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Tuesday 14 January 2014
Lower Brule Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 13, 2014, by U.S. District Judge Roberto A. Lange.
Jewell Iron Heart, age 21, was sentenced to 21 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Iron Heart was indicted by a federal grand jury on September 17, 2013. He pled guilty on November 19, 2013.
The conviction stems from the fact that Iron Heart has previously admitted to an offense that requires him to register as a sex offender for life. Iron Heart registered as a sex offender for the first time in May 2012. On March 18, 2013, Iron Heart was arrested on a federal warrant due to violating conditions of his supervision. He was placed at the Community Alternatives of the Black Hills (CABH) facility in Rapid City by his probation officer.
On August 7, 2013, Iron Heart registered the CABH facility as his address in compliance with the Sex Offender Registration and Notification Act. On August 18, 2013, Iron Heart absconded from the facility, and since that date, Iron Heart has not updated his sex offender registration as required by law.
The investigation was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Iron Heart was immediately turned over to the custody of the U.S. Marshals Service.
Local Man Sentenced to 8 Years in Prison on Multiple Tax Fraud ChargesRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore yesterday sentenced Anthony Simms (37, formerly of Riverview) to 8 years’ imprisonment, after being convicted on seven counts of passing forged Treasury checks, seven counts of theft of government property, and seven counts of aggravated identity theft. The Court also entered a forfeiture money judgment and restitution in the amount of nearly $64,000, representing the proceeds from the seven cashed checks.
Simms pleaded guilty on October 15, 2013.According to court documents, from November 9, 2011 through January 25, 2012, Simms deposited 57 third-party tax refund Treasury checks and 8 tax refund cashier’s checks into his business account at SunTrust Bank, through various ATMs located in the Tampa area. Simms was the sole signatory on the business account and the only one who used the ATM card for these deposits. He was not authorized or entitled to deposit or cash these checks and knew that the signatures of the payees on the back of the checks were forged. The payees on the Treasury checks did not know or have any dealings with Simms or his business, and did not authorize any checks, in their names, to be deposited into his account. Some payees on the Treasury checks were deceased. The total amount of money deposited into Simms’s account through these 65 tax refund checks totaled $449,689. Simms also opened other business accounts at two other local banks and attempted to deposit over $15,000 of Treasury checks into those accounts.
This case was investigated by the United States Secret Service and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Assistant United States Attorney Kelley C. Howard-Allen.
Lawrence Police Officer Sentenced to Prison for Bribery SchemeRead the Press Release
BOSTON - A Lawrence police officer was sentenced today for engaging in a bribery scheme with a local towing company, lying about the scheme to the Federal Bureau of Investigation and trying to obstruct the FBI’s investigation.
Pedro Jose Lopez, 47, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 18 months in prison, three years of supervised release, and ordered to pay a $10,000 fine.
In October 2013, Lopez was convicted by a jury of federal program bribery, making false statements to a federal agent, and obstruction of justice. These charges stemmed from an arrangement he had with a Lawrence tow company, under which Lopez would call in numerous unjustified tows to the company, in exchange for which the company gave him discounts on abandoned vehicles and paid for a snow plow to be installed on his truck. Once the FBI began investigating the scheme, Lopez lied to agents about whether he’d reimbursed the owner of the towing company for the snow plow. Lopez also obstructed the FBI investigation by giving the FBI a copy of a bogus receipt showing that he’d paid $4,000 to the owner of the tow company for the plow.
United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and James X. Fitzpatrick, Interim Chief of the Lawrence Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys William F. Bloomer and Andrew E. Lelling.
Kimball Man Sentenced for Assaulting, Resisting and Impeding A Federal Officer and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kimball, South Dakota, man convicted of Assaulting, Resisting and Impeding a Federal Officer and Lacey Act Violations was sentenced on January 10, 2014, by U.S. District Judge Karen E. Schreier.
James R. Steckley, age 44, was sentenced to 2 days in custody with credit for one day, 6 months of home confinement, 2 years of supervised release, and a $25 special assessment to the Federal Crime Victims Fund on the Assaulting, Resisting and Impeding a Federal Officer charge. He was sentenced to 40 hours of community service, a $7,500 fine, and a $25 special assessment to the Federal Crime Victims Fund on the Lacey Act Violations charge. Steckley cannot possess guns for a period of 2 years and cannot hunt for 2 years.
Steckley was indicted for Assaulting, Resisting and Impeding a Federal Officer by a federal grand jury on September 19, 2012. He was indicted for the Lacey Act Violations charge on February 13, 2013. He pled guilty to both charges on October 29, 2013.
The convictions stem from an incident wherein Steckley, on September 6, 2012, interfered with a Special Agent with the U.S. Fish and Wildlife Service while that agent was investigating the Lacey Act Violations. The investigation ultimately revealed that between November 27, 2011, and December 5, 2011, in Brule County, South Dakota, Steckley, then part owner of Steckley’s Wild Dakota Outfitters, a commercial hunting operation in Central South Dakota, hosted paying clients to hunt deer without appropriate licenses.
This case was investigated by U.S. Fish and Wildlife Service and the South Dakota Game Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Steckley will self-surrender to the custody of the U.S. Marshals Service.
Kentucky Man Admits Stealing Three Motor Homes from Western Michigan Rv DealersRead the Press Release
Defendant admits using false identities to “launder” the money from the sale of the stolen motor homes.
GRAND RAPIDS, MICHIGAN – Walter J. Nunley, a resident of Kentucky, entered guilty pleas today to all nine felony charges against him in a hearing before U.S. District Court Judge Robert Holmes Bell.
Three of the charges were for interstate theft of motor vehicles (motor homes), each of which carries a maximum penalty of ten years in prison. Another three charges were for interstate theft of property (the contents of the motor homes), each of which also carries a maximum penalty of ten years in prison. Nunley also pled guilty to conspiring to engage in interstate theft of property, which carries a maximum penalty of five years in prison. Each of these six charges carry a fine of $250,000. With regard to the money laundering, Nunley also admitted at his guilty plea hearing to engaging in a money laundering conspiracy to conceal or hide the “proceeds” he obtained from the sale of the stolen motor homes. That offense carries a maximum penalty of twenty years in prison, a fine of $500,000. Finally, Nunley pled guilty to making false statements to a federal agent, which offense carries a maximum penalty of five years in prison and a fine of $250,000. A $100 special assessment is imposed for each count of conviction. Nunley agreed to restitution and forfeiture in connection with the nine charges of conviction.
Nunley admitted that during 2012, he made two trips into Western Michigan to steal motor homes. In March 2012, he stole a motor home from the Holland Motor Home business. In May 2012, he stole two more motor homes from Midway RV Center located in Grand Rapids. As part of the criminal conspiracy, the conspirators stole three additional motor homes from businesses located across the United States. The total losses for the six motor home thefts are estimated to exceed $1,500,000. Nunley admitted that he and another man obtained false titles for the stolen motor homes and then sold them under false identities.
Judge Bell remanded Nunley to custody following the guilty plea hearing. No date has yet been set for the sentencing hearing.
The FBI has been handling the investigation and Assistant U.S. Attorney Mike MacDonald is the prosecutor.
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Kansas Company Pays $372,750 for Destruction of Protected Bird Eggs and Nests During Bridge Repair Project in Harper CountyRead the Press Release
Employee Pleads Guilty to Misdemeanor
Oklahoma City, Oklahoma – Wildcat Concrete Services, Inc. ("Wildcat"), a Kansas corporation, has paid $372,750 to the North American Wetlands Conservation Fund as part of a non-prosecution agreement with the United States arising from the destruction of cliff swallow nests during a bridge repair project, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Richard Lee Pool, 54, of Osage City, Kansas, an employee of Wildcat, pled guilty yesterday to one misdemeanor count of violating the Migratory Bird Treaty Act.
"Protecting and preserving our country’s natural resources, including wildlife, is an important responsibility that we take very seriously," said U.S. Attorney Coats. "We are committed to working with our investigative partners to reach common-sense resolutions when there are violations of our nation's environmental laws."
"One of our highest priorities is to protect the nation's fish, wildlife, and plants from unlawful exploitation and industrial hazards," said Special Agent in Charge of the Southwest Region Nicholas E. Chavez. "The successful outcome of this investigation is also the result of coordinating with the U. S. Attorney's Office to ensure the protection of a federally protected species."
The Migratory Bird Treaty Act, enacted in 1918, implements this country’s commitments under avian protection treaties with Great Britain (for Canada), Mexico, Japan and Russia. The Act, established for the conservation of migratory birds, creates a misdemeanor criminal sanction for the unpermitted taking of protected species by any means and in any manner regardless of fault. The Cliff swallows (Petrochelidon pyrrhonota) are one of 1,026 species of birds protected by the federal Migratory Bird Treaty Act.
According to Court records and the non-prosecution agreement, on May 25, 2012, Wildcat was under contract with the Oklahoma Department of Transportation to perform joint expansion repair work on the Otter Creek Bridge on highway US-270 in Harper County, Oklahoma. At that time, cliff swallows were actively nesting under that bridge. Wildcat and the United States stipulated that 818 eggs were destroyed and approximately 1,491 nests had been removed from the bridge. As part of the non-prosecution agreement, Wildcat paid $372,750 to the North American Wetlands Conservation Fund. Mr. Pool pled guilty to one count of scraping down a nest containing an egg of a migratory cliff swallow. Mr. Pool was sentenced to serve three months of probation and 10 hours of community service.
This case is the result of an investigation by the U.S. Fish and Wildlife Service and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Jefferson County, Kentucky, Man Guilty of Multiple Bank RobberiesRead the Press Release
LOUISVILLE, Ky. – A Louisville man pleaded guilty today in United States District Court to robbing four banks located in Jefferson County, Kentucky, during a two week period, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Scott Manley, age 47, admitted to using force, violence, and intimidation when he robbed four banks in Jefferson County between December 20, 2012 and December 31, 2012. Count 1, of the indictment, charged Manley with taking $2,170.00 from the PNC Bank, located at 3910 Taylorsville Road, on December 20, 2012. Count 2, of the indictment, charged Manley with taking approximately $3,580.00 from the Chase Bank, located at 8120 New LaGrange Road, on December 24, 2012. Count 3, of the indictment, charged Manley with taking approximately $1,510.00 from the BB&T Bank, located at 10403 Dixie Highway on December 27, 2012, and Count 4 charged Manley with taking approximately $4,750.00 from the River City Bank, located at 2501 Bardstown Road. At the time of the robberies, all deposits were insured by the Federal Deposit Insurance Corporation (FDIC).
If convicted at trial, Manley faced a sentence of no more than 80 years in federal prison, a fine of $1,000,000., and a period of no more than five years of supervised release. Manley was arrested by U.S. Marshals on January 2, 2013.
This case is being prosecuted by Assistant United States Attorney Randy Ream and was investigated by Louisville Metro Police and the Federal Bureau of Investigation (FBI).
