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27 February 2014
California Man Sentenced to 14 Years on RobberiesRead the Press Release
CONCORD, N.H. – Delano Nelson, 50, of Compton, California, was sentenced in United States District Court for the District of New Hampshire to 14 years in federal prison after pleading guilty to armed robbery charges, announced United States Attorney John P. Kacavas.
In October and November of 2011, the defendant committed the armed robbery of Hannoush Jewelers in Manchester and Kay Jewelers in Tilton. In July of 2012 he was apprehended in Compton, California, and indicted by a federal grand jury in August, 2012. Walter Williams, also of Compton, California and Shyloe Johnson of Sanbornton, New Hampshire previously pled guilty and were sentenced for their participation in the robberies.
This case was investigated by the Federal Bureau of Investigation, the Manchester Police Department and the Tilton Police Department. The case was prosecuted by Assistant United States Attorney Helen White FitzgibbonBridgeport Man Charged with Illegally Possessing FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that federal grand jury sitting in Bridgeport has returned an indictment charging GIOVANNI CANDELARIO, 21, of Bridgeport, with one count of possession of a firearm by a convicted felon.
As alleged in court documents and statements made in court, at approximately 10 p.m. on February 1, 2014, a vehicle in which CANDELARIO was a passenger engaged in a chase with Bridgeport Police. The vehicle eventually stopped on Ogden Street in Bridgeport and CANDELARIO fled on foot. CANDELARIO was apprehended after he was found hiding in a trash can behind an apartment building on Hallet Street. Officers subsequently traced the route of CANDELARIO’s flight and located a Smith and Wesson MP .40 caliber pistol on the driveway of an Ogden Street residence. The firearm had been previously reported stolen.
The indictment alleges that, in March 2012, CANDELARIO was convicted in state court of possession with intent to distribute narcotics. 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 prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. CANDELARIO attended a call-in on October 30, 2013, in Bridgeport.
The indictment was returned on February 19 and was unsealed today during CANDELARIO’s arraignment before U.S. Magistrate Judge Donna F. Martinez in Hartford. CANDELARIO entered a plea of not guilty to the charge, which carries a maximum term of imprisonment of 10 years.
CANDELARIO has been detained since his arrest on February 1.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Boiler Room Operator Sentenced to 20 Years in Prison for Scamming Millions of Dollars from Elderly Coin Collectors in All Fifty StatesRead the Press Release
Michael Romano, 47, the leader of a telemarketing scheme that defrauded elderly investors across the country, was sentenced today in federal court in Brooklyn, New York, to 20 years in prison to be followed by five years of supervised release. As part of the sentence, Romano was ordered to pay $9,139,727.10 in restitution to the defrauded victims and forfeit $32,220,617, the illegal gains of the eleven-year fraud scheme. In June 2011, after a five-week trial, Romano was convicted of mail and wire and money laundering conspiracy.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“Michael Romano and those acting at his direction stole millions of dollars from the Greatest Generation. Romano took advantage of the trusting nature of hundreds of senior citizens across the United States by promising to sell them rare collectible coins, when in fact he was selling them near worthless change. Many of the victims purchased the coins in order to leave a legacy for their children and grandchildren. We remain committed to protecting all members of our communities from these illegal telemarketing schemes and will insure that fraudsters are stripped of their ill-gotten gains,” stated United States Attorney Lynch. Ms. Lynch thanked the United States Postal Inspection Service, the agency responsible for leading the government’s investigation, for its assistance in this case.
Between 1997 and 2008, Romano successively ran three coin companies, Wall Street Rare Coins, Atlantic Coin Company and Northeast Gold and Silver, located in Massapequa and Lindenhurst, New York. From these locations, the defendant and others defrauded elderly victims from all 50 states over an 11-year period. Romano falsely represented to his victims that the coins he sold were of a collectible grade. He then induced victims to buy even more coins using high-pressure tactics aimed at convincing investors that their coins would be more valuable if they purchased complete sets.
The sentencing proceeding was held before U.S. District Judge Sterling Johnson, Jr.
The government’s case is being prosecuted by Assistant United States Attorneys Lara Treinis Gatz, Christopher Ott and Diane Leonardo.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
MICHAEL ROMANO
Age: 47
Barrington Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, N H: Justin Madigan, 31, of Barrington, was sentenced in United States District Court for the District of New Hampshire to 5 years in prison after pleading guilty to transportation of child pornography, announced U.S. Attorney John P. Kacavas.
In November of 2008 the Portsmouth Police received information that an individual was using America On Line (AOL) to send numerous emails containing images and videos depicting the sexual assault of children.
A further investigation was conducted by the New Hampshire Internet Crimes Against Children and a search warrant for Madigan’s residence was executed. Computer evidence seized was examined and found to contain hundreds of images depicting the sexual assault of young children.
This case was brought in furtherance of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
Alleged Mask-Wearing Robber IndictedRead the Press Release
PHILADELPHIA – Blair Thomas, Jr., 29, of East Lansdowne, PA, was charged today, by indictment with the robbery of a bank in Springfield, PA, and the attempted armed robberies of postal employees in Yeadon and in Darby, PA, announced United States Attorney Zane David Memeger. Thomas is also charged with being a convicted felon in possession of a firearm.
According to the indictment, on January 22, 2014, Thomas, armed with a .45-caliber Ruger, attempted to rob a United States Postal Service employee at the Yeadon Post Office, located at 709 Church Lane, of money orders. On that same date, Thomas, again armed with a .45-caliber Ruger, attempted to rob a United States Postal Service employee at the Darby Post Office, located at 801 Main Street, of money orders. On January 23, 2014, it is alleged that Thomas robbed the Wells Fargo Bank, at 888 Baltimore Pike in Springfield, of approximately $1,890. According to a criminal complaint filed on January 29, 2014, on each of the incidents Thomas wore a mask to disguise his appearance.
If convicted of these charges, Thomas faces a mandatory minimum sentence of 30 years in prison with a maximum sentence of life, up to five years of supervised release, a fine of up to $1.5 million, and a $600 special assessment.
The U.S. Attorney’s Office in the District of Delaware also indicted Thomas today on separate federal charges (for more information on that case, go to www.justice.gov/usao/de).
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jessica Natali.
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An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Aliquippa Man Charged with Defrauding His Employer by Submitting Fraudulent InvoicesRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of mail fraud, United States Attorney David J. Hickton announced today.
The five-count indictment, returned on February 25, named Peter A. Kalemon, 45, as the sole defendant.
According to the indictment, Kalemon defrauded his former employer of $359,389.32 over approximately three years by submitting 126 fraudulent invoices which were paid to Kalemon’s fictitious transportation company via 81 checks mailed to his P.O. Box in Wheeling, West Virginia.
The law provides for a maximum sentence at each count of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alamo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Prescott Apachito, 25, an enrolled member of the Navajo Nation who resides in Alamo, N.M., was sentenced this morning to 24 months in federal prison followed by two years of supervised release for his assault conviction.
Apachito was arrested on Feb. 11, 2013, based on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. Apachito subsequently was indicted and charged with two counts of assault with a dangerous weapon. According to the indictment, Apachito committed the offense on Nov. 29, 2012, in Socorro County, N.M., on the Navajo Indian Reservation.
On July 25, 2013, Apachito entered a guilty plea to Count 2 of the indictment charging him with assault with a dangerous weapon. Apachito admitted that in the early morning hours of Nov. 29, 2012, during an argument with several others, he pulled a utility knife out of his pocket and cut a female victim by slicing her neck. He further admitted stabbing a male victim in the stomach when the victim attempted to restrain him. In his plea agreement, Apachito admitted committing this criminal conduct on the Navajo Indian Reservation.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
26 February 2014
Winter Park Man Sentenced to Seven Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Charlene E. Honeywell sentenced Brian Mirth (29, Winter Park) yesterday to seven years in federal prison for distributing child pornography. As part of his sentence, Mirth was ordered to serve a 10-year term of supervision, following his release from prison, and required to register as a sex offender. Mirth pleaded guilty to distributing child pornography on October 31, 2013.
According to court documents, on May 21, 2013, agents executed a search warrant at Mirth’s Winter Park residence where they recovered a computer and external hard drive containing images and videos of child pornography. Agents interviewed Mirth at his residence, and he admitted to collecting and trading child pornography using an anonymous e-mail address that agents had identified from another investigation. A forensic examination later revealed that Mirth’s computer and external hard drive contained hundreds of images of child pornography and videos.
“Child exploitation can extend across state lines and country borders because predators can access child pornography with a click of a button,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa, which oversees the Orlando office that conducted this investigation. “HSI has offices across the United States and in 48 countries across the globe. This maximizes our reach, and helps us put child predators behind bars, regardless of where the investigation originates.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney James D. Mandolfo.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Westbrook Man Convicted of Possessing Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Joel
Dudley, 29, of Westbrook, was convicted on February 25 after a two-day jury trial in U.S.
District Court in Portland of possession of child pornography.According to evidence introduced at trial, in August of 2012, law enforcement agents executed a search warrant at Dudley’s apartment in Westbrook. Two DVDs found in the apartment were later found to contain numerous child pornography videos.
Dudley will be sentenced after completion of a pre-sentence investigation report by the
U.S. Probation Office. He faces a maximum sentence of up to 10 years and a fine of up to
$250,000.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Westbrook Police Department.Waynesville Man Indicted for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Waynesville, Mo., man was indicted by a federal grand jury today for robbing Security Bank of Pulaski County in St. Robert, Mo.
Arthur John Green, 42, of Waynesville, was charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Green robbed the Security Bank of Pulaski County on Feb. 20, 2014.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Pulaski County, Mo., Sheriff’s Department and the FBI.Vienna Man and Parents Plead Guilty in Connection with Filing of False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – Henry Washington Yeh, age 32, of Vienna, Va., pleaded guilty today to filing false and fraudulent tax returns. Henry Yeh’s father, Jimmy An-Twig Yeh, age 57, and his mother Zhi Hua Wang Yeh, age 60, both of Vienna, Va., pleaded guilty to aiding the filing of false tax returns.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the pleas were accepted by United States District Judge Gerald Bruce Lee.
The defendants were indicted on Sept. 24, 2013 by a federal grand jury on money laundering and tax charges. Each defendant faces a maximum penalty of three years in prison when they are sentenced on May 9, 2014.
