trial.
The trial started Monday and ended today with the jury returning a guilty verdict after deliberating for three and a half hours. Robinson was found guilty of all 27 counts of the indictment, and Smith was found guilty of 13 counts. Smith was found not guilty of interference with commerce by robbery, which is Count 10 of the indictment, and he was found not guilty of use of a firearm during a crime of violence, which is Count 11 of the indictment.
According to testimony and evidence presented at trial, the armed robberies took place between June 1, 2012 and November 14, 2012 at 15 businesses with the men stealing more than $17,900. Robinson took part in all of the robberies but perpetrated five of the robberies alone. In some cases a shotgun was used, in other cases a handgun, and sometimes both were used to rob the businesses. The defendants robbed businesses in Shreveport, La., Bossier City, La., Stonewall, La., Oil City, La., and Atlanta, Texas. In addition to Robinson and Smith, two other defendants, James D. Tyson, 22, and Tremario D. Washington, 23, took part in the robberies.
“These men threatened and frightened the citizens of the community out of greed,” stated Finley. “Hopefully, the citizens will feel safer now that they have been brought to justice. This verdict is the result of the dedicated prosecutors and various agencies who investigated this case, and they are to be commended for all of their hard work.”
Robinson faces a 312-year prison term and Smith a 134-year prison term. For the count charging conspiracy to interfere with commerce by robbery, they face up to 20 years in prison, a $250,000 fine, and five years of supervised release, and they also face 20 years in prison, a $250,000 fine, and five years of supervised release for each robbery count. For using firearms during a crime of violence, the first count requires seven years in prison, a $250,000 fine, and five years of supervised release. After that, each firearms count requires 25 years in prison, a $250,000 fine, and five years of supervised release. Sentencing for Robinson and Smith is set for June 4, 2014.
Washington pleaded guilty on June 6, 2013, and Tyson pleaded guilty on July 1, 2013 to one count of conspiracy and one count of using firearms during a crime of violence. Washington and Tyson are scheduled to be sentenced on February 5, 2014.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Caddo Parish District Attorney’s Office, DeSoto Parish District Attorney’s Office, Bossier Parish District Attorney’s Office, Caddo Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Shreveport Police Department, Bossier City Police Department, and the Atlanta, Texas Police Department took part in the investigation. Assistant U.S. Attorneys James G. Cowles and Seth D. Reeg are prosecuting the case.
Friday 17 January 2014
Woodbridge Man Sentenced to 51 Months in Prison for Fraudulent Loan and Credit SchemesRead the Press Release
Defendant and associates used forged documents to obtain multiple bank loans and credit cards
ALEXANDRIA, Va. – Atef Mekki Haj Hassen, 38, of Woodbridge, Va., was sentenced today to 51 months in prison, followed by three years of supervised release, for wire fraud in connection with multiple fraudulent schemes to obtain bank financing, mortgage loans and credit cards. Hassen will also be required to pay restitution to the victims in the amount of $683,749.10.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
“Hassen engaged in a variety of frauds that victimized banks, credit card companies and other lenders,” said Acting U.S. Attorney Boente. “The kinds of loan fraud in which Hassen so profligately engaged were a microcosm of the activity that led to the collapse of credit nationwide in the fall of 2008 and to economic distress for so many people since that time.”
“Mr. Hassen provided forged and fake documents to multiple financial institutions to gain lines of credit. Believing that the documents submitted were authentic, these institutions invested in their community and in Mr. Hassen’s small business, but ultimately lost hundreds of thousands of dollars,” said Assistant Director in Charge Parlave. “We urge anyone with information about fraud or corruption to come forward and contact the FBI.”
Hassen pleaded guilty to wire fraud on Oct. 7, 2013.
According to court documents, Hassen and his brother-in-law, Atef Ben Amor Amri, operated the New York Pizza Factory, with two locations in Annandale and Fairfax, Va. In October 2005 and May 2007, Hassen and Amri obtained a total of $240,000 in loans from BB&T Bank to remodel their first restaurant, and to open at their second location. Hassen and Amri defaulted on both loans, and they then evaded foreclosure by creating a sham transfer of the business to another person. As a result of this scheme, BB&T Bank lost over $186,000.
Court documents further show that, in June 2008, Hassen obtained a loan from Acacia Federal Savings Bank by inflating his income and assets. In support of his loan application, Hassen forged documents such as W-2 earnings statements, payroll statements and bank account statements.
In addition to these fraudulent loans, Hassen forged similar documents for others to use in obtaining mortgage loans and credit on their own behalf. Using forged documents or templates created by Hassen, his associates purchased properties in Woodbridge, Va. and obtained bank and auto loans based on fraudulent pretenses. Each of those associates— Atef Amri, Henda Bkhairia, Haider Hagui, Khalil Bouzhghaia and Monica Rychel—has pleaded guilty in federal court and will be sentenced later this month.