Jefferson County Man Guilty of Federal Carjacking and Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 19-year-old Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Emonte Jackson pleaded guilty to carjacking and brandishing a firearm during a crime of violence today before U.S. District Judge Ron Clark.
According to information presented in court, on Mar. 18, 2013, law enforcement officers spotted a vehicle which had been reported stolen in an aggravated robbery on Mar. 16, 2013. The driver, later identified as Emonte Jackson, evaded the officers in his vehicle during a high speed chase through a residential area of Beaumont, Texas. After striking two unattended vehicles, Jackson fled the scene and was apprehended underneath a house.
The vehicle Jackson was driving was identified as a 1996 Toyota Camry. This vehicle had been reported stolen on Mar. 16, 2013. The driver of the vehicle on Mar. 16, 2013 advised officers that she picked up Jackson, whom she had previously met, at a location in Beaumont, and agreed to pick up Jackson’s “brother”, later identified as Dwight Elam at a different location in Beaumont. Jackson had the driver drive around for approximately 45 minutes before having the driver drive them back to the location where Elam was picked up. At that location, Jackson attempted to take the car keys from the ignition and began struggling with and choking the driver. Jackson then pulled out a small, silver, semi-automatic pistol and threatened to shoot the driver if she did not relinquish her keys to him. Jackson then retrieved the car keys from the driver and threatened to kick her in the face if she would not leave the vehicle. During this time, Elam was demanding the cell phones from the driver and her friend who was in the vehicle with her. The friend gave her cell phone to Elam and left the scene. Jackson sped off in the Toyota Camry.A federal grand jury indicted Jackson on Oct. 2, 2013. Jackson faces up to 15 years in federal prison for the carjacking offense and another seven years for the firearms violation. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney Michelle Englade.Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that during a federal court session in Great Falls, Montana, on January 14, 2014, before U.S. Magistrate Judge Strong, the following individual appeared:
- DAVID J. LEWIS, a 50 year-old resident of Brockton made an initial appearance on a complaint alleging second degree murder. He is currently detained. If formally charged with this offense by indictment, LEWIS, faces life in prison, $250,000 in fines and 5 years supervised release.. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation is a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-02
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner.
Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on January 9, 2014, and entering pleas of Not Guilty were:
- JOLENE MARIE CALVIN, a 33-year-old resident of Billings appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious offenses charged in the indictment, CALVIN faces life in prison, $250,000 in fines and five years supervised release. The investigation was conducted by the FBI Task Force. PACER Case Reference: 13-104
Appearing before U.S. Magistrate Judge Ostby in Billings on January 13, 2014, and entering pleas of Not Guilty were:
- JAIME ALBERTO GARZA, a 42-year-old resident of Othello, Washington appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, false representation of a Social Security Number, and identity theft. If convicted of the most serious offenses charged in the indictment, GARZA faces life in prison, $250,000 in fines, and five years supervised release. The investigation was a cooperative effort between the Drug Information Administration, Federal Bureau of Investigation, Border Patrol, Montana Division of Criminal Investigations, Sidney Police Department, Richland County Sheriff's Office, Sweetgrass County Sheriff's Office and the Montana Highway Patrol. PACER Case Reference: 13-78
Appearing before U.S. Magistrate Judge Strong in Great Falls on January 14, 2014, and entering pleas of Not Guilty were:
- JENNIFER ANN DONEY, a 47-year-old resident of Hays appeared on charges of theft from an Indian Tribal government receiving federal funds, and theft from an Indian Tribal organization. If convicted of the most serious offense charged in the indictment, DONEY faces 10 years in prison, $250,000 in fines, and three years supervised release. This case was brought by the Department of Health and Human Services Office of Inspector General, with the assistance of the Federal Bureau of Investigation and the Department of Agriculture Office of Inspector General, as part of the Guardians Project. PACER Case Reference: 13-119
- DAWN CECELIA JONES, a 33-year-old resident of Hays appeared on charges of theft from an Indian Tribal government receiving federal funds, and theft from an Indian Tribal organization. If convicted of the most serious offense charged in the indictment, JONES faces 10 years in prison, $250,000 in fines, and three years supervised release. This case was brought by the Department of Health and Human Services Office of Inspector General, with the assistance of the Federal Bureau of Investigation and the Department of Agriculture Office of Inspector General, as part of the Guardians Project. PACER Case Reference: 13-119
- SANDRA MARIE SANDERVILLE, a 58-year-old resident of Browning appeared on charges of theft from an Indian Tribal government receiving federal funds, and theft from an Indian Tribal organization. If convicted of the most serious offense charged in the indictment, SANDERVILLE faces 10 years in prison, $250,000 in fines, and three years supervised release. This case was brought by the Department of Health and Human Services Office of Inspector General, with the assistance of the Federal Bureau of Investigation and the Department of Agriculture Office of Inspector General, as part of the Guardians Project. PACER Case Reference: 13-118
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Keri
Ideal Man Sentenced for Failure to Register as A Sex Offender and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ideal, South Dakota, man convicted of one count of Failure to Register as a Sex Offender and one count of False Statement was sentenced on January 13, 2014, by U.S. District Judge Roberto A. Lange.
Loren Running Horse, a/k/a Bo Running Horse, age 43, was sentenced to 24 months in custody on each count, 5 years of supervised release for Failure to Register as a Sex Offender, 3 years of supervised release for False Statement, and a $200 special assessment to the Federal Crime Victims Fund. The sentences and terms of supervised release for each count are to be served concurrently.
Running Horse was indicted by a federal grand jury on April 12, 2013. He pled guilty on October 22, 2013.
On June 6, 1998, Running Horse was convicted of Sexual Abuse of a Minor. As a result of his conviction, Running Horse was ordered to register as a sex offender and was aware of his duty to do so. On or about between February 4 and March 4, 2013, Running Horse was living in various locations on Rosebud. During that time he failed to register as a sex offender. Running Horse was apprehended in Todd County on March 4, 2013. On March 5, 2013, Running Horse told a federal officer that he did not begin living on Rosebud until March 4, when in fact knew this statement to be false. Running Horse began living on the Rosebud Reservation on or about January 2, 2013.
This case was investigated by U.S. Marshal Service. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Running Horse was immediately turned over to the custody of the U.S. Marshals Service.
ICE returns recovered, 'most wanted' stolen antiquities to IndiaRead the Press Release
NEW YORK - U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) returned three recovered sculptures, valued at more than $1.5 million, to the government of India Tuesday during a repatriation ceremony at the consulate in New York City. One of the objects - a 350-pound sandstone sculpture stolen from an Indian temple in 2009 - was listed as one of INTERPOL's top 10 most wanted stolen works of art.
HSI Executive Associate Director James A. Dinkins presented the artifacts to Consul General of India Dnyaneshwar M. Mulay, alongside INTERPOL Washington Director Shawn Bray.
“The excellent international cooperation between the United States and India led to the recovery and return of these priceless antiquities,” said Dinkins. “The pilfering of a nation's cultural patrimony cannot and will not be tolerated.”
“Prevention of illegal trade in antiquities has emerged as an important area of cooperation between India and the United States as can be seen from this recent recovery of stolen Indian antiquities,” said Mulay. “I deeply appreciate the excellent work done by ICE HSI in getting these three priceless Indian assets recovered. The successful investigations and repatriation of these cultural artifacts underscores the importance of growing institutional partnership, which is of great significance to both countries.”
“There is no better example of what can be accomplished through the collaboration between US and international law enforcement via INTERPOL than the astounding results of this investigation, which have led to today's repatriation of these artifacts to their rightful place with the people of India,” said Bray. “INTERPOL Washington is proud to have been able to assist ICE Homeland Security Investigations in obtaining the documentation and images necessary to help identify the objects as those stolen from India.”
Two of the three artifacts returned to India were reported in 2009 by the Archaeological Survey of India (ASI), who notified the Indian Consulate about two sandstone sculptures stolen from the Gadgach Temple in Atru, Rajasthan, India. The 350-pound “Vishnu and Lakshmi” sandstone sculpture dates back to the 11th or 12th century and was listed as No. 6 on INTERPOL's top 10 most wanted works of art. Also stolen from the temple and repatriated during the Jan. 14 ceremony was the 600-pound “Vishnu and Parvati” sandstone sculpture, dating to the same period.
The third artifact is a male deity black sandstone sculpture, depicting a Bodhisattva, a popular subject in Buddhist art, and is believed to date back to the 11th or early 12th century from either the Indian State of Bihar or Bengal.
The investigation that led to this repatriation began April 13, 2010, when HSI New York special agents received information that the Indian sandstone sculptures recently looted from India were being offered for sale in the United States. HSI special agents discovered that the “Vishnu and Lakshmi” was transported from India to Hong Kong. From there, it was sold to a dealer in Thailand, and then resold to a buyer in London. The London buyer shipped the sculpture to New York City for an exhibition in March 2010. On April 15, 2010, HSI special agents recovered the piece while it was being shipped back to London.
On July 12, 2010, as a direct result of the “Vishnu and Lakshmi” seizure, a sister piece, the “Vishnu and Parvati,” was seized. It was transported to Hong Kong, sold to a buyer in New York and then sold and shipped to a buyer in Basel, Switzerland.
On July 7, 2011, the Indian black stone Bodhisattva figure was discovered being smuggled into the United States at Newark Airport by U.S. Customs and Border Protection officers. HSI special agents seized it after discovering that its accompanying paperwork declared Great Britain as a false country of origin. In addition, the item was grossly undervalued.
The New York County District Attorney's Office assisted in this investigation.
The last ICE cultural property repatriation to India was in 2006 when ICE agents in NY returned a ninth century stone idol that had been stolen from a temple in Mandsaur in Madhya Pradesh in 2000.
HSI plays a leading role in criminal investigations that involve the illegal importation and distribution of cultural property, including the illicit trafficking of cultural property, especially objects that have been reported lost or stolen. The HSI Office of International Affairs, through its 67 attaché offices in 48 countries, works closely with foreign governments to conduct joint investigations, when possible.
HSI specially trained investigators, assigned to both domestic and international offices, partner with governments, agencies and experts to protect cultural antiquities. They also provide cultural property investigative training to law enforcement partners for crimes involving stolen property and art, and how to best enforce the law to recover these items when they emerge in the marketplace.
Since 2007, more than 7,150 artifacts have been returned to 26 countries, including paintings from France, Germany, Poland and Austria, 15th to 18th century manuscripts from Italy and Peru, as well as cultural artifacts from China, Cambodia and Iraq.
Learn more about HSI cultural property, art and antiquities investigations. Members of the public who have information about suspected stolen cultural property are urged to call the toll-free HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form.
Hunting and Fishing Guide Sentenced for Federal Wildlife Violation “Gar Guy” Sentenced for Transporting Alligator Killed in Violation of State and Federal LawRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 49-year-old Kennard, Texas, hunting and fishing guide has been sentenced for transporting an alligator that he knew had been shot in violation of state and federal wildlife laws, announced U.S. Attorney John M. Bales today.
