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24 February 2014
Jury Convicts Santa Rosa Man of Armed Robbery of the Garda Armored Car WarehouseRead the Press Release
SAN FRANCISCO – Today, a federal jury convicted Monico Dominguez of one count of robbery, one count of attempted robbery, two counts of conspiring to commit robbery, two counts of possession of a firearm in furtherance of a crime of violence, three counts of money laundering, and one count of structuring, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
The jury found that on August 11, 2011, Dominguez committed an armed robbery of the Garda Cash Logistics warehouse in Santa Rosa, Calif., that he laundered and structured the substantial cash proceeds from that robbery, and that he attempted to commit a second robbery at that same facility on August 6, 2012. The guilty verdict followed a two week jury trial before the Honorable Edward M. Chen, United States District Court Judge.
Evidence at trial showed that on August 11, 2011, Dominguez and an accomplice dove under the closing garage door of the Garda warehouse as an armored car was returning from the night shift, that Dominguez held up the guards with an AK-47 assault rifle before tying them up and entering the vault. Dominguez stuffed just over $909,000 in cash into a duffel bag before fleeing the scene. Dominguez got away with this heist for approximately one year, during which he opened new bank accounts, made substantial cash deposits, and purchased multiple Harley Davidson motorcycles, cars, and expensive construction equipment. The evidence at trial showed that on August 6, 2012, Dominguez set in motion a plan to steal an armored car from the Garda warehouse, but the robbery was foiled before it could happen with the assistance of a confidential informant who had reported Dominguez’s plan to the Federal Bureau of Investigation and Santa Rosa Police Department.
Dominguez, of Santa Rosa, was indicted by a federal grand jury on November 29, 2012. Dominguez will remain in custody pending sentencing. Dominguez’s sentencing hearing is scheduled for May 14, 2014, before Judge Chen, in San Francisco.
The maximum statutory penalties for robbery, attempted robbery, and conspiring to commit a robbery, in violation of 18 U.S.C. § 1951(a), are a prison term of 20 years, a fine of $250,000, and 3 years of supervised release.
The maximum statutory penalties for possessing a firearm in furtherance of a robbery, in violation of 18 U.S.C. § 924(c), are a prison term of life, a fine of $250,000, and 5 years of supervised release.
The maximum statutory penalties for money laundering, in violation of 18 U.S.C. § 1957, are a prison term of 10 years, a fine of $250,000, and 3 years of supervised release.
The maximum statutory penalties for structuring, in violation of 31 U.S.C. § 5324, are a prison term of five years, a fine of $500,000, and 3 years of supervised release.
However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Randy Luskey and Ben Tolkoff prosecuted this case with the assistance of Daniel Charlier-Smith and Christine Tian. This prosecution is the result of a joint investigation by the Federal Bureau of Investigation and the Santa Rosa Police Department.
(Dominguez superseding indictment )
Jacksonville Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Sean-Michael Smith (25, Jacksonville) today pleaded guilty to distribution of child pornography. Smith faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison. A sentencing date has not yet been set. Smith was indicted on August 8, 2013.
According to court records, on July 3, 2013, a St. Johns County detective was actively investigating computer users who were distributing child pornography via a peer-to-peer file sharing network over the Internet. On that same date, the detective was able to successfully download three videos depicting minors engaging in sexually explicit conduct from an Internet Protocol (IP) address registered to Sean-Michael Smith. Based on this information, the Federal Bureau of Investigation (FBI) obtained a search warrant for Smith’s residence. When the warrant was executed, on August 2, 2013, Smith admitted to previously downloading and viewing child pornography, including one of the videos downloaded by the detective on July 3, 2013. Smith also stated that he had been viewing child pornography for 10 years, and admitted that whenever the file sharing program on his computer was active, any content in the shared folder would be available for downloading by other users on the file sharing network.
This case was investigated by the Federal Bureau of Investigation, Florida Department of Law Enforcement and St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Diidri W. Robinson.
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 (CEOS), 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.projectsafechildhood.gov.
Huntington Woman Sentenced to Federal Prison for Stealing from Homeless-aid ProgramRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced today to a year and a day in federal prison for stealing more than $20,000 from a program that assists the homeless, United States Attorney Booth Goodwin announced. Patricia Howard, 54, embezzled the money from the Huntington Housing Authority’s Shelter Care Plus program in 2011 and 2012, while she was an employee of the Authority.
The Shelter Care Plus program receives federal funds to provide housing assistance for homeless people suffering from mental illness, chronic addiction and AIDS. As an employee of the Huntington Housing Authority, Howard helped handle the Shelter Care Plus program’s finances. Her position enabled her to secretly make transfers of program funds to her personal bank account by disguising them as payments to obtain housing for the homeless. Howard’s scheme netted a total of $23,731, which she was ordered to repay as part of her sentence. Howard admitted her crime to federal law enforcement authorities after being caught.
In an unrelated case, Howard was recently convicted in state court for fraudulently using an access device. She is serving a one- to three-year state sentence for that conviction. Howard will begin serving the federal sentence imposed today after she finishes her time in state custody.
The federal Department of Housing and Urban Development’s Office of Inspector General and the Federal Bureau of Investigation conducted the investigation, assisted by the Huntington Police Department. Assistant United States Attorney Erik S. Goes handled the prosecution. Chief United States District Judge Robert C. Chambers presided over the case and imposed today’s sentence.
Government Files Enforcement Action Against Four California Companies and SixIndividuals to Stop the Importation of Dangerous Children’s ProductsRead the Press Release
The government has asked a federal court in California to issue an injunction shutting down the importation and sales activities of four California companies and six individuals in connection with their imports of illegal children’s products containing, among other things, lead, phthalates and small parts inappropriate for children under age three. Phthalates are a chemical plasticizer that make certain products flexible, and certain types of phthalates are banned from use in children’s toys and other child care products. The Justice Department filed the injunction action in the Central District of California at the request of the Consumer Product Safety Commission (CPSC).The defendant companies in the case are Toys Distribution Inc. dba TDI International, S&J Merchandise Inc., BLJ Apparel Inc. and All Season Sales Inc. The defendant individuals are Loan Tuyet Thai, Lan My Lam, Paul Phuong, Cuc T. Thai, Tom Liu and Luan Luu.