In a statement of facts filed with the plea agreement, Henry Yeh, a convicted drug dealer, admitted that he generated almost $1 million in illicit cash proceeds from the distribution of over 100 kilograms of marijuana from 2004 through 2009. Yeh took steps to conceal from law enforcement and the IRS the true amount of cash proceeds he made from selling marijuana, and he solicited others to help him conceal his drug proceeds.In 2009, 2010 and 2012, Yeh filed false and fraudulent federal income tax returns with the IRS for taxable years 2005, 2006 and 2007 by misrepresenting the actual source of his gross income and by understating the actual amount of gross income he earned from selling marijuana. His parents, who knew Yeh earned substantial income from illicit activity, aided him in the filing of a false tax return for 2007.
Yeh purchased a number of assets with his drug proceeds either in his own name or jointly with others. As part of their pleas, the defendants have agreed to forfeit approximately $2.1 million worth of assets, including real property in Washington, D.C. and Ashburn, Va.; $918,166.73 from an investment brokerage account; an SUV; and $100,000 in cash.
This case was investigated by the DEA’s Washington Field Division and IRS-CI. Assistant United States Attorneys Kimberly R. Pedersen and Karen L. Taylor are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Vienna Man and Parents Plead Guilty in Connection with Filing of False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – Henry Washington Yeh, age 32, of Vienna, Va., pleaded guilty today to filing false and fraudulent tax returns. Henry Yeh’s father, Jimmy An-Twig Yeh, age 57, and his mother Zhi Hua Wang Yeh, age 60, both of Vienna, Va., pleaded guilty to aiding the filing of false tax returns.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the pleas were accepted by United States District Judge Gerald Bruce Lee.
The defendants were indicted on Sept. 24, 2013 by a federal grand jury on money laundering and tax charges. Each defendant faces a maximum penalty of three years in prison when they are sentenced on May 9, 2014.
In a statement of facts filed with the plea agreement, Henry Yeh, a convicted drug dealer, admitted that he generated almost $1 million in illicit cash proceeds from the distribution of over 100 kilograms of marijuana from 2004 through 2009. Yeh took steps to conceal from law enforcement and the IRS the true amount of cash proceeds he made from selling marijuana, and he solicited others to help him conceal his drug proceeds.In 2009, 2010 and 2012, Yeh filed false and fraudulent federal income tax returns with the IRS for taxable years 2005, 2006 and 2007 by misrepresenting the actual source of his gross income and by understating the actual amount of gross income he earned from selling marijuana. His parents, who knew Yeh earned substantial income from illicit activity, aided him in the filing of a false tax return for 2007.
Yeh purchased a number of assets with his drug proceeds either in his own name or jointly with others. As part of their pleas, the defendants have agreed to forfeit approximately $2.1 million worth of assets, including real property in Washington, D.C. and Ashburn, Va.; $918,166.73 from an investment brokerage account; an SUV; and $100,000 in cash.
This case was investigated by the DEA’s Washington Field Division and IRS-CI. Assistant United States Attorneys Kimberly R. Pedersen and Karen L. Taylor are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Verona Woman Charged with Theft of Government MoneyRead the Press Release
PITTSBURGH - A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government money, United States Attorney David J. Hickton announced today.
The one-count indictment named Deborah E. Matthews, 69, of Verona, Pa., as the sole defendant.
According to indictment, from December 2004 to September 2012, Matthews converted to her own use $57,621.40 in Social Security Title XVI, Supplemental Security Income benefits of another individual, benefits she knew she was not entitled to receive.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two South Dakota Men Sentenced to Federal Prison on Child Exploitation ChargesRead the Press Release
Two men who crossed state lines to commit sex acts with a minor were sentenced February 25, 2014, to federal prison.
Mensur Malik, age 23, from Sioux Falls, South Dakota, received a sentence of 151 months’ imprisonment after a September 23, 2013, guilty plea to one count of transporting a minor across a state line with intent to engage in criminal sexual activity. Salim Issa, age 23, from Sioux Falls, received a sentence of 46 months’ imprisonment after a September 13, 2013, guilty plea to one count of traveling across a state line for the purpose of engaging in illicit sexual conduct.
At his plea hearing, Malik admitted that, in July 2012, he transported a minor female from Clear Lake, Iowa, to Sioux Falls with the intent to engage in sexual activity with her. At his plea hearing, Issa admitted that, in July 2012, when he and Malik traveled from South Dakota to Iowa, he intended to have sex with the minor female.
Malik and Issa were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Malik was sentenced to 151 months’ imprisonment, a special assessment of $100 was imposed, and he must serve a five-year term of supervised release after the prison term. Issa was sentenced to 46 months’ imprisonment, a special assessment of $100 was imposed, and he must serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Both Malik and Issa must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake Police Department, the Sioux Falls Police Department, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3024.
Two Mississippi Department of Public Safety Employees Arrested on Federal Identity Theft ChargesRead the Press Release
Hattiesburg, Miss - Two employees of the Mississippi Department of Public Safety were arrested and arraigned today on a federal indictment for identity theft and conspiracy to commit identity theft, announced U.S. Attorney Gregory K. Davis and Raymond Parmer, Special Agent in Charge of Homeland Security Investigations.
Yolanda Jean Perkins, 48, of Laurel and Deborah Payton Stewart, 55, of Waynesboro, have been charged with two counts of conspiracy to commit identity theft and one count of identity theft. They each face a maximum penalty of 15 years in prison and $250,000 fine.
This case is the result of an investigation by the Mississippi Bureau of Investigation and Homeland Security Investigations. It is prosecuted by Assistant U.S. Attorney Annette Williams.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty in Court.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Traficante De Metanfetamina De Sacramento Con Conexiones Al Cartel Mexicano Sentenciado A 17.5 Años De PrisiónRead the Press Release
SACRAMENTO, Calif. — El juez de la procuradería federal del distrito oriental de California John A. Méndez sentenció a Fausto Díaz-Lozano, 45, de Sacramento, el martes 24 de febrero de 2014, a 17 años y medio de prisión por su participación en una conspiración para distribuir metanfetamina, anunció el ayudante del procurador federal del distrito oriental de California Benjamin B. Wagner.
De acuerdo con los documentos del tribunal y la evidencia del juicio, Díaz-Lozano era un miembro de confianza con conexiones de alto nivel con La Familia Michoacàn, un cartel mexicano de drogas. La evidencia en el juicio indicó que tenía relaciones con un “jefe” en la organización. Con una llamada telefónica, Díaz-Lozano fue capaz de modificar el àrea “autorizada” para un enorme centro de distribución y suministro controlado por el cartel en Gilroy. Antes de esa llamada al “jefe” en México, el centro estaba solamente autorizado a distribuir en el àrea de South Bay. Después de la llamada, el centro entregó directamente a Díaz-Lozano en Sacramento. De acuerdo con los documentos del tribunal, Díaz-Lozano también reclutó nuevos miembros y asociados para el cartel, haciendo ostentación de la crueldad de la organización en el proceso.
Cuando el centro de suministro de Gilroy fue registrado el 19 de agosto de 2010, los investigadores se apoderaron de màs de 610 libras de metanfetamina, 16 libras de cocaína, dos armas de fuego y los libros de contabilidad que detallaban la distribución de màs de 3,300 libras de metanfetamina en un período de cuatro a cinco meses. Aproximadamente 80 libras de la metanfetamina fueron analizadas por la DEA y se encontró que tenía una pureza del 98%.
El juez Méndez encontró que Díaz-Lozano dirigió a otros en conexión con esta conspiración internacional de drogas. También encontró que como miembro de la conspiración, Díaz-Lozano fue responsable de las drogas y pistolas encontradas en Gilroy.
Díaz-Lozano es el sexto demandado sentenciado en este caso. Héctor Salazar Borrayo, de Gilroy, fue sentenciado a 14 años y cuatro meses de prisión. Martín Solorio, de Sacramento, fue sentenciado a nueve años de prisión. Roberto Bermúdez-Ornelas, de Sacramento, fue sentenciado a tres años y tres meses de prisión. Sergio Murillo-Valencia fue sentenciado a 16 años de prisión. Fabiàn Figueroa-Ayala, de Gilroy, fue sentenciado a 12.5 años de prisión. Otros tres demandados fueron acusados en este caso. Las acusaciones son alegaciones; se les considera inocentes hasta y a menos que se demuestre su culpabilidad fuera de toda duda razonable.
Este caso fue el producto de una investigación de la Administración Federal Antinarcóticos, el Departamento del Alguacil del Condado de Sacramento y el Departamento de Justicia de California (Cal-MMET). El ayudante del procurador federal Michael M. Beckwith procesó el caso.
Three Defendants Plead Guilty to A Copyright Infringement ConspiracyRead the Press Release
SACRAMENTO, Calif. —Otto Godinez-Sales, 22, of San Jose; Francisco Martinez-Cruz, 34, of Orland; and Soledad Garcia-Venegas, 31, of Orland, pleaded guilty today to conspiracy to commit criminal copyright infringement, United States Attorney Benjamin B. Wagner announced.
According to court documents, Godinez-Sales maintained a number of warehouses in the San Jose area where he sold CDs and DVDs containing counterfeit music and movies. The music and movies on the CDs and DVDs were protected under United States copyright laws. In many instances, the copyrighted movies being trafficked by the defendants were still in theatrical release and not yet available for purchase in the home DVD market. Martinez-Cruz and Garcia-Venegas were two of Godinez-Sales’s customers at his San Jose warehouses, and they would transport the CDs and DVDs to sell at the Gonzalez Flea Market in Glenn County and the Marysville Flea Market in Yuba County. Over the course of the conspiracy, Martinez-Cruz and Garcia-Venegas were responsible for trafficking approximately 25,000 CDs or DVDs containing counterfeit copyrighted works.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, which combines the efforts of 32 local, state, and federal law enforcement agencies in the Eastern District of California. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
All three defendants have been in custody since their arrests in February 2013. The defendants are scheduled to be sentenced by United States District Judge Kimberly J. Mueller on May 14, 2014. They each face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stamford Man Sentenced to 15 Months in Prison for Role in Organized Crime-backed Gambling BusinessesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SILVERIO CALIFANO, 53, of Stamford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by three years of supervised release, for his involvement in organized crime-controlled illegal gambling businesses. CALIFANO was also ordered to pay a $4,000 fine and to forfeit $40,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, CALIFANO, Dean DePreta, Richard Uva and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. As part of the conspiracy, DePreta and Uva were involved in the collection and payment of “tribute” payments to Gambino organized crime family associates in New York.