Court documents further reflect that, from 2005 to 2008, Hassen obtained numerous credit cards by falsely inflating his income. As a result of Hassen’s fraud, four credit card providers—Bank of America, American Express, Discover and Chase—suffered over $169,000 in losses through 12 separate credit card accounts obtained by Hassen.
In addition, Hassen provided forged documents to several people who used those documents to purchase expensive vehicles, walk away from the loans and then ship the vehicles out of the country. Hassen also used multiple aliases and identities, including while he arranged a staged auto accident in Washington, D.C. to obtain insurance proceeds for an associate.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Gordon D. Kromberg prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Woman Admits to Smuggling Drugs in Wedge HeelsRead the Press Release
PHILADELPHIA – Iveliza Perez, 25, of Camden, NJ, pleaded guilty today to attempting to smuggle approximately two kilograms of cocaine into the United States from Jamaica using wedge heels. Perez was charged with conspiracy to possess with intent to distribute 500 or more grams of cocaine. A sentencing hearing is scheduled for May 23, 2014. Perez faces a mandatory minimum sentence of five years in prison with a maximum possible sentence of 40 years.
In early to mid-May 2013, Perez was approached by two individuals about participating in an operation to smuggle cocaine from Jamaica into the United States. The two individuals offered to pay her $500 before traveling to Jamaica and stated that they would pay her another $3,000 to $4,000 upon returning with the drugs which were to be hidden in shoes. Perez met with other co-conspirators on several occasions before the trip. The co-conspirators paid for her flight and took care of all of the arrangements for her to stay at a villa in Montego Bay, Jamaica. While Perez was at the villa, one of her co-conspirators arranged to have her bags packed with the cocaine, hidden in three pairs of wedge heels. The defendant and the co-conspirator returned from Jamaica together and were supposed to be picked up from the airport by the other co-conspirator. Upon her return to the U.S., the defendant was caught at the airport with 1.992 kilograms of cocaine concealed in her luggage.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and U.S. Customs and Border Protection with assistance from the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Wesley Allen Crossguns Final Co-defendant in Burglary Sentenced to PrisonRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on January 16, 2014, before U.S. District Judge Brian M. Morris, WESLEY ALLEN CROSSGUSN, 25, of Browning, was sentenced to a term of 27 months imprisonment, three years supervised release, and a special assessment of $100.
Crossguns was sentenced in connection with his September 24, 2013, guilty plea to Burglary of a residence on the Blackfeet Indian Reservation. Crossguns' co-defendants have already pleaded guilty for their commission of the crime and received sentences of imprisonment.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved that Wesley Allen Crossguns, Dustin Jay After Buffalo, and Michael Thomas Bad Old Man broke into a residence on the Blackfeet Indian Reservation during broad daylight. When inside, the defendants stole jewelry and ran from the residence when law enforcement arrived. Crossguns was the only defendant who escaped the scene. One of Crossguns' co-defendants threatened to kill law enforcement when apprehended.
In a sentencing memorandum recommending a guideline sentence of incarceration, Weldon told the Court, "Burglaries are a dangerous act. They are especially dangerous when a personal residence is involved." The Court sentenced Crossguns to the top of the range recommended under the Guidelines, with three years of supervised release to follow.