“Companies cannot be allowed to import hazardous toys into the United States,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Parents have a right to feel confident that the toys their children play with are safe.”
The CPSC determined through an investigation that the defendants imported various items into the United States in violation of the Consumer Product Safety Act (CPSA) and the Federal Hazardous Substances Act (FHSA). The violative products that Toys Distribution Inc. imported included: motorized and “pull-back” toy cars with impermissible lead content and small parts hazards, numerous toy musical instruments with small parts hazards, dolls containing impermissible levels of lead and phthalates and rattles that failed to meet the infant rattle standards. S & J Merchandise’s imports of violative products included numerous models of toy cars with impermissible lead content or small parts hazards, a toy telephone with small parts hazards and numerous different plastic dolls with impermissible phthalate levels. The violative products imported by BLJ Apparel included children’s products and toys with illegal levels of total lead content, toys intended for children under three years of age that contained small parts and infant rattles that may cause choking or suffocation. All Season Sales’ violative imports included a children’s kitchen set and police set that both exceeded the lead content limit.
The government also alleged that the defendants’ operations were associated with each other and that the companies share various personal or professional ties that make joining all the conduct into one lawsuit appropriate.
“CPSC and our federal law enforcement partners are committed to keeping dangerous toys out of the marketplace all year long,” said CPSC Acting Chairman Robert Adler. “Manufacturers, importers and retailers need to know that CPSC and the Justice Department are actively enforcing the Consumer Product Safety Improvement Act, a law that has strengthened the nation’s product safety net.”
Defendant companies S&J Merchandise Inc., BLJ Apparel Inc. and All Season Sales Inc., as well as defendant individuals Tom Liu and Luan Luu have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the CPSA and FHSA. The proposed consent decree will be filed shortly with the court for judicial approval. The lawsuit continues against the remaining defendants.The case is being handled by Patrick Runkle, trial attorney with the Department of Justice’s Consumer Protection Branch, and the U.S. Attorney’s Office for the Central District of California on behalf of the Consumer Product Safety Commission.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Four Montgomery Residents Sentenced for Conspiracy to Defraud the United States Department of EducationRead the Press Release
Montgomery, Alabama - On February 21, 2014, Bobbie Jean Chilsom, Shawn A. Johnson, Sharon Johnson, and Sara Chilsom, all from Montgomery, were sentenced by United States District Judge Myron S. Thompson for their involvement in a conspiracy to defraud the United States Department of Education, and various colleges and universities of financial aid money, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama.
Bobbie Chilsom was sentenced to 24 months of imprisonment followed by three years supervised release for mail fraud and was ordered to pay $276,734.27 in restitution. Shawn A. Johnson was sentenced to five years of probation, 12 months home confinement, and 10 weekends in jail for mail fraud, and was ordered to pay $222,068.41 in restitution. For her role in the conspiracy, Sharon Johnson was sentenced to five years of probation, 12 months home confinement, and 3 weekends in jail for conspiracy to commit to defraud the United States. She was also ordered to pay $397,963.22 in restitution. Finally, Sara Chilsom was sentenced to three years of probation for mail fraud and was also ordered to pay $10,845 in restitution.
As a part of this conspiracy, from September 2008, to September 2012, the defendants defrauded the United States Department of Education and colleges and universities of approximately $1,152,994 in Federal Student Assistance (FSA) money. FSA must be used by a student for tuition, fees charged by the institution, books, supplies, transportation, or other educational and living expenses.
The defendants, as well as other individuals they recruited for the scheme, applied for financial aid despite not having a high school diploma or a general education development (GED) certificate. To enable admission to the schools, a false diploma or GED certificate was provided during the enrollment process. As a result of the fraudulent applications for financial aid, the Department of Education paid tuition, enrollment fees, and living expenses for the defendants and other individuals that were not lawful.
Afterwards, the recruited individuals would pay the leaders of the conspiracy a percentage of the funds reserved for living expenses by mailing them debit refund cards or debit refund checks. Evidence further showed that the defendants or the recruited individuals would either not attend or would minimally attend their courses, and would minimally participate in completing or would not complete their course work. Ultimately, the financial aid funds they received were used for non-educational purposes such as the purchase of personal items or to pay for personal expenses.
Including the four defendants sentenced on February 21, 2014, a total of thirteen defendants were involved in this conspiracy. Previously sentenced were, Telvin Brown, Sunquesha Gaston, Philanthia Roberts, Printice Johnson, Shirley Johnson, Samuella McMillian, Edmond Lewis Harris, Jr., and Richard Jamar Pinkston, Jr. for mail fraud. Dennis Coleman was sentenced for conspiring to defraud the United States. All defendants are from Montgomery.
The case was investigated by the Department of Education-Office of Inspector General, the United States Secret Service, and the FBI. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Victoria Housing Authority Commissioner Charged with HUD and SSA FraudRead the Press Release
VICTORIA, Texas – Raquel Garcia, 37, has been charged in an three-count indictment alleging theft from the U.S. Department of Housing and Urban Development (HUD) and fraud against the Social Security Administration (SSA), announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Feb. 20, 2014, was unsealed this morning upon her arrest by federal authorities. She is expected to make her initial appearance before U.S. Magistrate Judge Janice B. Ellington at 2:00 p.m. today.
