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4 March 2014
Former Wichita Area Physician SentencedOn Federal Firearm and Drug ChargesRead the Press Release
WICHITA, KAN. – A former Wichita area physician was sentenced Monday to a total of 75 months in prison on federal firearm and drug charges and a violation of federal supervised release, U.S. Attorney Barry Grissom said.
In November, a jury found Lawrence M. Simons, 57, Wichita, Kan., guilty on one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of controlled substances.
During trial, prosecutors presented evidence that in 2009 Simons, a former employee of the Schneider Medical Clinic in Haysville, Kan., pleaded guilty to two counts of unlawfully distributing controlled substances. In January 2010, Simons was sentenced to 24 months in federal prison to be followed by three years on supervised release.In April 2013 an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives learned that Simons had given a pistol to Steven Woodin, proprietor of S&F Bail Bonds in Wichita. Simons owed Woodin for bonding him out of jail on a $25,000 bond in a Sedgwick County District Court case involving a charge of making a criminal threat.
Prosecutors also presented evidence that on Aug. 7, 2008, Simons signed a Drug Enforcement Administration form surrendering his controlled substances privileges. On Aug. 21, 2009, Simons leased three storage units at the West Kellogg Stor-All where he stored personal property. Controlled substances later were found in the storage units including Fentanyl, Actiq, Lortab Elixer, Ketamine, Versed, Midazolam, Brevital Sodium, Diazepam, Stadol and Niravan.
The sentence includes 51 months on the firearms and gun charges and 24 months to be served consecutively for the violation of supervised release.
Grissom commenced the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Project Manager Sentenced to Serve Time in Prison for Role in Bid Rigging and Other Fraudulent Schemes Involving Two EPA Superfund Sites in New JerseyRead the Press Release
Gordon D. McDonald, a former project manager for a prime contractor at two U.S. Environmental Protection Agency (EPA) Superfund sites in New Jersey, was sentenced today to serve 14 years in prison for participating in multiple bid-rigging, fraud and kickback schemes, the Department of Justice announced. The prison term, which takes into account the multiple crimes McDonald committed, represents the longest prison sentence ever imposed involving an antitrust crime.
In addition to the prison sentence, McDonald was sentenced in U.S. District Court for the District of New Jersey in Newark by Judge Susan D. Wigenton to pay a $50,000 fine. The court will order restitution at a later date.
After a two week jury trial, ending on Sept. 30, 2013, McDonald was convicted of engaging in separate bid-rigging, kickback and fraud conspiracies with three subcontractors at two New Jersey Superfund sites - Federal Creosote in Manville, N.J., and Diamond Alkali in Newark, in return for kickbacks of more than $1.5 million. He was also convicted of engaging in an international money laundering scheme, major fraud against the United States, committing two tax violations and obstruction of justice. The various conspiracies took place at different time periods from approximately December 2000 until approximately April 2007. McDonald was initially charged in an indictment returned on Aug. 31, 2009.
“Today’s sentencing reflects the seriousness of the crimes committed,” said Bill Baer, Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “The prison sentence imposed by the court shows that if you engage in bid-rigging, fraud and kickback schemes your illegal actions will result in a longer prison sentence.”
According to evidence presented at trial, McDonald accepted kickbacks from sub-contractors in exchange for the award of sub-contracts at Federal Creosote. McDonald provided co-conspirators at Bennett Environmental Inc., a Canadian-based company that treats and disposes of contaminated soil, with bid prices of their competitors, which allowed them to submit the highest possible bid prices and still be awarded the sub-contracts.
McDonald also accepted kickbacks in exchange for the award of sub-contracts at the Federal Creosote and Diamond Alkali sites from the owner of JMJ Environmental Inc., a wastewater treatment and chemical supply company, and the co-owner of National Industrial Supply LLC, an industrial pipe supplier. He also participated in a conspiracy with the owner of JMJ and co-conspirators to rig bids and allocate sub-contracts for wastewater treatment supplies and services at Federal Creosote.
Including McDonald, nine individuals and three companies have pleaded guilty or been convicted of charges arising out of this investigation. More than $6 million in criminal fines and restitution have been imposed and six of the individuals have been sentenced to serve prison sentences ranging from five to 168 months. One individual was sentenced to six months home confinement and the remaining two were sentenced to pay criminal fines and restitution. An additional individual, John A. Bennett, a Canadian citizen, was also charged on Aug. 31, 2009, and is facing extradition to the United States.
The cleanup at Federal Creosote is partly funded by the EPA. An interagency agreement between the EPA and the Army Corps of Engineers designated that the Army Corps hire the prime contractors at Federal Creosote. According to a settlement with the EPA and the New Jersey Department of Environmental Protection, Tierra Solutions was required to fund remedial action and maintenance of Diamond Alkali. Tierra Solutions hired the prime contractor for the remedial action and maintenance of Diamond Alkali.
Today’s conviction is the result of an ongoing federal antitrust investigation being conducted by the Antitrust Division’s New York Office, the EPA Office of Inspector General and the Internal Revenue Service-Criminal Investigation. Anyone with information concerning bid rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at the Federal Creosote Superfund site or Diamond Alkali Superfund site should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.htm.
Former New Jersey Attorney Admits Generating More Than $1 Million Profit from Phony Awsuits Filed in New York State CourtRead the Press Release
CAMDEN, N.J. – A former attorney in the Haddonfield, N.J., office of a firm specializing in toxic tort litigation today admitted that he falsified defendants’ names in more than 100 asbestos suits filed in New York State courts in order to increase business and his standing in the firm, U.S. Attorney Paul J. Fishman announced.
Arobert C. Tonogbanua, 44, of Sicklerville, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud. During the proceeding, Tonogbanua admitted that he fraudulently inserted the names of his former law firm’s clients into legitimately filed asbestos suits and charged the clients more than $1 million in attorney’s fees, costs and settlements to defend them.
According to documents filed in this case and statements made in court:
From 2008 through April 9, 2012, Tonogbanua worked at the Haddonfield office of a firm specializing in toxic tort litigation, workers’ compensation and immigration law, during which time he engaged in the wire fraud scheme.
Specifically, Tonogbanua admitted, he obtained copies of legitimately filed asbestos complaints and fraudulently altered them by deleting a named defendant and inserting the name of one or more of his firm’s clients. Tonogbanua admitted that, unbeknownst to anyone else at the firm, he forwarded those fraudulently altered complaints by email, fax and otherwise to the firm’s clients, their representatives and insurance companies.
After notifying the firm’s clients of the suits, Tonogbanua – and others at the firm who were not involved in the scheme – undertook the representation of the clients, by attending depositions, answering discovery and even settling claims. It is estimated that Tonogbanua inserted his firm’s clients’ names into more than 100 lawsuits, resulting in the generation of more than $1 million in fraudulent fees, costs and settlements. Tonogbanua personally benefitted from the scheme through bonuses and increased compensation.
Tonogbanua faces a maximum potential penalty of 20 years in prison and a $250,000, or twice the gross gain or loss from the scheme – whichever is greater. Sentencing is currently scheduled for June 17, 2014.
Under the terms of the plea agreement, Tonogbanua has agreed to make full restitution to his former law firm for all of the losses resulting from his fraudulent scheme. The firm has already repaid its clients.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to Tonogbanua’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
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Defense counsel: Michael Miller Esq., Turnersville, N.J.
Tonogbanua, Arobert Information
Former FBI Special Agent Sentenced for Making Illegal Cash DepositsRead the Press Release
FRESNO, Calif. —Travis Raymond Wilson, 38, of Huntington Beach, Calif., was sentenced yesterday by Judge Anthony W. Ishii to two years of probation for structuring, United States Attorney Benjamin B. Wagner announced.
The Bank Secrecy Act requires financial institutions, such as banks, to file Currency Transaction Reports (CTR) on any cash transaction in an amount greater than $10,000. CTRs are filed with the United States Department of Treasury and are made available to law enforcement agencies, such as the Federal Bureau of Investigation. It is a federal crime to make cash deposits in an amount of $10,000 or less with the intent to prevent a financial institution from filing CTRs such transactions.
According to court documents, Wilson was a special agent with the Federal Bureau of Investigation beginning in 2004 and continuing through 2013. He was most recently a supervisory special agent in the FBI Long Beach Resident Office of the Los Angeles Field Office until his resignation from the FBI in December 2013. Between January 2008 and February 2013, Wilson regularly gambled at casinos in California, Nevada, Arizona, and West Virginia. Even though he frequently left the Casinos with more than $10,000 cash, Wilson regularly made deposits in amounts of $10,000 or less into his bank account. Wilson structured his cash deposits to attempt to prevent CTRs from being filed on him because he did want not the FBI to become aware of his gambling activities. In total, Wilson structured more than $488,000 in cash into his bank account over this time period.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Department of Justice Office of Inspector General, and the Central California Financial Crimes Task Force. Assistant United States Attorney Grant B. Rabenn prosecuted the case.
Five Indicted for Conspiracy to File False Tax ReturnsRead the Press Release
Five Detroit-area residents were indicted today on charges of filing false tax returns with the Internal Revenue Service, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation.
Charged were Johnnie Denham, Jr., 55, of Romulus, Anthony Craig Paul, 55, of Southfield, Vernon Lawson, 58, of Westland, Felicia C. Ramsey, 41, of Detroit, and Jacqueline Brown, 58, of Detroit.
The 11-count indictment alleges that the fraudulent claims for refunds totaled more than $6 million. Less than $1 million was actually released to the defendants.
The indictment alleges that between 2009 and 2010, Denham, Paul and Lawson participated in a scheme to receive payment for false claims for refunds from the IRS by filing false income tax returns for the 2008 tax year for themselves and others. They solicited others to falsely claim federal income tax refunds to which they were not entitled.
The indictment alleges that Ramsey and Brown voluntarily joined the conspiracy by filing false claims. Denham, Paul and Lawson received a large portion of the refunds that were released.
“The indictment filed today alleges Denham and four others were involved in a $6 million refund fraud scheme and enriched themselves in the process,” said Carolyn Weber, Acting Special Agent in Charge of IRS-Criminal Investigation. “During filing season, it serves as a timely reminder that filing false claims for income tax refunds is tantamount to stealing from those who pay their taxes and IRS Criminal Investigation will pursue those responsible.”
The defendants face a maximum term of imprisonment of ten years for conspiracy and five years for filing the false claims. The defendants also face fines of up to $250,000 per count. The actual sentence imposed, if convicted, would depend on a number of factors, including the defendant’s criminal record, if any, and advisory sentencing guidelines.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of the IRS Criminal Investigation.Five Charged with Marijuana TraffickingRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Carlos White, 38, Jesica Leonard, 25, and Steve Fulcott, aka Tommy G, 21, all of Rochester, N.Y., and Andre McFarlane, 34, and Marlando Allen, 34, of Jamaica, were arrested and charged by criminal complaint with possession with intent to distribute marijuana. Defendants White, Leonard, and McFarlane were also charged with possession of a firearm in furtherance of a drug trafficking crime. White was also charged with being a felon in possession of a firearm.
The marijuana trafficking charge carries a maximum sentence of five years in prison and a fine of $250,000. Possession of a firearm in furtherance of a drug trafficking charge carries a minimum sentence of five years in prison, a maximum of life, and a $250,000 fine. Being a felon in possession of a weapon carries a maximum sentence of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that the charges stem from a joint federal/state investigation into the homicide of Jaqueline Simmons, Jermeliah Simmons and Michael Nelson, who were discovered shot to death at an apartment at 809 Chili Avenue in the City of Rochester on February 24, 2014. The investigation led law enforcement officers to two apartments at 2167 Clifford Avenue in Rochester, which were searched on February 28, 2014.During the searches, officers seized over 80 pounds of marijuana, scales and baggies for the weighing and packaging of marijuana for sale, a loaded .45 caliber pistol with an obliterated serial number, and a 9mm pistol loaded with 20 rounds of live ammunition. Forensic analysis determined that the 9mm pistol recovered at 2167 Clifford Avenue was the weapon used in the three murders. At the scene of the homicide, law enforcement collected 10 shell casings, all of which were compared to a test fired round from the 9mm pistol. Based on that comparison, a forensic examiner determined that the shell casings found at the homicide scene at 809 Chili Avenue were fired from the 9mm pistol recovered at 2167 Clifford Avenue. A Blackberry cell phone recovered during the searches contained pictures of what appears to be the murder weapon, as well as pictures of marijuana and cash.