Steve Barclay pleaded guilty on Aug. 13, 2013, to the felony offense of transporting wildlife taken in violation of federal law and was sentenced to three years’ probation and ordered to pay a $5,000 fine today by U.S. District Judge Ron Clark.
According to information presented in court, Barclay admitted that on May 8th, 16th, and 20th of 2008 he witnessed John A. McCall, a client for whom he was providing guide services, shoot and kill a total of three alligators even though Barclay knew that Texas law limits hunters to one alligator per hunter per season. Barclay admitted that he transported the alligator killed on May 20, 2008 in Leon County to Sportsman’s Memory taxidermy shop in Grapeland, Texas.
The Endangered Species Act prohibits the taking of any threatened species of fish or wildlife in violation of any federal or state regulation pertaining to such species. Alligators are listed as a threatened species pursuant to the Endangered Species Act. The Lacy Act prohibits the transport, receipt, or acquisition of any wildlife taken, possessed, or transported in violation of any law, treaty, or regulation of the United States.
“Our State partner was essential to the success of this case, and that cooperation remains critical to disrupting wildlife taken in violation of Federal Law,” said Special Agent in Charge of the U.S. Fish and Wildlife Service Southwest Region Nicholas E. Chavez. "With our combined efforts, we protect our threatened/endangered listed species, and other wildlife from being exploited in our Nation."This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Houston, and the Texas Parks and Wildlife Department, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys Jim Noble and Joe Batte.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov . Connect with its Facebook page at www.facebook.com/usfws , follow its tweets at www.twitter.com/usfwshq , watch its YouTube Channel at http://www.youtube.com/user/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq .
Hogsett Announces More Wabash Valley Results in “operation Community Watch”Read the Press Release
Local man sentenced to ten years after being found with extensive child pornography collection
TERRE HAUTE - Joseph H. Hogsett, the United States Attorney, announced today that Chris A. Lowery, age 47, was sentenced today by U.S. District Judge William T. Lawrence to 120 months (10 years) in federal prison after admitting that he possessed child pornography. Hogsett noted that today’s sentencing decision represented more local results for Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“This defendant learned what so many other criminals have learned since the launch of Operation Community Watch – you are not anonymous online,” Hogsett said. “If you engage in the exploitation of children, online or offline, you will be identified and you will face the full weight of federal law.”
According to court documents, investigators began investigating Lowery in May 2012. A search warrant revealed the defendant to be in possession of an extensive child pornography collection. These materials included horrific images and videos showing the abuse of children as young as age five. All told, investigators identified more than one thousand images depicting child exploitation in Lowery’s possession, and the total collection exceeded 20,000 images. As part of the federal prosecution, law enforcement has moved to seize all of the computers and other electronic devices associated with the defendant’s criminal activity.
According to Assistant U.S. Attorney Gayle Helart, who prosecuted the case for the government, Lowery was ordered to serve ten years supervised release at the end of his prison term. Under federal law, the defendant must serve at least 85% of his sentence within a federal correctional facility.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched "Operation Community Watch," which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by Federal Bureau of Investigation, the Indiana State Police, the Indiana Internet Crimes Against Children Taskforce, along with Terre Haute and Vigo County law enforcement.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
H. Ty Warner Sentenced to Probation After Paying $80 Million in Taxes and Penalties for Tax Evasion on Funds Hidden in Secret Swiss Bank AccountsRead the Press Release
CHICAGO — H. TY WARNER, the creator of Beanie Babies and other plush animal toys was sentenced today to two years’ probation for failing to report more than $24.4 million in income, and evading nearly $5.6 million in federal taxes, from millions of dollars he hid for more than a decade in secret foreign financial accounts at two banks based in Switzerland.
Warner, 69, of west suburban Oak Brook and the Santa Barbara, Calif., area, the sole owner of TY Inc., a Westmont-based company that designs and sells plush toy animals including Beanie Babies, as well as other business interests, was charged with, and pleaded guilty to, a single count of tax evasion last fall.
“Society will be best served to allow [Warner] to continue his good works,” U.S. District Judge Charles Kocoras said in imposing the sentence. Judge Kocoras also ordered Warner to perform at least 500 hours of community service for at least three Chicago high schools and to pay a $100,000 fine.
In addition, Warner has paid more than $53 million in a civil penalty, representing 50 percent of the highest balance of his unreported foreign bank accounts, which at its peak was more than $100 million, as well as approximately $27 million in back taxes and interest.
“It is imperative when an individual brazenly breaks the law and lies repeatedly on tax returns year after year and evades millions of dollars in taxes, that person has to be held accountable. That’s true if you are rich or poor and no one is above the law,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
“When people cheat on their taxes, honest taxpayers suffer the consequences and have to make up the difference. IRS Criminal Investigation is here to ensure that everyone pays their fair share of taxes regardless of their social status,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
In pleading guilty, Warner admitted that between 1996 and 2008, he opened and maintained undeclared bank accounts in Switzerland at both UBS AG and Zuercher Kantonalbank (ZKB). Warner failed to report the income from those accounts, as well as their existence, on his individual income tax returns and amended returns for tax years 1996 through 2007. Between 1999 and 2007, Warner’s unreported gross income from those accounts totaled $24,448,912, while the there are no records of how much he earned for the tax years 1996-98.
Warner also admitted that he failed to report his interest in the foreign bank accounts each year from 1996 to 2008 to the Treasury Department, as required on the Report of Foreign Bank and Financial Accounts (FBAR) form. U.S. taxpayers must report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year, and a deliberate failure to file the FBAR form can result in a civil penalty of up to 50 percent of the high balance in the account each year.
According to court documents, Warner traveled to Zurich in January 1996 to open an undeclared account at UBS and executed a form instructing that any correspondence regarding the account be held at the bank in Switzerland rather than being mailed to him in the United States. Warner has never identified the source of the funds or the purpose behind the secret account, other than to suggest that opening the account was based on the success of Beanie Babies sales. It remains unknown if the initial deposits were diverted pre-tax funds, which, if so, would significantly increase the tax loss.
In 2001, UBS agreed to report certain tax information to the Internal Revenue Service. In 2002, Warner’s UBS banker, Hansreudi Schumacher, left UBS and later counseled his former clients to move their UBS accounts to ZKB because it had no similar agreement with the IRS. In December 2002, Warner traveled to Zurich and transferred approximately $93.63 million from UBS to ZKB, where his new account was managed by Schumacher, who was indicted in Florida in 2008 for conspiracy to defraud the United States and remains a fugitive.
Instead of opening the ZKB account in his own name, Warner opened the account in the name of a purported Liechtenstein entity, the “Molani Foundation,” which effectively concealed his identity as the account holder. From 2002 through tax year 2007, Warner, again, did not report the existence of, or income from, the ZKB account, and he also failed to report the accounts and income on amended tax returns he filed in December 2007 for tax years 2002-05.
In early 2009, UBS entered into a deferred prosecution agreement with the United States, admitting that it helped U.S. taxpayers hide accounts from the IRS. As part of the agreement, UBS provided the government with the identities of, and account statements for, certain U.S. clients. The IRS also announced a voluntary disclosure program for taxpayers to declare secret accounts, but taxpayers whose accounts were already known the government were ineligible for the program.
Despite publicity in 2009 of tax fraud indictments of former UBS employees, including Schumacher, and its U.S. clients, Warner did not attempt to disclose his account at ZKB until late 2009, after he learned that UBS was going to disclose client records and that Schumacher had been indicted. Warner requested eligibility for the voluntary disclosure program a week before the original deadline in September 2009, but the government had learned that he had an undisclosed UBS account in the summer of 2008, according to court documents.
Warner is the second taxpayer convicted and sentenced in Federal Court in Chicago in connection with the investigation of U.S. taxpayer clients of UBS and other overseas banks that hid foreign accounts from the IRS.
Tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Federal tax law requires U.S. taxpayers pay taxes on all income earned worldwide and to report certain foreign financial accounts.
The government was represented at sentencing by Assistant U.S. Attorneys Michelle Petersen and Patrick King.
Four Individuals Indicted in January Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the January 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
ALLISON FAITH BATTLES, age 29, of Krebs, OK
Making A False Statement
Theft Of Government FundsThe Indictment alleges that from on or about February 16, 2012, in the Eastern District of Oklahoma, the defendant, did knowingly make and cause to be made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Social Security Administration. It further alleges that from in or about January 2007 to in or about May 2012 and July 2009 to in or about April 2012, in the Eastern District of Oklahoma, the Defendant, did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Social Security Administration and the Oklahoma Department of Human Services, an agency receiving and administering funds on behalf of the United States. The charge arose from an investigation by the Oklahoma Department of Human Services, Office of Inspector General and the Social Security Administration, Office of Inspector General.
The charges are in violation of Title 18, United States Code, Section 1001(a)(2), punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine; and Title 18, United States Code, Section 641, punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson
TOMAS CAMARGO-CHAVEZ, a/k/a THOMAS CAMARGO, a/k/a THOMAS CAMARGO-CHAVEZ, a/k/a "SCARFACE", age 39, of Poteau, OK
Possession of a Controlled Substance with Intent to Distribute
Illegal Reentry of Previously Removed AlienThe Indictment alleges that on or about September 26, 2013, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance and was found in the United States after having been deported and removed from the United States at or near England Air Force Base at Rapides, Louisiana, on or about May 19, 2008, and not having obtained the express consent of the Attorney General of the United States or his successor, the Secretary of Homeland Security, to reapply for admission to the United States.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and Department of Homeland Security Investigations. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment and/or up to a $1,000,000.00 fine and Title 8, United States Code, Sections 1326(a) and 1326(b), punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Kyle Waters
FELIPE RANGEL-HERNANDEZ, a/k/a FELIPE HERNANDEZ, age 38, of Mexico
Illegal Alien in Possession of Firearms
Illegal Reentry of a Previously Deported AlienThe Indictment alleges that on or about December 19, 2013, within the Eastern District of Oklahoma, the defendant, then being an alien illegally and unlawfully in the United States, did knowingly possess in and affecting commerce, the following firearms, to-wit: one Mossberg Model 100 ATR, 30-06 caliber rifle and one Glenfield Model 60 .22 LR caliber rifle both of which had been shipped and transported in interstate commerce. The Indictment further alleges that on or about December 19, 2013, in the Eastern District of Oklahoma, the defendant an alien, was found in the United States after having been deported and removed from the United States at or near Del Rio, Texas, on or about January 20, 2011, and not having obtained the express consent of the Attorney General of the United States or his successor, the Secretary of Homeland Security, to reapply for admission to the United States. The charges arose from an investigation by the Department of Homeland Security Investigations.