The indictment alleges that beginning in 1998 and continuing until July 2013, Garcia concealed her husband’s cohabitation and income. As a result, she allegedly received nearly $175,000 in HUD rent reductions to which she was not entitled. Further, through her alleged fraud and concealment, Garcia also received approximately $113,000 in SSA Supplemental Security Income (SSI) for herself and as representative payee for her minor son, according to the charges. The total loss to the government allegedly totals more than $287,000.
Garcia served as a mayorally-appointed commissioner of the Victoria County Housing Authority for two consecutive two-year terms from 2006-2010.
If convicted, she faces up to 10 years in federal prison for each of the one count of theft of HUD government funds and up to five years on each of the two SSA fraud charges. All charges also carry a possible $250,000 fine, upon conviction.
The investigation leading to the charges was conducted by the SSA – Office of Inspector General and HUD – Office of Inspector General. Assistant United States Attorneys Jeffrey D. Preston and Hugo R. Martinez are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.Former Police Officer Admits Guilt in Robbery PlanRead the Press Release
PHILADELPHIA – Former Philadelphia Police Officer Jeffrey Walker pleaded guilty today to a scheme in which he planned to rob a drug dealer while on official duty. Walker pleaded to attempted robbery which interferes with interstate commerce and carrying a firearm during and in relation to a crime of violence.
Walker told a cooperating witness (CW) that he wanted the CW to help him identify a drug dealer so that Walker could conduct a car stop for suspected drug violations or plant drugs in the car. On May 21, 2013, the CW informed Walker of a car parked outside of a bar on West Girard Avenue. Walker drove up to the car, placed drugs inside the car, and then followed the driver when that person left the bar. When the car was pulled over, Philadelphia police, including Walker, took the key to the driver’s home. Walker and the CW went to the driver’s home. When they exited the home, Walker was arrested and was in possession of $15,000 that he had taken from the house.
U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for May 21, 2014. Walker faces an advisory sentencing guideline range of up to 10 years in prison.
The case was investigated by the FBI and Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Anthony Wzorek.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Non-Indian Employee of the Jicarilla Apache Nation Pleads Guilty to Embezzling Money from the TribeRead the Press Release
ALBUQUERQUE – Robert G. Wells, 63, of Albuquerque, N.M., pleaded guilty this morning to embezzlement and theft from an Indian tribal organization, announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division and Chief Kendall Vicenti of the Jicarilla Apache Tribal Police Department.
Wells was arrested in Nov. 2013, on a three-count indictment charging him with embezzling an aggregate of $214,594.13 from the Jicarilla Apache Nation’s Utility Authority between July 2011 and Oct. 2011. Wells, a non-Indian, previously had been employed by the Jicarilla Apache Nation as the comptroller for the tribe’s Utility Authority.
During this morning’s proceedings, Wells pled guilty to all three counts of the indictment and admitted embezzling money from a Wells Fargo Bank account belonging to the Jicarilla Apache Nation’s Utility Authority through an unauthorized withdrawal and two unauthorized transfers. In his plea agreement, Wells admitted stealing money from the tribe’s bank account on the following three occasions: $500.00 in July 2011, $92,331 in August 2011, and $121,763 in Oct. 2011.
Wells remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Wells will be sentenced to a term of probation. Wells also will be required to pay $214,594.13 in restitution to the Jicarilla Apache Nation.
This case was investigated by the Albuquerque office of the FBI and the Jicarilla Apache Tribal Police Department and is being prosecuted by Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb.
Former High School Football Player Sentenced for Making Racially Motivated Threats to African-American CoachRead the Press Release
Jonathan Caine, 20, of Nashville, Tenn., was sentenced today in U.S. District Court in Nashville to 36 months’ probation for a federal hate crime of making racially motivated threats to an African-American football coach at a local high school, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Caine, formerly a student and football player at the Nashville area high school where the victim works as a coach, was charged with a misdemeanor federal hate crime in November 2013 and pleaded guilty to interfering with a federally protected right.
“Threatening someone because of their race is a cowardly and despicable act,” said U.S. Attorney David Rivera.” “The U.S. Attorney’s Office and the Department of Justice are committed to ensuring that the rights of all persons are protected and to holding those accountable who would abridge those rights based simply on a person’s race.”
In August 2012 Caine made repeated anonymous threats to the victim and to other school officials by leaving phone messages which were laced with racial slurs and derogatory and violent threats based solely on the victim’s race and employment. A subsequent investigation by the FBI identified Caine as the caller.
In addition to the period of probation, the plea agreement requires, among other things, that Caine be placed on home confinement for 2 months; complete a comprehensive substance abuse and treatment program; and complete 520 hours of community service directed at needy minority communities.This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Blanche Cook of the Middle District of Tennessee and Trial Attorney Nicholas Murphy of the Civil Rights Division.
Former Government Analyst Charged with BriberyRead the Press Release
HOUSTON – Augustine Ihenacho Nnadi, aka Austin, 60, of Houston, has been arrested for accepting a bribe in exchange for assistance in an ongoing health care fraud case, announced United States Attorney Kenneth Magidson.
The FBI arrested Nnadi this morning shortly after officers with the Texas Attorney General’s office confiscated his credentials and terminated his employment. Nnadi is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
The criminal complaint, filed today, alleges Nnadi accepted more than $5000 on Feb. 16, 2014, from a criminal defendant in exchange for assistance on a pending health care fraud case.
He is charged with bribery concerning programs receiving federal funds.
If convicted, he faces up to 10 years imprisonment and a possible $250,000 fine.
The operation was a combined, cooperative effort conducted by the FBI, the Texas Rangers and the Medicaid Fraud Control Unit of the Texas Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney James McAlister.