The case was investigated by the Bureau of Indian Affairs Office of Justice Services.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
LaShaun Murry, 33, of Michigan City, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of being a felon in possession of a firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration.Sentencing has been set for 4/17/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Silvino Alonso-Pineda, 37, of South Bend, Indiana pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of illegally re-entering the United States after being deported and having a prior aggravated felony as well as possessing cocaine with intent to distribute. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement.Sentencing has been set for 4/23/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Vernado Malone, 37, of Indianapolis, Indiana pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of mail fraud and aggravated identity theft. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation .Sentencing has been set for 4/17/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Taja Anderson, 25, of South Bend, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and to pay $13,131 in restitution after pleading guilty to the felony offense of being an accessory after the fact to bank robbery.According to documents filed in this case, in April 2013, Anderson, fully aware of a bank robbery, aided bank robbers, including Kendra Winston, and attempted to prevent an arrest.Anderson drove with the other involved persons to a parking lot near the bank in downtown South Bend. After the robbery, Anderson went with the robbers to a casino to “clean” the money that was stolen from the bank. She also allowed the involved individuals to stay at her residence after the theft.Anderson accepted money as payment for her part in attempting to conceal the crime.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Kendra Winston, 25, of South Bend, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment with 2 years supervised release and to pay $13,131.00 in restitution, after pleading guilty to the felony offense of with armed bank robbery.According to documents filed in this case, in April 2013, Winston aided in the robbery of a bank in South Bend, Indiana.Specifically, Winston drove with the robber and Taja Anderson to the bank in downtown South Bend on April 11, 2013. After the bank was robbed, Winston and the others involved drove away from the bank and Winston was to dispose of the vehicle. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENTS:
Robert Barker, 28, of Calumet City, Illinois, was charged with six counts of making false statements during the purchase of firearms and six counts of possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Gerardo Mendez, 26, address unknown in Illinois, was charged with passing counterfeit obligations.This charge was filed as the result of an investigation by the United States Secret Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Rita Law, 55, of Chicago, Illinois, was charged with two counts of human trafficking and servitude and one count of transporting for the purpose of prostitution. These charges were filed as the result of an investigation by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
Edward Olszewski, of Hobart, Indiana, a defendant in the case US v Law et al., was charged with one count of transporting for the purpose of prostitution.This charge was filed as the result of an investigation by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Salvador Chavez, 34, of Chicago, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to participate in racketeering activity. Sentencing has been set for 6/20/14. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosive, the Federal Bureau of Investigation, the East Chicago Police Department and the Hammond Police Department.This case is being prosecuted by Assistant United States Attorney David Nozick.
Cedric Payton, 39, of Indianapolis, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 4/10/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Demetrius Moore, 48, of Merrillville, Indiana, was sentenced by Chief Judge Philip Simon to 3 years of probation and $16,283.00 in restitution after pleading guilty to the felony offense of theft of government property.According to documents filed in this case, from January of 2009 through February of 2011, Moore periodically filed for unemployment benefits with the State of Indiana at a time he knew he was not legally eligible for benefits because he was employed. This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Jose Ortiz, 32, of Chicago, Illinois, a defendant in the case US v Yepez et al., was sentenced by Chief Judge Philip Simon to 15 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with intent to distribute and distribution of cocaine.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Scott Filbey, 48, of Walton, Kentucky, was sentenced by District Judge Joseph Van Bokkelen to two concurrent terms of 342 months imprisonment and 20 years of supervised release after pleading guilty to two counts of the felony offense of production of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Jill Koster.
Simmuel Mobley, 46, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Mobley has a prior felony conviction for dealing in marijuana in 2003. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Antonio Wilson, 31, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 15 months imprisonment and 6 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine within 1000 feet of a school.This case was the result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following felony sentencings that occurred this week before District Judge Theresa L. Springmann:
Juan Sandoval, 46, of Fort Wayne, Indiana, was sentenced to 168 months imprisonment with 6 years of supervised release after pleading guilty to distribution of methamphetamine and 120 months of imprisonment with 2 years of supervised release after pleading guilty to possession of a firearm by a convicted felon, both sentences to run concurrently.According to documents filed in this case, in March 2013, Sandoval’s residence was searched by law enforcement.Officers discovered two hidden shotguns, a handgun and ammunition.When arrested, Sandoval had approximately $8,000 cash in his possession and admitted to possession of the guns and dealing in methamphetamine.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Ronald Bodley, 42, of Fort Wayne, Indiana, was sentenced to 46 months of imprisonment and 2 years supervised release after pleading guilty to the felony offense of possessing with the intent to distribute cocaine.According to documents filed in this case, Bodley was stopped for a traffic violation and claimed he was ill during the stop.During a medical examination, a law enforcement officer observed a bag containing white powder sticking out of Bodley’s coat pocket.The bag was seized and field tested positive for cocaine with an approximate weight of 124.8 grams.Bodley was arrested and his residence searched.During the search, law enforcement discovered large amounts of drugs and money, including more than a kilogram of cocaine and more than $30,000 in cash.This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Washington, Pa., Man Sentenced to 7 Years in Prison for Possessing Stolen GunRead the Press Release
PITTSBURGH - A resident of Washington, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Ronald Gardner, 45, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on Feb. 3, 2010, Gardner knowingly possessed a .45 caliber stolen firearm.
Subsequent to the entry of Gardner’s guilty plea, Judge Fischer sentenced Gardner to seven years in federal prison, to be followed by three years of supervised release.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, together with the City of Washington and South Strabane Township Police Departments, conducted the investigation that led to the prosecution of Ronald Gardner.
Wakpala Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on January 10, 2014, by U.S. District Judge Charles B. Kornmann.
Francis DuBray, age 24, was sentenced to 16 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
DuBray was indicted by a federal grand jury on August 21, 2013. He pled guilty on November 18, 2013.