The charges are in violation of Title 18, United States Code, Section 922(g)(5)(A), punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine and Title 8, United States Code, Section 1326(a), punishable by not more than 2 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Kyle Waters
DWAIN DOUGLAS McVEY, age 65, of Watts, OK
Possession Of Unregistered Firearm (Destructive Device)
Felon In Possession Of FirearmThe Indictment alleges that on or about August 30, 2013, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, more particularly described as a glass bottle containing black powder, screws and nails with a fuse attached, which is a firearm, as defined in Title 26, United States Code, Section 5845, that was not registered to him. It is further alleged that the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, several firearms which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Adair County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charges are in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871 and Title 18, United States Code, Section 922(g)(1), both punishable by up to 10 years imprisonment, and/or a $250,000 fine.
Assistant United States Attorney Chris Wilson
Former Sevierville, Tenn., Resident Sentenced to Prison for Tax EvasionRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that Jimmie Duane Ross, of Lehi, Utah, and formerly of Sevierville, Tenn., was sentenced to serve 51 months in prison based on his Aug. 7, 2013 conviction of five counts of tax evasion following a jury trial. The U.S. District Court for the Eastern District of Tennessee also sentenced Ross to serve three years of supervised release following his prison term and ordered him to pay restitution of $532,389.
According to the indictment and evidence produced at trial, Ross won a monetary award of approximately $840,000 in 1999 after arbitration of an employment dispute with a former employer. Ross then proceeded to file a false mortgage on his residence, file a false lien on his vehicle, deal extensively in cash and direct funds to an offshore account in order to evade paying the full amount he owed in income tax for 1999. In addition, from 2004 through 2007, Ross earned commission income for referring clients to what appeared to be an investment company based in Nevis and evaded his taxes by using nominees and other means.
The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Kevin Lombardi and Kimberly Shartar of the Tax Division.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Former President of Vonetex LLC Admits Paying Kickbacks in Connection with TSA Contract for High-Tech Phone SystemsRead the Press Release
TRENTON, N.J. - The former president of Vonetex LLC today admitted that he paid nearly $100,000 in kickbacks to benefit himself under a subcontract to a Transportation Security Administration (TSA) contract for high-tech phone systems.
Neil Metzger, 41, of Leesburg, Va., pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with conspiracy to pay kickbacks in connection with a government contract.According to documents filed in this case and statements made in court:
Metzger was the president of Vonetex, a technical services and training company. Unisys, a government contractor, won a contract from the U.S. Department of Homeland Security that included the installation and servicing of high-tech phone services for the TSA. Vonetex was awarded a subcontract through an intermediary company, Izar Associates Inc.
Vonetex was paid, through Izar, for each hour that its employees and contractors billed for work on the contract. James Anderson, 55, of Gainsville, Ga., was a project manager at Unisys who managed work performed pursuant to the contract. Vickie Idoux-Walz, 48, of Gainsville, Ga., was in a romantic relationship with Anderson, but was not an employee of Vonetex, Unisys, or Izar.
Metzger admitted that in November 2008 he agreed to provide kickback payments to Anderson through Idoux-Walz equal to $5 or $10 per hour that each Vonetex employee and contractor billed to the contract.
In December 2008, Metzger entered into a written agreement with Idoux-Walz in which Vonetex agreed to pay Idoux-Walz a fee for consulting services. The agreement also stated that for each hour billed by a Vonetex resource at Unisys, Idoux-Walz was to be given credits which could be used for discounts on additional work or equipment, or redeemed for cash. Each month, Idoux-Walz sent Metzger an invoice based on hours billed by Vonetex employees and contractors, and Metzger periodically sent kickback checks to Idoux-Walz with the understanding that the money represented the kickback payments Metzger had agreed to pay Anderson.
Metzger admitted that he paid a total of approximately $97,850 in kickbacks to Anderson through Idoux-Walz. Metzger also admitted that he made false claims against the government in the form of overbilling in June and July 2010, which resulted in a loss to the government of approximately $100,000.
The count of conspiracy to pay kickbacks in connection with a government contract to which Metzger pleaded carries a maximum potential penalty of five years in prison and a $250,000 fine. Metzger has also agreed to pay the government $100,000 in restitution. Sentencing is scheduled for April 22, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office in Trenton.
14-016
Defense counsel: Michael Sullivan Esq., Morristown, N.J., and Danny Onorato Esq., Washington, D.C.
Metzger, Neil Information
Former Madison Resident Sentenced to Prison for Defrauding Banks to Keep Business AfloatRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WILLIAM LECKEY, 48, of Buffalo, N.Y., formerly of Madison, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 29 months of imprisonment, followed by three years of supervised release, for engaging in a fraud scheme that victimized financial institutions of more than $1.7 million.
According to court documents and statements made in court, from approximately 2002 until 2012, LECKEY was the President and owner of Anchor Capital Services, Inc. (“ACS”), which provided financing to companies looking to purchase heavy equipment, such as tractor trailer trucks, dump trucks, backhoes and other similar types of equipment. ACS provided its customers with high interest rate leases, and funded the transactions through lines of credit it had available with various financial institutions. ACS would draw down on the lines of credit it had with these financial institutions by pledging its lease agreements and the related equipment as collateral. After each deal was funded by the financial institutions, ACS’s customer would make monthly payments to ACS on the lease, and ACS would use those funds to pay down the line of credit with the bank.
LECKEY and others engaged in a long-running fraud scheme to obtain money from financial institutions to use as operating capital for ACS. As part of the scheme, LECKEY and others made false representations to the financial institutions that ACS had entered into lease transactions with customers for specified pieces of heavy equipment when, in fact, they knew that no such lease transaction had been conducted or the transaction never transpired after the lease had been signed. As a result of these false statements, the financial institutions funded these nonexistent transactions in amounts well in excess of $100,000 on a number of occasions.
On one occasion in October 2010, LECKEY created a bogus customer to serve as the purported lessee of the equipment, and proceeded to defraud the financial institution into releasing $150,000 to ACS.
As a result of this scheme, ACS received more than $1.7 million from financial institutions on its letters of credit.
Judge Arterton ordered LECKEY to pay restitution in the amount of $ $1,709,640 to two victim financial institutions.
On August 1, 2013, LECKEY pleaded guilty to one count of conspiracy to commit bank fraud.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant U.S. Attorney Paul A. Murphy.
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Tom Carson
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[email protected]Former Lorain County, Ohio, Corrections Officer Sentenced to Serve 18 Months in Prison for Repeatedly Striking InmateRead the Press Release
A former Lorain County, Ohio, corrections officer was sentenced today to serve 18 months in prison followed by two years of supervised release after previously pleading guilty to one count of deprivation of rights under color of law, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office.
Marlon Taylor, 47, of Vermilion, Ohio, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.
These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.
"Uses of excessive force by corrections officers undermine our system of justice and the rule of law,” said Acting Assistant Attorney General Samuels. “Today's sentence reflects that the Department of Justice will aggressively protect the constitutional rights of every American."
“The vast majority of law enforcement officials do a great job,” said U.S. Attorney Dettelbach. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
“Marlon Taylor is not representative of the vast majority of the honorable men and women serving within the criminal justice system,” said Special Agent in Charge Anthony. “Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”
This investigation has been conducted by the FBI’s Cleveland Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl prosecuted the case.
Former Lorain County Corrections Officer Sentenced to 18 Months in Prison for Repeatedly Striking InmateRead the Press Release
A former Lorain County corrections officer was sentenced today to serve 18 months in prison followed by two years of supervised release after previously pleading guilty to one count of deprivation of rights under color of law, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Office.
Marlon Taylor, 47, of Vermilion, Ohio, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.
These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.
"Uses of excessive force by corrections officers undermine our system of justice and the rule of law,” said Acting Assistant Attorney General Samuels. “Today's sentence reflects that the Department of Justice will aggressively protect the constitutional rights of every American."
"The vast majority of law enforcement officials do a great job,” said U.S. Attorney Dettelbach. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
“Marlon Taylor is not representative of the vast majority of the honorable men and women serving within the criminal justice system,” said Special Agent in Charge Anthony. “Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”
This investigation has been conducted by the FBI’s Cleveland Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl prosecuted the case.
Former Johnstown Redevelopment Authority Director Charged with Extortion, BriberyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on charges of violating federal extortion and bribery laws, United States Attorney David J. Hickton announced today.
The six-count indictment named Ronald W. Repak, 62.
According to the indictment presented to the court, Repak, while serving as Executive Director of the Johnstown Redevelopment Authority (JRA), engaged in conduct in violation of the Hobbs Act for extortion under color of official right, and engaged in multiple acts of federal program bribery. Specifically, in exchange for Repak’s official actions and influence as the Executive Director of the JRA to facilitate the award of JRA contracting work, Repak solicited and obtained from local contracting firms a new roof for his personal residence, building demolition and grading services at Evolution Gym, his son’s privately-owned business, and multiple Pittsburgh Steelers football game tickets.
The law provides for a maximum total sentence of 90 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Repak.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Destin Builder Sentenced to 75 Months in Prison for Fraud and Theft of his Ex-Wife's IdentityRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Lawrence Allen Wright, 46, of Niceville, Florida, was sentenced by Senior Federal District Court Judge Lacey A. Collier to 75 months in prison and ordered to pay over $3.7 million dollars in restitution.
Wright’s sentence is a result of his guilty plea last October to a seven-count Information charging: one count of conspiracy to commit bank fraud, one count of conspiracy to commit money laundering, two counts of bank fraud, one count of mail fraud, one count of aggravated identity theft, and one count of making a false statement to federally insured financial institution.
In pleading guilty, Wright admitted to conspiring with other individuals to commit bank fraud and money laundering. As a part of that scheme, Wright solicited individuals to act as straw buyers to purchase unimproved lots located in Walton County, using loans from Countrywide, so Wright could build homes on the lots. While soliciting the straw buyers, Wright promised to make payments on the fraudulent loans and pay the earnest money deposit and closing costs for the straw buyers. Wright told the straw buyers that he would be able to sell the properties for a profit after he built homes on them and that he would then share a portion of the proceeds with the straw buyers.
In addition to the conspiracy charges, Wright pled guilty to defrauding Regions Bank, Beach Community Bank, and GulfSouth Private Bank. Three of the counts concerned Wright causing another individual to sign his ex-wife’s name on legal documents without his ex-wife’s knowledge or permission. The legal documents included mortgage loan documents, promissory notes, and tax returns.
This case was investigated by IRS-CI, Federal Deposit Insurance Corporation-Office of Inspector General, U.S. Treasury, Office of the Special Inspector General for the Troubled Asset Relief Program, and the Okaloosa County Sheriff’s Office as part of the Northwest Florida Financial Crimes Task Force.
This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.Former Co-Owners of Palmer Company Plead Guilty to Wire FraudRead the Press Release
BOSTON – The former co-owners of a Palmer equipment company pleaded guilty yesterday in U.S. District Court in Springfield to conspiracy and wire fraud.
Aaron Peabody, 42, of Houlton, Maine, and Gary Como, 49, of Warren, Mass., pleaded guilty to conspiracy to commit wire fraud and three counts of wire fraud.