The investigation, which included the use of court-authorized wiretaps, revealed that CALIFANO was a long-time associate of DePreta and Uva, and was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
FBI analysis of the sports-betting web site utilized by the defendants determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
In addition, CALIFANO managed a card gambling club at 859 East Main Street in Stamford, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
On May 6, 2013, CALIFANO pleaded guilty to two counts of operating an illegal gambling business.
DePreta and Uva each pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO). On October 9, 2013, DePreta was sentenced to 71 months of imprisonment and ordered to forfeit $300,000. On October 24, 2013, Uva was sentenced to 46 months of imprisonment and ordered to forfeit $250,000.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Peter Jongbloed.
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(203) 821-3722 [email protected]St. Francis Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man charged with Simple Assault pled guilty to and was sentenced on February 25, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Samuel White Lance, age 22, was sentenced to 6 months in custody and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on October 8, 2013, into the morning hours of October 9, 2013, when White Lance and the victim were arguing. White Lance grabbed a paring knife with a 3 to 4 inch blade and stabbed the victim in the left hand and stomach. The victim left the scene to seek help, and White Lance followed the victim and stabbed him once in the chest. The victim was not seriously injured.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
White Lance was remanded to the custody of the U.S. Marshals Service.
South China Man Pleads Guilty to Stealing Veteran Death BenefitsRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Neil
Pelkey, 67, of South China, Maine, pled guilty yesterday to stealing over $53,000 worth of
Death and Indemnity Compensation benefits from the U.S. Department of Veterans Affairs
(“VA”).According to court records, Pelkey stole VA death benefits intended for his mother for almost 4 years following her death. VA Investigators learned of her death from the Nationwide
Death Match Project, a computerized comparison of VA and Social Security Administration records. Pelkey collected monthly benefits ranging from $1,154 to $1,215 from January 1, 2010 to September 1, 2013 and used them to pay living expenses.Pelkey faces up to 10 years in prison and a $250,000 fine, or both. He will be sentenced after completion of a pre-sentence report by the United States Probation Office.
The investigation was conducted by the Office of Inspector General of the VA.
Smugglers Who Extorted and Threatened Victims Sentenced to PrisonRead the Press Release
McALLEN, Texas ‐ Ivan Cabrera and Michael Ayala, both of Edinburg, and Mexican National Maria Isabel Rivera-Castillo have been sentenced to federal prison as a result of their convictions for smuggling undocumented aliens, announced United States Attorney Kenneth Magidson. Cabrera, 23, Ayala, 27, and Rivera-Castillo, 52, all pleaded guilty on varying dates in November 2013.
Today, U.S. District Judge Randy Crane sentenced Cabrera to a sentence of 63 months imprisonment, while Rivera and Ayala received respective sentences of 52 and 33 months. The sentences were enhanced as the court took into consideration the fact that while in the defendants’ custody, the aliens were beaten and threatened with physical and sexual violence. The defendants held the undocumented aliens for days and, in some cases, weeks to extort monies from their families in exchange for their release.
Cabrera, Ayala and Rivera-Castillo have been in custody since their arrest on Sept. 27, 2013. Following their terms of imprisonment, Cabrera and Ayala will serve three years of supervised release, while Rivera is expected to face deportation proceedings following her release from prison.
The investigation was conducted by Homeland Security Investigations, Border Patrol and Edinburg Police Department. Assistant United States Attorneys Kristen Rees and Kimberly Ann Leo prosecuted the case.
Skowhegan Woman Sentenced to 4 Years for Drug TraffickingRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tara
Pelletier, 33, of Skowhegan, Maine, was sentenced today to four years in prison and three years of supervised release for conspiring to possess with intent to distribute and to distribute oxycodone and cocaine. Pelletier pled guilty to the charge on April 30, 2013.Pelletier’s conviction stems from her involvement in a major drug trafficking organization run by Maurice McCray in central Maine. Court records reveal that between
January and May 2012, Pelletier assisted McCray by obtaining oxycodone and cocaine from
New York and distributing the drugs to customers throughout central Maine. The charge followed a three-month wiretap investigation that revealed McCray’s organization and the involvement of Pelletier and others.The investigation was conducted by the U.S. Drug Enforcement Administration and the
Maine Drug Enforcement Agency.Seven Indicted in False Tax Refund Scheme Run from PrisonRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed Wednesday after the arrest of three of seven defendants charged in a conspiracy that used the identification of prison inmates to make fraudulent tax refund claims, United States Attorney Benjamin B. Wagner announced.
On February 20, 2014, a federal grand jury returned a 10-count indictment charging the following individuals with conspiring to defraud the United States: Edwin Forrest Ludwig IV, 32; Daniel Allen Coats, 32; Scott Albert Johnson, 34; and Joseph Robert Sharpe, 35; (all were inmates in the California Correctional Center in Susanville at the time of the fraud scheme), together with Judy Ruth Mullin, 24, of Azusa and Elk Grove; Donald Loyde Harned, 68, of Oklahoma City, Okla.; and Edwin Forrest Ludwig III, 57, of Tulsa, Okla.
Mullin, Harned and Ludwig III were arrested Wednesday at their residences in Southern California, Oklahoma City and Tulsa, respectively. The other defendants are incarcerated at institutions in California and Oklahoma.
According to court documents, beginning in March 2011, Ludwig IV, with help from fellow inmates Sharpe, Coats and Johnson, obtained personal identification information of other inmates at the correctional center. Ludwig IV then provided the information to Harned and Mullin, who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. False tax returns also were filed in some of the defendants’ own names. The defendants caused the false refund checks to be deposited to various bank accounts controlled by them, including some controlled by Ludwig III. According to the indictment, the investigation to the conspiracy began on January 11, 2012, when a correctional officer found some records behind Ludwig IV’s personal locker.
According to the indictment, the refunds were used for personal expenditures, the purchase of prepaid debit cards, and adding money to inmates’ commissary accounts. The indictment further alleges that, as part of the conspiracy, approximately 247 false income tax returns were filed with the IRS, resulting in the erroneous issuance of approximately 138 refunds totaling over $219,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Service Unit at the California Correctional Center. Assistant United States Attorney Sherry D. Hartel Haus is prosecuting the case.
If convicted of conspiracy, each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Ludwig IV, Harned, Coats, and Johnson face additional counts of false claims, each count of which carries a maximum sentence of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Seven Arrested in Synthetic Marijuana ConspiracyRead the Press Release
MIDDLESEX COUNTY, Va. – Connie Rhoades Bowler, 47, of Gloucester, Virginia; Melody Rhoades Green, 52, of Topping, Virginia; John Stacey Rhoades, 41, of Hayes, Virginia; Brandon Bowler, 22, of Gloucester, Virginia; Robert Rhoades, 19, of Hayes, Virginia; Christopher Lowery, 29, of Farnham, Virginia; and Harrell Kenneth Stockwell, Jr., 54, of Gloucester, Virginia, were arrested yesterday on charges of conspiracy to distribute and possess with intent to distribute smokeable synthetic cannabinoids (Schedule I controlled substances or analogues of Schedule I controlled substances) with intent for human consumption, and drug paraphernalia.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Scot R. Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigation, along with Sheriff David P. Bushey of Middlesex County, Virginia; Sheriff Stanley Clarke of Essex County, Virginia; Chief James G. Ashworth of the Tappahannock Police Department; and W. Steven Flaherty, Superintendent, Virginia State Police, made the announcement after the initial appearances of the defendants before United States Magistrate Judge David J. Novak.
Each of the defendants faces a maximum penalty of 20 years’ imprisonment if convicted of the conspiracy charge. Additionally, Connie Bowler, Melody Green and John Rhoades are charged with maintaining drug involved premises for the Slipknots Trading & Tobacco stores located in Topping and Tappahannock, Virginia. That charge also carries up to 20 years’ imprisonment.
According to the indictment, the seven defendants were engaged in a conspiracy to distribute various forms of synthetic cannabinoids from May 14, 2012 until February 18, 2014. In court proceedings today and in documents filed with the court, authorities allege that Connie Bowler, Melody Green and John Rhoades were the owners of Slipknots Trading & Tobacco, LLC, a tobacco store that sold smokeable synthetic cannabinoid (“SSC”) products, often commonly referred to as “Spice,” and items ranging from water pipes to rolling papers, used to smoke SSC. The documents assert that over the course of an 18-month investigation, law enforcement made numerous controlled purchases of SSC from the Slipknots stores in Topping and Tappahannock Virginia. It is alleged that although some of the SSC that the stores sold was not yet regulated, much of the SSC purchased was in fact illegal Schedule I controlled substances or Schedule I controlled substance analogues. The authorities allege that Slipknots Trading & Tobacco sold over $3 million of SSC product over an 18 month period of time.The investigation was conducted by ICE-HSI, IRS, the VSP Tri-River Drug Task Force and special agents with the VSP Bureau of Criminal Investigations Richmond and Chesapeake Field Offices, the Middlesex Sheriff’s Office, the Essex County Sheriff’s Office, and the Tappahannock Police Department. Assistant United States Attorney Olivia L. Norman 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.
Indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Salt Lake City Psychologist Charged with Health Care Fraud in Indictment Returned by Grand JuryRead the Press Release
SALT LAKE CITY - A federal grand jury returned an indictment Wednesday charging Charles Fredrick McCusker, age 62, of Salt Lake City, a licensed Utah psychologist, with health care fraud and mail fraud in connection with a health care fraud scheme the indictment alleges caused federal and private benefit programs to pay more than $1.3 million for services not provided to patients. The indictment alleges the conduct occurred from around 2007 to around August 2013.
The indictment, which includes 18 counts of health care fraud and 16 counts of mail fraud, follows a coordinated investigation by the FBI, the U.S. Health and Human Services’ Office of Inspector General, the Utah Insurance Fraud Division, the Utah Attorney General’s Office, and the U.S. Attorney’s Office. The indictment follows a state felony information filed on February 20, 2014, charging McCusker with 25 second degree felonies alleging identity fraud, insurance fraud, and pattern of unlawful conduct.
According to the indictment, McCusker conducted business as Health Balance International and New Life Balance in Salt Lake City.
The indictment alleges McCusker executed a scheme to defraud health care benefit programs by billing private insurers and government health care programs for services not provided to patients, resulting in payments to which he was not entitled.