The defendants were taken into custody at 2167 Clifford Avenue on February 28, 2014. McFarlane and Allen are both in the country illegally.The criminal complaint is the culmination of an investigation on the part of the Rochester Police Department, under the direction of Acting Chief Michael Ciminelli, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon, Special Agent in Charge, New York Field Office, U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Ferrelview Man Pleads Guilty to his Role in Natinowide Child Porn Ring, Faces 40 Years in PrisonRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Ferrelview, Mo., man pleaded guilty in federal court today to using four young victims to produce child pornography as part of a nationwide child pornography ring.
Raymond M. Appling, 31, of Ferrelview, pleaded guilty before U.S. District Judge Gary A. Fenner to four counts of producing or attempting to produce child pornography. Under the terms of today’s plea agreement, Appling will be sentenced to 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
By pleading guilty today, Appling admitted that he took pornographic photos and video of four child victims, which he shared with others.
According to today’s plea agreement, FBI agents had identified two suspects in Colorado and in San Diego, Calif., that linked Appling to the child pornography ring. Detectives with the Kansas City, Mo., Police Department executed a search warrant at Appling’s residence on Feb. 8, 2012, and seized computers, computer media and a camera. In an interview with the detectives, Appling identified a third member of the child pornography ring located in Pennsylvania. The other members of the child pornography ring are being prosecuted in those jurisdictions.
Appling admitted that he took a child victim, identified as Jane Doe #1, to visit the San Diego suspect, whom he knew had a sexual attraction to minors. Appling also took pornographic photos of Jane Doe #1 when she was eight years old.
Appling also took photos of a second child victim, identified as Jane Doe #2. Appling took photos of Jane Doe #1 and Jane Doe #2 together in the shower. Jane Doe #2 also told investigators that she had met the San Diego suspect at Appling’s home.
Appling took photos of a third child victim, identified as Jane Doe #3, while she was asleep on his couch. A series of photos depicts Appling moving Jane Doe #3’s clothes so that she is exposed, and Appling touching her.
Appling also produced a movie of a 12-year-old victim, identified as Jane Doe #4, while she was undressing and getting ready to take a shower.
A forensic examination of Appling’s computers, cameras, and computer media determined that an external hard drive had been wiped and reformatted. There was evidence on the external hard drive which indicated that videos with a sexual theme (including child pornography) were once on the hard drive. Evidence indicated that some of the movies that were once on the external hard drive were sent through the use of an encrypted instant messaging program. In addition, a large number of Yahoo! messenger chat fragments were recovered from several log files from Feb. 4, 2011 through July 5, 2011. In many of the chats the participants (including Appling and the other suspects) stated that they were actively engaged in sexual abuse and/or child pornography. There were also several unidentified participants engaged in the online chats.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Federal Jury Convicts Dallas County Man on Drug and Firearm OffensesRead the Press Release
DALLAS — Following a three-day jury trial before U.S. District Judge Jorge A. Solis, a federal jury has convicted Victor Chapa, 32, of Irving, Texas, on one count of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. Today’s announcement was made by U.S. Attorney R. Saldana.
Chapa’s five co-defendants have pleaded guilty to their respective roles in the conspiracy and are awaiting sentencing. Chapa faces a mandatory minimum statutory penalty of five years and a maximum of forty years in prison on the conspiracy conviction and a mandatory minimum statutory penalty of five years and a maximum penalty of life in prison on the firearm conviction, which must be consecutive to the conspiracy conviction. A sentencing date was not set.
The government presented evidence at trial that the conspirators used a residence and outbuilding containing an apartment on Harlan Street in Irving to store, repackage for distribution and distribute quantities of marijuana. When a search warrant was executed at the site, officers recovered handwritten notes on spiral notebooks and on loose pieces of paper that reflected marijuana sales, identified customers and noted amounts of money owed for marijuana, along with firearms in the main residence. In the detached apartment, law enforcement located wrappings, also known as marijuana “skins,” that previously contained approximately 528 pounds of marijuana, loose marijuana on the floor, cellophane wrapping, zip lock bags, digital scales, several loaded firearms and additional ammunition.
The North Texas High Intensity Drug Trafficking Area (HIDTA) Task Force and the Irving, Fort Worth and Dallas Police Departments investigated. Assistant U.S. Attorney Mary Walters prosecuted.
Ex-Oregon Department of Human Services Employee Sentenced for Theft of Welfare BenefitsRead the Press Release
PORTLAND, Ore – Yesterday, U.S. District Judge Marco A. Hernandez sentenced Denise Lachelle Palfrey, 38, of Tacoma, Washington, for stealing welfare benefits while employed at the St. John’s branch of the Oregon Department of Human Services (ODHS). On November 18, 2013, pursuant to a plea agreement, Palfrey pleaded guilty to one count of theft of government funds and one count of Supplemental Nutrition Assistance fraud, both felony offenses. Judge Hernandez sentenced Palfrey to three years of probation, including eight months of home detention, and full restitution in the amount of $4,233.76.
In pleading guilty, Palfrey admitted that in November and December of 2011, she stole Supplemental Nutrition Assistance (SNAP) benefits (previously known as food stamps) and Temporary Assistance for Needy Families (TANF) benefits.
Palfrey previously worked for the ODHS in the St. John’s branch office in Portland. Defendant’s duties included screening applications for welfare programs, determining applicant eligibility for SNAP benefits and other welfare programs, and issuing Oregon Trail cards to clients. An Oregon Trail card is an Electronic Benefits Transfer (EBT) card, similar to a bank debit card. When individuals qualify for food or cash benefits, Oregon Trail card accounts are set up for them. Benefits are automatically deposited onto the card each month. The Oregon Trail card is used to access the SNAP food benefits and TANF cash benefits.
An investigation revealed that in November and December of 2011, Palfrey fraudulently cancelled eight Oregon Trail EBT cards without the knowledge or consent of the cardholder and, forged the victim cardholder’s name in a log kept in the St. John’s ODHS branch office. Palfrey issued and then converted the new Oregon Trail EBT card to her own use. Palfrey activated each of the Oregon Trail cards and used the benefits on the card at local merchants within days of activation. Palfrey used or transferred to others the Oregon Trail cards with SNAP benefits for use at merchants including Costco, Safeway, and others. The TANF benefits were withdrawn from the Oregon Trail cards as cash at merchant and bank EBT terminals.
The ODHS, Office of Payment Accuracy and Recovery and the U. S. Department of Agriculture, Office of Inspector General – Investigations (USDA-OIG) jointly conducted the investigation. Assistant U. S. Attorney Donna Brecker Maddux handled the prosecution.
Essex County, N.J., Man Convicted of CarjackingRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man has been convicted on all counts in connection with a March 2012 carjacking, U.S. Attorney Paul J. Fishman announced today.
Anthony Jefferson, 21, of Newark, was convicted of one count of conspiracy, one count of carjacking and one count of brandishing a firearm in furtherance of a carjacking following a five-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated two hours before returning the guilty verdicts on March 3, 2014.
According to documents filed in this case and the evidence at trial:
On the morning of March 11, 2012, Jefferson and Sharod Culp, 21, of Newark, approached two individuals who were sitting in a parked 2009 Hyundai Sonata in the area of Patterson Street in Newark. Culp pointed a firearm at the victims, and both Culp and Jefferson ordered the victims to get out of the car. After robbing and taunting the victims, Culp and Jefferson fled the area in the carjacked vehicle.
After the carjacked vehicle was recovered, it was processed for evidence, and latent fingerprints identified to be those of Culp and Jefferson were found inside the vehicle. Both victims positively identified Culp as one of the people who carjacked them; one of the victims also identified Jefferson to be the other person who carjacked them. Culp pleaded guilty in July 2013 to carjacking and brandishing a weapon in furtherance of a carjacking and is awaiting sentencing.
The charge of carjacking carries a maximum potential penalty of 15 years in prison. The charge of use of a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Newark Police Department, under the leadership of Acting Director Sheilah A. Coley; and the Essex County Prosecutor's Office, under the direction of Acting Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney's Office in Newark with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Elizabeth Harris of the U.S. Attorney's Office Criminal Division in Newark.
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Defense counsel: Vincent Sanzone Jr. Esq., Elizabeth, N.J.El Dorado Hills Man Indicted on Three Counts of Tax EvasionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a sealed three-count indictment on February 27, 2014, against Kamyar Soltani, 45, of El Dorado Hills, charging him with attempted tax evasion, United States Attorney Benjamin B. Wagner announced. The pending indictment was unsealed today.
Soltani was arrested on Monday, March 3, 2014. He was arraigned and pleaded not guilty. He was released on a $100,000 bond.
According to IRS-Criminal Investigation Special Agent in Charge José M. Martinez, “All Americans have a duty to pay their fair share. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS."
According to court documents, Soltani attempted to evade his tax obligations for the tax years of 2005, 2006, and 2007. In each of those years, Soltani received income subject to taxation of well-over $200,000, and failed to file timely income tax returns for the tax years of 2005 and 2006. He ultimately filed tax returns for all three tax years in March 2008, but those returns were false; the resulting tax due and owing over three years totaled more than $150,000. Moreover, as alleged in the indictment, Soltani attempted to evade the proper assessment of his tax obligations by, among other things: receiving compensation in cash; having his compensation paid directly to, or in the names of, nominees, family members, and a creditor; concealing his income in his parents’ bank account; and filing three false tax returns in March 2008.
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Nirav Desai is prosecuting the case.
If convicted, Soltani faces a maximum statutory penalty of five years in prison and a $100,000 fine on each count in the indictment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
East St. Louis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsJason C. Bryant, a 31-year old, East St. Louis, Illinois, man was sentenced on February 28, 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. Bryant was sentenced to 21 months in prison, five years of supervised release, ordered to pay $100 special assessment and a $150 fine.
On May 2, 2011, Bryant was released from prison in the State of Indiana following his conviction there for cocaine distribution. He immediately moved to Illinois without registering as a sex offender within the three day state requirement of his move from Indiana to Illinois. The registration condition was due to his Criminal Sexual Assault conviction on March 24, 2000, in St. Clair County, Illinois.
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.
Cranston Man Ordered Detained in Federal Custody After Federal and Local Law Enforcement Seize 93 Grams of FentanylRead the Press Release
PROVIDENCE, R.I. – Victor Sena, aka “V,” 35, of Cranston, R.I., was ordered detained in federal custody today by U.S. District Court Magistrate Judge Lincoln D. Almond, having been charged with possession of fentanyl with the intent to distribute, announced United States Attorney Peter F. Neronha and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
According to an affidavit in support of a criminal complaint filed with the court, Sena was arrested on Monday after DEA agents and local and state law enforcement officers assigned to the Rhode Island DEA Drug Task Force seized 93 grams of fentanyl found stashed in a bag of rice in Sena’s Cranston residence.
According to the affidavit, during the month of March 2014, the DEA, in collaboration with the Cranston, East Providence, Providence and Woonsocket Police Departments, conducted an investigation into the alleged distribution of heroin and fentanyl in the City of Cranston. Information developed by DEA agents and drug task force members indicated that Sena was allegedly distributing heroin and/or fentanyl. DEA agents and members of the drug task force executed a court authorized search of Sena’s residence on Monday and seized 5 plastic bags containing a total of 93 grams of fentanyl found stashed inside a container of rice in the kitchen.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Possession of fentanyl with the intent to distribute is punishable by a statutory penalty of up 20 years in federal prison followed by between 3 years and lifetime supervised release, and a fine of up to 1,000,000.
The DEA Drug Task Force is comprised of law enforcement agents and officers from the DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Clay County Man Sentenced to 15 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard sentenced Melvin Hubert Holmes (52, Clay County) yesterday to 15 years in federal prison for producing and possessing videos and images depicting child pornography. He was also ordered to serve a 5-year term of supervision, following his incarceration, and to register as a sex offender. A federal jury found Holmes guilty on September 16, 2013.