The conviction stems from two incidents wherein a confidential informant was given pre-recorded money to purchase marijuana from Dubray. The first controlled buy was on May 13, 2013, when the informant used $600 to purchase 6.92 ounces of marijuana from DuBray. For the second controlled buy, the confidential source used $850 in pre-recorded money to purchase 7.60 ounces of marijuana from DuBray on June 11, 2013.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
DuBray was immediately turned over to the custody of the U.S. Marshals Service.
Wabaunsee County Woman Sentenced for Embezzling from Bio-Security Research InstituteRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman was sentenced today to 60 days in federal prison for embezzling from the Bio-Security Research Institute at Kansas State University, U.S. Attorney Barry Grissom said. In addition, she was ordered to pay $14,000 in restitution.
Linda Kay Miller, 51, Alma, Kan., pleaded guilty to three counts of interstate transportation of fraudulently altered securities. In her plea, she admitted the crimes took place while she worked as an office manager for the institute from August 2007 to January 2013. The institute receives grant money from the federal government to provide infectious disease research programs that address threats to plant, animal and human health.
Miller used her position to embezzle funds by diverting checks sent to the institute. She altered the checks to make herself either a payee or co-payee and deposited the proceeds into one of her personal bank accounts. The proceeds moved in interstate commerce as part of a process to clear and negotiate the checks. The plea identifies three checks Miller diverted: A check from the FSU Research Foundation in Tallahassee, Fla.; a check from the Frontline Healthcare Workers Safety Foundation in Atlanta, Ga.; and a check from J.M. Oconnor Inc., in Lenexa, Kan.
Grissom commended the FBI, the Kansas State University Police Department, the Wabaunsee County Sheriff’s Office and Assistant U.S. Attorney Richard Hathaway for their work on the case.Valdez Man Sentenced for Failure to File an Income Tax Return That Should Have Included Income He Received from Funds His Sister Stole from the Native Village of TatitlekRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Valdez man was sentenced in federal court in Anchorage for willful failure to file an income tax return.
James Kramer, 48 of Valdez, Alaska was sentenced today by United States District Court Judge Sharon L. Gleason, to 8 months in prison and a $2,000 fine.
According to Assistant U.S. Attorney Aunnie Steward, Kramer’s sister Lori “Sue” Clum (formerly Johnson) was elected as President of the Native Village of Tatitlek, a federally recognized tribe, in October 2007. Clum was voted out of office in April 2008. Clum refused to accept the results of the election and maintained control of the tribal bank accounts for another year during which she misapplied $112,000 of tribal funds for her personal benefit. Clum gave $20,000 of the funds she misapplied to her brother James Kramer. When asked what he did with the $20,000 cash Kramer indicated he “squandered it partying.”
Kramer earned a total of $127,800 in income for 2009 including the $20,000 he received from his sister knowing she had misapplied the funds from the Native Village of Tatitlek. Kramer willfully failed to file a tax return for any of the income he earned in 2009, and he also willfully failed to file tax returns for 2008, and 2010.
“Kramer personally benefited from stolen funds belonging to the Tatitlek Tribe,” said Kenneth J. Hines, Special Agent in Charge of the IRS Criminal Investigation for Alaska. “These precious funds were meant to provide a stable government and community for the Tatitlek people not to line the pockets of fraudsters. When you steal from your community law enforcement will be quick to respond and bring the full weight of the American justice system with it.”
Judge Gleason noted that Kramer’s failure to pay taxes on income that included criminal proceeds is a more serious offense than just failing to pay taxes.
Ms. Loeffler commends the FBI, IRS Criminal Investigations, and EPA Office of Inspector General, with assistance from the Valdez Police Department, for the investigation of this case.Two St. Francis Men Charged with Second Degree Murder and A Sioux City Woman Charged with Accessory After the FactRead the Press Release
United States Attorney Brendan V. Johnson announced that two men from St. Francis, South Dakota, have been indicted by a federal grand jury for Second Degree Murder, Aiding and Abetting, and a Sioux City, Iowa, woman has been charged with Accessory After the Fact.
BillyRay McCloskey, age 23, Riley McCloskey, age 20, and Crystal Red Hawk, age 36, were indicted on January 7, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno on January 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Second Degree Murder, Aiding and Abetting is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty for Accessory After the Fact is 15 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Riley and BillyRay McCloskey are charged with two counts of Second Degree Murder, Aiding and Abetting for the death of one victim by strangulation, and the death of a second victim by assaulting him with hands and shod feet, and stabbing him in the chest with a screwdriver. Red Hawk is charged with Accessory After the Fact for assisting BillyRay and Riley in order to hinder and prevent their apprehension, trial, and punishment.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. U.S. Attorney Brendan V. Johnson and Assistant U.S. Attorney Marie H. Ruettgers are prosecuting the case.