Former Employee of Florida Airline Fuel Supply Company Pleads Guilty to Obstructing Federal InvestigationRead the Press Release
A former employee of a Florida-based airline fuel supply service company pleaded guilty today to obstructing an investigation into fraud and anticompetitive conduct in the airline charter services industry, the Department of Justice announced.Craig Perez, a former employee of Aviation Fuel International Inc. (AFI), pleaded guilty to a felony charge filed today in U.S. District Court for the Western District of Missouri in Kansas City. The charge against Perez stems from the U.S. Department of Defense’s Office of the Inspector General’s Defense Criminal Investigative Service (DCIS)’s investigation into kickback payments made by AFI and its employees to Wayne Kepple, the former vice president of ground operations for Ryan International Airlines.
Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government, including the U.S. Department of Defense, the U.S. Department of Homeland Security and the U.S. Marshals Service.
According to court documents, Perez worked for AFI from June 2007 until March 2008 and was vice president of services. During that time, Kepple received kickback payments from AFI on aviation fuel, services and equipment sold by AFI to Ryan. In November 2011, a federal agent with DCIS contacted Perez to interview him in relation to its investigation of AFI. After speaking with the federal agent, and with full knowledge of the purpose of the interview, Perez knowingly destroyed relevant files from his laptop computer relating to his employment at AFI with the intent to impede, obstruct and influence the investigation of AFI and his involvement in that conduct.
“The Antitrust Division will hold accountable those who attempt to conceal their illegal actions and obstruct a government investigation ,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Destroying evidence in an attempt to undermine a federal investigation is a crime the division takes very seriously.”
Perez is charged with obstruction of justice, which carries a maximum penalty of 20 years in prison and a $250,000 criminal fine for individuals. He has agreed to cooperate in the ongoing investigation.Today’s plea is the fifth to arise out of the Antitrust Division’s ongoing investigation into fraud and anticompetitive conduct in the airline charter services industry. The other four individuals have been ordered to serve sentences ranging from 16 to 87 months in prison and to pay more than $580,000 in restitution. A sixth individual, Sean Wagner, the owner and operator of AFI, and AFI itself were indicted on Aug. 13, 2013.
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, headed by Special Agent in Charge John F. Khin. Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm.
Federal Sentences Handed Down for Drugs Inside Prison, Illegal Prescription PainkillersRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin today announced federal sentences for an inmate caught with drugs in federal prison and a Bluefield woman who illegally possessed a powerful prescription painkiller. Boris Bynum, 34, an inmate at the Federal Correctional Institution at McDowell, was sentenced to six months in prison for possession of marijuana by an inmate. Bynum pleaded guilty in September, admitting that on June 15, 2013, he possessed several balloons which contained marijuana while he was serving a sentence at the prison, which is located near Welch. The investigation was conducted by the Federal Bureau of Prisons.
In an unrelated case, Lakeisha Danell Howze, 28, of Bluefield, was sentenced to three years’ probation for possession of hydromorphone, a prescription painkiller commonly prescribed under the brand-name Dilaudid. Howze pleaded guilty in September, admitting that on January 28, 2013, she possessed hydromorphone without a valid prescription. The offense took place at or near Princeton. The investigation was conducted by the West Virginia State Police Bureau of Criminal Investigations and the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative. The prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Senior United States District Judge David A. Faber imposed today’s sentences.
Fayette Co. Man Currently Serving 10 Years for Child Pornography Gets More Prison TimeRead the Press Release
BLUEFIELD, W.Va. – A Fayette County man currently serving a statutory maximum ten-year federal prison sentence on a federal child pornography offense received an additional year in prison for failing to appear for a sentencing hearing originally scheduled in May 2012, U.S. Attorney Booth Goodwin announced today. Brett David Bowyer, 34, of Scarbro, Fayette County, W.Va., previously pleaded guilty in September 2013 to failing to appear for sentencing as required. Bowyer’s sentence was handed down today by Senior United States District Judge David A. Faber in Bluefield federal court.
Bowyer failed to appear for a sentencing hearing that was originally scheduled for May 30, 2012, in federal court in Bluefield.
On June 12, 2013, Bowyer was arrested in Florida by a Brevard County sheriff’s deputy after being stopped for failing to change lanes.
The Court ordered Bowyer’s sentence to run consecutive to his current prison term.
The United States Marshals Service and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was being prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Father and Son Sentenced for $30 Million Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Bakersfield residents Carlyle “Carl” Lee Cole, 66, to 17 years and seven months in prison and Caleb Lee Cole, 37, to six months in prison for charges stemming from their involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced.
Carl Cole was ordered to pay $28,516,887 in restitution to lenders. He was taken into custody after today’s hearing. Caleb Cole was ordered to pay $663,950 in restitution and was ordered to self-surrender to begin serving his sentence on April 21, 2014. His six months in custody will be followed by 21 months of electronic monitoring.
U.S. Attorney Wagner stated: “Carl Cole is the second defendant to be sentenced for the illegal activities of the Crisp, Cole & Associates real estate firm. During the fraud scheme, Cole enlisted the help of office workers to falsify documents and asked others, even his own son, to lend their names as straw buyers. Today’s sentence is fitting for someone who embodies the recklessness in the mortgage industry in the mid-2000s.”
“While today’s sentences cannot reverse damage that has been done to the real estate industry, mortgage industry, and consumer confidence in the Central Valley, they ensure that the Coles will be punished for their egregious crimes. As a licensed real estate broker, Carl Cole was well aware that this scheme was illegal and callously disregarded the damage he was causing to his own community,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division.
According to court documents, Carl Cole, a licensed real estate broker, and David Crisp owned and operated Crisp & Cole Real Estate (CCRE), a real estate brokerage, and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a conspiracy to defraud mortgage companies and federally insured financial institutions. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due. Carl Cole admitted in his plea agreement that he and the co-conspirators caused losses of at least $29,884,498 to the defrauded lenders due to the conspiracy.
According to his plea agreement, Caleb Cole acted as a straw buyer for CCRE and knowingly made material misstatements and omitted material information in loan applications he submitted to lenders to obtain funds to purchase several properties.