According to testimony and evidence introduced during trial, from March 10, 2012, through August 19, 2012, Holmes installed a hidden video spy camera in several areas of a bathroom in his residence. On several occasions, Holmes used the camera to capture pornographic videos and images of a minor child. Partially covered holes in a sink vanity and two walls, that had housed the camera, were discovered on August 23, 2012. Clay County Sheriff's Office personnel were contacted and responded to the residence. Several items were seized as part of the investigation, including Holmes’ laptop computer. A forensic analysis of the computer revealed images and videos depicting child pornography that were produced by Holmes.
This case was investigated by the Clay County Sheriff's Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Cherokee County Man Charged with Extorting Teen Girls for Pornographic ImagesRead the Press Release
ATLANTA – Destin Whitmore has been arraigned and detained on charges of extortion, enticement of a minor, and distribution and possession child pornography. Whitmore was indicted by a federal grand jury on February 19, 2014.
“This defendant preyed on teenage girls and attempted to extort them to create and send him pornographic images,” said United States Attorney Sally Quillian Yates. “He threatened to post compromising images of the girls on the internet and to send them to their friends and family. This is a stark reminder of the need for parents to talk with their children about internet safety.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “This case exemplifies the need to remain vigilant against child predators and others who would exploit the vulnerabilities of minor children over the internet. The FBI remains uniquely positioned to investigate and bring forward for prosecution those individuals who would exploit and harm our nation’s children and we ask that anyone with information regarding such activity to call their nearest FBI field office.”
According to United States Attorney Yates, the charges, and other information presented in court: In April 2012, a teen girl in Arizona reported that she was contacted using a popular social media website by an individual using a profile name “Ralph Jenkins.” The individual using the Jenkins profile, later identified as the Defendant, Destin Whitmore, sent the teen compromising images of herself and threatened to send those images to others, including her family members, if she did not immediately create additional images for him. A subsequent investigation of that profile, along with a profile using the name “Lenny Carlington” showed that both profiles were used by the Defendant, along with his own social media accounts, to transmit pornographic images of numerous teen girls to the girls to extort them for additional images. If they did not comply with his wishes, he threatened to distribute the pornographic images to others and post them on various websites for public consumption. Many of the girls Whitmore extorted were known to him through personal relationships or through long term communications using web cameras with the girls online.
The indictment charges Whitmore, 22, of Canton, Ga., with five counts of extortion, one count of enticing a minor to engage in sexual activity, three counts of distribution of child pornography and five counts of possession of child pornography.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Cobb County Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Central Falls Resident’s 10-Year Federal Prison Sentence on Drug Trafficking, Firearm and Money Laundering Convictions Increased by 5 Years for Home Invasion and RobberyRead the Press Release
PROVIDENCE, R.I. – Napoleon Andrade, 32, of Central Falls, who is currently incarcerated while serving a 10-year federal prison sentence for drug trafficking, money laundering, theft of government property and federal firearm violations was enhanced today by 63 months for his role in a March 2010 home invasion in Stamford, Connecticut, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Judge John J. McConnell ordered Andrade to serve 31 months of the newly imposed sentence consecutive to the 10-year sentence he is currently serving. The additional 32 months were ordered to be served concurrently. Andrade pleaded guilty on December 11, 2013, to one count of conspiracy to commit robbery.According to court records, in 2009 and 2010, Andrade was the target of an unrelated, long-term federal, state and local law enforcement investigation into his suspected drug trafficking activities. During a March 8, 2010, conversation surreptitiously recorded by law enforcement, Andrade discussed his participation in home invasions in Connecticut and New York. Andrade provided significant details of the home invasion in Connecticut which ATF agents used to track down accounts of the incident. The victim of the home invasion, a 78-year-old man who was well known to Stamford Police as being an associate of the Gambino crime family, was bound and blindfolded. According to the victim, the attackers, who gained entrance to home purporting to be deliveryman, stole more than $200,000 worth of jewelry, more than $16,000 in cash and a double-barreled shotgun.
According to information presented to the court, the home invasion was planned in a growing dispute over a loansharking debt that had grown to be in excess of $300,000. Andrade was brought in to provide “muscle” during the home invasion.
Gennaro Mieli, 61, of Niantic, CT., is awaiting trial in U.S. District Court in Providence on an indictment charging him with conspiracy to commit robbery and witness intimidation; Stephen Conti, 42, of Swansea, Mass., is awaiting sentencing, having pleaded guilty on September 26, 2013, to a one count indictment charging him with conspiracy to commit robbery.
In August 2011, in unrelated matters, Andrade admitted in court to the facts that were the basis for charges contained in three federal indictments and three informations. The charges were the result of several ATF led investigations, and several joint federal, state and local investigations. Some of the investigations included “sting operations” and the use of electronic surveillance equipment.
According to information presented to the court, in January 2010, Rhode Island State Police became aware of the presence of a kilogram of cocaine hidden under a treadmill in a gym in the Central Falls apartment building in which Andrade lived. Andrade admitted that he made statements, in a conversation monitored by ATF agents, that the cocaine was his.
Additionally, Andrade admitted to the court that in March 2010, he broke into a vehicle in Central Falls which he believed contained 100 grams of sham crack cocaine; $500 in cash; and purported stolen jewelry. The car was placed on a street in Central Falls by ATF agents as part of a “sting operation.”
Andrade also admitted to the court that in April 2010, he provided a fully loaded .357 caliber revolver to a person working with government agents, with the intent that the firearm be used in a “drug-rip” of a kilogram of cocaine from a home in Connecticut.
Andrade also admitted that in December 2009, he and a person working with government agents broke into a storage unit in North Providence that was rented by the ATF. They stole 840 cartons of cigarettes valued at over $30,000, which were owned by the Government. Andrade planned the break-in and provided funds to purchase bolt cutters that were used to open the storage unit.
Andrade also admitted that in December 2009, he sold one pound of marijuana for $1,000 cash to a person working with government agents. An additional fifteen one pound packages of marijuana were observed inside Andrade’s residence at the time of the purchase.
At the time of Andrade’s guilty pleas in August 2011, he admitted to the court that his principal source of income was derived from drug trafficking and other crimes, and that he had committed the crime of money laundering in the purchase of a $42,000 automobile for which he paid cash.
The cases were prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Adi Goldstein.
United States Attorney Peter Neronha acknowledged and thanked the Rhode Island State Police, Central Falls Police, Pawtucket Police, Providence Police, North Providence Police, Stamford, CT., Police and the United States Attorney’s Office for the District of Connecticut for their assistance in the investigations and prosecutions of these matters.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]California Man Guilty in $7 Million Fraud Scheme Concerning Purported Alternative Energy TechnologyRead the Press Release
LOS ANGELES – A Northern California man has been convicted of federal fraud charges for his involvement in a $7 million investment scheme that lured investors with false promises relating to the development of an alternative energy technology, Richard S. Hartunian, the United States Attorney for the Northern District of New York, announced today.
Richard M. Rossignol, 63, who now resides in Shingle Springs, California, was convicted on February 28 of one count of conspiracy to commit mail and wire fraud. The jury took less than six hours to render its verdict on the sole count.
United States District Judge Audrey B. Collins presided over the seven-week trial in United States District Court in Los Angeles. Following the verdict on Friday, Judge Collins scheduled a sentencing hearing for June 16. At sentencing, Rossignol faces a sentence of up to 20 years in federal prison.
Rossignol and a co-defendant – William A. Stehl, 69, of Ventura – were arrested in Oxnard, California four years ago in connection with an indictment filed in the Northern District of New York. Both men were charged with conspiracy to commit mail and wire fraud. Additionally, Stehl was charged with several tax charges and lying to federal agents.
The conspiracy count alleged that from 2001 up to the time of the indictment in March 2010, Stehl, Rossignol and others induced victims to invest money in companies that were purportedly developing or utilizing an alternative energy source Stehl claimed he had developed. Investors were told that one of Stehl’s applications related to the processing of precious metals allegedly contained in a slag pile in Silver City, New Mexico.
Stehl and Rossignol were charged with fraudulently obtaining money from investors by making false representations about the status of the process, claiming that contracts and licensing agreements had either been signed, or were about to be signed, and would result in significant financial returns for the investors. Stehl and Rossignol obtained more than $7 million from more than 300 victims. None of the investors received the returns promised by Stehl and Rossignol, and most of the money obtained was used for personal expenditures by Stehl and Rossignol.
Stehl was living near Saranac Lake in New York when the scheme started. Stehl moved to Southern California in late 2005, and Rossignol was convicted of conspiring with Stehl and others up to the time of the indictment. Fraud victims lived across the nation, including in Sacramento, California; Los Angeles; Charleston, West Virginia; and New York.
The indictment was originally filed in the Northern District of New York, but in October 2012, the case was transferred to the Central District of California to accommodate Stehl, who received injuries in an explosion occurring in a building in Sylmar, California, on August 9, 2011.
In November 2013, Judge Collins granted a request by Stehl’s attorneys to have a separate trial. Stehl is now scheduled to go to trial on July 22. Rossignol is free on bond.
The investigation in this case was conducted by Special Agents of the Internal Revenue Service Criminal Investigation, New York Field Office, and the Federal Bureau of Investigation, Albany, New York Resident Agency. The case is being prosecuted by Assistant United States Attorney Kevin P. Dooley of the Binghamton branch office in the Northern District of New York. Additional inquiries can be directed to AUSA Dooley at (607) 773-2887.
Cahokia Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsMautaveus T. Ayers, 18, of Cahokia, Illinois, was sentenced in federal district court in East St. Louis, Illinois, on February 27, 2014, to 34 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $250 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Court proceedings revealed that on April 17, 2013, a patrolling officer in Cahokia, Illinois, observed a vehicle driven by Ayers commit a traffic violation and fitting the description of a car involved in a shooting earlier that day. The officer activated his lights in an attempt to stop the vehicle, but Ayers continued driving. A short chase followed with Ayers eventually stopping in an apartment complex parking lot. Ayers ran upon exiting the vehicle, but stopped after the officer drew his weapon. Ayers was placed under arrest. The police car’s dash camera recorded Ayers making statements on his cell phone to an unknown individual about his arrest and instructing the individual to retrieve a weapon from his home he had hidden under his sink. Ayers consented to a search of his home the following day, where a shotgun was recovered underneath his kitchen sink.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cahokia Police Department. Special Assistant United States Attorney Neal C. Hong prosecuted the case.
Butler County Man Pleads GuiltyTo Producing Child PornographyRead the Press Release
TKANSAS CITY, KAN. - An Augusta, Kan., man pleaded guilty Monday to a charge of producing child pornography, U.S. Attorney Barry Grissom said.
Kristopher K. Sims, 30, Augusta, Kan., pleaded guilty to one count of producing child pornography. In his plea, Sims admitted that on Nov. 20, 2012, he made a recording of a 12-year-old girl engaging in a sexual act. Sims was in Kansas and the girl was in New York. He used his computer and a video-chat service to engage in a video chat with her, which he recorded.
Grissom commended the Augusta Police Department, the Wichita Police Department’s Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Sims first met the victim when she was 11 years old via Facebook. He posed as a boy who was 15 or 16 years old. Over a period of months, he communicated with her in chats and video messaging. He persuaded her to engage in sexual acts, which he captured in live video feeds from her computer.
Sentencing is set for June 2. He faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000.Businessman Sentenced to 17 Years, 8 Months in Prison for Bankruptcy Fraud and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Steven K. Zinnel, 50, of Gold River, was sentenced today by United States District Judge Troy L. Nunley to 17 years and eight months in prison and a $500,000 fine, for 15 counts of bankruptcy fraud and money laundering, United States Attorney Benjamin B. Wagner announced. Judge Nunley also ordered Zinnel to forfeit to the United States real estate and corporate interests worth over $2.8 million.
U.S. Attorney Wagner stated: “Mr. Zinnel attempted to escape his financial responsibilities through the fraudulent misuse of the Bankruptcy Court. Today’s sentence, believed to be the longest prison sentence ever imposed in a bankruptcy fraud case in this district, holds him responsible for his crimes and helps protect the integrity of the federal bankruptcy process.”
“Zinnel knowingly broke laws in a spiteful attempt to deprive his former spouse and children of his support,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Today he is seeing the cost of his creative scheme to intentionally conceal his assets.”
“Today’s sentencing sends a clear message to those who use the bankruptcy system to evade their debt obligations to the government and their creditors,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “This was a serious, long-running crime committed by a man who gave it a lot of thought and purpose. Mr. Zinnel’s crimes were filled with fraud and deceit, and he deserves the punishment handed down today.”