The Defendants were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 11, 2014.
Two More Retailers Arrested for Food Stamp FraudRead the Press Release
Defendants Received Over $1 Million from USDA for Food Stamps Allegedly Traded for Cash
Baltimore, Maryland – Abdulmalik Abdulla, age 37, and Ahmed Mohssen, age 53, both of Baltimore, were arrested today on federal charges of conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. The criminal complaint filed today alleges that the defendants, who operate Sam’s NY grocery store on North Milton Street in Baltimore, received over $1.5 million in federal payments for transactions in which they did not provide any food, but split the proceeds with food stamp recipients. Federal agents arrested the defendants and executed search warrants at the store and related locations today. In separate cases, ten defendants were charged with food stamp fraud in September 2013; four of those defendants have pleaded guilty and the others are awaiting trial.
The arrests were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Retailers who trade food stamp credits for cash are on notice that federal authorities are on their trail,” said U.S. Attorney Rod J. Rosenstein. “Taxpayers fund the program to provide food for needy recipients, not to turn retail store cash registers into ATM machines.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
The criminal complaint alleges that the defendants exchanged EBT benefits for cash, typically paying half the value of the EBT benefits in cash. As a result of unlawful cash transactions, the defendants allegedly obtained more than $1.5 million in EBT deposits for transactions in which the store did not provide food.
The defendants face a maximum sentence of 20 years in prison for each count of wire fraud, and a maximum of five years in prison for conspiracy to commit food stamp fraud. The defendants are expected to have initial appearances at 3:45 p.m. today in U.S. District Court in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Two Indicted for Robbing Bank in Oriental, North CarolinaRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that on January 15, 2014, a federal grand jury in Greenville, North Carolina returned a two-count indictment charging DAVID McARTHUR KING, 24 of New Bern and THOMAS LEE CUTHBERTSON, JR., 24 also of New Bern with armed bank robbery and aiding and abetting in violation of Title 18, United States Code, Section 2113(a) and (d) and 2 and the use or carrying of a firearm, by brandishing, during and in relation to a crime of violence, or possession in furtherance thereof, and aiding and abetting in violation of Title 18, United States Code, Section 924(c)(1)(A) and 2.
The evidence shows that on December 2, 2013 KING and CUTHBERTSON robbed the First Citizens Bank in Oriental, North Carolina of approximately $33,707.90. During the course of the robbery, the defendants did assault various persons and put into jeopardy their lives by means and use of a handgun.
If convicted, KING and CUTHBERTSON face a maximum penalty of 25 years imprisonment, a $250,000 fine, and 5 years of supervised release for a conviction of the bank robbery charge and life imprisonment, with a mandatory sentence of 7 years consecutive to any other sentence served, a $250,000 fine, and 5 years of supervised release for the use or carrying of a firearm, by brandishing, during and in relation to a crime of violence charge. The actual sentence would be determined by the sentencing court after consideration of the advisory sentencing guidelines.
Investigation of this case was conducted by the Federal Bureau of Investigation, the New Bern Police Department and the Pamlico County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case for the government.
The charges contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two District Men Sentenced to Decades in Prison for Murder of Retired Vietnam Veteran in Southeast Washington-Victim, 71, Was Slain in His Apartment After Trying to Protect His Wife-Read the Press Release
WASHINGTON- Stephen Page, 21, and James Brewer, 27, both of Washington, D.C., were sentenced today to decades in prison for the 2011 slaying of a 71-year-old man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Both men pled guilty in November 2013, in the Superior Court of the District of Columbia, to second-degree murder while armed. They were sentenced by the Honorable Herbert B. Dixon, Jr. Page was sentenced to 31 years in prison, and Brewer was sentenced to a term of 27 years and eight months of incarceration. Upon completion of their prison terms, they will be placed on five years of supervised release.
According to a proffer of facts presented during the plea hearing, on June 27, 2011, at about 9:15 p.m., Brewer, Page, Anthony Thomas, and a fourth man walked into an apartment building in the 2300 block of Good Hope Road SE. They entered the front lobby and gathered at the elevator. Then they took the elevator to the seventh floor.
Minutes later, Brewer, Page and Thomas entered the apartment of Solomon Reese, 71, a Vietnam veteran who supplemented his retirement income by selling cigarettes to neighbors in the area. Mr. Reese was known by many neighbors as the “cigarette man.”
While the men were inside, Mr. Reese’s wife, meanwhile, returned to the apartment from the building’s trash room. Upon hearing scuffling, she began to scream. At that point, Brewer pulled her inside the apartment and threw her toward the front room sofa. Then, as she continued to scream, Thomas placed a blanket over her mouth. Mr. Reese, who initially struggled with Page over a pistol that Page was holding, grabbed Thomas. Page warned him to let go. Then, when Mr. Reese reached into his pocket, Page shot him several times.