McCusker, the indictment alleges, obtained health insurance information from patients under the guise that he would bill health care benefit programs only for services actually provided. As further steps in the scheme to defraud, McCusker did not meet at all with some patients nor did he provide any follow up services. Despite that fact, the indictment alleges, McCusker fraudulently billed patients’ health care programs for services he did not provide.
In other instances, McCusker met with a patient only once and provided no follow up services. Despite that fact, the indictment alleges, McCusker falsely billed the patients’ health care benefit programs for follow up services not provided. On other occasions, McCusker provided services to patients on several occasions but fraudulently billed these patients’ health care benefit programs for numerous additional services not provided.
According to the indictment, McCusker fraudulently submitted claims to health care benefit programs seeking reimbursement for services he did not provide. Those claims were processed and paid by health care benefit programs.
A summons will be issued to McCusker to appear in federal court. The potential maximum penalty for each count of health care fraud is 10 years and the penalty for each mail fraud count is 20 years.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Sacramento Meth Trafficker with Ties to Mexican Cartel Sentenced to 17.5 Years in PrisonRead the Press Release
SSACRAMENTO, Calif. — United States District Judge John A. Mendez sentenced Fausto Diaz-Lozano, 45, of Sacramento, on Tuesday, February 24, 2014, to 17 and a half years in prison for his involvement in a conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents and evidence from trial, Diaz-Lozano was a trusted member with high-level connections to La Familia Michoacàn, a Mexican drug cartel. The evidence at trial indicated he had ties to a “boss” in the organization. With a phone call to him, Diaz-Lozano was able to modify the “authorized” area for a huge distribution and supply hub controlled by the cartel in Gilroy. Before that call, to the “boss” in Mexico, the hub was only authorized to distribute in the South Bay Area. After the call, the hub delivered directly to Diaz-Lozano in Sacramento. According to court documents, Diaz-Lozano also recruited new members and associates for the cartel, flaunting the organization’s ruthlessness in the process.
When the Gilroy supply hub was searched on August 19, 2010, investigators seized over 610 pounds of methamphetamine, 16 pounds of cocaine, two firearms, and ledgers that detailed the distribution of over 3,300 pounds of methamphetamine in a four-to-five month period. Approximately 80 pounds of the methamphetamine was tested by the DEA and found to be approximately 98 percent pure.
Judge Mendez found that Diaz-Lozano directed others in connection with this international drug conspiracy. He also found that, as a member of the conspiracy, Diaz-Lozano was responsible for the drugs and guns found in Gilroy.
Diaz-Lozano is the sixth defendant to be sentenced in this case. Hector Salazar Borrayo, of Gilroy, was sentenced to 14 years and four months in prison. Martin Solorio, of Sacramento, was sentenced to nine years in prison. Roberto Bermudez-Ornelas, of Sacramento, was sentenced to three years and three months in prison. Sergio Murillo-Valencia was sentenced to 16 years in prison. Fabian Figueroa-Ayala, of Gilroy, was sentenced to 12.5 years in prison. Three other defendants are charged in this case. The against them are allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration, the Sacramento County Sheriff’s Department, and the California Department of Justice (Cal-MMET). Assistant United States Attorney Michael M. Beckwith prosecuted the case.
Sabattus Man Pleads Guilty to Stealing VA Travel BenefitsRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that James
Hallowell, 36, of Sabattus, Maine, pled guilty today in United States District Court to stealing
U.S. Department of Veterans Affairs (VA) travel benefits.
According to court records, the defendant claimed travel benefits for more than two dozen 200 mile trips from Littleton, Maine in Aroostook County to the Togus V.A. Medical
Center for the purpose of receiving medical treatment. In fact, the defendant lived close to the
VA hospital. Investigators learned that there were no residences at the address in Littleton the defendant provided on his claims.
Hallowell faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a pre-sentence investigation report by the U.S. Probation Office.The investigation was conducted by the VA, Office of the Inspector General.
Resident of Spain Pleads Guilty in Manhattan Federal Court to $16 Million Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ANTHONIE R. SPARROW pled guilty for his role in perpetrating a $16 million investment scheme that victimized hundreds of investors around the world. SPARROW, who was charged in December 2009 and extradited from Spain in August 2013, pled guilty today in Manhattan federal court before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Anthonie Sparrow engaged in a flagrant fraud, stealing millions of dollars from hundreds of innocent victims around the world, and then fled to Spain to try to avoid the consequences of his crime. His prosecution, possible only through an extradition from Spain, shows this Office’s resolve in holding accountable those who victimize innocent investors.”
Assistant Director-in-Charge George Venizelos said: “Sparrow minted his own destiny by lying to investors and cheating them out of millions of dollars. When the game was up, Sparrow fled to Spain where he thought he was beyond the reach of the FBI. Today, Sparrow finds himself guilty as charged, agreeing to forfeit all 16 million dollars made in his illicit scheme.”
According to the allegations contained in the Indictment and statements made at court proceedings:
From 2002 to January 2005, SPARROW and co-defendant Masroor A. Khan (“Khan”) orchestrated and carried out an extensive fraudulent coin investment scheme. The defendants solicited victims to invest in rare, collectible coins through Lloyd’s & Associates Asset Management Ltd. (“LAM”), a purported collectible coin and precious metal business run by SPARROW. The victims were directed to wire funds – purportedly for investments in rare coins – to LAM bank accounts in New York that SPARROW controlled. Khan and SPARROW told the victims that these funds would be used to purchase coins and that the coins would then be held at Pinnacle Depository Service (“Pinnacle”), a purported coin depository and secure storage area, which was also run by SPARROW.
However, rather than purchase coins with the victims’ funds as the defendants had promised, SPARROW simply diverted the vast majority of the money, totaling approximately $16 million, to a bank account in Cyprus controlled by LAM. To prevent the victims from discovering the theft of their investments, SPARROW maintained a website where victims were given false information about the value of the coins they supposedly owned. SPARROW deliberately discouraged victims from coming to view their coins in person and, when certain victims insisted on doing so, he staged elaborate ruses to prevent them from seeing more than a few coins.
Beginning in late 2004, victims began to demand the return of their funds. In response, in January 2005, SPARROW closed the New York office of LAM and fled to Spain.
SPARROW, 53, of Estepona, Spain, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud. He faces a maximum sentence of 20 years in prison on each count. SPARROW is scheduled to be sentenced by Judge Robert W. Sweet on June 2, 2014, at 4:00 p.m. As part of his guilty plea, SPARROW also agreed to forfeit $16 million to the United States. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Khan remains a fugitive from the charges contained in the Indictment.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Spanish National Police for their assistance in the arrest and extradition of SPARROW.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Alexander J. Wilson is in charge of the prosecution.
The pending charges against Khan are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. v. Anthonie Sparrow and Masroor Khan Indictment
Regional HIDTA Award Given for Methamphetamine InvestigationRead the Press Release
United States Attorney for the District of Nebraska, Deborah R. Gilg, announces today members of the CODE and WING drug task forces received a regional High Intensity Drug Trafficking award for their work in dismantling a significant methamphetamine drug organization into western Nebraska and eastern Colorado. The investigation identified a distribution organization which brought methamphetamine from Mexico, transported it through Arizona, Colorado, and eventually into Nebraska. The investigation showed money made though the narcotics sales were being transferred back to the country of Mexico either by wire or through personal couriers.
This investigation began as a joint effort with the FBI, through their office in North Platte, and the CODE and WING drug task forces making undercover purchases of methamphetamine from an individual in the Ogallala, Nebraska area in late 2012 and early 2013. This methamphetamine distribution organization was responsible for bringing in pound quantities of methamphetamine into the Julesburg and Sterling, Colorado, area and spanned an area of operation from Sterling, Colorado, to Lexington, NE, a distance of approximately 200 miles.
CODE and WING task force members worked together utilizing undercover agents/officers to make purchases of drugs, conducted numerous surveillances, executed search warrants, made multiple arrests, and utilized other investigative techniques. In addition to the various law enforcement agencies comprising these Nebraska task forces, there was significant cooperation across federal judicial districts. Because the enterprise operated over both the Districts of Colorado and Nebraska, it presented numerous legal hurdles in the investigation. Important to the success of this investigation was the assistance, partnership, and leadership of the Assistant United States Attorney who worked with Task Force staff at all hours of the day, seven days a week, coordinating the activities of the 33 law enforcement organizations involved in the investigation in Nebraska, as well as Colorado.
The investigation yielded approximately 29 narcotics “buys” of methamphetamine, 18 of which were 1 ounce quantities or more. The controlled narcotics buys were initially only of several grams but increased to 1 to 2 ounce buys, and culminated with the seizure of approximately 2.7 pounds of methamphetamine during the execution of a search warrant on 08/12/2013.
The numerous successes achieved by Task Force personnel working together on the investigation led to the dismantling of this criminal enterprise and resulted in 17 arrests. Controlled drug buys executed on the case recovered approximately 23 ounces of methamphetamine.
“The outstanding cooperative efforts in this case were remarkable and necessary in order to achieve the undoing of this distribution network over such a vast geographic area”, said U.S. Attorney Gilg, “It is a tribute to the cooperation and coordination of efforts we have in the heartland of America.”Ravenna Man Faces Firearms and Drug ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Benny Lee Freeman, 35, of Ravenna, Ohio, with being a felon in possession of firearms and ammunition, and with possession with the intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment charges that on or about December 23, 2013, Freeman was in possession of a Walther, model P22, .22 caliber pistol, a Ruger, model 77/22, .22 caliber rifle, and ammunition, after being previously convicted of Trafficking in LSD, in the Geauga County Court of Common Pleas, and Possession of Marijuana for Sale, in the Tehama County Superior Court in the State of California.
Count 2 of the indictment charges that on or about December 23, 2013, Freeman possessed with the intent to distribute marijuana.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Portage County Drug Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Plano Man Sentenced to 46 Months in Federal Prison and Ordered to Pay $118,139 in Restitution on Conspiracy ConvictionRead the Press Release
DALLAS — A Plano, Texas, man was sentenced this morning by U.S. District Judge Ed Kinkeade to 46 months in federal prison, and ordered to pay $118,139 in restitution on a conspiracy conviction stemming from his role in a tax refund fraud scheme, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Cephas Msipa pleaded guilty to a one-count superseding information in August 2013 charging one count of conspiracy. He has been in federal custody since his arrest on an indictment in November 2012. In today’s hearing, Judge Kinkeade stated that Msipa will be deported back to Zimbabwe after he serves his prison sentence.