Trial testimony established that Zinnel concealed assets from the bankruptcy court by putting his property in other people’s names. One of the things that Zinnel hid from the bankruptcy court was an investment in an electrical infrastructure company in which he had invested as a “silent partner.” Zinnel invested hundreds of thousands of dollars and prepared the corporate filings, but his name did not appear in any public filing of this company. For years, the company paid distributions to Zinnel as an owner, but those distributions were disguised as payments to a shell company, Done Deal, Inc., held in the name of co-defendant Derian Eidson. The court noted that the purpose of establishing Done Deal was to “raid the coffers” of the electrical infrastructure company without being identified anywhere. The court ordered Zinnel’s interest in that company forfeited, and the government is to receive $2.8 million from its sale to its records owner.
After the successful concealment of the property and the discharge of Zinnel’s bankruptcy, Zinnel laundered funds back to himself through attorney Derian Eidson’s company, Done Deal Inc., her attorney-client trust account, and her personal bank account. Zinnel throughout this time used several different corporations registered in others’ names, including one registered with a forged signature, to disguise his control of property and to direct the disposition of money. Eidson gave Zinnel signature authority over her company’s bank account, which he used for his personal expenses.
At today’s sentencing hearing, Zinnel’s ex-wife explained how the investigation of Steven Zinnel began with Zinnel’s call to the FBI asking that the FBI investigate her. According to papers on file with the court, when agents followed up on Zinnel’s call to the FBI, his own bankruptcy crimes were discovered.
Calling Zinnel “narcissistic,” Judge Nunley cited Zinnel’s repeated deception of the bankruptcy court, the bankruptcy trustee, and family court as evidence of Zinnel’s culpability in the complex bankruptcy fraud and money laundering scheme. Even after the bankruptcy, Zinnel laundered his money through shell corporations in order to disguise income that otherwise would have affected his child support obligations.
“You don’t lie before a court of law,” Judge Nunley admonished Zinnel. “You don’t continue to lie, which is what you did.” Judge Nunley found that Zinnel’s gifts of being articulate and charismatic were used toward promoting Zinnel’s “own selfish ends.”
This case is the product of an investigation by the FBI and IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal and Audrey B. Hemesath prosecuted the case. The Office of the U.S. Trustee provided important support and expertise in the course of the prosecution.
Zinnel’s restitution hearing is set for March 31, 2014, at 9:00 a.m. At that time, Judge Nunley will also sentence Zinnel’s co-defendant, attorney Derian Eidson, for her role in Zinnel’s scheme.
Broward County Man Sentenced to Four Years for Stolen Identity Refund FraudRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Patrick Robinson to 2 years in federal prison for possession of 15 or more unauthorized access devices, and a consecutive 2 years for aggravated identity theft. Robinson pleaded guilty on September 25, 2013.
According to court documents, on February 28, 2012, Robinson was stopped for speeding in a vehicle, in Lee County, Florida. A subsequent search of his vehicle recovered two laptop computers, a thumb drive, numerous Wal-Mart Money Cards, and a Green Dot debit card. Each card was wrapped in a piece of paper that had a name, routing number, account number, and tax refund amount handwritten on it. Approximately 232 separate identities were found on the thumb drive.
Robinson admitted that he had been committing tax refund fraud for approximately six months. He also admitted to using the stolen victim identifiers contained on the thumb drive to file fraudulent tax returns, using an online tax program. Robinson requested the tax return refund money from the fraudulent returns to be placed on the purchased Wal-Mart Money and Green Dot cards.
This case was investigated by United States Secret Service, Lee County Sheriff’s Office, and Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Boise Woman Sentenced to 84 Months in Federal Prison for Meth TraffickingRead the Press Release
Defendant One of Eleven Indicted in Gun and Drug Trafficking Case
BOISE – Bobbi Eileen Woolsey, 36, of Boise, Idaho, was sentenced today in United States District Court to 84 months in prison for conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Woolsey to serve five years of supervised release. She pleaded guilty to the charge on December 2, 2013.
According to information presented in court, Woolsey admitted to conspiring with co-defendants to distribute methamphetamine. Woolsey has two prior felony convictions for possession of methamphetamine and accessory to a felony. She was on probation for those crimes at the time she committed the drug trafficking offenses in this case.
Woolsey’s co-defendants, Jeramie Ethan Mahler of Star, Idaho, and Carlos Eberardo Tovar of Nampa, Idaho, pleaded guilty yesterday to related drug trafficking charges. Mahler also pleaded guilty to discharging a firearm in furtherance of a drug trafficking crime. A federal grand jury indicted Woolsey, Mahler, Tovar and eight other defendants on July 9, 2013. The indictment alleges that the defendants conspired together to distribute methamphetamine. It also contains additional charges alleging distribution of methamphetamine, distribution of cocaine, and unlawful possession of a firearm. All of the defendants have pleaded guilty; nine are awaiting sentencing.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. Since 2007, over 255 defendants have been prosecuted in Federal Court through the Gang SAUSA program. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Berwick Resident Pleads Guilty to Armed Bank Robbery and Firearms ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Phillip
G. Gage, 46, of Berwick, Maine, pled guilty in U.S. District Court in Portland to armed bank robbery and firearms charges. The charges arise from the August 21, 2013 armed bank robbery of Citizen’s Bank, in Somersworth, New Hampshire; the October 7, 2013 armed bank robbery of
Peoples United Bank, in Exeter, New Hampshire; the October 19, 2013 armed bank robbery of
Kennebunk Savings in Eliot, Maine; and the October 26, 2013 armed bank robbery of the Ocean
Communities Federal Credit Union in Sanford, Maine. Gage also pled guilty to being a felon in possession of a firearm and using a firearm during the commission of a crime of violence, that is, armed bank robbery.According to court records, during the Citizen’s Bank robbery, Gage displayed a demand note that read in part: “I have a bomb and a gun if you say a word you will die” and absconded with $3,132.80. In the People’s United robbery, Gage’s demand note read in part: "There's a bomb in the trash can, keep it quiet" and absconded with $1,451. During the Kennebunk Savings robbery, Gage pointed a Ruger Red Hawk .44 Magnum revolver at tellers while, an associate, Daniel Barry, vaulted over the teller counter and took $7,896 from the teller drawers. During the Ocean Communities Federal Credit Union robbery, Gage pointed a Dan Wesson .22 caliber revolver at tellers and absconded with $8,574.
Gage was convicted of the following felonies: robbery in Florida in 1986, assault in
Maine in 1999, possession of a firearm by a felon in Maine in 1999 and attempting to commit a
Class B crime in Maine in 2002.Gage faces up to 25 years in prison and a $250,000 fine, or both, on each armed bank robbery charge; a mandatory minimum of 15 years and up to life in prison on the firearm possession charge; and a consecutive mandatory minimum sentence of seven years and up to life in prison for using a firearm during the commission of an armed bank robbery. He will be sentenced after the completion of a presentence investigation report by the United States
Probation Office.This case was investigated by the Federal Bureau of Investigation, the Maine State
Police, and the Eliot, Kittery, Sanford, Berwick, York, Maine and Exeter, Somersworth, Alton and Pembroke, New Hampshire police departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these armed bank robberies were quickly solved because local, state, county and federal law enforcement agencies across two states worked closely together.”Bank Teller Sentenced to over 5 Years in Prison in Fraud SchemeRead the Press Release
Used Her Position as a Bank Teller to Pass On Seven Bank Account Holders’ Information to Conspirators Who Used the Information to Steal Money
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, today to 64 months in prison followed by three years of supervised release for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Kathy A. Michalko of the United States Secret Service B Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to evidence presented at the four day trial, in 2012 Conteh, a bank teller, looked up bank account holder information on the computer system without authorization. Conteh disclosed that information to her co-conspirators who ordered checks on account holders’ accounts and cashed checks totaling over $30,000 on the account of one account holder. At least seven bank account holders’ accounts were improperly accessed. The Court determined that as a result of the scheme, Conteh is responsible for over $120,000 in intended losses.
Co-defendant Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson previously pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom, who prosecuted the case.
Bank Robber Sentenced to 262 MonthsRead the Press Release
NORFOLK, Va. – Phillip D. Bosket, 47, of New York, was sentenced yesterday to 262 months in prison for bank robbery and brandishing a firearm in furtherance of a crime of violence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing made the announcement after sentencing by United States District Judge Robert G. Doumar.
Bosketpleaded guilty on December 3, 2013. According to court documents, Bosket attempted to rob a Credit Union and robbed a bank. The defendant entered a Langley Federal Credit Union on Granby Street in Norfolk with a knit hat covering his whole face. Bosket saw a security guard come around the corner so he took off running. As he ran he discarded his firearm and his knit hat. His DNA was on the hat. A few weeks later he robbed a Wells Fargo Bank on High Street in Portsmouth. He entered the bank with a knit hat covering his face. He brandished a firearm at the teller and made off with over $4000. The police quickly located the defendant resulting in a high speed chase. As defendant was fleeing he threw out the bag of money, his gun and his knit hat. The police followed him on a high speed chase from Portsmouth to Virginia Beach. The chase ended when the defendant crashed his van into a building.
This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office. Assistant United States Attorney William Muhr 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.Attorney General Holder Announces President Obama’s Budget Proposes $173 Million for Criminal Justice ReformRead the Press Release
Attorney General Eric Holder announced today that President Obama’s FY 2015 Budget proposal for the Department of Justice calls for $173 million in targeted investments for criminal justice reform efforts.
These investments—such as increased funding for state and local prisoner reentry initiatives—are among the key highlights in the president’s overall $27.4 billion budget request for the Justice Department. The FY 2015 request, which represents a $122 million increase over the FY 2014 enacted level, supports a range of federal law enforcement priorities, as well as the criminal justice priorities of state, local and tribal law enforcement partners.
“Each dollar spent on prevention and reentry has the potential to save several dollars in incarceration costs,” said Attorney General Eric Holder. “These wise investments can help make our criminal justice system more effective and efficient. Overall, this budget request shows our strong commitment to building upon the record of progress we have established in fulfilling the Justice Department’s most critical missions.”
In August 2013, the Attorney General introduced the “Smart on Crime” initiative—a package of reforms to the criminal justice system to help ensure that federal laws are enforced more fairly and more efficiently. Among other reforms, the effort promotes diversion courts and other alternatives to incarceration for low-level drug offenders, and urges investment in reentry programs in order to reduce recidivism among formerly incarcerated individuals.The President’s budget request seeks to put critical resources behind this effort. Specifically, in addition to funds routinely provided for federal prisoner reentry efforts, the FY 2015 request:
• Requests $15 million for U.S. Attorneys, including prosecution prioritization, prevention and reentry work and promoting alternatives to incarceration such as the establishment of drug courts and veteran courts; • Sustains $15 million for the Bureau of Prisons to expand the Residential Drug Abuse Program at the federal level and $14 million provided in the FY 2014 appropriation to assist inmates with reentering society and reducing the population of individuals who return to prison after being released; • Requests $14 million in the Office of Justice Programs to expand the Residential Substance Abuse Treatment program at the state and local level; and
• Requests $115 million for the Second Chance Act Grant program, through state and local assistance programs, to reduce recidivism and help ex-offenders return to productive lives.Beyond criminal justice reform, the Department of Justice’s other key funding priorities include:
• $273 million to help meet the nation’s civil rights challenges--including an $8 million program increase; • $4 billion for national security--including a $15 million program increase; • $1.1 billion to protect Americans from gun violence--including $182 million to support the president’s “Now is the Time” gun safety initiative; • $722 million for cyber security--including $8 million in program increases; • $44 million for Mutual Legal Assistance Treaty responsibilities--including $24 million in increases to reform the process; • $681 million for financial fraud law enforcement-to maintain our current efforts; • $2.9 billion to support immigration law enforcement--including a $23 million program increase; • $8.5 billion to maintain and secure federal prisons and detention facilities; • $3 billion in mandatory and discretionary funds to maintain assistance to state, local and tribal law enforcement; and
• $1.2 billion in federal program offsets and rescissions.In addition, the FY 2015 President’s Budget proposes additional discretionary investments for the department as part of the Administration’s Opportunity, Growth and Security Initiative. The initiative includes targeted investments for state and local justice assistance grants, with additional resources for the Comprehensive School Safety Program, COPS Hiring Program, and new youth investments; funding for the Bureau of Prisons (BOP) to continue the process of bringing on-line newly completed and acquired prisons; and funding for improved capacity for financial fraud enforcement.