Brewer, Page and Thomas left the apartment, taking two bags containing cigarettes and travelers’ checks. Mr. Reese was taken to a hospital, where he died from his injuries. He had been shot multiple times, with bullets hitting him in the chest, abdomen and thigh.
Detectives with the Metropolitan Police Department (MPD) obtained surveillance video showing Brewer, Page, Thomas, and the fourth man entering the building and getting onto the elevator. Footage from approximately seven minutes later showed Brewer, Page and Thomas moving quickly out of the stairwell on the basement level, with Brewer carrying two bags.
On July 14, 2011, the U.S. Marshals Service arrested Brewer in Newport News, Va., and transported him to the District of Columbia for presentment on a charge of first-degree murder while armed. While awaiting presentment in the Superior Court of the District of Columbia, Brewer switched armbands with another arrestee and pretended to be that person. He then signed release papers under that arrestee’s name and left the courthouse. Marshals discovered the ruse and searched for Brewer, who surrendered the following day.
Thomas, 25, earlier pled guilty to a charge of voluntary manslaughter while armed and is awaiting sentencing.
In announcing the sentences, U.S. Attorney Machen praised the work of the MPD detectives, officers, crime scene technicians, and forensic specialists who worked on the case. He also expressed appreciation for the assistance provided by the U.S. Marshals Service. In addition, he praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette; Litigation Technology Specialists Kimberly Smith, Leif Hickling, and Joshua Ellen; Jelahn Stewart, chief of the Victim Witness Assistance Unit, and Victim/Witness staff members Maria Shumar, Marcia Rinker, Michael Hailey, Katina Adams-Washington, M. Laverne Forrest, Tanya Via, and David Foster. Finally, he commended the efforts of Assistant U.S. Attorneys Gary Wheeler, and Scott Sroka, who secured the indictment in the case and handled the prosecution which led to the plea.
14-020Twin Brothers Head to Jail for Defrauding Sports FansRead the Press Release
SAN DIEGO, CA - United States Attorney Laura E. Duffy announced that Judge John A. Houston imposed custodial sentences on twin brothers Anthony Donald Casias and Leo Ronald Casias, Jr. for defrauding local sports fans through their company, “L & T Sports Events, Inc.” Anthony Casias received a sentence of 36 months in custody and 3 years of Supervised Release. Leo Casias was sentenced to 33 months in custody and 3 years of Supervised Release.
According to court documents, clients of L&T Sports paid in advance for travel, lodging, transportation, and game tickets to out-of-town sporting events, such as San Diego Chargers “away” games, other NFL games, and collegiate sporting events. The brothers told sports fans that in return for their payments to L&T Sports, the company would purchase flights, game tickets and hotel accommodations. The defendants even promised clients that L&T Sports obtained tickets in specific seating areas (for example, “lower level corner end zone” or “club level” seating), accommodations at specified hotels, and seats on specific airline flights, to reassure clients that the services clients paid for would be provided when the clients arrived at the game destinations.
For example, the brother’s victims included over a dozen local fans who arranged to watch the San Diego Chargers play the Chicago Bears in Chicago, Illinois in November 2011. These clients paid in advance for flights, hotels, and football game tickets. Although L&T Sports provided the airline tickets to Chicago; they provided little else. As a result, their customers showed up in Chicago without hotel rooms or game tickets for which they had already paid for in advance. Fortunately, some committed fans were able to find hotel accommodations and purchase tickets from local ticket brokers so they could watch the Chargers play.
Similar disappointments befell other customers. For example, one fan paid the Casias brothers in advance so that he could take his son to watch the Chargers play the Oakland Raiders at the Coliseum. Once again, L&T Sports provided a one-way flight but nothing else. Stranded in the Bay Area on New Year’s Eve 2011 with no hotel room, no game tickets, and no flight home, the two disappointed fans ended up driving back down to San Diego in a rental car and watching the game on TV.
Tony and Leo Casias did not limit their fraud to local sports fans. Residents of South Dakota, Philadelphia, and Colorado also arranged trips to see football games, only to find their money taken and no hotels, game tickets, and/or flights home provided. The Casias brothers even arranged trips to the annual NFL game in London, England, offering special extensions to Paris and Rome. Some clients were stranded overseas with no hotel rooms, game tickets, or flight home. What is worse, according to sentencing documents, the Casias brothers used those clients’ credit cards to rack up other charges while those clients were overseas in Europe.