According to the factual resume filed in Msipa’s case, Msipa admitted that from January 5, 2012, until June 2012, he was involved in a conspiracy to obtain tax refunds that were generated through the submission of fraudulent tax returns. For his part in the conspiracy, Msipa opened bank accounts, using a false name, in order to receive the refunds from the fraudulently filed tax returns.
Msipa used a forged United Kingdom passport to establish a private mail box at a postal store on Preston Road in Dallas. Thereafter, according to the factual resume, Msipa used this false name, and the address of the mail box, to open three accounts at Bank of America and two accounts at Chase Bank.
The factual resume further states that during this time frame, co-conspirators electronically filed approximately 105 fraudulent tax returns using stolen identities and false income information that directed the Internal Revenue Service (IRS) to deposit a total of $118,139 in refunds into accounts Msipa opened.
In a related case, defendant Elijah Meskano, pleaded guilty to the same offense in May 2013. Meskano, according to the factual resume filed in his case, from December 22, 2011, through November 29, 2012, also opened bank accounts using a false name to receive refunds from fraudulently filed tax returns. According to a complaint filed in Meskano’s case, he and Msipa were roommates and lived in Plano, Texas. Meskano is scheduled to be sentenced on April 3, 2014.
The investigation was conducted by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Christopher Stokes prosecuted.
Peabody Man Sentenced to Seven Years for Heading Identity Theft RingRead the Press Release
BOSTON – A Peabody man was sentenced today for heading an identity theft ring that used the identities of a Florida company’s employees to cause $375,000 in credit card losses at large retail stores.
William Dodge, 46, was sentenced by U.S. District Court Judge Joseph L. Tauro to seven years in prison, three years of supervised release, $375,000 in restitution, and forfeiture of criminal proceeds. In May 2012, Dodge pleaded guilty to credit card fraud, conspiracy to commit credit card fraud and aggravated identity theft.
When Dodge was in Florida, he met the benefits administrator for a Florida-based company and obtained from her lists of coworkers' identity information, such as their names, dates of birth and Social Security numbers. Dodge traveled to Boston where he and at least five co-conspirators obtained false identity cards bearing Dodge’s or the co-conspirators’ pictures and the Florida company employees’ personal information. The false identity cards looked like Massachusetts drivers’ licenses and allowed the co-conspirators to pose as the employees from the Florida company.
With the false identity cards, Dodge and the co-conspirators posed as the Florida company’s employees at large chain retail stores. When it came time to pay for the merchandise, Dodge and his co-conspirators lacked a working credit card number. So they pretended to have left their store credit card at home and asked the store to remind them of the number. The stores, taken in by the false identity cards, often complied. If the identity victim had no credit account at the store, Dodge and his co-conspirators applied for a new credit account in the identity victim’s name. Again, the stores, taken in by the false identity cards, often complied. Upon obtaining a new or existing credit card number, Dodge and his co-conspirators used the account to purchase gift cards and other merchandise, such as electronics, that they could resell. The stores lost money, because Dodge and the co-conspirators did not pay the credit bills.
As the group’s ringleader, Dodge directed his co-conspirators’ actions and took about 50% of their profits. The conspiracy netted over $375,000 in merchandise and services, with Dodge personally responsible by posing as an identity theft victim for over $212,000 of the losses.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William B. Evans made the announcement today. The U.S. Attorney’s Office thanks the Florida company for cooperating during the investigation. The case was prosecuted by Assistant U.S. Attorney Scott L. Garland, formerly of Ortiz’s Cybercrime Unit and currently of the National Security and Anti-terrorism Unit.
Palm Beach Woman Arrested on Identity Theft and Tax Fraud ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), announce the arrest of Tia Lashonda Miller, 39, of West Palm Beach, on charges of unlawful possession of unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(3), and five counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1)). Miller made her initial appearance in court on Monday, February 24, 2014, before U.S. Magistrate Judge Frank J. Lynch, Jr., and again at a bond hearing on Tuesday, February 25, 2014 that resulted in her detention without bond pending trial.
If convicted, the defendant faces a maximum statutory term of ten years in prison on the access devices count, and consecutive sentences of mandatory two years in prison on each aggravated identity theft count.
According to the indictment and both public filings and testimony in open court, Miller was found in possession of notebooks containing stolen personal identity information for over 700 persons, including names, dates of birth and social security account numbers, together with twenty credit and debit cards, eighteen of which were in the names of persons also found in the notebooks. IRS investigation determined that many of the names and account numbers were used to file fraudulent tax returns, seeking unmerited tax refund payments to credit and debit cards and to other accounts.
Agents, authorized by federal court search warrants, searched Miller’s home and computers and found additional evidence of fraudulent tax filings in the names of other identity theft victims.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Martin County Sheriff’s Office for their work investigating this case. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ocean City Man Sentenced for Immigration FraudRead the Press Release
Received a Total of $210,000 to Assist Approximately 70 Individuals in
Fraudulently Applying for AsylumBaltimore, Maryland – U.S. District Judge James K. Bredar sentenced Gasim Manafov, age 36, of Ocean City, Maryland, and Charlotte, North Carolina today to 18 months in prison followed by a year of supervised release for conspiring to commit immigration fraud.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.“Benefit fraud poses a severe threat to national security and public safety because it creates a vulnerability that may enable terrorists, criminals, and illegal aliens to gain entry to and remain in the United States under a guise of legitimacy,” said HSI Ocean City Resident Agent in Charge Francis J. McGarvey. “HSI will work with our partners at U.S. Citizenship and Immigration Services and the U.S. Attorney’s Office in an effort to maintain the integrity of the immigration system by vigorously investigating and prosecuting individuals like Gasim Manafov, who try to exploit the asylum process.”
According to his plea agreement, from 2007 to 2012, Manafov conspired with others in assisting approximately 70 individuals in fraudulently applying for asylum benefits. Manafov gave the individuals fake stories to describe how the applicant’s family was purportedly hurt or killed due to political or ethnic affiliation. He provided fake foreign documents to prove these stories. Manafov prepared the applicants for interviews with officials, and attended the interviews. He also referred an applicant to a co-conspirator knowing that they would engage in a fraudulent marriage for immigration purposes, suggested that the applicant apply for immigration benefits in the Miami U.S. Citizenship and Immigration Services (USCIS) office to avoid the scrutiny he knew he was under in the Baltimore USCIS office, and coached the applicant on how to lie to officials interviewing her.Manafov obtained $210,000 from the individuals fraudulently applying for asylum benefits.
Two other conspirators previously pleaded guilty to their roles in the conspiracy and were sentenced to one and three months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
Non-Indian Man from Albuquerque Pleads Guilty to Assaulting Isleta Pueblo WomanRead the Press Release
ALBUQUERQUE – Gabby G. Andrade, 36, a non-Indian from Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with assaulting an Indian woman, announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge DuWayne W. Honahni, Sr., of District IV of BIA’s Office of Justice Services, and Chief Kevin Mariano of the Isleta Pueblo Tribal Police Department.
Andrade was arrested in Sept. 2013, on an indictment charging him with assault resulting in serious bodily injury. According to the indictment, Andrade assaulted an Indian woman on July 19, 2010, in a location within Isleta Pueblo.
Today, Andrade pleaded guilty to the indictment and admitted assaulting the victim, his intimate partner, by striking her in the head, face and body numerous times with a closed fist. He further admitted that the victim suffered a bilateral nasal bone fracture, a displaced nasal septum fracture, and a left occipital bone fracture. Andrade also acknowledged that he is not an Indian and the victim is a member of Isleta PuebloAndrade has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Andrade will be sentenced to 22 months in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Southern Pueblos Agency of BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multi-Agency Team Plans Events in Boston During National Youth Violence Prevention WeekRead the Press Release
BOSTON - In an effort to give school-aged youth a voice in preventing violence in the community, a series of events will take place throughout the City of Boston during National Youth Violence Prevention Week, April 7-11, 2014. A highlight will be an anti-violence, hip-hop video contest, featuring videos submitted by Boston youth. The winners of the contest will be announced on April 10, at the Reggie Lewis Track & Athletic Center in Roxbury.
A coalition consisting of representatives from the Boston Police Department, Suffolk County District Attorney’s Office, Boston Centers for Youth and Families, Suffolk County Sheriff’s Department and the United States Attorney’s Office has developed several contests to encourage creativity and inclusiveness in the process of creating peace in the City’s neighborhoods. The theme of this year’s National Youth Violence Prevention Week activities is, “Youth Standing STRONG Against Violence.”
“It is extremely important for young people to get reinforcement that they’re a vital part of the community, that they have real power to prevent violence, and that there are people who care a great deal about their futures. That’s the message these events are designed to deliver,” said United States Attorney Carmen M. Ortiz.
“Engaging with our youth is a key piece of a comprehensive approach to addressing violence,” said Boston Mayor Martin J. Walsh. “We need to get kids invested in their communities and we need to show them that we are equally invested in them and in their neighborhoods. We can’t arrest our way out of this problem. We need to go further and start earlier, getting at the root causes of violence, including supporting our kids.”
“When it comes to preventing violence, Boston's youth are our most powerful allies. These events aren't just engaging kids and teens in contests and creative pursuits: they're empowering young people at every level to make the world around them a better, safer place for all of us,” said Suffolk County District Attorney Daniel F. Conley.
"The Boston Police Department is thrilled to be partnering with so many agencies on violence prevention week. Together we are engaging youth from kindergarten through high school in creative ways to stand up and speak out about the violence that is impacting their communities. I'm really looking forward to seeing and hearing how they will express themselves on this critically important issue. Preventing and reducing youth violence is my top priority -- I encourage young people to take advantage of these contest opportunities to make your voices heard," said Police Commissioner William B. Evans.
"Violence prevention and youth outreach have been two of the cornerstones of my administration and I am proud to be part of activities like this, which can help young people to not only steer clear of our facilities, but realize their talent and potential to be successful," said
Suffolk County Sheriff Steven W. Tompkins."If we are going to eradicate violence in the world, then we must involve youth on many levels. This week's events are opportunities to engage the collective youth voice in promoting peace,” said Christopher Byner, Interim Executive Director for Boston Centers for Youth & Families.