Sentencing dates for the remaining defendants are as follows: Jennifer Anne Crisp on March 3, 2014; Michael Angelo Munoz on March 17, 2014; Jayson Peter Costa on March 24, 2014; David Marshall Crisp on March 31, 2014; Jeriel Salinas on May 12, 2014; and Sneha Mohammadi on June 9, 2014. Robinson Nguyen has completed his 27-month sentence. A trial for co-defendant Julie Dianne Farmer is set for April 8, 2014. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Before Carl Cole and the other defendants were indicted, five separate cases were brought, in 2009 and 2010, against five defendants who pleaded guilty to charges relating to this scheme. Three are scheduled to be sentenced on March 24, 2104: Jerald Allen Teixeira
(1:09-cr-375 – one count of wire fraud for false statements on loan documents), Megan Balod (1:10-cr-016 – four counts of wire fraud for acting as a straw buyer), and Christopher Lance Stovall (1:10-cr-271 – four counts of mail fraud for making false statements on loan documents). Two are scheduled to be sentenced on March 31, 2014: Kevin Patrick Sluga (1:10-cr-001 – four counts of wire fraud for false verification of employment letters), and Leslie Sluga (1:10-cr-002 – two counts of wire fraud for acting as a straw buyer).The maximum statutory penalty for mail fraud is 30 years in prison and a $1 million fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.
This case was done in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 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, please visit www.StopFraud.gov.
Dunn Man Sentenced to 235 Months for Federal Firearm OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever, III sentenced DAVID ELLIS, 53, of Dunn, North Carolina, to 235 months imprisonment followed by 3 years of supervised release.
On August 26, 2013, ELLIS pled guilty to two federal charges: Possession of a Stolen Firearm on February 11, 2012, in violation of Title 18, United States Code 922(j) and Possession of an Unregistered Firearm on February 11, 2012, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
According to the investigation, on February 11, 2012, ELLIS’ girlfriend and her mother were attempting to flee their house after DAVID ELLIS assaulted his girlfriend by hitting her in the face. When her mother attempted to intervene, ELLIS assaulted her by hitting her in the face, knocking her to the ground, and kicking her in the chest. The mother was able to flee the house and call emergency services and the Harnett County Sheriff’s Office who responded to the scene. ELLIS pointed a stolen loaded sawed-off shotgun at his girlfriend, making her come back into the residence before the girlfriend could get to safety. During a standoff with police, ELLIS terrorized his girlfriend; he threatened to shoot her and gave her a bullet to further intimidate her. The stand-off ended when ELLIS and his girlfriend emerged from the home after the Harnett County SRT team was called out.
Prior to the February incident, assault and related charges were taken out against Ellis in October, 2011, in Harnett County.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Harnett County Sheriff’s Office and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Doctor, Clinic Owner, and Law Enforcement Officer Indicted in Drug Trafficking and Bribery ConspiracyRead the Press Release
JOSEPH J. MOGAN, III, M.D., TIFFANY MILLER, and DONALD NIDES were indicted by a federal grand jury on Friday, February 21, 2014, for conspiring to dispense prescription drugs illegally through “pill mill” clinics operated as Omni Pain Management in Metairie, Louisiana, and Omni Pain Management Plus in Slidell, Louisiana, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, MOGAN and MILLER owned and operated the two clinics and conspired to sell prescriptions for narcotics and other controlled substances without a legitimate medical purpose and outside the bounds of professional medical practice to drug seekers and drug abusers. The indictment further charges DONALD NIDES, a former Drug Enforcement Administration (“DEA”) Task Force Officer and former New Orleans Police Department (“NOPD”) Officer, with participating in the drug trafficking conspiracy by advising MOGAN and MILLER as to how to avoid DEA “red flags”; by leaking confidential information to MILLER regarding ongoing investigations; and by lying to federal agents. NIDES is also charged with obstruction of justice and with conspiring to receive bribes, in the form of sex acts and money, in return for using his official position to assist MILLER and MOGAN in operating the Omni clinics as “pill mills.”
“Prescription drug abuse has reached epidemic proportions in our community,” stated U.S. Attorney Polite. “We must halt this plague at its source, by bringing to justice any medical provider who violates our safety by illegally distributing these medications to the public.”
“Prescription drug trafficking and abuse are an epidemic in this country that destroys countless lives, and threatens important trusts in our society, such as our reliance on medical practitioners and, in this case, our faith in our law enforcement community,” stated Keith Brown, Special Agent in Charge, Drug Enforcement Administration-New Orleans Field Division. “DEA is fully committed to the pursuit and arrest of any individual who abandons their oaths as medical practitioners and law enforcement officers to the patients they treat and the public they promise to protect. Prescription drug abuse is a fast growing, widespread problem in Louisiana and can only be countered by an effective collaboration among law enforcement, the medical community, and the public to identify and stop those responsible for the illegal distribution of prescription drugs in our communities.”
U. S. Attorney Polite reiterated that, at this time, the charges in the indictment are only allegations, and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case has been investigated by the Drug Enforcement Administration, case agents George Cazenavette III and Brian Bradshaw, and is being prosecuted by Assistant United States Attorney Harry “Bill” McSherry and Special Assistant United States Attorney Michael Redmann, who is assigned from the Orleans Parish District Attorney’s Office.
(Download Indictment )
Dallas-Area Lawyer Sentenced for Covering up Bank FraudRead the Press Release
DALLAS — An Allen, Texas, man, who pleaded guilty in April 2013 to one count of a misprision of a felony stemming from his involvement in a loan fraud scheme, was sentenced this morning by U.S. District Judge David C. Godbey, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jerry Goh, 51, a lawyer with offices in the Dallas-Fort Worth metroplex, was sentenced to serve seven months in federal prison and surrender to the Bureau of Prisons on May 26, 2014, to begin serving that sentence. Judge Godbey also ordered that Goh serve the first seven months of a one-year term of supervised release on home confinement. Goh will also be ordered to pay more than $2.1 million in restitution.