Below is an explanation of a few of the key highlights from President Obama’s FY 2015 budget request for the Department of Justice: CIVIL RIGHTS
The department’s mission includes upholding the civil and constitutional rights of all Americans, particularly the most vulnerable members of our society. Accomplishing this requires necessary resources both to investigate and to litigate. The department maintains substantial responsibilities with respect to enforcing the nation’s civil rights laws and protecting vulnerable populations. The FY 2015 budget will support the department’s vigorous enforcement of federal civil rights laws – including those pertaining to human trafficking, hate crimes, police misconduct, fair housing, fair lending, disability rights and voting. As such, the department’s FY 2015 budget requests $273 million to help meet the nation’s civil rights challenges. The request includes $7.6 million in program increases for the Civil Rights Division and Community Relations Service.
For more information, view the Civil Rights Fact Sheet at www.justice.gov/jmd/2015factsheets/.
NATIONAL SECURITY
Defending our nation’s security from both internal and external threats remains the department’s highest priority. The FY 2015 budget request provides a total of $4 billion to maintain critical counterterrorism and counterintelligence programs, and sustains recent increases for intelligence gathering and surveillance capabilities.
The Administration supports critical national security programs within the department, including those led by the FBI and the National Security Division (NSD). In FY 2013, the FBI dedicated 4,500 agents to investigate more than 18,000 national security cases. NSD has continued to carry out its primary functions to prevent acts of terrorism and espionage in the United States and to facilitate the collection of information regarding the activities of foreign agents and powers.
In FY 2015, the department is investing an additional $15 million to fund the annual costs of the FBI’s new Terrorist Explosive Device Analytical Center (TEDAC) at Redstone Arsenal in Huntsville, Ala. TEDAC is a forensic and technical laboratory dedicated to the mitigation and prevention of improvised explosive device attacks in the United States and abroad. It has provided critical assistance to domestic and international cases, including last year’s Boston Marathon bombing.
For more information, view the National Security Fact Sheet at www.justice.gov/jmd/2015factsheets/.
GUN SAFETY
Gun violence has touched every state, county, city and town in America. In 2013 the President introduced the “Now is the Time” initiative, which laid out a comprehensive plan to reduce gun violence and save lives. The department is working to implement a number of these actions and requests a total of $1.1 billion in FY 2015 to address violent gun crimes, including $182 million to sustain the new investments provided in FY 2014.
Specifically, the request provides $35 million in new resources in support of the president’s plan to ensure that those who are not eligible to purchase or possess guns are prevented from doing so. This includes $13 million for the FBI to maintain improvements made in FY 2014 to the National Instant Criminal Background Check System (NICS) aimed at addressing the increasing volume of firearm background checks. We are also taking a thorough look at our federal laws and our enforcement priorities to ensure that we are doing everything possible at the federal level to keep firearms away from traffickers and others prohibited by law from possessing firearms. To this end, $22 million is also included for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to sustain critical firearms enforcement efforts funded in FY 2014.
And while most of the department’s efforts will be focused on keeping guns out of the wrong hands, we also want to help those on the ground prevent and mitigate violent situations when they do occur. To this end, the grant program requests a total of $147 million including $55 million to incentivize states to provide criminal history and mental health records to the NICS; $75 million to continue the Comprehensive School Safety program, which provides critical resources for research and for pilot programs to augment school safety personnel and to determine the effectiveness of various school safety measures; $2 million to encourage the development of innovative gun safety technology; and $15 million for the VALOR Initiative, including training for active shooter situations.
For more information, view Gun Safety Fact Sheet at www.justice.gov/jmd/2015factsheets/.
CYBERSECURITY
Investigating cybercrime and protecting our nation’s critical network infrastructure is a top priority of the department in an era when cyber-attacks and crimes are increasingly common, sophisticated, and dangerous. The FY 2015 budget request provides a total of $722 million for the department’s cyber enforcement efforts and maintains recent increases for the National Security Division’s (NSD) prosecutorial efforts and the FBI’s Next Generation Cyber Initiative, which enhanced capabilities to combat cyber threats from individuals, organized groups and rogue actors. The request also includes an increase of $3 million for the Criminal Division to enhance its investigative and prosecutorial capabilities; and $5 million to provide grants related to cybercrime and intellectual property enforcement.
The department has a unique and critical role in cyber security that emphasizes domestic mitigation of threats and involves countering these threats by investigating and prosecuting intrusion cases, gathering intelligence and providing legal and policy support to other departments. The department is also responsible for establishing effective internal network defense and serving as a model for other departments and agencies.
We are committed to carrying out our role consistent with the Administration’s Executive Order 13636 on Improving Critical Infrastructure Cyber Security, which emphasizes intelligence and information sharing as well as the preservation of privacy, data confidentiality and civil liberties. As part of this effort, the department continues to maintain and strengthen its cyber security environment to counter cyber threats, including insider threats, and to ensure personnel have unimpeded access to the IT systems, networks and data necessary to achieve their missions.
For more information, view the Cyber Security Fact Sheet at www.justice.gov/jmd/2015factsheets/.
MUTUAL LEGAL ASSISTANCE TREATY (MLAT) REFORM
The department is leading an effort to update, improve and accelerate the processing of requests from foreign governments for evidence requested pursuant to Mutual Legal Assistance Treaties (MLAT). Delays and difficulties in obtaining evidentiary records through the MLAT process is increasingly becoming a source of frustration for many of our foreign country partners. The department is committed to honoring its obligations under these treaties, and as a result the FY 2015 budget request includes a total of $44 million to support MLAT responsibilities, including an increase of $24 million to centralize and improve the MLAT request process.
Over the past decade, the number of requests for assistance from foreign authorities handled by the Criminal Division’s (CRM) Office of International Affairs (OIA) has increased nearly 60 percent, and the number of requests for computer records has increased ten-fold. While the workload has increased dramatically, U.S. Government resources, including personnel and technology, have not kept pace with this increased demand. This MLAT reform is a cross-agency effort involving the Departments of Justice, State and Commerce. Funds identified in the FY 2015 President’s Budget for improvements to the MLAT program will be coordinated across these departments and agencies as well as the commercial sector. With these additional resources, the department will centralize the processing system and reduce its backlog and response time by half by the end of 2015.These resources are critical to supporting the President’s National Security Strategy, which recognizes the centrality of international mutual cooperation in criminal justice and counterterrorism matters, by building the “new framework for international cooperation” envisioned by that strategy.
For more information, view the Mutual Legal Assistance Treaty Fact Sheet at www.justice.gov/jmd/2015factsheets/.
FINANCIAL FRAUD
Investigating and prosecuting financial fraud continues to be a priority for the Obama Administration. The FY 2015 budget request provides a total of $681 million for financial fraud enforcement and continues efforts to strengthen the department’s ability to pursue large-scale financial fraud investigations in order to ensure that Americans, their investments and our financial markets are protected. The Administration’s Opportunity, Growth and Security Initiative includes additional resources for the department’s critical economic fraud enforcement efforts focused on financial institutions and the mortgage industry.
Ongoing efforts by the President’s Financial Fraud Enforcement Task Force (FFETF) are included in the department’s request. Since its inception in FY 2010, FFETF has facilitated increased investigations and prosecution of financial fraud relating to the financial crisis and economic recovery efforts. This includes securities and commodities fraud, investment scams and mortgage foreclosure schemes and a broad range of financial crimes, including cases being investigated and brought by the FFETF’s Residential Mortgage-Backed Securities Working Group.
For more information, view the Financial Fraud Fact Sheet at www.justice.gov/jmd/2015factsheets/.
IMMIGRATION
The department maintains substantial responsibilities with respect to immigration, including enforcement, detention, judicial functions, administrative hearings and litigation. The department’s Executive Office for Immigration Review (EOIR) maintains a nationwide presence overseeing the immigration court and appeals process. Combined with the Civil Division’s Office of Immigration Litigation, the department has a wide and important role in immigration enforcement.
EOIR receives cases directly from the Department of Homeland Security (DHS) enforcement personnel, and EOIR’s caseload is increasing at unsustainable levels. For example, EOIR’s immigration court caseload has continued to outpace department resources, increasing by 56 percent, from 229,000 to 358,000, between FY 2009 and FY 2013.
The FY 2015 budget request includes a $23 million investment to support immigration courts. The budget supports an additional 35 Immigration Judge Teams and 15 Board of Immigration Appeals attorneys. This will allow EOIR to address caseload increases emanating from DHS programs. The additional funding will also enable EOIR to expand a pilot program initially funded in FY 2014 that provides counsel to vulnerable populations, such as unaccompanied alien children, and to expand the Legal Orientation Program that improves efficiencies in immigration court proceedings for detained aliens.
For more information, view the Immigration Fact Sheet at www.justice.gov/jmd/2015factsheets/.
PRISONS AND DETENTION
The department continues to prioritize the maintenance of secure, controlled detention and prison facilities, as well as investment in programs that can reduce recidivism. The FY 2015 budget request provides $8.5 billion for prisons and detention. Of this amount, $6.9 billion is requested for the Bureau of Prisons (BOP) and $1.6 billion is for the Federal Prisoner Detention (FPD) appropriation. As part of the Opportunity, Growth and Security Initiative, the FY 2015 request also includes targeted investments to reduce prison overcrowding by providing the Bureau of Prisons resources to bring on-line newly completed or acquired prisons.
Additionally, the budget request includes funding to support the Attorney General Holder’s Smart on Crime Initiative, which is intended to promote fundamental reforms to the criminal justice system that will ensure the fair enforcement of federal laws, improve public safety, reduce recidivism and successfully prepare inmates for their reentry into society. Included are funds to sustain the investments made in FY 2014 for BOP’s reentry programs including the Residential Drug Abuse Program, Residential Reentry Centers and reentry-specific education programs.
For more information, view the Prisons and Detention Fact Sheet at www.justice.gov/jmd/2015factsheets/.
STATE, LOCAL AND TRIBAL LAW ENFORCEMENT
In total, the FY 2015 budget requests $3 billion in mandatory and discretionary funds for state, local and tribal law enforcement assistance. These funds will allow the department to continue to support our state, local and tribal partners who fight violent crime, combat violence against women and support victim programs. The FY 2015 request will bolster the department’s efforts to ensure that federal grant funding flows to evidence-based purposes and helps to advance knowledge of what works in state and local criminal justice.
The department is requesting $1.5 billion for the Office of Justice Programs’ (OJP) discretionary grants. The request increases funding for an evaluation clearinghouse, an indigent defense initiative, and evidence-based competitive programs. Funding is included to establish the Byrne Incentive Grants and Juvenile Justice Realignment Incentive grants; these programs will provide supplementary awards to states and localities using formula grant funds for evidence-based purposes. The request also includes funding to address school safety and gun violence with resources to improve criminal history records information and to fund the comprehensive school safety program, which received funding initially in FY 2014.
The FY 2015 budget request includes a total of $423 million for the Office on Violence Against Women (OVW), and continues the Administration’s strong commitment to providing federal leadership in developing the nation’s capacity to combat sexual assault and violence against women. The request includes an increase of $9 million for Legal Assistance to Victims Programs, Campus Violence, Grants to Support Families in the Justice System and the Transitional Housing program. These programs fund both proven and cutting-edge interventions to save lives, hold abusers accountable and rebuild families and communities.The request includes $274 million for Community Oriented Policing Services (COPS), which supports an increase of $71 million increase for COPS hiring and Tribal Law Enforcement programs. These resources will fund officers and thereby support the efforts of state, local and tribal law enforcement agencies in meeting the challenge of keeping their communities safe.
For more information, view the State, Local and Tribal Law Enforcement Fact Sheet at www.justice.gov/jmd/2015factsheets/
'Real Housewives of New Jersey’ Stars Plead Guilty to Conspiracy, Bankruptcy Fraud and Tax OffensesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo TV television show “The Real Housewives of New Jersey” today admitted committing a string of crimes as part of a long-running financial fraud conspiracy, U.S. Attorney Paul J. Fishman announced.