Children in grades K-5 in all Boston schools are invited to enter a poster contest, designing their own poster with an anti-violence theme. Prizes for the top three winners will include Target gift cards and a plaque presented at an assembly at their schools. The first-place winner will also be treated to “Lunch with a VIP.”
Middle school students are encouraged to write a poem reflecting the “Youth Standing STRONG Against Violence” message. Prizes for the top three winners will include Target gift cards and a plaque presented at an assembly at their schools. The first-place winner will also be treated to “Lunch with a VIP.”
High school students can submit an anti-violence hip-hop video up to three minutes long, with the top three winners to be announced on April 10, at an event being held at the Reggie Lewis Track & Athletic Center from 4:00 to 6:00 p.m. First, second and third-place winners will receive Target gift cards. The Grand Prize will also include four Red Sox tickets as well as their song and video being spotlighted in a special segment on JAM’N 94.5’s “Launch Pad” as well as the station’s blog and social media. The second prize includes four Red Sox tickets.
All entries must be received no later than March 14, 2014. Winners will be announced by April 3, 2014.
For contest rules, entry forms and more information, visit www.cityofboston/bcyf or send an email to [email protected].
Multi-Agency Investigation Leads to Charges Against Twenty- Nine Individuals for Trafficking Drugs in San Juan CountyRead the Press Release
ALBUQUERQUE – Twenty-eight individuals residing in San Juan County, N.M., and a woman from Meza, Ariz., are facing drug trafficking charges as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated today when 25 of the defendants were arrested during an early morning law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Another two of the defendants were arrested during the course of the investigation. The remaining two defendants, who have yet to be arrested, are considered fugitives.
The results of the investigation were announced by Acting U.S. Attorney Steven C. Yarbrough, 11th Judicial District Attorney Robert P. “Rick” Tedrow, Special Agent in Charge Dennis A. Ulrich, II, of HSI in El Paso, Bloomfield Police Chief Michael Kovacs, San Juan County Sheriff Ken Christesen, Acting Farmington Police Chief Vincent Mitchell, Aztec Police Chief Michael Heal, and Lt. Neil Haws, Director of the HIDTA Region II Narcotics Task Force.
The charges against the 29 defendants are the result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization allegedly led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and then expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In announcing the results of the investigation, Acting U.S. Attorney Steven C. Yarbrough said, “This investigation illustrates once again the success enjoyed by our partnership of federal, state and local law enforcement agencies in taking down drug trafficking organizations, whether they operate in large metropolitan areas or small, rural communities. Today, HSI and our state and local partners made a significant impact on drug traffickers operating in rural communities in San Juan County.”
Eleventh Judicial District Attorney Robert P. “Rick” Tedrow added, “Today’s successful arrests and confiscation of drugs and firearms was a skillful collaboration of many dedicated law enforcement officers (local, state and federal) whose tireless efforts over that past 13 months have assisted our community in its desire to have safer streets.”
Thirteen of the defendants, including Isaac Anaya, 30, of Farmington, N.M., charged as a result of the investigation are facing federal charges in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants are facing state drug trafficking and firearms charges based on criminal complaints.
During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. Today’s law enforcement operation included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington business and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and today’s law enforcement operation.
“HSI continues to work vigilantly with our law enforcement partners to disrupt and dismantle drug trafficking networks that smuggle and traffic vile drugs, such as methamphetamine,” said Dennis A. Ulrich, II, Special Agent in Charge of HSI El Paso. “Methamphetamine destroys lives and devastates communities, and HSI special agents are committed to prevent drugs from coming across our border and poisoning our neighborhoods.”
“Today’s efforts are good for all of San Juan County and the citizens of Bloomfield,” said Bloomfield Police Chief Michael Kovacs. “The partnership between locals and federal agencies will impact the quality of life of our community in a positive sense.”
San Juan County Sheriff Ken Christesen added, “I am proud of the efforts of the Region II agents and HSI agents who put this case together. This partnership from state, local and federal agencies is an example of what can be accomplished when we work together to make our communities safer.”
“Today’s events are the product of the diligent efforts of a vast group of people committed to the safety of our communities, county, and our nation,” said Acting Farmington Police Chief Vincent Mitchell. “This coordination between multiple organizations and agencies increases the security, prosperity, and quality of life for our citizens. The Farmington Police Department would like to thank the representatives from our local law enforcement agencies, Region II Narcotics, Homeland Security Investigations, and the U.S. Attorney’s Office.”
“This operation is important for the safety and well-being of our Citizens. It is essential that we eradicate this terrible scourge of drugs and those who foster and get gain from it in our community. The fight on drugs is real and we must win,” said Aztec Police Chief Michael Heal. “The men and women working the Region II Task Force and those working in conjunction with them have done a fantastic job putting this operation together and I am proud of their efforts and the success that was accomplished.”
“I want to thank all of the participating agencies who assisted in today’s operation. Specifically, HSI and the U.S. Attorney’s Office have shown a continuing commitment to our community,” said Lt. Neil Haws, Director of the HIDTA Region II Narcotics Task Force. “I am very proud to have worked alongside the HSI and Region II Agents who worked this case for the past year. This has been a very successful operation that will have a significant impact on our community.”
Today’s arrests are the result of an investigation by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorneys Reeve L. Swainston and Shana B. Long are prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases. In addition to the investigating agencies, the following agencies participated in today’s law enforcement operation: U.S. Marshals Service, U.S. Customs and Border Protection, New Mexico State Police, New Mexico Attorney General’s Office and HIDTA Region III Narcotics Task Force.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Defendants Charged in Federal Case
Count 1 of the 15-count indictment filed in United States v. Anaya, et al., 14-CR-455 WJ, charges the 13 federal defendants with a methamphetamine trafficking conspiracy. Counts 2 and 3 each charge a defendant with distribution of methamphetamine. Counts 4 through 6 each charges certain defendants with possession of methamphetamine with intent to distribute. The maximum penalty on conviction on each of these six counts is a maximum of 20 years in prison and a $1,000,000 fine. Counts 7 through 15 each charges certain defendants with using a telephone to facilitate a drug trafficking offense and carries a maximum of four years in prison and a $250,000 fine on conviction.
The following individuals, who are in custody, are charged in the federal case:
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Isaac Anaya, 30, of Farmington, N.M., charged in Counts 1, 2, 3, 7, 8, 9, 11, 12, 13 and 15 of the indictment.
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Julia Oros, also known as Julia Gonzalez, 30, of Mesa, Ariz., charged in Counts 1, 7 and 10 of the indictment.
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Curtis Murray, Sr., 50, of Farmington, N.M., charged in Counts 1 and 8 of the indictment.
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Brandon Smith, 28, of Farmington, N.M., charged in Counts 1, 6, and 13 of the indictment.
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Bobby Hampton, 29, of Bloomfield, N.M., charged in Counts 1 and 9 of the indictment.
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Pedro Lucero, 37, of Farmington, N.M., charged in Counts 1, 5 and 10 of the indictment.
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Yvonne Anaya, 38, of Bloomfield, N.M., charged in Counts 1 and 15 of the indictment.
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Robert Valdez, 50, of Bloomfield, N.M., charged in Counts 1 and 14 of the indictment.
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Richard Archuleta, 32, of Bloomfield, N.M., charged in Counts 1 and 14 of the indictment.
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Ernesto Felix, 51, of [residence], N.M., charged in Counts 1 and 4 of the indictment. Felix is in state custody on a related drug trafficking charge and will be transferred to federal custody.
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Wesley Contreras, 19, of Farmington, N.M., charged in Counts 1 and 4 of the indictment. Contreras is in state custody on a related drug trafficking charge and will be transferred to federal custody.
Two federal defendants, Fay Gordon, 29, of Farmington, N.M., who is charged in Counts 1 and 11 of the indictment, and Casey LaMotte, 28, of Flora Vista, N.M., who is charged in Counts 1 and 12 of the indictment, have yet to be arrested and are considered fugitives.
Defendants Charged in State Cases
The following defendants, who have been arrested, are charged in criminal complaints filed in the 11th Judicial District Court for the State of New Mexico:
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Larry Abeyta, 25, of Farmington, N.M., arrested on a parole violation.
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Cimmaron Archuleta, 32, of Bloomfield, N.M., arrested on a trafficking by possession with intent to distribute charge.
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Patrick Archuleta, 34, of Farmington, N.M., arrested on trafficking of a controlled substance (methamphetamine) and felon in possession of a firearm charges.
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Leonard Barela, 33, of Bloomfield, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Phermond Begay, 32, of Aztec, N.M., arrested on a distribution of marijuana charge.
Rusty Betts, 32, of Farmington, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Tiffany Bond, 33, of Farmington, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Colby Crawford, 40, of Flora Vista, N.M., arrested on a trafficking of a controlled substance (heroin) charge.
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Derek Hellickson, 26, of Farmington, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Anthony Jones, 34, of Farmington, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Aaron Mobley, 35, of Aztec, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Amy Oros, 24, of Farmington, N.M., arrested on a possession of controlled substance (methamphetamine) charge.
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Philippe Reyes, 35, of Farmington, N.M., arrested on a possession of controlled substance (methamphetamine) charge.
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Leon Serrano, 30, of Bloomfield, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Hollis Turner, 22, of Aztec, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
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Jobie Wells, 38, of Bloomfield, N.M., arrested on a trafficking of a controlled substance (methamphetamine) charge.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
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Missouri Man Pleads Guilty in Rhode Island to Federal Sex Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. –Stephen Ardrey, 30, of Springfield, Mo., pleaded guilty in U.S. District Court in Providence, R.I., today to transporting a 17-year old female from the Boston area into Rhode Island with the intent to engage in criminal sexual activity. Ardrey was arrested on September 12, 2013, when he was located walking with the victim along a Coventry, R.I., highway three days after the victim had been reported missing from her Medfield, Mass., home.
Ardrey, who pleaded guilty to one count each of trafficking a person under the age of 18 and transportation of a minor with intent to engage in illicit sexual conduct, faces a sentence of between 10 years to life in federal prison when he is sentenced on May 15, 2014.
Ardrey’s guilty plea was announced by United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England; West Greenwich, R.I., Police Chief Richard N. Ramsay; Coventry, R.I., Police Chief Bryan J. Volpe; Warwick, R.I., Police Chief Colonel Stephen M. McCartney; and Medfield, Mass., Police Chief Robert E. Meaney, Jr.