Two defendants also charged in the case, Plano, Texas, residents Vathany Teng and Lina Ma, have pleaded guilty to their roles in the fraud and are scheduled to be sentenced next month. According to documents filed in the case, Goh, acting in his capacity as the escrow officer on the loan, and thus with control of the loan proceeds, concealed from the lender, Prosper Bank, the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 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, please visit www.stopfraud.gov.
The case was investigated by the U.S. Small Business Administration – Office of Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis prosecuted.
Conspirator in Scheme to Steal Waste Vegetable Oil Pleads Guilty to Laundering More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – Anthony Jean-Claude, age 40, of Odenton, Maryland pleaded guilty today to laundering over $1.5 million, in connecting with a scheme to steal waste vegetable oil.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, waste collection businesses contract with local restaurants to collect waste vegetable oil (WVO), which is used to make bio-diesel fuel or processed as an additive for animal feed. Waste collection businesses place recycling containers behind the restaurants with which they have contracts. When the containers are full, the businesses collect the WVO using a vacuum truck.Jean-Claude admits that from May through October 2010, he and a friend stole WVO from restaurants in Maryland and Virginia using a flatbed tow truck owned by his friend, a tank and a mechanical pump. Jean-Claude and his friend stored the stolen oil at a warehouse near Waterview Avenue in Baltimore County, then sold the oil to out-of-state oil companies.
At the end of October, Jean-Claude’s friend developed a legitimate WVO collection company - Waste Not Incorporated - purchased a vacuum truck, hired salesmen to assist him, and eventually obtained 650 contracts to collect WVO from restaurants and other eateries. From June through October, 2011, Jean-Claude’s friend collected the WVO pursuant to the contracts and sold the WVO to Jean-Claude.
According to his plea agreement, in May 2011, Jean-Claude used a straw purchaser to buy a truck, which was titled the name of Waste Not and used to steal WVO from restaurants for which Waste Not did not have a collection contract. The driver of that truck was caught stealing WVO in July 2011. In late 2011, Jean-Claude met R.F. during a home renovation project at Jean-Claude’s home. Jean-Claude requested that R.F. lease a large warehouse facility to collect, process and sell WVO. The owner of Waste Not took both his legitimate WVO and the stolen WVO to the facility, located at 1701 Leland Avenue in Middle River. Jean-Claude then sold the WVO to fuel companies in Pennsylvania and elsewhere. The proceeds of these transactions were directed back to Jean-Claude through an account in in the name of Rafxcel Services, to which both R.F. and Jean-Claude had signature authority.
Jean-Claude subsequently used the straw purchaser to buy another truck in October 2011, which a conspirator used to steal WVO from 20 locations in Baltimore City and Baltimore County. The conspirator then took the stolen WVO to the Leland Avenue facility. From January 5, 2012 through October 1, 2012, Rafxcel received approximately $1,586,747, for selling WVO to oil companies in Maryland, Pennsylvania and elsewhere.
R.M. was the operations manager at the Leland Avenue facility. R.M. received checks from Jean-Claude in the name of R.M.’s wife, which were drawn on the Rafxcel business account. Jean-Claude directed R.M. to cash the checks, use a portion of the cash for the operations of the Leland Avenue facility, and give the remainder of the cash back to Jean-Claude. Jean-Claude knew that this money was the proceeds of the illegal scheme to sell stolen WVO.
Jean-Claude faces a maximum sentence of 20 years in prison for money laundering. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 10, 2014 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.Charleston Felon Pleads Guilty to Illegal Firearms PossessionRead the Press Release
CHARLESTON, W.Va. – A Charleston man with a prior felony conviction pleaded guilty today to illegally possessing firearms, U.S. Attorney Booth Goodwin announced. Kerry A. Drake, 45, fled Saint Albans police last September after officers attempted a routine traffic stop. A chase ensued, and Drake was apprehended in South Charleston when his engine malfunctioned. Officers found a Bushmaster .223 rifle and an Ithaca shotgun in Drake’s car. Both guns were previously reported stolen by their rightful owners.
Lucas Lynch, who was a passenger in Drake’s car at the time of the chase, bailed out of Drake’s moving vehicle as Drake fled. Lynch is currently under indictment by a federal grand jury for being a felon in possession of a firearm and possession of a stolen firearm. (An indictment is an accusation only, and Lynch is presumed innocent until proven guilty.)
Drake faces up to 10 years in federal prison when he is sentenced on June 2, 2014.
The Saint Albans Police Department conducted the investigation, assisted by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Erik S. Goes and Jennifer Rada are handling the prosecution. The case is assigned to United States District Judge Thomas E. Johnston, who presided over today’s plea hearing.
Case Update: Kern, Tulare, and Stanislaus Counties Marijuana Cultivation OperationsRead the Press Release
FRESNO, Calif. — Sergio Reyna, 36, and Juan Carlos Perez-Gonzales, both of Michoacàn, Mexico, and Thounethepmith Vongsenekeo, 58, of Savannakhet, Laos, were sentenced today for their involvement in separate marijuana cultivation operations in Kern, Tulare, and Stanislaus Counties, U.S. Attorney Benjamin B. Wagner announced.
7,302 Marijuana Plants Seized from Sequoia National Forest (1:13-cr-172 AWI)
Reyna was sentenced today to two and a half years in prison following his guilty plea last November to conspiring to manufacture, distribute, and possess with intent to distribute marijuana grown in the Gibboney Canyon area of the Sequoia National Forest in Kern County. The area is also within the federally designated Domeland Wilderness area. According to court documents, U.S. Forest Service agents seized 7,302 marijuana plants from the site and found 5,000 marijuana plant stalks consistent with a prior harvest in 2012. During the execution of a federal search warrant at the site, agents found Reyna sleeping in a tent. In addition to his prison sentence, Reyna was ordered to pay restitution in the amount of $2,675.57 to the U.S. Forest Service caused by the negative environmental impact of the cultivation operation. Trash and fertilizer bags were scattered about the area and the ground was terraced after native vegetation, including oak trees, was cut down to make room for the marijuana plants. Trash was also found in the waterway of Gibboney Creek. Reyna is also subject to deportation to Mexico after he serves his prison term.