Teresa Giudice, 41, and Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to several counts of the superseding indictment returned against them in July 2013. The Giudices each pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of bankruptcy fraud by concealment of assets, one count of bankruptcy fraud by false oaths, and one count of bankruptcy fraud by false declarations. Giuseppe Giudice also pleaded guilty to one count of failure to file a tax return.
“Teresa and Giuseppe Giudice used deception and fraud to cheat banks, bankruptcy court and the IRS,” said U.S. Attorney Fishman. “With their guilty pleas, they admitted the schemes with which they were charged. Having now confessed their wrongdoing, the Giudices face the real cost of their criminal conduct.”
“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) is pleased to join our law enforcement colleagues in announcing these guilty pleas today,” A. Derek Evans, Special Agent in Charge of FDIC-OIG, New York Region, said. “We are committed to combating bank fraud and bringing to justice those who engage in criminal conduct that undermines the integrity of our nation's financial institutions.”
“Tax violations have been erroneously referred to as victimless crimes, which is a far cry from reality,” Acting Special Agent in Charge Jonathan D. Larsen, IRS-Criminal Investigation, Newark Field office, said. “Every time someone in America cheats on their taxes there are over 300 million victims. Tax fraud and bankruptcy fraud are real crimes with serious consequences as evidenced today by the guilty pleas of Giuseppe and Teresa Giudice.”
According to documents filed in this case and statements made in court:
From September 2001 through September 2008, Giuseppe and Teresa Giudice engaged in a mail and wire fraud conspiracy in which they submitted fraudulent applications and supporting documents to lenders in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when they were either not employed or not receiving such salaries.
In September 2001 Teresa Giudice applied for a $121,500 mortgage loan for which she submitted a loan application falsely claiming she was employed as an executive assistant. She also submitted fake W-2 forms and fake pay stubs purportedly issued by her employer. For a $361,250 mortgage loan that Teresa Giudice obtained in July 2005, she and Giuseppe Giudice prepared a loan application which falsely stated she was employed as a realtor and that she made a monthly salary of $15,000. In reality, Teresa Giudice was not employed at the time.
The Giudices also admitted they committed bank fraud and loan application fraud in the course of obtaining loans from several banks. On Oct. 29, 2009, they filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee their assets, liabilities, income and any anticipated increase in income. The Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming second season of the show.
Giuseppe Giudice also admitted that during tax years 2004 through 2008, he received income totaling $996,459 but did not file tax returns for those years.
The conspiracy to commit mail and wire fraud count to which the Giudices each pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Each of the bankruptcy fraud counts carries a maximum potential penalty of five years in prison and a $250,000 fine. Teresa Giudice’s plea agreement requires her to pay $200,000 to the government at the time of sentencing, which is scheduled for July 8, 2014.
The plea agreements also require the Giudices to forfeit money which they obtained via conspiracy to commit mail and wire fraud and bankruptcy fraud, in an amount to be determined by the court at sentencing.
U.S. Attorney Fishman credited special agents of the FDIC-OIG New York, under the direction of SAC Evans; special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen; and Region 3 U.S. Trustee Roberta A. DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the office’s Criminal Division, and Counsel to the U.S. Attorney Rachael A. Honig, in Newark.
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Defense counsel: Teresa Giudice: Henry E. Klingeman Esq., Newark
Giuseppe Giudice: Miles Feinstein Esq., Clifton, N.J.Giudice, Giuseppe and Teresa Superseding Indictment
Giudice, Giuseppe Plea Agreement
Giudice, Teresa Plea Agreement
3 March 2014
Woman Who Threatened Violent Attack at Gateway Community College Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that AMANDA C. BOWDEN, 21, formerly of East Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to approximately 10 months of imprisonment, time already served, followed by three years of supervised release, for threatening to carry out a violent attack at Gateway Community College in New Haven.
According to court documents and statements made in court, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN was arrested on February 19, 2013. On that date, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices were found during the search.
On April 25, 2013, BOWDEN pleaded guilty to one count of false information and hoaxes.
BOWDEN was detained after her arrest until May 14, 2013, when she was released on bond into a Salvation Army program in Hartford that included mental health treatment. She was returned to federal custody on July 11, 2013, for violating the conditions of her release.
Upon her release from federal custody today, BOWDEN was transferred to a State of Connecticut inpatient mental health facility for further treatment. BOWDEN’s internet usage will be monitored by the U.S. Probation Office during her term of supervised release.
This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
This case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Wanblee Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Bad Cob was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 6, 2014.
Tyson Bad Cob, age 20, was indicted on February 19, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 27, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bad Cob engaging in sexual contact with a child who had not attained the age of twelve, between 2011 and 2014 at Wanblee.
The charge is merely an accusation and Bad Cob is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Waipahu Man Sentenced to over 15 Years Imprisonment for Federal Drug OffensesRead the Press Release
HONOLULU – Mario Cesar Torres, age 57, of Waipahu, was sentenced today by United States District Judge J. Michael Seabright to 188 months imprisonment for conspiring to distribute and possess with intent to distribute, 50 grams or more of methamphetamine as well as three additional counts of distributing 50 grams or more of methamphetamine. A federal jury found Torres guilty of the four drug offenses in February 2013.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Torres was found to be responsible for distributing 1,285 grams of actual methamphetamine from August 2010 through January 2011. According to evidence produced during the trial, during that time period, Torres delivered approximately one pound quantities of methamphetamine on two occasions and was the driver on a third transaction in which a passenger in his vehicle delivered approximately one pound of methamphetamine. Torres had faced a mandatory minimum sentence of ten years imprisonment on each count.
The case was the result of a joint investigation by Homeland Security Investigations, the Federal Bureau of Investigation and the Honolulu Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 33, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced United States Attorney Kenneth Magidson. Almeida pleaded guilty Monday, Dec. 2, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration Almeida’s cooperation with the authorities and acceptance of responsibility for his crimes and handed him a sentence of 72 months. In handing down the sentence, Judge Rainey stated that Almeida and people like him who possess child pornography drive the market that leads to its creation. Almeida will also serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to limit his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his guilty plea, Almeida stipulated that on March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into persons trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Almeida was previously released on bond, but as part of his ongoing desire to accept responsibility and try to obtain the help he needs, he requested the court allow him to begin serving his sentence immediately and was taken into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – Joshua Almeida, 33, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced United States Attorney Kenneth Magidson. Almeida pleaded guilty Monday, Dec. 2, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration Almeida’s cooperation with the authorities and acceptance of responsibility for his crimes and handed him a sentence of 72 months. In handing down the sentence, Judge Rainey stated that Almeida and people like him who possess child pornography drive the market that leads to its creation. Almeida will also serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to limit his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his guilty plea, Almeida stipulated that on March 18, 2012, the Victoria County Sheriff’s Office conducted an undercover online investigation into persons trading child pornography. A computer which ultimately traced back to Almeida was determined to be offering numerous images of child pornography for distribution. A state search warrant was executed on Almeida’s home in Victoria on Sept. 27, 2012, at which time several electronic storage devices were seized and identified as belonging to Almeida. A subsequent computer forensics search of those devices led to the discovery of numerous files containing child pornography.
Almeida was previously released on bond, but as part of his ongoing desire to accept responsibility and try to obtain the help he needs, he requested the court allow him to begin serving his sentence immediately and was taken into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney John Walsh to Testify Before Congress Regarding Departrment of Justice's Marijuana Enforcement EffortsRead the Press Release
U.S. Attorney John Walsh, District of Colorado, and DEA Deputy Administrator Thomas Harrigan will testify before the House Committee on Oversight and Government Reform, Subcommittee on Government Operations, regarding the Department of Justice's marijuana enforcement policy. The testimony is scheduled for tomorrow, Tuesday, March 4th at 11:30 a.m. MST.
Tyler James Schaeffer Sentenced for Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Mar. 3, 2014, Tyler James Schaeffer, 22, of Seymour, Tenn., was sentenced to serve a total of 100 years in prison by the Honorable Thomas Varlan, U.S. District Judge.
In May 2013, a jury convicted Schaeffer of three counts of brandishing a firearm during and in relation to three robberies of businesses engaged in interstate commerce (Hobbs Act robbery) and possession of a firearm in furtherance of a methylone trafficking conspiracy.
Prior to his conviction at trial, in April 2013, Schaeffer pleaded guilty to a series of seven armed robberies, as well as the methylone trafficking conspiracy, that occurred between July 2010 and September 2012. Based on the proof available at the time of trial, the United States pursued firearms charges in connection with three of the seven robberies, as well as the methylone trafficking conspiracy. The jury convicted Schaeffer of each of those four firearms-related counts.
Jerel Bray-Sean Johnson, 20, of Knoxville, Tenn., and Rodney James Ruffin, 22, of Sevierville, Tenn., also pleaded guilty to related robbery, drug trafficking and firearms charges, and did not go to trial with Schaeffer. Sentencing for Johnson is scheduled for May 2, 2014. Ruffin is scheduled to be sentenced on Apr.16, 2014.
Law enforcement agencies participating in the joint investigation which led to indictment, conviction and today’s sentencing of Schaeffer included the FBI’s Safe Streets Task Force, KPD, Office of District Attorney General James B. Dunn, Tennessee Highway Patrol, Knox County Sheriff’s Office, Sevier County Sheriff’s Office, Sevierville Police Department, Blount County Sheriff’s Office, and Alcoa Police Department. Assistant U.S. Attorneys Kelly A. Norris and Tracy L. Stone represented the United States at trial.
Schaeffer will be returned to Sevier County authorities to stand trial for a deadly automobile collision which occurred on September 16, 2012, as well as a burglary charge.
The United States Sues Sprint Communications, Inc. to Recover Overpayments for Wiretap Charges Under False Claims ActRead the Press Release
SAN FRANCISCO – The United States filed a civil complaint against Sprint Communications, Inc., formerly Sprint Nextel Corporation, under the False Claims Act, 31 U.S.C. §§ 3729-3733, announced United States Attorney Melinda Haag and the U.S. Department of Justice Office of Inspector General, Special Agent in Charge M. Elise Chawaga. The complaint seeks treble damages and civil penalties in connection with Sprint’s claims for reimbursement of the expenses it incurred in complying with court orders authorizing wiretaps, pen registers, and trap devices.
Like other telecommunications carriers, Sprint is authorized by statute to bill law enforcement agencies for the reasonable expenses it incurs in providing facilities or assistance to accomplish a court-ordered wiretap, pen register, or trap device. In 1994, Congress passed the Communications Assistance in Law Enforcement Act (“CALEA”), which required telecommunications carriers to upgrade their equipment, facilities, or services to ensure they were capable of enabling the government, pursuant to a court order, to intercept and deliver communications and call-identifying information. In 2006, the Federal Communications Commission ruled that carriers were prohibited passing on the costs of its CALEA upgrades to law enforcement agencies in its intercept bills. From 2007 to 2010, in violation of the FCC’s ruling, Sprint included in its intercept charges the hidden costs of financing its CALEA upgrades.
The complaint alleges that Sprint unlawfully inflated its charges by approximately 58%, causing federal law enforcement agencies to pay over $21 million in unallowable costs from January 1, 2007 to July 31, 2010.
“As alleged, Sprint overbilled law enforcement agencies for carrying out court-ordered intercepts, causing a significant loss to the government’s limited resources,” U.S. Attorney Melinda Haag said. “This office will use all available tools to protect the public fisc, and we will continue to hold those who present false claims to the government accountable.”
Steven J. Saltiel is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Kathy Terry. The prosecution is the result of an investigation by the Department of Justice Office of Inspector General.
The claims asserted against Sprint are allegations only, and there has been no determination of liability.
(Sprint complaint )
Stevie Marie Anne Vigil Sentenced to Federal Prison for Purchasing Firearm for Evan EbelRead the Press Release
Click here for the government's sentencing statement regarding the Stevie Vigil case
DENVER -- Stevie Marie Anne Vigil, of Commerce City, Colorado, was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 27 months in federal prison for knowingly transferring a firearm to a convicted felon. Following her prison term, Vigil was ordered to serve 3 years on supervised release. At the conclusion of the sentencing hearing Vigil was remanded into federal custody. Today’s sentencing was announced by United States Attorney John Walsh, 18th Judicial District Attorney George Brauchler and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Special Agent in Charge Luke Franey, and Colorado Bureau of Investigations Director Ron Sloan.