Between 2006 and 2010, Como and Peabody were co-owners of New England Equipment Company (NEECO, Inc.). During that time, Como and Peabody engaged in a long running scheme that was perpetrated in a variety of ways, resulting in losses of more than $1 million. Their schemes included obtaining fake loans using the names of NEECO's customers and by selling rented or leased wood chipping machines equipment that they did not own and selling them to customers. Como and Peabody also engaged in check-kiting through a rapid series of deposits and withdrawals between two banks, giving the impression that NEECO had more money that it did. When one of the banks stopped honoring NEECO’s checks, the other bank had lost more than $138,000.
Furthermore, the men obtained money in other ways, including by taking wood chipping equipment on consignment from NEECO’s customers and falsely promising to pay back the customer’s loan on the equipment once the machine sold. After the machine was sold on consignment, they kept the sale proceeds and left the customer liable for the loan.
U.S. District Judge Michael A. Ponsor scheduled sentencing for April 10, 2014. Como and Peabody face a maximum sentence of 20 years in prison, three years of supervised release, and a $250,000 fine on each count of wire fraud.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chief Robert P. Frydryk of the Palmer Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz's Springfield Branch Unit.
Former City Clerk in Havana, KS Charged with EmbezzlementRead the Press Release
WICHITA, KAN. - A former city clerk for the city of Havana, Kan., was charged Monday with embezzling funds from the city and her church, U.S. Attorney Barry Grissom said.
Diana L. Cox, 67, Havana, Kan., was charged with one count of bank fraud and one count of wire fraud. A criminal information filed in U.S. District Court in Wichita alleges Cox stole approximately $14,658 from the city of Havana in August 2011 while she was city clerk. The thefts took place after she falsely reported to Arvest Bank in Caney, Kan., that the city had changed its policy to require only one signature on checks written for city business. The charges also allege she devised a scheme to steal more than $44,568 from Cross Point Baptist Church in Caney, Kan. She transferred money from church’s accounts to make her daughter’s mortgage payment.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on the bank fraud charge, and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud count. The FBI investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Former Canyon County Prosecutor Indicted in Federal CourtRead the Press Release
United States Charges John Bujak with Bankruptcy Fraud, Money Laundering and Obstruction of Justice
BOISE – John T. Bujak, 44, of Eagle, Idaho, was indicted today by a federal grand jury in Boise on charges of bankruptcy fraud, concealment of assets, making a false statement under oath, money laundering, and obstruction of justice, U.S. Attorney Wendy J. Olson announced. An initial court date has not been set.
The indictment alleges that from November 1, 2010, to September 21, 2011, Bujak concealed from a bankruptcy trustee and creditors his and his then wife’s ownership in a women’s Rolex watch, by knowingly failing to disclose it, under oath, on the statement of assets filed as part of his bankruptcy petition.
The indictment alleges that Bujak sold the women’s Rolex watch and a diamond ring to a jewelry store in Florida and received a check for $26,000, $25,000 of which was payment for the Rolex watch. According to the indictment, Bujak concealed the sale and his receipt of the $26,000 from the United States trustee, the bankruptcy trustee, and his creditors, by intentionally cashing it at a MoneyTree store in Caldwell, Idaho, rather than depositing it into his personal bank accounts or cashing it at his bank.
When the sale of the women’s Rolex watch came to the attention of the bankruptcy trustee, the government alleges that Bujak made false statements to the trustee by stating that he and his then wife originally purchased the watch as a gift for his mother-in-law, that they did not possess it when they filed for bankruptcy, and that his mother-in-law returned the watch after 2 they filed for bankruptcy. The indictment also alleges that Bujak attempted to persuade his then wife to make false statements to the bankruptcy trustee regarding the watch.
The charges of bankruptcy fraud, concealment of assets and making a false statement under oath are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of money laundering is punishable by up to 20 years in prison and/or a fine of not more than $500,000, or twice the value of the property involved in the transaction, whichever is greater, and up to five years of supervised release. Obstruction of justice is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of proceeds of the unlawful activity and property involved in money laundering.
The case is being investigated by Internal Revenue Service-Criminal Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Agriculture Commissioner Sentenced to 27 Months for Misappropriating Department FundsRead the Press Release
FRANKFORT, KY - Former Commissioner of the Kentucky Department of Agriculture, Richard Dwight Farmer, Jr., was sentenced today to 27 months in federal prison and one year supervised release for misappropriating public resources during his tenure in office.
U.S. District Judge Gregory Van Tatenhove sentenced Farmer for theft from a program receiving federal funds. In addition to the prison term, Farmer will also be required to pay $120,500 in restitution to the Commonwealth of Kentucky and a special assessment of $200.00. Judge Van Tatenhove released Farmer on his own recognizance and ordered Farmer to report to prison to begin serving his sentence on March 18, 2014, at 1:00 p.m. At a later date, the Bureau of Prisons will determine to which prison Farmer will report. Farmer will have to serve at least 85 percent of his prison sentence.
“We appreciate the Court’s thoughtful decision regarding Mr. Farmer’s sentence,” said U.S. Attorney Kerry B. Harvey. “This sad episode now concludes, but we hope that it sends a lasting message that neither political power nor celebrity places anyone above the law. The public has been well-served by the dedicated law enforcement officers and prosecutors who prepared and prosecuted this case – their commitment to the task is noteworthy and appreciated.”
During his guilty plea in September 2013, Farmer admitted that he misappropriated a total of $120,500, by hiring friends who didn’t perform work to justify their salaries and purchasing a number of items for his personal use with Kentucky Department of Agriculture (KDA) funds.
Specifically, Farmer admitted that, in 2008, he used approximately $19,500 in KDA money to buy excessive gifts for a KDA sponsored conference. Farmer purchased rifles, rifle cases, knives, and gift cards, purportedly for use at the conference; but he actually took the items for his own use. Farmer further acknowledged that, in both 2008 and 2011, he misappropriated thousands of dollars in labor cost by putting friends on the public payroll, knowing they would perform little or no actual work for the KDA.
Farmer was elected to two terms as Commissioner of Agriculture and was responsible for the supervision and administration of the KDA from January 2004 until January 2012.
Farmer was indicted by a federal grand jury in April of last year.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Jack Conway, Kentucky Attorney General, jointly announced the sentence today.
The investigation was conducted by the Kentucky Attorney General’s Office and the FBI. The case was prosecuted by Assistant U.S. Attorneys Kenneth R. Taylor and Andrew T. Boone, and trial attorney Sean Mulryne with the Public Integrity Section of the United States Department of Justice.
Foreign National Charged with Attempting to Export Sensitive Military EquipmentRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Iteru Masui, 29, of Mikata, Japan, was arrested and charged by criminal complaint with entering into an agreement to illegally export items that are export controlled by federal regulation, and illegally exporting the items. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that in September 2012, Special Agents with Homeland Security Investigations (HIS) began to investigate an eBay advertisement offering AN/PRC-152 radios for sale. The radios, manufactured by the Harris Corporation located in Rochester N.Y., are identified by the National Security Agency as a Controlled Cryptographic Item and are not for sale to the general public.
“Protecting sensitive military technology is of the utmost importance to the American public,” said U.S. Attorney Hochul. “This Office will continue to pursue and prosecute those who would attempt to both steal such sensitive secrets, or to export them abroad.”
"The illegal exportation of sensitive communications technology undermines the national security of the United States," said James C. Spero, Special Agent in charge of HSI Buffalo. "HSI will continue to work closely with the U.S. Attorney's Office to identify and disrupt these schemes."
Investigation revealed that the defendant attempted to buy one of the radios. According to the complaint, special agents tracked the attempted sale through Masui’s email address which is owned by KDDI Corporation, a telecommunications company based in Tokyo, Japan. Also according to the complaint, the address listed on the defendant’s eBay account belonged to a freight forwarding business with offices in Washington State and Tokyo. A review of Masui’s eBay purchases between December 2010 and January 2013 uncovered a total of 1,407 purchases including antennae for U.S. radios, body armor and military style optical sights.
Between April 4, 2013 and May 9, 2013, an undercover agent corresponded with the defendant via email and offered to sell Masui two of the AN/PRC-152 radios. The defendant agreed to buy the radios for $4,500. Over a several day period in May, 2013, an undercover agent shipped two boxes to the defendant, with each containing a plastic mock-up of the radio equipped with a Global Positioning System (GPS). The complaint further indicates that the boxes were followed as they were turned over to the United States Postal Service for delivery to Tokyo, with falsified Custom Declaration forms attached.
Iteru Masui was arrested in Seattle, Washington on January 13 on the complaint which had been sealed up until this time. The defendant made an initial appearance before a U.S. Magistrate Judge in Seattle late this afternoon.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
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.Florida Marine Life Dealer and Corporation Sentenced for Illegal Wildlife TraffickingRead the Press Release
Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, and Edward Grace, Deputy Assistant Director U.S. Fish & Wildlife Service, Office of Law Enforcement, announce that Jerrold C. Tieder, 47, of Dania, Florida and Tropical Fish Transhippers, Inc. (TFT), a Florida corporation based in Dania Beach, were convicted and sentenced today in Key West for transporting and selling wildlife in interstate commerce, specifically nurse sharks, with a fair market value in excess of $350.00, knowing the marine life was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), (a)(4), 3373(d)(1)(B), and Title 18, United States Code, Section 2.
The defendants entered their guilty pleas to the single charge before U.S. District Judge Jose E. Martinez, who after accepting the guilty pleas imposed sentence on both defendants. Tieder was sentenced to a term of probation of two years, a criminal fine of $1,000, and ordered to make a payment of $4,000 as a special condition of his probation to the National Fish & Wildlife Foundation (NFWF), a Congressionally-chartered organization authorized by law to receive payments arising as a result of a criminal conviction. NFWF will distribute the funds to the Mote Marine Laboratory, Summerland Key Branch, to promote research, management, education, conservation, and restoration of marine life and corals throughout the waters of the Florida Keys National Marine Sanctuary and the Florida Keys. TFT was placed on probation for a period of three years and ordered to pay a criminal fine of $1,000, with an additional payment to the NFWF of $1,500.
According to the indictment, joint factual statements submitted to the Court, and statements in court, Tieder was President of TFT, a corporation with its principal place of business in Dania, Florida. Tieder, through TFT, was engaged in the day to day business of purchasing, importing, distributing, and selling in interstate and foreign commerce various species of marine life, including live corals, live fish, and live rock.
In October 2012, the defendants purchased four juvenile nurse sharks (Ginglymosthoma cirratum) from a supplier located in Monroe County, Florida. The supplier did not hold the required license or permit from the State of Florida which would permit the supplier to harvest or sell sharks. In early November 2012, an employee of TFT confirmed the availability and willingness of TFT to sell eight juvenile nurse sharks to a customer outside the State of Florida. Thereafter, on November 6, 2012, a supplier in Monroe County transported four nurse sharks from Marathon Key to TFT at Dania. Unknown to the supplier or TFT, the four sharks had been outfitted with Passive Integrated Tags (PIT), each responding to an electronic reader with a unique 15 digit serial number.