According to information presented to the court, the victim met Stephen Ardrey in December 2012 in an online chat room. In January 2013, Ardrey told the victim that he had girls who worked for him as escorts. Over time communications between the victim and Ardrey via email and an online service called “TextNow” intensified in frequency, and became sexual in nature and explicitly. As the communications continued, Ardrey discussed selling the victim in order to make money so they could “go away” together.
According to the government’s evidence presented to the court, on September 9, 2013, the victim met Stephen Ardrey at the public library in Medfield, Mass. Video surveillance at the library showed the victim leaving with Ardrey late that afternoon. The victim was reported missing by her parents later that evening. After leaving the library, the victim and Ardrey traveled to Boston where Ardrey picked up money that had been wired to him by an associate in Missouri, who had worked as an escort for Ardrey in the past. The victim and Ardrey then traveled to Providence by train and then to a West Greenwich motel where a room had been reserved by Ardrey’s associate in Missouri.
According to the government’s evidence, beginning on September 10, 2013, Ardrey posted an advertisement on backpage.com as well as on other websites that displayed provocative photographs of the victim with an advertising banner which read “Sweet girl next door -19.” The text of the advertisement read: “Hey everyone! I’m the new girl in town. I am your sweet cute girl next door. So come see me. Older gentlemen only. 45 years of age and older.”
The investigation revealed that while the victim was in the motel room in West Greenwich, Ardrey had sexual contact with her on several occasions. According to the victim, Ardrey gave her “pointers” and “instructions” on different sex acts so that she could better respond when she worked as an escort. At least one person responded to the Internet ad and negotiated a price with Ardrey of $40 and two packages of cigarettes for an hour with the victim. The person visited with the victim on two occasions. During the second encounter, Ardrey remained outside the door until after the individual left, at which time he collected the payment from the victim.
On September 13, 2013, at about 6:30 a.m., the Coventry Police Department received a call from a local resident who observed a male and a female who fit the description of the reported missing girl from Medfield, Mass., walking along Rte.3 in Coventry. A responding officer recognized the young woman as being the missing person from Medfield, Mass. Ardrey provided the officer a Missouri identification card. The victim, who was nor carrying any identification, initially identified herself as “Rose,” the same name used in the backpage.com advertisement. According to the Coventry police officer, Ardrey instructed the victim to give her true name to the officer, which she did. Ardrey admitted to the officer that the victim was the same girl whose picture had been shown on television and who had been reported missing.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein. The matter is being heard by U.S. District Court Judge John J. McConnell, Jr.
The matter was investigated by Homeland Security Investigations, West Greenwich, Coventry and Warwick, R.I., Police Departments, and the Medfield, Mass., Police Department, with the assistance of the Boston Police Department.
Stephen Ardrey has been detained in federal custody since his arrest by Coventry police.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Mission Man Charged with Assaulting, Resisting, Opposing, and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
John Arcoren III, a/k/a Smokey Arcoren, age 33, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident that took place on January 11, 2014, when Arcoren assaulted a law enforcement officer causing bodily injury.
The charge is merely an accusation and Arcoren is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Arcoren was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Miami Businessman Sentenced for Violating the Federal Rivers and Harbors ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency, Criminal Investigation Division, Atlanta Area Office, and Colonel Alan M. Dodd, U.S. Army, Corps of Engineers, announce that Richard A. Bunnell, 70, of Coconut Grove, was sentenced yesterday for violations of federal law involving the illegal construction of structures, including docks and piers, in the navigable waters of the United States in violation of the Rivers and Harbors Act.
Bunnell was sentenced before U.S. District Judge K. Michael Moore on two counts of knowingly placing and erecting structures, docks, and piers within navigable waters of the United States, without, or in violation of, valid permits from the United States Army Corps of Engineers authorizing such conduct. Bunnell previously pled guilty to the charges before Judge Moore on December 26, 2013.
Bunnell was sentenced to six months home detention with electronic monitoring as well as concurrent probationary terms of five years on each of the counts of conviction. Bunnell was also ordered to pay a criminal fine of $175,000 and an additional payment of $50,000 to the South Florida National Parks Trust for management, restoration, and research. Finally, pursuant to the terms of the plea agreement in the case, Bunnell must file any necessary permit applications for six Miami-area installations involved in the case, and commence any corrective action required by the Army Corps of Engineers to modify or alter the installations to comply with Federal law, including the payment of mitigation for damage to natural resources.
Mr. Ferrer commended the investigative efforts of the Environmental Protection Agency, Criminal Investigation Division, and the U.S. Army Corps of Engineers. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and 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.
Massachusetts Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
BOSTON - A former Jamaica Plain man pleaded guilty in federal court today to Failure to Register as a Sex Offender.
Gary Dixon, 49, pleaded guilty to a one count indictment before United States District Judge Nathaniel M. Gorton. Dixon was indicted in August 2013 after his arrest in Maine. Sentencing is scheduled for June 4, 2014.
Dixon was previously convicted in Massachusetts state courts for Indecent Assault and Battery on a Child in 1988 and 1993, and for Open and Gross Lewd and Lascivious Behavior in 2003. As a registered sex offender, Dixon was required to promptly inform Massachusetts law enforcement authorities of any change in his residence or employment, as well as to appear in person, within three days, to the law enforcement authorities in any state to which he changed his residence. Dixon moved from his registered address in Jamaica Plain in the summer of 2012 without informing Massachusetts authorities. Beginning at least as early as January 2013, he primarily resided in Brunswick, Maine, without informing either Massachusetts or Maine law enforcement authorities. Dixon was attempting to start a landscaping business in Maine. He was arrested in Brunswick on July 19, 2013.
United States Attorney Carmen M. Ortiz and United States Marshal John Gibbons made the announcement today. The case is being prosecuted by Victor A. Wild of Ortiz’s Economic Crimes Unit.
Maple Heights Resident Charged with Counterfeiting CurrencyRead the Press Release
A grand jury returned a one-count indictment charging Leevern Coleman, 43, with manufacturing counterfeit United States currency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Coleman manufactured counterfeit $10 Federal Reserve notes, counterfeit $20 Federal Reserve notes, and counterfeit $50 Federal Reserve notes. Forfeiture of equipment used to manufacture the counterfeit United States currency is also sought.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Gregory C. Sasse, following investigation by agents of the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Lorain Man Indicted for Three RobberiesRead the Press Release
A grand jury returned a three-count indictment charging Eric Castillo, 33, of Lorain, with one count of bank robbery and two counts of robbery affecting interstate commerce, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Castillo robbed the Chase Bank, 2232 Fairless Drive, Lorain, Ohio, a federally insured financial institution, on January 18, 2014.
He is also accused of robbing CommStar Community Credit Union, 5609 West Erie Avenue, in Lorain, on January 8, 2014, and Kwik Mart convenience store at 3155 Pearl Avenue, in Lorain, on January 25, 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation, the Lorain Police Department, and other local law enforcement agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Liying Lin Found Guilty of Immigration Fraud Offenses Following One Week Jury Trial in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LIYING LIN, a/k/a “the Deacon,” was found guilty yesterday in Manhattan federal court of one count of conspiracy to commit immigration fraud and two counts of immigration fraud. LIN was convicted after a seven-day jury trial presided over by U.S. District Judge Robert P. Patterson, Jr. She was acquitted of one count of immigration fraud.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury decided, Liying Lin fraudulently exploited a program designed to provide a safe haven for actual victims of persecution. She coached asylum seekers on how to lie on their applications and in immigration proceedings, even signaling applicants when they deviated from her fraudulent script.”
According to the Indictment filed in Manhattan federal court, other court documents, and the evidence admitted at trial:
LIN, a deacon at the Full Gospel Global Mission Church in Flushing, New York, trained applicants for political asylum on what questions about religious belief would be asked during these applicants’ asylum interviews and then coached the clients on how to answer. She conducted individual training sessions with certain applicants where she supplied the applicants with false details in support of their fraudulent asylum claims.
LIN also served as a translator during asylum interviews. LIN advised certain clients before their asylum interview that if they gave a wrong answer, she would kick them to alert them of their wrong answer.
LIN, 30, of Flushing, New York, faces a maximum sentence of five years in prison for the conspiracy count and a maximum sentence of 10 years in prison for each of the substantive immigration fraud counts; she is scheduled to be sentenced by Judge Patterson on June 2, 2014. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office=s Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Rahul Mukhi are in charge of the prosecution.
U.S. v. Liying Lin Indictment
Justice Department Sues to Shut Down Texas Tax PreparerRead the Press Release
The United States has asked a federal court in McAllen, Texas, to permanently bar Melissa Alvarez and her companies, Best & Unique Income Services, Best & Unique Income Tax Melissa and Best & Unique Income Tax Services LLC, from preparing federal tax returns for others, the Justice Department announced today.
According to the complaint, Alvarez, who lives and does business in McAllen, has been preparing tax returns for customers that contain false, improper or inflated deductions or tax credits, such as the earned income tax credit. Most of Alvarez’s customers allegedly reside in southern Texas.
In one example described in the complaint, Alvarez allegedly claimed business-expense deductions on tax returns for a customer who did not operate a business and without that customer’s knowledge.
The complaint further alleges that the IRS examined returns that Alvarez prepared from the 2004 through 2012 tax-filing seasons, and 97 percent of those returns were found to have understated the tax liabilities of Alvarez’s customers. According to the complaint, the IRS estimates that the total tax harm from Alvarez’s unlawful tax-preparation activities during that period could exceed $10 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Melissa Alvarez, etc.
Complaint for Permanent InjunctionJury Convicts KC Man of Drug-trafficking, Illegal Firearms Follwoing Shooting, Chase; Faces at least 60 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of drug-trafficking and illegally possessing firearms after shooting at pursuing police officers during a foot chase that ended in his arrest.
Antonio M. Taylor, 30, of Kansas City, was found guilty of all charges contained in an Aug. 8, 2012, federal indictment.
Taylor was found guilty of two counts of possessing crack cocaine with the intent to distribute and one count of possessing crack cocaine, marijuana and PCP with the intent to distribute. He was found guilty of three counts of possessing firearms in furtherance of drug-trafficking crimes and three counts of being a felon in possession of a firearm.
According to evidence presented during the trial, law enforcement officers were conducting surveillance on Taylor’s residence on July 2, 2012. Taylor, who had an active Jackson County warrant for a violation of felony probation, left the apartment and walked toward a vehicle in the parking lot. When police officers approached him, Taylor ran away and the officers pursued him on foot.