Vigil was indicted by a federal grand jury in Denver on August 8, 2013. She pled guilty before Judge Arguello on October 22, 2013. Vigil was sentenced today, Monday, March 3, 2014.
According to the indictment, and other court documents, on March 8, 2013, Vigil knowingly disposed of and transferred a firearm to Evan Ebel, knowing and having reasonable cause to believe that Evan Ebel had been convicted of a crime punishable by imprisonment for a term exceeding one year. Ebel used the firearm he received from Vigil to murder Colorado Department of Corrections Executive Director Tom Clements and a hard working family man named Nathan Leon. It was also used to shoot a Texas law enforcement officer in the chest and head during a routine traffic stop. Finally, Ebel fired the weapon out the window at law enforcement officers while engaged in a high speed pursuit that reached speeds of over 120 miles per hour.
“Today’s sentence was just,” said U.S. Attorney John Walsh. “Defendant Vigil unlawfully bought a gun for Evan Ebel, knowing he was a felon, and knowing that he was capable of violence. Today’s sentence cannot restore Tom Clements or Nate Leon to their families, or undo the damage done by Ebel with that weapon. But it sends a clear message of the determination of local, state and federal law enforcement in Colorado to work together to ensure the safety of the public, and to bring wrongdoers to justice.”
“Today, Stevie Vigil lost her freedom for giving a handgun to a known felon,” said George H. Brauchler, District Attorney for the 18th Judicial District. “Her reckless disregard for the law resulted in the cold-blooded murder of two good men-- two good fathers, husbands, and sons. The cooperative efforts of Assistant District Attorney Mark Hurlbert and the U.S. Attorney’s Office in the pursuit of justice are the reasons Ms. Vigil received the sentence that she did. We will continue to vigorously enforce laws that seek to keep guns out of the hands of convicted violent felons. Those who would wantonly provide a gun to a convicted felon should note that their treatment by the justice system will be a direct reflection of the worst outcome of that felon’s use of the gun.”
“We know that gun crime in Colorado is fueled by weapons that have been trafficked into the wrong hands,” said Denver ATF Special Agent in Charge Luke Franey. “Unfortunately, this case is an example of the destruction and violence that is inflicted on our communities and is the direct result of straw purchasing. ATF is committed to reducing gun violence by continuing to investigate and arresting those who illegally supply firearms to prohibited individuals.”
“The investigation involving Stevie Vigil was a collaborative effort of the local, state and federal public safety community, and it was the tireless work by the investigative and prosecution teams that yielded the results of today's sentencing,” said Colorado Bureau of Investigation Director Ron Sloan. “However, as law enforcement spent countless hours on this case, the families of the victims remained in the forefront with all of us. Their journey this past year is difficult to comprehend, and it is the hope that Vigil's sentencing brings some solace to the families of Tom Clements, Nathan Leon and to Deputy James Boyd."
The prosecution of this case is a result of a joint federal and state investigation involving multiple agencies, including: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Colorado Bureau of Investigation (CBI), the 18th Judicial District Attorney’s Office, the Denver Police Department, the Federal Bureau of Investigation (FBI), the Englewood Police Department, the El Paso County Sheriff?s Office, the Texas Rangers, the Wise County, Texas Sheriff’s Department, the Texas Department of Public Safety, and the Colorado Department of Corrections.
Vigil was prosecuted by Assistant U.S. Attorney Richard Hosley, Chief of the U.S. Attorney’s Major Crimes Section, and Special Assistant U.S. Attorney Mark Hurlbert, Assistant District Attorney for the 18th Judicial District.
Six Indicted in Fraudulent Tax Refund SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that six individuals have been indicted by a federal grand jury for Conspiracy to Defraud the United States and Aggravated Identity Theft.
Donta J. Moore, age 28, of Kansas City, MO; Timothy L. Brister, Jr., age 29, of Tampa, FL; Undra Stewart Franks, age 27, of Little Rock, AR; Jennifer Robinson, age 25, of Fargo, ND; Shawnte Washington, age 31, of Tampa, FL; and Anna Weber, age 27, of West Fargo, ND, were indicted on February 4, 2014.
Franks appeared before U.S. Magistrate John E. Simko on February 12, 2014, and pled not guilty to the Indictment. The others have been arrested and will make their first court appearance in Sioux Falls in early March.
The maximum penalty upon conviction of the conspiracy offense is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The aggravated identity theft offense carries a mandatory sentence upon conviction of 2 years in custody consecutive to any other sentence.
The indictment charges that the defendants conspired to defraud the United States by using personal identifying information, including names, Social Security numbers, and dates of birth, stolen from others to file fraudulent income tax returns which claimed false income tax refunds. The indictment also charges Moore, Brister, Franks, Robinson, and Washington with one count each of transferring, using or possessing the name, date of birth or Social Security number of other persons in relation to stealing or embezzling money from the United States government.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service – Criminal Investigation. The Moorhead, MN, police department and the U.S. Secret Service also aided in the investigation. Assistant U.S. Attorney John E. Haak is prosecuting the case.
Franks was released pending trial. A trial date has not been set.
Real Estate Professional Pleads Guilty to Federal Bank Fraud Charges for Illegally Flipping Central Coast Residential PropertiesRead the Press Release
LOS ANGELES – A former San Luis Obispo real estate broker pleaded guilty today to orchestrating a property “flipping” scheme in which he purchased houses in short sales at artificially low prices and immediately resold the properties at their true market value.
Timothy William Barnes, 37, who now resides in San Francisco, pleaded guilty to one count of bank fraud, a federal offense that carries a statutory maximum penalty of 30 years in federal prison.
Barnes owned and operated Apex Properties Real Estate Brokerage, Inc. in San Luis Obispo. Between January 2010 and September 2012, Barnes purchased properties after banks gave approval for short sales. In short sales, banks agree to accept less money than the outstanding balance on a mortgage, usually because the property is “under water,” meaning that the value of the property has fallen below the amount remaining on the mortgage. The lenders authorized the short sales after Barnes minimized the value of the houses and concealed higher offers he had already received. To carry out his scheme, Barnes made false statements about the fair market value of the properties in the documents he submitted to the banks.
Barnes admitted that, in many cases, he had already negotiated the resale at the higher price while he was simultaneously negotiating the short sale of the property at the lower price.
Barnes used this scheme to flip properties in San Luis Obispo, Paso Robles, Pismo Beach and other cities on the Central Coast, earning profits of more than $500,000.
Barnes is scheduled to be sentenced by United States District Judge Stephen V. Wilson on June 16.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General.
Release No. 14-029
Porcupine Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on February 27, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Leo Kills Back, age 32, was sentenced to one year in custody, one year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Kills Back was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on September 24, 2013. He pled guilty to Assault by Striking, Beating, or Wounding on December 12, 2013.
The conviction relates to Kills Back hitting his sister several times on the head with a shovel on July 20, 2013, at Evergreen.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Kills Back was immediately turned over to the custody of the U.S. Marshals Service.
Payette Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
BOISE – David Everett McAllister, 30, of Payette, Idaho, pleaded guilty today to unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. McAllister was indicted by a federal grand Jury in Boise on November 13, 2013.
According to the plea agreement, McAllister admitted that on October 15, 2013, he possessed three firearms, including a 9-millimeter pistol, a .30-06 rifle, and .22 rifle. At the time McAllister was in possession of the firearms, he had previously been convicted of a crime punishable by more than one year in prison. McAllister was previously convicted of statutory rape in Canyon County, Idaho.
The charge of unlawful possession of firearms is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 19, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the High Desert Task Force, Payette County Sheriff’s Office, and the Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
New York Residents Charged with Sex Trafficking of MinorsRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in New Haven has returned an indictment charging EDWARD THOMAS, also known as “Fire,” 39, and KAYLA WALTERS, 22, both of New York, with offenses related to the sex trafficking of minors.
The indictment alleges that, between September 2012 and August 2013, THOMAS and WALTERS conspired to recruit, harbor and transport a minor to engage in commercial acts. The indictment further alleges that THOMAS also recruited, harbored and transported a second minor to engage in commercial sex acts.
The indictment was returned under seal on February 24, 2014, and THOMAS and WALTERS were arrested on February 28 at a hotel in Milford, Conn. They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were ordered detained.
THOMAS and WALTERS are charged with one count of conspiracy to commit sex trafficking of a minor, and THOMAS is charged with two counts and WALTERS with one count of sex trafficking of a minor. If convicted of the charges, both defendants face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments have assisted the investigation.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Murphysboro Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn February 28, 2014, Michael R. Jines, a/k/a “Mikey,” “Pill Mike,” 33, of Murphysboro, Illinois, was sentenced in United States District Court in Benton on a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Jines, who had previously pled guilty to the methamphetamine offense, was sentenced to 96 months in prison, to be followed by 5 years of supervised release, and fined $400. The offense occurred between January 2013 and June 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Jines was involved with others in the manufacture of methamphetamine. Jines recruited others to purchase pseudoephedrine for use in the manufacture of methamphetamine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
More Guilty Pleas in Federal Case Involving Drug and Gun CrimesRead the Press Release
Star Man Admits Shooting Person in Furtherance of the Drug Trafficking Crime
BOISE – Jeramie Ethan Mahler, 27, of Star, Idaho, pleaded guilty today in United States District Court to one count of conspiring to distribute methamphetamine and another count that he discharged a firearm in furtherance of the drug trafficking crime, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement and information presented in court, Mahler admitted that he and other co-defendants agreed to distribute methamphetamine beginning in approximately January 2013. Mahler and others continued to distribute methamphetamine for several months. Mahler admitted that on March 25, 2013, he shot another person during a dispute with that person about the quality of the methamphetamine. The shooting occurred alongside a road in south Ada County near Amity and Linder roads. Mahler and two co-defendants fled the scene leaving the injured man behind. Eight days later, on April 2, a Canyon County Sheriff’s deputy stopped a vehicle that Mahler was driving. Mahler was arrested and the vehicle was searched. Inside, deputies found two handguns and approximately one-quarter pound of methamphetamine. A forensic examination later confirmed that one of the handguns located in the vehicle was the same gun used in the shooting on March 25.
The charge of conspiring to distribute methamphetamine is punishable by a minimum term of ten years and a maximum of life in prison, a maximum fine of $10 million, and at least five years of supervised release. Discharging a firearm in furtherance of a drug trafficking crime is punishable by a minimum term of ten years up to life in prison and must be imposed consecutively to the other sentence, a maximum fine of $250,000, and up to five years of supervised release.
Co-defendant Carlos Eberardo Tovar, 29, of Nampa, also pleaded guilty today to two counts of distributing methamphetamine. Tovar admitted that he sold methamphetamine to an undercover police officer on several occasions. The charge of distributing methamphetamine is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Mahler and Tovar are scheduled to be sentenced on May 20, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
A federal grand jury indicted Mahler, Tovar and nine other defendants on July 9, 2013. The indictment alleges that the defendants conspired together to distribute methamphetamine. It also contains additional charges alleging distribution of methamphetamine, distribution of cocaine, and unlawful possession of a firearm. All eleven defendants have pleaded guilty.
Co-defendant Bobbi Eileen Woolsey, 36, of Boise, is set for sentencing tomorrow for conspiring to distribute methamphetamine. She pleaded guilty to the charge on December 2, 2013.
Olson noted that when Mahler is sentenced in May, he will be at least the ninth person to be sentenced in the District of Idaho on both drug and gun charges this year. “Drugs and guns are a dangerous combination,” said Olson. “In Idaho, federal law enforcement officers in conjunction with their state and local partners, vigorously investigate dangerous persons who use and possess firearms in violation of federal gun laws. Our goal is simple: to keep guns away from violent individuals and to keep our community safe.”
Olson also stated that so far in 2014, five other persons had been sentenced for or pleaded guilty to federal statutes that prohibit possession of a firearm by a convicted felon or possession of an unlawful firearm such as a sawed-off shotgun. In 2013, seven defendants were sentenced in Idaho federal courts on both drug and gun charges; nineteen for being prohibited persons in possession of a firearm; eight for possessing unlawful and unregistered weapons; eight for using firearms in crimes of violence; and one for stealing firearms. In 2012, ten defendants were sentenced in Idaho federal courts on both drug and gun charges; twenty-four for being prohibited persons in possession of a firearm; five for possessing unlawful and unregistered weapons; ten for using firearms in crimes of violence; and two for stealing firearms. According to Olson, all of these cases involved either the joint investigative efforts of federal and state or tribal law enforcement or the investigative efforts of federally sponsored task forces that include state, local and tribal law enforcement officers.