The case was investigated by the U.S. Forest Service, DEA, California Department of Fish and Wildlife, and Kern County Sheriff’s Office.
1,313 Marijuana Plants/Firearms Seized from Tulare County Ag Grow (1:12-cr-341 LJO)
Following his guilty plea last year, Juan Carlos Perez-Gonzales was sentenced to 18 months in prison for his involvement in a marijuana cultivation operation on agricultural land in Terra Bella. According to court records, drug agents discovered the cultivation operation after following a supplier to the property. The supplier had previously delivered equipment and material for other marijuana cultivation operations on public lands in Ventura, San Luis Obispo, and Kern Counties. During the execution of a federal search warrant at the Terra Bella property, agents seized 1,313 marijuana plants, two firearms, and arrested six people, including Perez. The marijuana had a wholesale value of $1.5 million.This case was investigated by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Tulare and Ventura Counties’ Sheriff’s Offices.
San Joaquin River Diverted to Grow Marijuana (1:12-cr-342 AWI)
Thounethepmith Vongsenekeo was sentenced today to three years and one month in prison for a marijuana cultivation operation alongside the San Joaquin River near the town of Newman. Water from the river was diverted to irrigate the 907 marijuana plants growing there. Agents also seized a firearm abandoned along the river. Vongsenekeo’s sentence follows his guilty plea last December. The case was investigated by the DEA and the Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.Assistant U.S. Attorney Karen A. Escobar is prosecuting the above cases.
Carriere Man Pleads Guilty to Social Security FraudRead the Press Release
Gulfport, Miss. – Alan Paul Blache, 63, of Carriere, Mississippi, was sentenced today in U. S. District Court to six months in federal prison followed by three years of supervised release with five months of home confinement for theft of government funds, U.S. Attorney Gregory K. Davis announced. Blache was also ordered to pay $114,855.90 in restitution to the Social Security Administration. Blache pled guilty to the charges on December 2, 2013.
From July 2005 through April 2011, in Pearl River County, Alan Paul Blache knowingly stole approximately $114,855.90 in Title II Social Security Disability Insurance benefit payments by concealing his full employment and earnings from the Social Security Administration (“SSA”) while working as a security guard at the Pearl River County Mississippi Welcome Center. Blache worked shifts during the time period alleged under his name and social security number, but he also worked additional shifts under his wife’s name and social security number and concealed his true earnings from the SSA. As a result of his repeated concealment and failure to disclose his true earnings, Blache caused the SSA to overpay him Title II Social Security Disability Insurance benefit payments in the amount of $114,855.90.
This case was investigated by agents of the Social Security Administration-Office of the Inspector General Office of Investigations and prosecuted by Assistant U.S. Attorney Andrea Jones.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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Carlsbad Credit Repair “Predator” Receives Prison SentenceRead the Press Release
United States Attorney Laura E. Duffy today announced the sentencing of Eric Phillips for his role in a scheme to defraud clients of Georggin Law, formerly located in Carlsbad, California, who were seeking to repair their credit histories. District Judge Michael M. Anello imposed a sentence of 33 months in custody on Phillips, who victims at today’s hearing described as a “predator.”
Phillips helped create Georggin Law in 2010 – despite the fact that he is not an attorney and has never been licensed to practice law – and claimed that the firm could provide credit repair services to clients attempting to purchase real estate. Phillips falsely represented to potential clients that he had been at Georggin Law for 34 years, that he was an attorney, and that he had a California bar number. Phillips gave presentations at realtors’ offices, targeting individuals who hoped to buy homes but had poor credit scores due to a prior short sale or foreclosure. During these sales pitches, Phillips claimed that Georggin Law could file lawsuits in small claims courts and have prior short sales and foreclosures removed from clients’ credit reports. In addition to lying about his history and qualifications, Phillips also falsely claimed that Georggin had won over 600 victories in small claims courts, had a 100% success rate and had never lost a case. Phillips also promised a “money back guarantee,” despite the fact that Georggin Law maintained little or no money to actually refund unsatisfied clients.
Phillips admitted that Georggin defrauded over 250 clients using such false statements, and that he personally pocketed at least $150,000 from the scheme.
According to the State Bar of California, the attorney nominally affiliated with Georggin Law, Ernest George Georggin, has agreed to surrender his law license and pay restitution to certain clients of the firm.
Victims of Phillips’ scheme addressed the court at today’s sentencing hearing. One man, who has been a firefighter for 34 years, spoke about how devastating it was to have been victimized by Phillips. He said he had withdrawn money from his retirement savings to pay Georggin Law’s fees, but after paying over the money he could not get any calls back from the firm. Another victim described a similar experience, explaining that Phillips promptly called her back when she was ready to pay the fees, but then failed to return her calls thereafter. Both described Phillips as a “predator.”
Other victims sent written statements to the court, describing Phillips as a “habitual liar [who told] us that he was an attorney,” “smart, cunning, and very convincing,” and a “man selling snake oil.” One man from La Mesa wrote to the court, “I was abused by the credit report system, then further abused by Mr. Phillips who did nothing for two years after taking my money.” As a man from San Diego explained, “Eric Phillips pretended to be an attorney and guaranteed our money back … Buying a home here in San Diego is expensive enough … But add in a criminal like Eric Phillips … makes a tough situation even worse … He is a smooth talker with a smile that lures clients in and banks on your trust.”
Phillips will next appear before Judge Anello on April 14, 2014, for a determination of how much restitution he will be ordered to pay the victims of his scheme.