During the pursuit, Taylor changed directions and began running toward a pursuing officer. Taylor was holding an FNH 9mm semi-automatic handgun and he fired at least one round at the officer, who returned fire. The officer saw Taylor drop a large bag of crack cocaine (later determined to be 32.9 grams) as he ran. The officer took cover near a residence but continued to engage in the foot pursuit. When the officer rounded the edge of the residence, he saw Taylor attempting to climb a fence near the rear of the residence. Taylor fired his handgun again at the officer, who again returned fire. Taylor jumped the fence and stumbled and fell as he attempted to get to his feet. Taylor again turned toward the officer with the firearm still in his hand. The officer fired his firearm two more times at Taylor, at which time Taylor dropped his firearm. Taylor, who suffered several gun-shot wounds, was taken into custody and transported to the emergency room. The officer was not injured.
Prior to this incident, police officers saw Taylor conducting a drug transaction on March 7, 2012. Officers approached Taylor’s car and Taylor drove off. A high speed chase ensued and Taylor committed numerous traffic violations during the chase. Taylor jumped out of the Jeep in the area of 81st and Brooklyn and ran. Officers searched for Taylor and found him hiding in a storm drainage area. Officers found a loaded Glock .40-caliber pistol on the ground nearby. When they searched Taylor’s vehicle, officers found a plastic baggie that contained 20.62 grams of crack cocaine.
On June 5, 2012, police officers were called to a vacant house in response to a report of a suspicious vehicle. They contacted Taylor, the driver and sole occupant of the vehicle. When officers asked Taylor to step out of the vehicle, he put the vehicle in drive and drove into the back yard of a residence. Taylor crashed the vehicle head-on into a cinder block wall and ran from the scene. Officers found 80 grams of marijuana, a brown bottle containing PCP, .8 gram of crack cocaine, 12 unknown pills, and a Glock .40-caliber pistol in the vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Taylor has a prior felony conviction for shooting from a vehicle, four prior convictions for assault and five prior convictions for armed criminal action.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts, ending a trial that began Monday, Feb. 24, 2013.
Under federal statutes, Taylor is subject to a mandatory minimum sentence of 60 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman and Special Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Jury Convicts Georgia Man for $5.5 Million Investment FraudRead the Press Release
Peoria, Ill. – Sentencing is scheduled in June 2014, for a Georgia man, after a jury convicted him of operating a fraud scheme that defrauded various investors of millions of dollars. The jury deliberated for less than one and one-half hours on Feb. 24, 2014, before finding Kenneth W. Lewis, 57, guilty of four counts of wire fraud and 11 counts of money laundering.
During five days of trial, which began on Tuesday, Feb. 18, the government presented evidence that established that beginning in the late 1990s, Lewis offered investors the ability to generate income through highly secretive overseas financial transactions. Evidence further established that Lewis obtained more than $5.5 million from others to cover his living expenses while he was purportedly working on completing the details of non-existent transactions. Further, Lewis told investors that he had been living in Zurich, Switzerland, for seven years working on the transaction, when, in fact, he was living in a hotel in New Jersey, where he was arrested in July 2012.
At sentencing, scheduled on June 25, 2014, Lewis faces a statutory maximum penalty of up to 20 years in prison for each count of wire fraud and up to 10 years for each count of money laundering. Lewis has remained in law enforcement custody since his arrest in New Jersey in July 2012.
The charges were investigated by IRS Criminal Investigations and the U.S. Postal Inspection Service. Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Assistant U.S. Attorney Bradley W. Murphy represented the government at trial on behalf of the Central District of Illinois, Peoria Division.
Jury Convicts Former CEO of Publicly Traded Company of Securities and Mail FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal jury convicted Richard Altomare, 65, of Palm Beach County, on all four counts of the indictment, including one count of mail fraud and three counts of securities fraud. Altomare was the former CEO of Universal Express, Inc.
According to the indictment and evidence presented during the trial, Altomare carried out a scheme to artificially inflate the share price and trading volume of stock for a publicly traded company then known as Sunset Brands, Inc. (SSBN). Altomare agreed to pay a former business associate to purchase shares of SSBN stock to give the investing public the false impression that SSBN's stock was rising and that there was a public market for SSBN stock. Unbeknownst to Altomare, his former associate was an informant for the FBI. During recorded conversations and meetings, Altomare promised to compensate the informant with SSBN stock to induce his cooperation in the scheme. Altomare agreed to bolster the fraudulent buying program by agreeing to cause SSBN to issue one or more press releases announcing positive news about the company, which would be timed to follow and coincide with the illegally induced purchasing by the informant. The purpose of the press releases was to give the investing public the false impression that the purchase of SSBN stock was induced by positive news about the company and to conceal the market manipulation scheme from regulatory authorities.
Sentencing has been scheduled for May 6, 2014 at 1:15 p.m. before U.S. District Judge William Dimitrouleas in Ft. Lauderdale. At sentencing, the defendant faces up to twenty years in prison for each count of mail fraud and securities fraud.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys Alejandro O. Soto and Kevin J. Larsen.
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.
Intrieri Sentenced to 30 Months for Wire FraudRead the Press Release
The United States Attorney(s Office announced that STEPHEN SALVATORE INTRIERI, 30, of Mount Laurel, New Jersey, was sentenced on February 20, 2014, to a term of 30 months in federal prison for with three years of supervised release to follow, for running an interstate scrap metal scam. Intrieri was sentenced by U.S. District Judge Dana L. Christensen in Missoula. Christensen also ordered Intrieri to pay $326,474.36 in restitution.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Tim Racicot
Whitefish Police Department initially received a complaint from an officer with a New Jersey scrap metal procurement company that buys scrap metal in the United States and sells it overseas. On February 29, 2012, the company received a call from "Tony Giordano," a salesman for Montana Metal Recyclers ("MMR"), which was allegedly doing business from Whitefish, about purchasing scrap metal. An agreement was reached and on June 8, 2012, the New Jersey company wired $19,000 to MMR's bank account at Bank of America.
The officer of the New Jersey company told police that he was cautious in his dealings with Giordano, but Giordano's knowledge of the scrap metal industry made him comfortable proceeding with the deal after receiving pictures of the material he was purchasing and Giordano's answers to some technical questions about the industry and the shipment. After he sent the money, Giordano could never be reached and the company never received the scrap metal it had purchased. When the company official was later asked if he had prior interactions with Intrieri, he described being defrauded out of $30,000 by Intrieri and Northeast Metal Traders in approximately 2009, and provided the documents from that transaction.
It is not uncommon for persons engaged in telemarketing fraud to return to prior victims-a technique referred to as "reloading"--with assurances that they want to redeem themselves by making it up to the victim with a second deal often more lucrative than the first. This scam prays on the desire to make up for lost investment and the chance to recoup lost funds is often too seductive to resist.
Another victim contacted the Whitefish police-as well as the Secret Service in New York-to report that he paid MMR $95,000 on the basis of representations made by a man who called himself "Tony Giordano," to buy scrap metal that he never received. The second victim, A.B., made two attempts to verify the legitimacy of MMR, including one with a person, A.W., whose name was referenced in a sales agreement to which MMR was a party. A.B. received a response to his email to A.W. indicating MMR was a reputable company, but when he actually spoke with A.W., he learned that A.W. did not send the email and had never heard of MMR.
The Secret Service in New York initiated an investigation into MMR, during which they discovered MMR did not have a facility or office at the address in Whitefish listed on the incorporation documents. They traced some of the money that paid to MMR to the purchase of a $37,510 engagement ring by Intrieri on February 10, 2012, from Jay Roberts Jewelers in Marlton, New Jersey. Intrieri paid for the ring with a cashier's check from RBS Citizens Bank. The owner of the jewelry store was interviewed and confirmed that a man who provided the name Steve Intrieri bought a 3-carat diamond engagement ring. Intrieri told the jeweler that he lived in Bayonne, NJ, and his parents lived in Mount Laurel, NJ.
The second victim was Facebook friends with Intrieri and told one of the investigating agents that Intrieri proposed to his girlfriend on February 11, 2012, and posted pictures of her wearing a large diamond ring. The second victim provided screen shots of the posts to the Secret Service and the owner of the jewelry store identified the ring that he sold Intrieri in the photo from the post on his fiancé's Facebook page. The owner also identified Intrieri from the RBS Citizen's Bank surveillance, which was captured at the same time he obtained the cashier's check to pay for the ring. The agents in New York eventually turned over their investigation to an agent in Montana, given that MMR was incorporated in Montana and allegedly had a business address in Whitefish.
RBS Citizens Bank froze MMR's account sometime around February 15, 2012. MMR's first statement for the Bank of America account covers the time period from February 15-29, 2012, which indicates it was opened the same time the RBS account was frozen. Intrieri wired more than $125,000 from the MMR Bank of America account into his personal Chase bank account, and nearly $10,000 was wired into his fiancé's account. Altogether, it appears that Intrieri received approximately $370,000 from the various victims of the MMR scheme. Approximately $49,000 was returned to the second victim with the RBS Citizens account was frozen.
Investigating agents found that Intrieri was affiliated with seven different businesses, at least four of which appeared to deal with scrap metal sales. Their searches revealed that Intrieri had been the subject of prior Secret Service investigations and had a criminal history. The agents also interviewed other victims of Intrieri's scheme, who provided information consistent with what was relayed by the victims who had contacted the Whitefish Police Department.
U.S. Attorney Mike Cotter reminded all Montanans to be wary of "cold calls" promising lucrative returns, particularly if you have been a prior victim of telemarketing fraud.
Unsolicited calls from people you do not know, making promises you want to believe, are most often completely fraudulent. These swindlers feed on people's dreams of an easier-more financially secure-future. With one phone call, they can steal those dreams by taking away all you've saved and everything you were saving for. And if you've been fooled before they will be back to take whatever they did not get the first time around." -- Mike Cotter, U.S. Attorney for Montana.
Inmate Sentenced for Rioting in A Federal PrisonRead the Press Release
Jackson, Miss – Adrian Romero-Carrera, 27, originally of Oaxaca, Mexico, was sentenced on February 25, 2014 by Senior U.S. District Judge David Bramlette III to 75 months in prison followed by three years of supervised release for rioting at the Adams County Correctional facility, announced U.S. Attorney Gregory K. Davis. Romero-Carrera was also ordered to pay restitution in the amount of $1,350,113.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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