For example, the United States provided evidence in court hearings that Tony and Leo Casias made unauthorized credit card charges on at least 4 individuals’ credit cards. They typically got authorization from the credit card holder to make limited charges – say, to pay the costs of a client’s trip, or a $400.00 loan – but then used those credit cards without authorization to pay for travel services for other clients, or, in some cases, to make their own car payments, pay their cell phone bills, and, adding insult to injury, pay for their own delinquent Chargers season tickets.
Public records indicate that the Casias brothers were convicted in the early 1990’s for a similar scheme involving travel services to middle school students. In that case, the brothers offered educational trips to the East coast, and required students to pay in advance. Defendants collected over $275,000 in advance payment from schools, students, and parents, but used the funds to pay for prior business and personal debts instead of paying for the trips. One parent chaperone from that memorable trip informed the sentencing court in a letter that she accompanied 193 junior-high aged children on a trip to Washington D.C. The students held multiple fundraisers and had to complete projects, research, and presentations before they could go on the trip. She called it “craven” that Leo and Tony Casias accompanied the group to the airport to see them off, knowing that the students would soon be stranded on the east coast thousands of miles from home, with no hotel rooms, local transportation, or return flights home. She recalls that the students ended up staying on cots in military barracks.
In addressing the defendants, Judge Houston chastised them for what he described as their “continuous fraud and manipulation to people you thought were less than you...You are not Madoff. This was not a sophisticated scheme. This was an old fashioned, salt of the earth swindle. [These were] good people [including] your mother's rosary group . . . You were heartless. You just didn't care."
The defendants will next appear in court on February 8, 2014, before Judge Houston for a hearing to determine the amount of restitution they will owe to victims.
DEFENDANT Criminal Case No. 12CR4966-JAHAnthony “Tony” Donald Casias
36 months in custodyLeo Ronald Casias, Jr.
33 months in custodySan Diego, California
San Diego, California
SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud. Maximum
INVESTIGATING AGENCY
penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised release, mandatory restitution to victims.Federal Bureau of Investigation
Topeka Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced today to 27 months in federal prison for a firearms violation, U.S. Attorney Barry Grissom said.
Jason Beckwith, 26, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, Beckwith admitted that he possessed a .22 caliber revolver on July 11, 2013, when he was arrested at 619 SW Taylor in Topeka. He was prohibited by federal law from possessing a firearm because of a prior felony conviction in Shawnee County District Court in 2009 on a forgery charge.
Grissom commended the Topeka Police Department and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Three More Defendants Plead Guilty in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Henry Dorvil, aka “D,” 35, of Hollywood, Brandon Johnson, 29, of Miami Gardens, and Ronald Gustave, 36, of Miami, pled guilty today for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Sentencing for Dorvil is scheduled for April 14, 2014 at 8:30 a.m. Sentencing for Gustave and Johnson is scheduled for April 18, 2014 at 8:30 a.m.
Specifically, each defendant pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Co-defendants Dukens Eleazard, aka “DK,” 33, of Pembroke Pines, Luckner St Fleur, aka “Nene,” 32, of Miami, Marie Eleazard, aka “Fanfan,” 32, of Miami, and Jesse Lamar Harrell, 26, of Miramar, each previously pled guilty to the same two charges. Dukens Eleazard is scheduled to be sentenced on February 26, 2014; Harrell and St Fleur are scheduled to be sentenced on February 27, 2014; and Marie Eleazard is scheduled to be sentenced on March 5, 2014. At sentencing, each of the defendants face a maximum of five years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Co-defendant Marc Leroy Saint Juste, 26, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Court documents state that the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to documents filed in conjunction with today’s plea hearings, Dorvil and/or his co-conspirators filed 1,747 false returns using deceased individuals’ identities from multiple EFINs, and these returns fraudulently claimed approximately $7 million in refunds. The dollar amount of fraudulent federal income tax returns filed and paid by the IRS, in 2012, under the EFIN used by Gustave was $544,054. Johnson and other co-conspirators working at Imperial Tax used an EFIN to file approximately eight fraudulent 2010 tax returns that were prepared with identities from deceased individuals that fraudulently claimed $44,608 in refunds.
A change of plea hearing is scheduled on February 3, 2014 for co-defendant Ruth Cartwright, aka “Princess,” 30, formerly of Plantation.
Trial is scheduled on February 24, 2014 for co-defendants Herve Wilmore Jr., 29, of Aventura, Miguel Patterson, 35, of Miami, John Similien, 24, of Plantation, Corey Williams, 30, of Miami Gardens, and Delvin Jean Baptiste, aka “Doo Doo”, 29 of Miramar.
Mr. Ferrer commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
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.