On November 7, 2012, TFT delivered eight nurse sharks to Fort Lauderdale International Airport, for shipment in interstate commerce to a customer of TFT. Four of the sharks were scanned and found to be carrying the PIT Tags previously placed by Special Agents of the U.S. Fish & Wildlife Service. TFT subsequently received payment for the eight sharks in the amount of $440.00.
Mr. Ferrer commended the investigative efforts of the U.S. Fish & Wildlife Service, Office of Law Enforcement and NOAA Fisheries Office of Law Enforcement. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced for Witness TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bushnell, Florida, man convicted of Witness Tampering was sentenced on January 13, 2014, by U.S. District Judge Roberto A. Lange.
Seth Stone, age 25, was sentenced to time served (45 days), 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Stone was indicted by a federal grand jury on May 15, 2013. He pled guilty on November 18, 2013.
The conviction stems from an incident between June 1, 2012, and July 15, 2012, wherein Stone instructed a minor to destroy all electronic records of conversations that had occurred between the two of them, knowing an investigation was being conducted.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Five Sentenced for Filing Fraudulent BP Oil Spill ClaimsRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, U.S. Attorney for the Northern District of Florida, announced today that Charles C. Martin, 40, and Joseph B. Doyon, 43, of Pace, Florida, and Marquis R. Seals, 34, Bernard Cook, 39, and Tremayne C. Jamison, 42, of Pensacola, Florida, have been sentenced in federal court after having pleaded guilty to mail fraud and filing false claims related to the 2010 BP oil spill.
Martin, Seals, Doyon, and Cook admitted to submitting fraudulent claims to the Gulf Coast Claims Facility (GCCF). They falsely inflated their income as employees of Hooters of Pensacola Beach and stated they lost money due to the oil spill in their GCCF claims. Martin, then general manager of Hooters, and Seals, then assistant manager, aided and abetted their co-workers by providing fraudulent employment documentation for their claims. Jamison filed a false claim with the National Pollution Funds Center of the U.S. Coast Guard, which included a letter from Martin stating a contract between Jamison’s company and Hooters of Pensacola Beach was cancelled due to the oil spill, when actually no such contract existed.
Today, Martin was sentenced to 24 months in prison for his role in the scheme, and Doyon was sentenced to 12 months. Last month, Cook was sentenced to 12 months in prison, Seals was sentenced to 9 months, and Jamison was sentenced to 6 months. More than $85,000 will be paid back to the Deepwater Horizon Oil Spill Trust due to the restitution ordered in this case.
These cases result from an investigation by the U.S. Secret Service and were prosecuted by Assistant U.S. Attorney Alicia Kim.
Five Individuals Enter Pleas in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Five individuals have entered pleas of guilty before Magistrate Judge James E. Seibert.
United States Attorney William J. Ihlenfeld, II announced that:
DAVID LEE FERGUSON, age 60, of Martinsburg, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Burke Street Elementary School.” ASHLEY LUCILLE DIXSON, age 26, of Martinsburg, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Rosemont Elementary School.” MONICA RENEE GREEN, age 35, entered a plea of guilty to “Distribution of Crack Cocaine.” FERGUSON and DIXSON, who are in custody pending sentencing, face up to 40 years in prison. GREEN, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen Vogrin and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
CHARLES JONES, JR. a/k/a “BUCKY,” age 47, of Romney, West Virginia, entered a plea of guilty to “Sale of a Firearm to a Known Felon.” JONES, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hampshire County Sheriff’s Office.
ALVIN LEE STOLTZFUS, age 50, of Romney, West Virginia, entered a plea of guilty to “Cutting and Removal of Timber from Public Lands.” STOLTZFUS, who is free on bond pending sentencing, faces up to 1 year in prison. This case was prosecuted by Assistant U.S. Attorney David J. Perri and investigated by the National Park Service.
El Salvadoran National Sentenced to 15 Years in Federal Prison in Credit Card Fraud CaseRead the Press Release
LOS ANGELES – An El Salvadoran national who was convicted of credit card fraud, trafficking in counterfeit goods and identity theft has been sentenced to 15 years in federal prison for causing victims to suffer losses of over $100,000.
Jose Rolando Renderos, 39, who last resided in Montebello, but has been in federal custody since February 1, 2013, was sentenced yesterday afternoon by United States District Judge Audrey B. Collins. In October 2013, a federal jury convicted Renderos of various federal charges related to a credit card manufacturing scheme.
Renderos was apprehended on February 1, 2013, after receiving a box of more than 3,000 counterfeit credit cards imported from China and then leading law enforcement on a high-speed chase through the San Gabriel Valley. All told, authorities seized more than 100,000 counterfeit credit cards and numbers in packages imported from China and at a credit card manufacturing plant that Renderos had operated in Montebello, California.
“Credit card fraud and identity theft impact the financial security, privacy, and emotional well-being of millions of Americans every year,” said United States Attorney André Birotte Jr. “Mr. Renderos is a repeat offender who callously disregarded the effect that his schemes had on the lives of his unfortunate victims and now he will be serving a lengthy and richly deserved sentence in federal prison.”
“Identity theft and credit card fraud are growing at an alarming rate, posing a real threat to consumers and financial institutions nationwide,” said Claude Arnold, special agent in charge for HSI Los Angeles. “As this sentencing shows, those who perpetrate such schemes face serious consequences. HSI will continue to work closely with its federal law enforcement partners to aggressively target those who seek to undermine the integrity of our financial system and compromise our quality of life.”
At trial, federal prosecutors presented evidence that Renderos had lived a luxurious lifestyle that had been financed by credit card fraud. The ill-gotten gains paid for cosmetic surgery for himself and his girlfriend, VIP tickets to Lakers and Clippers games, and designer handbags and shoes.
“Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Joseph Beaty, Special Agent in Charge of the U.S. Secret Service Los Angeles Field Office. “The Secret Service worked closely with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations to share information and resources that ultimately brought Jose Rolando Renderos to justice.”
During the investigation, authorities learned that Renderos obtained valid credit card numbers by installing “skimmers” inside gas station pumps throughout Southern California. Renderos used others to block cameras and distract gas station employees while he did the installation. Six other defendants were also prosecuted as part of the scheme, including his girlfriend, his 18 year-old son, his brother, and others who purchased products for Renderos using the counterfeit credit cards.
Renderos was previously convicted of credit card fraud in the California courts. When he was arrested last year, Renderos was a fugitive wanted by federal authorities after he absconded from supervised release imposed after he was convicted of interstate transportation of a stolen vehicle. Renderos was also wanted by local authorities because he absconded while being prosecuted in Los Angeles County on credit card fraud charges. While a fugitive, Renderos had assumed the identities of several Puerto Rican men to hide from authorities.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Secret Service with substantial assistance provided by U.S Customs and Border Protection.
Release No. 14-003
Developer Sentenced to 96 Months in Prison for His Role in Mortgage Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, DAVID LEWIS JOHNSON, JR. of Cary, NC, was sentenced to a 96 month term of imprisonment, followed by 5 years of supervised release, on charges of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. JOHNSON was also ordered to pay $2,413,605.89 to 11 banks and lenders who were victims of the fraud.
With respect to the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, JOHNSON, operating through E-Z N Homes, engaged in a real estate “flipping” scheme. JOHNSON and others utilized various schemes to fraudulently obtain more than 100 properties with total mortgage loans in excess of $20,000,000. The defendant used straw buyers to purchase properties in exchange for a kickback from the loan proceeds. JOHNSON also fabricated investment statements to make it appear that straw buyers had, in some instances, one million dollars in assets. In fact, the straw buyers recruited by JOHNSON did not possess the income or assets to support the loans obtained in their names.
As a result of the scheme and JOHNSON’s conduct, banks and lenders issued loans to the conspirators in the amount of approximately $9.1 million, which resulted in $3.4 million in actual losses to the banks and lenders.Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Denver Colorado Man Convicted for Conspiracy to Possess with Intent to Distribute, and to Distribute, MethamphetamineRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Denver, Colorado resident Eugene Velarde has been convicted in federal court. A jury found Velarde guilty of Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine after a five-day jury trial in the U.S. District Court in Cheyenne. Velarde is scheduled to be sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 25, 2014.
The investigation in this case was conducted jointly by the Albany County Sheriff’s Department and the Wyoming Division of Criminal Investigation with the assistance of the Drug Enforcement Administration.
Deleon Springs Man Sentenced to 7 Years for Armed Bank RobberyRead the Press Release
Orlando, Florida –Senior U.S. District Judge Gregory A. Presnell yesterday sentenced Robert Gordon Shaw (37, Deleon Springs) to 7 years in federal prison for armed bank robbery. Shaw pleaded guilty on August 1, 2013.
According to court documents, on April 19, 2013, Shaw conspired with another individual (Matthew Anthony Cosimini) to rob a Regions Bank in Sanford, Florida. During the course of the robbery, they displayed a fake explosive detonation device, passed a note to a bank teller demanding money, and indicated that an explosive had been placed inside the bank. While committing the offense, Shaw and Cosimini also possessed a semiautomatic pistol with ammunition.
After Shaw passed the demand note and displayed the detonation device, the bank teller handed Shaw approximately $14,098 in bank funds. Shaw and Cosimini fled in a stolen vehicle as responding officers from the Sanford Police Department pursued them. During the pursuit, Shaw caused damage to both a police vehicle and a civilian's vehicle. Police officers apprehended Shaw and Cosimini approximately one mile from the bank and recovered the semiautomatic handgun and fake detonation device from the stolen vehicle.
Further investigation revealed that the detonation device was a hoax and that there were no explosives inside the bank. The investigation also determined that Cosimini and Shaw had planned to rob the bank together.
Cosimini pleaded guilty to his role in the offense on August 29, 2013. He was sentenced on November 25, 2013, to 6 ½ years in federal prison.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Sanford Police Department and the Seminole County Sheriff's Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Defendant Charged with Threatening to Kill U.S. Embassy OfficialRead the Press Release
ALEXANDRIA, Va. – Robert S. Kanli, also known as Robert S. Martin, 33, born in La Mirada, California, was arrested on charges alleging that he emailed threats to kill an official in the United States Embassy in Pristina, Kosovo.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Gregory B. Starr, Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after Kanli’s initial appearance before United States Magistrate Judge Ivan D. Davis. Kanli will appear in federal court on January 15, 2014 for a preliminary hearing and bond hearing.
Robert S. Kanli faces a maximum penalty of five years in prison if convicted.
According to court documents, Kanli, who has been residing outside the United States for several years, was attempting to obtain a sixth United States passport over the Internet when he was informed of a delay due to the number of lost passports he had previously reported. After learning that his $56 application fee could not be refunded, Kanli wrote a series of threatening emails to a Consular Officer in the United States Embassy in Kosovo. These communications explicitly threatened to kill the embassy employee who was helping Kanli with his replacement passport application.