“The coordination and cooperation of federal, state and local law enforcement officers is critical to proper and effective enforcement of laws that keep bad guys off of ours streets, and guns and drugs out of their hands,” said Olson. “I commend in this case the outstanding work of the Treasure Valley Metro Violent Crimes Task Force and Special Assistant United States Attorney Chris Atwood.”
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. Since 2007, over 255 defendants have been prosecuted in Federal Court through the Gang SAUSA program. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Modesto Man Sentenced to Prison for Counterfeit Media ConspiracyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Leonel Martinez Caballero, 31, of Modesto, today to four years in prison, United States Attorney Benjamin B. Wagner announced. Caballero pleaded guilty on November 25, 2013 to conspiracy to commit criminal copyright infringement and traffic in counterfeit labels and counterfeit documentation and packaging.
According to court documents, from April 2011 to July 25, 2011, Caballero was involved in an extensive scheme with others to store and distribute counterfeit DVD movies and audio CDs. Caballero managed a warehouse in Modesto that served as a distribution point for counterfeit music CDs and counterfeit movie DVDs. On July 25, 2011, the warehouse was found to contain over 100,000 counterfeit CDs and DVDs.
This case is the product of a joint investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, with assistance from the Stanislaus County Sheriff’s Department. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Manhattan U.S. Attorney Sues Owner and Operator of Public Water System for Violations of Safe Drinking Water ActRead the Press Release
Part of Broader U.S. Attorney’s Office and EPA Effort to Ensure Safe Drinking Water Act Compliance
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith A. Enck, the Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced the filing and settlement of a case in which the United States sued defendants EDWARD A. EHERTS (“Eherts”) and the PAINTED APRON WATER COMPANY, INC. (“Painted Apron”), for violations of the Safe Drinking Water Act (“SDWA”). The Court approved the settlement today.
Manhattan U.S. Attorney Preet Bharara stated: “Those in the business of providing drinking water to the public have a special responsibility to comply with water safety laws. Through this settlement, defendants have been called to account for longstanding violations of the Safe Drinking Water Act. This settlement also caps the efforts of our Office and EPA to ensure that the residents of the Painted Apron community in Orange County have access to water that complies with the law.”
EPA Regional Administrator Judith A. Enck stated: “Everyone has the right to clean drinking water, including customers of private water companies. This legal case will protect people’s health and remind all operators of private water companies that they must comply with the Safe Drinking Water Act.”
Defendant Painted Apron owned, and defendant Eherts operated, a public water system serving the Painted Apron development in the town of Deerpark in Orange County. As part of the settlement of this case, defendants “admit that they violated the SDWA, its implementing regulations and an administrative order issued by the EPA, by failing to monitor and treat water, make reports, take corrective action, and maintain a certified operator as required by applicable requirements of the SDWA and the administrative order.”
As alleged in the complaint, Eherts ignored repeated efforts by the EPA and state and local regulators to require him to bring this drinking water system into compliance. Rather than address the many violations, Eherts ultimately attempted to abandon the facility. “Defendants admit that “[a]s a result of” their “violations of the law, Defendants’ customers have been subjected to boil-water notices for multiple years.” These “boil-water” notices advised Painted Apron’s residents to boil their water before using it for human consumption or for food preparation. In addition to subjecting members of the community to these boil-water notices, Eherts’ violations also forced members of the community to spend their own time and money trying to keep the water system running as safely as possible.
In addition to admitting liability for these violations, the defendants have agreed to provide the Government with a lien on property in the amount of $50,000; to turn over all records relating to the water utility to new operators; and never again to serve as owners or operators of any public water system.
Beyond this settlement with the defendants, the U.S. Attorney’s Office and EPA have worked directly with the residents of the Painted Apron community to bring their drinking water into compliance with the SDWA. Through those efforts, a committee of residents was identified to replace Eherts as operator of the public water system and to bring the system into compliance. On July 22, 2013, the New York State Public Service Commission appointed this committee as the system’s temporary operator. As temporary operator, the committee is providing safe drinking water compliant with law, and the boil-water notices issued to these the residents have been lifted. Today’s settlement with Eherts and Painted Apron completes our Office’s efforts regarding the Painted Apron water system.
This Safe Drinking Water Act lawsuit follows a case brought by this Office and EPA in federal court against Westchester County earlier this year for Safe Drinking Water Act violations.
Mr. Bharara thanked EPA Region 2’s tireless efforts to work with this Office to restore safe drinking water to the Painted Apron community. Mr. Bharara also thanked the New York State Public Service Commission for its efforts to remedy the effects of defendants’ failure to comply with the law.
The case has been handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Ellen London is in charge of the case.
U.S. v. Edward A. Eherts et al Stipulation of Settlement and Judgment
U.S. v. Edward A. Eherts et al ComplaintLouisiana Man Charged with Abusive Sexual Contact of Sleeping Woman on Domestic Flight to New JerseyRead the Press Release
NEWARK, N.J. — A Louisiana man appeared in Newark federal court today to face a charge that he sexually touched a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 61, an Indian national who lives in Baton Rouge, was arrested on March 2, 2014 – the day his plane arrived in Newark – and was taken into federal custody by the FBI. He appeared this afternoon, to face a complaint charging him with one count of abusive sexual contact, before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court and was detained with the option to request a bail hearing.
According to the complaint filed today:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt. Singh was also touching his exposed penis.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
If convicted of the abusive sexual contact charge, Singh faces a maximum potential penalty of two years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to the charge.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
14-072
Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Singh Complaint
Kern and Tulare County Marijuana Cultivators Plead GultyRead the Press Release
FRESNO, Calif. — Noe Alvarez Ramirez (Alvarez), 28, and Carlos Adan Lupia-Lua, 26, both of Michoacàn, Mexico, entered guilty pleas today for their involvement in separate marijuana cultivation operations in Kern and Tulare Counties, according to U.S. Attorney Benjamin B. Wagner.
7,302 Marijuana Plants Seized from Sequoia National Forest (1:13CR172 AWI)
Alvarez pleaded guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana grown in the Gibboney Canyon area of the Sequoia National Forest in Kern County. The area is also within the federally designated Domeland Wilderness area. According to court documents, U.S. Forest Service agents seized 7,302 marijuana plants from the site and found 5,000 marijuana plant stalks consistent with a prior harvest in 2012. During the execution of a federal search warrant at the site, agents found Alvarez sleeping in a tent. In entering his guilty plea, Alvarez agreed to pay $2,675 in restitution to the U.S. Forest Service to pay for the negative environmental impact of the cultivation operation. Trash and fertilizer bags were scattered about the area and the ground was terraced after native vegetation, including oak trees, was cut down to make room for the marijuana plants. Trash was also found in the waterway of Gibboney Creek. Alvarez is subject to deportation to Mexico after he serves his sentence.
This case is the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, California Department of Fish and Wildlife, and Kern County Sheriff’s Office.
1,313 Marijuana Plants/Firearms Seized From Tulare County Ag Grow (1:12cr341 LJO)
Lupian-Lua pleaded guilty to cultivating marijuana on agricultural land in Terra Bella. According to court records, drug agents discovered the cultivation operation after following a supplier to the property. The supplier had previously delivered equipment and material for other marijuana cultivation operations on public lands in Ventura, San Luis Obispo, and Kern Counties. During the execution of a federal search warrant at the Terra Bella property, agents seized 1,313 marijuana plants, two firearms, and arrested six people, including Lupian-Lua. The marijuana had a wholesale value of $1.5 million.
The case is the product of an investigation by the U.S. Forest Service, Homeland Security Investigations (HSI) of Immigration and Customs Enforcement (ICE), and the sheriff’s offices of Tulare and Ventura Counties.
Alvarez is scheduled for sentencing on May 12, 2014, and Lupian-Lua is scheduled for sentencing on May 27, 2014. Both Alvarez and Lupian-Lua face a sentence of 10 years to life in prison and a $10 million fine. 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.
Assistant U.S. Attorney Karen A. Escobar is prosecuting the above cases.
Kent, Wash. Man Pleads Guilty to Structuring Cash Proceeds of Interstate Oxycodone and Hydrocodone TraffickingRead the Press Release
FRESNO, Calif. —Phary David Chim, 31, of Kent, Wash., pleaded guilty today to one count of conspiracy to structure cash transactions and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.
According to court documents, Chim’s co-conspirators obtained prescriptions for oxycodone and hydrocodone from pharmacies in Modesto, Calif. and then transported and mailed the pills to Washington for distribution on the black market. Chim deposited the cash proceeds of the oxycodone and hydrocodone sales into bank accounts held by co-conspirators in California. He made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on his cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transactions involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Chim is scheduled to be sentenced by Judge Anthony W. Ishii on May 12, 2014. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for structuring conspiracy, and a maximum statutory penalty of 10 years in prison and a $500,000 fine for aggravated structuring. 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.
Inland Empire Attorney Pleads Guilty to Ripping Off Social SecurityRead the Press Release
RIVERSIDE, California – A deputy public defender for Riverside County pleaded guilty today to two felony counts of stealing social security benefits.
Audrey Owens, 60, of Upland, pleaded guilty to two counts of theft of government property before United States District Judge Virginia A. Phillips.
Owens pleaded guilty one week before she was scheduled to go on trial to two of the five counts contained in an indictment returned by a federal grand jury in July. There was no plea agreement in this case.
According to documents filed in United States District Court, Owens diverted social security benefits intended for her deceased grandmother, who died in May 2000. The scheme started soon after Owens’ grandmother died and continued until
August 2012.After her grandmother’s death, Owens changed the address of a joint account she shared with her grandmother and continued to receive social security payments intended for her grandmother. She transferred some of the social security payments into her own personal account to pay bills. She also used some of the social security payments to directly pay for her personal expenses, including contributions to the Riverside County Employee Campaign.
Owens illegally received more than $129,000 during the course of the scheme.
Judge Phillips scheduled a sentencing hearing for June 2. At that time, Owens will face a statutory maximum sentence of 20 years in federal prison.
The case against Owens was investigated by the Social Security Administration – Office of Inspector General.
Release No. 14-028
Indiana Man Charged with Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A criminal complaint charging Andrew Scott Boguslawski, 43, of Moores Hill, Indiana with possession of unregistered destructive devices has been filed in U.S. District Court in Columbus. The complaint alleges that Boguslawski illegally possessed 13 destructive devices when he was stopped by an Ohio State trooper on January 1, 2014 on Interstate 70 in Madison County, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio Fire Marshal Larry Flowers, Ohio State Highway Patrol Superintendent Paul Pride and Madison County Prosecuting Attorney Stephen J. Pronai announced the complaint which was filed Friday, February 28.
According to an affidavit supporting the complaint, Boguslawski was stopped for speeding. The complaint alleges that firearms, ammunition, explosives, detonators and other items related to manufacturing explosives were found in Boguslawski’s vehicle. Further investigation by ATF, the State Fire Marshal and the Columbus Fire Department Bomb Squad determined that the devices were capable of being detonated.
A destructive device is an explosive device that is capable of causing property damage and personal injury and/or death to persons near the explosion. Federal law requires that destructive devices be registered in the National Firearms Registration and Transfer Record. Possession of unregistered destructive devices is punishable by up to ten years in prison.
Troopers arrested Boguslawski at the scene. He was charged in Madison County on state charges. Those charges have been dismissed. Boguslawski will appear before U.S. Magistrate Judge Elizabeth Preston Deavers on the criminal complaint today at 2:30 p.m.
U.S. Attorney Stewart and Madison County Prosecuting attorney Pronai commended the cooperative investigation by ATF, the State Fire Marshal, the Ohio State Highway Patrol and the Columbus Bomb Squad, as well as the FBI Joint Terrorism Task Force, which participated in the investigation. Assistant U.S. Attorneys Dana Peters and Salvador Dominguez are prosecuting the case on behalf of the United States.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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