Teddy Mitchell Sentenced to Serve 27 Months for Running an Illegal Offshore Internet Sports Gambling OperationRead the Press Release
Oklahoma City, Oklahoma – Today, TEDDY DRYDEN MITCHELL, 59, of Oklahoma City, was sentenced by United States District Judge David L. Russell to serve 27 months in federal prison for running an illegal gambling operation, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On September 24, 2012, an 81-count federal indictment was unsealed charging Mitchell and other individual defendants with crimes involving an illegal gambling operation and the money laundering of proceeds derived from that operation. Specifically, the Indictment alleged that the defendants (1) operated "High Stakes" poker games from a residence located at 640 N.W. 150th, in Oklahoma City; (2) took bets and wagers on sporting events on behalf of betting clients; (3) used an illegal Internet gambling website in interstate and foreign commerce for the benefit of betting clients; (4) laundered the proceeds of illegal gambling activities; and (5) committed various crimes related to the operation of an illegal gambling business, including but not limited to, interstate travel in aid of racketeering and use of a wire communication facility to transmit betting information.
The Indictment alleged that Teddy Mitchell organized poker games at the residence and also operated as a traditional bookmaker by taking sports bets for clients both in person and over the phone. Later, it was alleged, betting clients were provided a password to access a Costa Rican sports betting Internet website. It was alleged that to further their gambling operation the defendants conspired to launder over $8.1 million in money derived from the gambling operation.
Teddy Mitchell Plea and Sentence
On July 8, 2013, Mitchell pled guilty to running an illegal offshore internet sports betting business and conspiracy to commit money laundering. As part of his plea, Mitchell admitted that he conducted, financed, managed, supervised, directed or owned all or part of the gambling business that violated Oklahoma law and that the business was in substantial continuous operation for more than 30 days or had gross revenue of $2,000 or more on any single day. In addition, he admitted that he conspired to launder funds to promote the illegal internet gambling business.
At the sentencing hearing today, Judge Russell ordered Mitchell to serve 27 months in federal prison, followed by two years of supervised release
Other Defendants
Eight other men were convicted and sentenced in this case, as follows:
RICHARD ALLEN HANCOCK, 68, of Yorba Linda, California, pled guilty on March 15, 2013, and was sentenced on August 21, 2013, to serve 16 months in prison, followed by three years of supervised release.
GARY JOHN GIBB, 69, of Reno, Nevada, pled guilty on April 5, 2013, and was sentenced on September 11, 2013, to serve 16 months in prison, followed by three years of supervised release.
DAVID BRUCE LOVELAND, 66, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve six months home confinement, three years’ probation, and pay a $2,000 fine.
BILLY NICK MITCHELL, 24, of Oklahoma City, pled guilty on July 16, 2013, and was sentenced on October 24, 2013, to serve two years’ probation, pay a $1,000 fine, and pay restitution of $820.
MICHAEL LEE McCULLAH, 35, of Ardmore, Oklahoma, pled guilty on July 16, 2013, and was sentenced on September 10, 2013, to serve one year probation, pay a $1,000 fine, and pay restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
JUSTIN EDWARD MUSGROVE, 40, of Oklahoma City, Oklahoma, pled guilty on July 16, 2013, and was sentenced on November 12, 2013, to pay a $1,000 fine and restitution of $884.
Forfeiture of Illegal Proceeds
As part of this case, the government also seeks a forfeiture money judgment of over $8.1 million and the forfeiture of multiple tracts of real property, vehicles, and cash held in various accounts.
This case is the result of a joint investigation including the Federal Bureau of Investigation and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and Edward J. Kumiega.
Statement from Justice Department Spokesman Regarding <br /> President Obama’s Speech on U.S. Signals IntelligenceRead the Press Release
The U.S. Justice Department released the following statement by department spokesman Brian Fallon in response to President Obama’s speech on U.S. signals intelligence:
“The Attorney General believes that the President’s reforms will further ensure that the proper balance is struck between the need to keep the nation safe and the need to safeguard our civil liberties. In the weeks ahead, the Justice Department will work closely with the intelligence community and other key administration officials to implement the President’s reforms.”
St. Louis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Nathaniel R. Duff, a 34-year old, St. Louis, Missouri, man was sentenced on January 17, 2014, in federal district court in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Duff was sentenced to 21 months in federal prison, five years of supervised release, ordered to pay a $100 special assessment, and a $150 fine.
The violation occurred in late 2012, when Duff moved from Illinois to St. Louis. He was aware that he was required to either update his sex offender registration in Illinois to reflect this change of address, or register as a sex offender in Missouri. Duff was convicted on April 15, 1999, in Third Judicial Circuit Court in Bond County, Illinois, of Aggravated Criminal Sexual Abuse. Because of his failure to register in Missouri and his failure to update his registration in Illinois, Duff was charged in federal court with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
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 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.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.