Kanli was returned to the United States on January 10, 2014 after being released from custody in Kosovo, where he was held for threatening a foreign mission.
This investigation was conducted by the United States Diplomatic Security Service, with assistance provided by the Republic of Kosovo Police and Department of Criminal Justice and the Austrian Federal Police in connection with Kanli’s arrest and return to the United States. Assistant United States Attorney Ronald L. Walutes, Jr. is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Correctional Officer and BGF Inmate with Whom She Had Sex Sentenced in Jail House Racketeering ConspiracyRead the Press Release
Correctional Officer Smuggled Drugs for BGF into Baltimore Correctional Facility; BGF Inmate Had Sex with Correctional Officers and Directed Them to Smuggle Contraband into the Prison
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Taryn Kirkland, age 23, of Baltimore to 42 months in prison followed by two years of supervised release, and BGF member and commander Steven Loney, age 24, today to nine years in prison followed by three years of supervised release, for racketeering conspiracy arising from the smuggling of drugs for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to their plea agreements, Kirkland worked as a correctional officer at BCDC where BGF member Loney was an inmate. For a time, Loney was a cellmate of Tavon White, the leader of BGF at BCDC. Following his transfer to another section, Loney became the commander of one of two BGF regimes at BCDC, and answered only to Tavon White. Throughout 2011 to 2013, Loney often directed the smuggling of contraband into BCDC by BGF members and associates, especially through the services of correctional officers. Loney became involved in sexual relationships with correctional officers, including Kirkland. Kirkland frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of Loney. Kirkland also helped other correctional officers, such as Jennifer Owens, smuggle drugs into BCDC for other BGF inmates such as Tavon White.
Correctional officer Adrena Rice, age 25, of Baltimore previously pleaded guilty to her participation in the conspiracy and was sentenced on January 8, 2014 to 42 months in prison. BGF leader Tavon White, age 36, also pleaded guilty to the racketeering enterprise and is scheduled to be sentenced on February 20, 2014 at 10:00 a.m. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment tomorrow at 10:00 a.m.
The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Confessed Heroin Dealer Admits Providing Drugs That Caused Death of Two Young Metroplex WomenRead the Press Release
DALLAS — Misael Perla, a/k/a “Irving” and “Weasal25, of Dallas, pleaded guilty this morning, before U.S. Magistrate Judge Irma C. Ramirez, to two counts of possession of heroin with intent to distribute, the use of which caused the death of victims Alexandra Julia Moreno, 20, of Irving, Texas, and Cassidy Seward, 18, of Grapevine, Texas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Perla, a confessed heroin dealer, admitted that on July 16, 2013, he knowingly distributed heroin to Moreno, a woman he had recently met at a club. Perla provided the heroin to Moreno while she was staying with him at his mother’s home and he watched as she used the heroin in his presence. Later that evening and into the next morning, Perla attempted to wake Moreno, and he became concerned that she may have overdosed. He put her into the bed of a truck, drove to Baylor Medical Center at Irving and left her body with medical personnel at the emergency room. Moreno was pronounced dead shortly after her arrival at the hospital and a subsequent autopsy report concluded that she “died as the result of the toxic effects of heroin.”
Additionally, Perla also admits in the factual resume that he knew Cassidy Seward used heroin and that she would take some heroin from a supply at his residence. After staying with the defendant one evening, Seward overdosed on drugs taken from his home. After her family found her unresponsive, paramedics arrived and took her to the hospital, where she was soon pronounced dead. A subsequent autopsy report concluded that she died from the “mixed drug toxicity” of heroin and methamphetamine.
On each count of conviction, Perla faces a statutory penalty of at least 20 years and up to life in prison and a $5 million fine. A sentencing date was not set.
The investigation was led by the Irving Police Department and the Grapevine Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney Jason Schall is in charge of the prosecution.
Charleston Doctors and Medical Clinic Settle Allegations of FraudRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Dr. Baron S. Nason, Robert T. Hamilton and Nason Medical
Settle Allegations of Fraud for $1,021,778.26
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, settled claims of health care fraud with Nason Medical, out of Charleston, South Carolina, and two of its owners, Dr. Baron S. Nason and Robert T. Hamilton. The United States contended that Nason Medical submitted numerous false claims to Medicare, Medicaid and TRICARE. Specifically, the United States contended that Nason Medical:
1 Submitted claims to Medicare and TRICARE for services that were provided by physician assistants, as though the services were provided by physicians. Both Medicare and TRICARE pay 85% of the physician fee schedules for services provided by mid-level providers like physician assistants; 2 Submitted claims to Medicare, Medicaid and TRICARE for testing that was not medically indicated including laboratory tests and potentially harmful CT scans; Submitted claims for radiological services provided by a radiology technician who did not hold a current South Carolina license; and 4 Submitted claims for Tetanus Immunoglobulin when Tetanus Toxoid was given which is considerably less expensive;
The investigation began with the filing of whistleblower lawsuits, called qui tams, under the False Claims Act. The suits were filed by former employees of Nason Medical. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 18% of the funds of the settlement, or $183,920.08, plus they are entitled to their costs and attorney fees. One whistleblower claimed he was terminated for his actions taken to stop the fraudulent billing. If that is true, he is entitled to recover for his personal damages as well.
Mr. Nettles said, ?Health care fraud is a very high priority in this office. We have shifted our office resources by trebling the number of attorneys dedicated to address civil fraud cases. This case is particularly egregious because it involves allegations of profiting by exposing patients to unnecessary radiation in the CT scans.?
“Being a health care provider in Federal health care programs such as Medicare and Medicaid is a privilege, not a right. When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (OIG). “In an effort to ensure Nason Medical’s egregious billing history is not its future, the company agreed to a rigorous 5-year Corporate Integrity Agreement (CIA) we crafted to hold them accountable.”
Under this CIA, except for X-rays, Nason Medical also agreed to remove all its imaging equipment (including CT scans) and to provide medical services only appropriate for an Urgent Care Center. To that end, Nason Medical may not present or advertise itself out as providing any medical services for emergencies. Nason Medical is required to take down its Emergency signage and to stop advertising for emergency services. And, to ensure its compliance with federal healthcare programs and this CIA, Nason Medical, among other requirements, must engage the services of an independent monitor, chosen by OIG.
This case was investigated by agents from U.S. Health and Human Resources Office of Inspector General, Defense Criminal Investigative Service and the Federal Bureau Investigation.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].Bridgeport Man Sentenced to 38 Months in Federal Prison for Illegally Possessing FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT LAMBERT, also known as “Mike,” 33, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 38 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on two occasions in May 2011, LAMBERT sold heroin to an individual working with law enforcement. On August 6, 2011, Bridgeport Police stopped a truck in which LAMBERT was a passenger. LAMBERT was arrested after he attempted to discard a handgun that he possessed.
LAMBERT was convicted of cocaine possession in 2003 in federal court, and he also has multiple state felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
This matter stems from an FBI Bridgeport Safe Streets Task Force and Connecticut State Police Statewide Narcotics Task Force investigation into narcotics trafficking activity and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The Bridgeport, Norwalk, and Trumbull Police Departments participated in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bluefield, W.Va. Man Sentenced on Bank Fraud, Identity Theft ChargesRead the Press Release
ABINGDON, VIRGINIA – The former administrator of the Bluefield Virginia Rescue Squad in Bluefield, Va., was sentenced this morning on charges that he stole money from the squad and obtained a fraudulent loan without the squad’s authority.
Thomas Franklin Carroll, 48, of Bluefield, W.Va., previously pled guilty to one count of bank fraud and one count of identity theft. This morning in District Court, he was sentenced to 45 months of federal incarceration, 4 years of supervised release, and ordered to pay $204,490 in restitution.
“Mr. Carroll stole money from an organization tasked with providing needed assistance in medical emergencies,” United States Attorney Timothy J. Heaphy said today. “He abused the trust placed in him by the Rescue Squad, and used their scarce resources for his personal gain. The sentence imposed today appropriately recognizes the seriousness of Mr. Carroll’s crime.”
According to evidence presented in court today, Carroll was employed as the administrator of the Bluefield Virginia Rescue Squad in Tazewell County from 2005 to June 2011. Between October 11, 2008 and October 23, 2011, Carroll incurred personal credit card charges on at least 4 of the Squad’s credit cards, without authorization to do so from the Squad’s Board of Directors.
In addition, in May 2011, in an effort to hide his crime, Carroll obtained a loan from a bank without authorization to do so from the Squad’s Board of Directors and deposited some of the proceeds of the loan into the Squad’s account.
The investigation of the case was conducted by the United States Secret Service and the Virginia State Police. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Bluefield, W.Va Resident Pleads to Structuring and Wire Fraud ChargesRead the Press Release
ABINGDON, VIRGINIA – A West Virginia woman, who was part of a Nigerian wire fraud scheme, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon.
Audrey Elaine Elrod, 45, of Bluefield, W.Va., waived her right to be indicted yesterday and pled guilty to a two-count Information charging her with one count of structuring transactions to avoid reporting requirements and one count of conspiracy to commit wire fraud.
“Ms. Elrod and her co-conspirators stole hundreds of thousands of dollars in an elaborate fraud scheme,” United States Attorney Timothy J. Heaphy said today. “This United States Attorney’s Office will continue to prioritize the investigation and prosecution of financial fraud and bring those who commit such fraud to justice.”
According to evidence presented in court by Assistant United States Attorney Randy Ramseyer, Elrod was a participant in a Nigerian wire fraud scheme in which money was sent to Elrod from victims. Elrod then structured the transactions and forwarded most of the proceeds to Nigeria, via wire transfer. Between March 2012 and July 2013, Elrod received $446,927 in wire transfers into bank accounts she controlled. Between July 2012 and July 2013, Elrod structured $411,411 in cash transactions in an effort to hide her activity from the government.
At sentencing, Elrod faces a maximum possible penalty of up to 20 years in prison on the wire fraud charge and a maximum possible penalty of up to 10 years in prison on the structuring charge. In addition, the defendant faces a possible additional10-year prison term, per count, for committing these crimes while on pretrial release.
The investigation of the case was conducted by the Internal Revenue Service, Criminal Investigations, the United States Marshal Service, the Russell County Sheriff’s Office, the Bluefield Virginia Police Department, and the Bluefield West Virginia Police Department. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Beverly Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Beverly man who sold child pornography and erotica was convicted today for mailing child pornography to a customer in Atlanta.
Stanton Hager, 67, pleaded guilty to mailing child pornography and possession of child pornography. He is scheduled to be sentenced by Judge Rya W. Zobel on April 9, 2014.
Hager operated a business selling child pornography and child erotica over the Internet. In April 2013, personnel at an Atlanta bank notified law enforcement that they received a package containing child pornography and child erotica. The package, which had been wrongly delivered to and opened by the bank, had been mailed by Hager and intended for a customer in Atlanta.
In May 2013, law enforcement obtained a search warrant of Hager’s Beverly residence where they found a collection of child pornography including videos of children and adult males engaging in sex. Also found at his residence were documents and records pertaining to Hager’s business of selling child pornography and erotica. His business webpage made reference to “boy love” as his specialty. The government indicated that after being advised of his rights by law enforcement, Hager stated that he knows child pornography is illegal, but that the government had no right to come into his home and take his pictures.
During today’s hearing, Judge Zobel inquired about releasing the defendant, who had been held in custody since his arrest, prior to sentencing. The government argued against release and informed the court that there is reason to believe that Hager has had sexual contact with children. Specifically, during the search of his residence law enforcement recovered Hager’s personal journal where he had written that he had had sexual contact with children during a stay in Thailand. The government further described that an entry in Hager’s journal described a sexual encounter with a boy in Thailand Hager believed was 11-years-old.
Hager was detained until sentencing. He faces a maximum penalty of 20 years in prison, to be followed by five years of supervised release. Under federal law, he must serve at least five years in prison.
United States Attorney Carmen M. Ortiz and Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service in Boston, made the announcement today. The case is being prosecuted by David Tobin of Ortiz’s Major Crimes Unit.
Bastrop Resident Sentenced to 65 Months in Prison for Attempting to Receive Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Christopher Wallace, 25, of Bastrop, La., was sentenced last week (January 10, 2014) by U.S. District Court Judge Elizabeth E. Foote to 65 months in prison and five years of supervised release for attempting to receive child pornography. He pleaded guilty on September 5, 2013.
According to evidence presented at the guilty plea, on January 31, 2011, Wallace began chatting online with a female he believed to be 14 years of age. He asked the girl, who was actually an undercover officer, to perform sexual acts in front of a web camera, while Wallace himself also performed sexual acts in front of the camera. Wallace was attempting to receive the sexually explicit video by using the web camera feature.
Homeland Security Investigations and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Another Greenleaf Co-owner Pleads Guilty to Multi-million-dollar Mortgage Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nixa, Mo., man who was a co-owner of Greenleaf Companies has pleaded guilty in federal court to aiding and abetting a bank fraud conspiracy that was part of a multi-million-dollar mortgage investment scheme.
Eric Gagnepain, 41, of Nixa, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, Jan. 9, 2014, to a federal information that charges him with aiding and abetting a conspiracy to commit bank fraud.
Gagnepain co-owned and operated Greenleaf Companies and all of its subsidiaries, along with Scot Dasal, 47, of Republic, Mo., from 2006 through May 2008. During this time, Greenleaf sponsored real estate investment seminars that were designed to recruit potential investors to apply for mortgage loans for the construction and sale of residential homes in southwest Missouri and northwest Arkansas.
By pleading guilty today, Gagnepain admitted that he aided and abetted others in the creation and submission of fraudulent mortgage loan documents. These mortgage loan documents contained material false statements regarding the true source of monies provided at the time of closing, as well as fraudulently omitting the payment of monies obtained from the sale of the real estate properties.
Dasal was sentenced on Nov. 21, 2013, to three years in federal prison without parole and ordered to pay $2,911,209 in restitution. Dasal pleaded guilty to aiding and abetting a bank fraud.
According to the plea agreement, Gagnepain derived more than $1 million in gross receipts from his criminal conduct. The total loss amount resulting from the bank fraud conspiracy is between $2.5 million and $7 million.
The plea agreement cites a specific instance of such fraud that occurred on March 12, 2008. Gagnepain and others created false mortgage loan documents that were submitted to Flagstar Bank. The loan documents fraudulently stated that the borrower had provided their own monies at the time of the closing; in reality, however, Greenleaf provided monies that were falsely identified as “cash from borrower.” Additionally, the loan documents omitted the fact that Greenleaf would receive monies from the sale of the real estate property from the seller. If Flagstar Bank had known the true source of the monies provided on behalf of the borrower, or that Greenleaf was receiving monies from the sale of this real estate property, the bank would have denied the mortgage loan application.
Under the terms of the plea agreement, Gagnepain will be sentenced to four years in federal prison without parole and must pay restitution in the amount ordered by the court. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. Gagnepain must also plead guilty to state charges (State of Missouri vs. Eric Christian Gagnepain). The sentence in the state case will be served concurrently with the federal sentence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Annapolis Forum Addresses Growing Threat of Heroin AbuseRead the Press Release
U.S. Attorney Urges Parents and Teachers to Focus on Drug Prevention in 2014
Baltimore, Maryland – In opening remarks at a regional drug abuse symposium held in Annapolis today, U.S. Attorney Rod J. Rosenstein sounded the alarm about a surge in drug overdose deaths and addiction and called on parents and teachers to “teach every student, from first grade through twelfth grade, about the horrible consequences of using heroin and other debilitating addictive drugs.”
“Heroin is one of the leading causes of death in Maryland, and some victims are teenagers who start by taking oxycodone and similar prescription drugs from their parents’ medicine cabinets,” said Mr. Rosenstein. “In 2012, more Marylanders died of heroin than murder. It is essential to treat drug addiction as a communicable disease that is preventable. Today I call on parents and teachers to help to prevent drug abuse by teaching children about the dangers of drug addiction and how to avoid it.”
Maryland reported 378 heroin overdose deaths in 2012, an increase from 245 deaths in 2011. A total of 761 drug overdose deaths were reported in the state in 2012.
The symposium, hosted by the Baltimore/Washington High Intensity Drug Trafficking Area (“HIDTA”) under the leadership of Executive Director Tom Carr, brings together key law enforcement, prevention and treatment professionals from Maryland, Virginia and the District of Columbia as well as four surrounding HIDTAs: Appalachia, Philadelphia/Camden, New York/New Jersey, and New England. The purpose of the symposium is to raise awareness about the surge in heroin abuse, explain the relationship between heroin overdoses and the abuse of prescription drugs such as opioids, and develop programs and strategies to address the problem.
Further information about heroin and prescription drug abuse is available at www.justice.gov/dea . For more information about the HIDTA program, please visit www.hidta.org.
Annandale Mortgage Broker Pleads Guilty to Involvement in Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Kil Seok (“Michael”) Seo, 49, formerly of Fairfax, Va., pleaded guilty today to bank fraud and aggravated identity theft charges in connection with his involvement in a mortgage fraud scheme.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Seo was indicted on December 10, 2009, by a federal grand jury on charges related to a scheme to defraud mortgage lenders. Seo faces a maximum penalty of 32 years’ imprisonment, which includes a mandatory two-year term of imprisonment, when he is sentenced on April 3, 2014.
According to the indictment and a statement of facts filed with the plea agreement, Seo, an Annandale, Va., mortgage broker, schemed with others, including Peter Jin, to defraud lenders by transferring title to residential properties into the names of victims without their knowledge or consent and then opening home equity lines of credit in victims’ names, again without their knowledge or consent. Seo and Jin then opened bank accounts in the victims’ names for the purpose of receiving the fraudulently-obtained loan proceeds. As part of the scheme, Seo obtained from the Virginia Department of Motor Vehicles an identification card in the name of a victim but with Seo’s photo. He used that fraudulent ID to take out a home equity loan in the victim’s name. In total, the scheme resulted in losses to the lenders of nearly $900,000. Seo has resided in South Korea since 2009, and he was extradited to the United States in November, 2013 to face the criminal charges contained in the December 2009 indictment.
In 2009, co-defendant Jin pleaded guilty to mail fraud and aggravated identity theft charges in connection with his role in the offense and was sentenced to 48 months’ imprisonment.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Timothy D. Belevetz is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Anchorage Man Sentenced to 70 Months for Narcotics TraffickingRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Antonio Fleming, a/k/a, “Wookie,” age 35, from Anchorage, Alaska was sentenced on Tuesday, January 14, 2014, by United States District Court Chief Judge Ralph R. Beistline. Fleming received a sentence of 52 months in prison and 5 years of supervised release on charges related to a drug conspiracy. During the course of the drug conspiracy, Fleming was also on Federal Supervised Release from a prior drug conspiracy for which he was sentenced to 120 months in November 2002. As a result of his new conviction, Fleming had 18 months imposed for the probation violation to be served consecutive to the 52 months, for a total of 70 months imprisonment.
Fleming was a member of a drug trafficking conspiracy during which he and his co-conspirators attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” (ODC) Entertainment and “Up North ‘D’” or “Dope Boys” (UNDB). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics. Fleming held himself out as a business manager of the record label and recording group. During the course of the conspiracy, Fleming was mainly responsible for collecting drug debts.
Fleming has a prior federal drug trafficking conspiracy conviction. Before imposing a sentence, Judge Beistline chastised the defendant for returning to the same criminal lifestyle so soon after being released from a lengthy prison sentence for a similar crime. Judge Beistline characterized the defendant as an "enforcer" during the drug conspiracy, and informed the defendant that he was being sentenced so that others would be deterred in the future and to re-affirm societal norms.
Fleming was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months imprisonment on November 2, 2012. DeMarr Moultrie was sentenced to 40 months imprisonment on May 1, 2013. Jeraelyn Hill was sentenced to 66 months imprisonment on May 28, 2013. Jerry Wormley was sentenced to 36 months imprisonment on May 31, 2013. Rock Phelps II was sentenced to 18 months imprisonment on June 14, 2013. Brent Gunnels was sentenced to 6 months on August 2, 2013. Mihla Hall was sentenced to 28 months on August 21, 2013. Joshua Mustovich was sentenced to 87 months on September
6, 2013. Dalon Johnson was sentenced to 92 months on September 24, 2013. Donnell Johnson, Tevoris Carter, Emma Shine, and Terrance Fleming have plead guilty for their roles in connection with the conspiracy and await sentencing.Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mr. Fleming.
Alabama Man Pleads Guilty to Tax Fraud and Identity TheftRead the Press Release
Montgomery, Alabama - Nakia Jackson pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft for his role in a stolen identity refund fraud scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama and the Internal Revenue Service (IRS).
According to court documents, between January 2009 and March 2011, Jackson obtained stolen identities from an Alabama state employee and used those identities to file false tax returns. Jackson recruited a bank employee, LaQuanta Clayton, to assist him in having the false income tax refunds deposited into various bank accounts. He obtained permission from several individuals to use their bank accounts to receive false refunds and when a false refund was deposited, Jackson would direct the individuals to withdraw the money and give the money to him. In total, Jackson filed over 100 false tax returns and requested over $400,000 in refunds.
Sentencing has been scheduled for April 23, 2014. Jackson faces a statutory minimum sentence of two years in prison and a statutory maximum sentence of 12 years in prison, three years of supervised release, restitution and a maximum fine of $250,000, or twice the loss caused by the offense. LaQuanta Clayton has already pleaded guilty and is awaiting sentencing.
IRS-Criminal Investigation agents investigated this case and Tax Division Trial Attorneys Charles M. Edgar Jr. and Michael Boteler and Assistant U.S. Attorney Todd Brown are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
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