DEFENDANT Eric Dean Phillips Age: 58 Riverside, California CHARGESMail fraud, Title 18, United States Code, Section 1341
INVESTIGATING AGENCY
Maximum penalties: 20 years in custody; $250,000 fine; 3 years of supervised release; mandatory order of restitution to victimsFederal Bureau of Investigation, North County Resident Agent
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Baltimore Drug Dealer Sentenced in Money Laundering SchemeRead the Press Release
Paid a Bank Teller to Convert Drug Proceeds from Small Bills to $100 Bills
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Deanna Bailey, age 33, of Baltimore, today to 46 months in prison followed by two years of supervised release for conspiring to commit money laundering. Judge Bredar also ordered Bailey to forfeit $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to her plea agreement, Bailey was a member of a drug trafficking organization based in Maryland. Bailey transported or caused to be transported at least 500 pounds of marijuana from southwestern United States to Maryland for distribution. Sabrina Fitts was the head teller at the Perry Hall branch of M&T Bank. On at least eight occasions over a period of two to three years, Bailey came to the bank and asked Fitts to convert the proceeds from the sale of illegal drugs from small denomination bills (i.e. $5, $10 and $20 bills) to $100 bills. The amounts involved in each transaction ranged from $20,000 to $100,000, with most transactions involving $50,000 or more. Bailey paid Fitts a one percent fee for each transaction.On May 2, 2013, a search warrant was executed at an apartment in Baltimore where Bailey sometimes stayed. Law enforcement seized a handgun, digital scales, 10 cell phones and $319,000 in $100 bills.
Sabrina Nicole Fitts, age 29, of Baltimore, Maryland, was sentenced on December 20, 2013 to a month in prison followed by eight months of home detention for failing to file currency transaction reports on suspected drug proceeds. Judge Bredar also ordered Fitts to perform 250 hours of community service and to forfeit $5,000 she was paid by Bailey for converting the drug proceeds.
The government filed a civil action on February 10, 2014 alleging that M&T Bank is required to forfeit $560,000 that was transferred to the bank by Bailey in exchange for $100 bills. The complaint alleges that the money is subject to forfeiture because M&T Bank failed to file currency transactions reports on bank transactions in amounts in excess of $10,000 as required by law.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stefan D. Cassella, who prosecuted the case.
BGF Member Sentenced to over 12 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
BGF Member Often Directed the Smuggling of Drugs and Contraband into Baltimore Correctional Facility While in Pretrial Custody
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced a member of the Black Guerilla Family (BGF) gang, Kenneth Parham, age 24, of Baltimore, Maryland, to 151 months in prison followed by three years of supervised release for a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Parham’s federal sentence will be served concurrent to the 10 year state sentence he is currently serving.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, Parham is a member of the BGF and was in pretrial custody at BCDC from 2012 to 2013. During that time, Parham admitted that he was involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of Correctional Officers (COs), who received payments, gifts, or a share of the profits. As a close associate of BGF leader Tavon White, Parham knew many of the COs involved in contraband trafficking. Parham and his closest BGF allies frequently used individuals to obtain contraband outside the prison, hold it or deliver it to COs for smuggling. Parham also helped conceal contraband from prison officials who would conduct periodic searches for contraband.
Nine correctional officers have pleaded guilty to their roles in the conspiracy. Correctional officers Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014. Six other correctional officers await sentencing.
BGF leader Tavon White, age 36, and BGF commander Steven Loney, age 24, also pleaded guilty to the racketeering enterprise. Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White awaits his sentencing.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Attorney General Holder Urges Congress to Create National Standard for Reporting CyberattacksRead the Press Release
In a video message released today, Attorney General Eric Holder called on Congress to create a strong, national standard for quickly alerting consumers whose information may be compromised by cyberattacks. This legislation would strengthen the Justice Department's ability to combat crime, ensure individual privacy, and prevent identity theft, while also helping to bring cybercriminals to justice.
The complete text of the Attorney General’s weekly address is available below:
“Late last year, Target – the second-largest discount retailer in the United States – suffered a massive data breach that may have compromised the personal information of as many as 70 million people, in addition to credit and debit card information of up to 40 million customers. The Department of Justice is currently investigating this breach, in close coordination with the U.S. Secret Service. And we are moving aggressively to respond to hacking, cyberattacks, and other crimes that harm American consumers – and expose personal or financial information to those who would take advantage of their fellow citizens.
"As we’ve seen – especially in recent years – these crimes are becoming all too common. And they have the potential to impact millions of Americans every year. Just days after the Target breach was made public, another major retailer – Neiman Marcus – reported that it also suffered a suspected cyberattack during the holiday season. And although Justice Department officials are working closely with the FBI and prosecutors across the country to bring cyber criminals to justice, it’s time for leaders in Washington to provide the tools we need to do even more: by requiring businesses to notify American consumers and law enforcement in the wake of significant data breaches.
“Today, I’m calling on Congress to create a strong, national standard for quickly alerting consumers whose information may be compromised. This would empower the American people to protect themselves if they are at risk of identity theft. It would enable law enforcement to better investigate these crimes – and hold compromised entities accountable when they fail to keep sensitive information safe. And it would provide reasonable exemptions for harmless breaches, to avoid placing unnecessary burdens on businesses that do act responsibly.“This legislation would strengthen the Justice Department’s ability to combat crime and ensure individual privacy – while bringing cybercriminals to justice. My colleagues and I are eager to work with Members of Congress to refine and pass this important proposal. And we will never stop working to protect the American people – using every tool and resource we can bring to bear.”
The full video is available at http://www.justice.gov/agwa.phpArmed Career Criminal Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that RICARDO ANDRE ROSS, 47, of Billings, was sentenced on February 20, 2014, to a term of 180 months-or 15 years in federal prison-with five years of supervised release to follow, before U.S. District Judge Donald W. Molloy.
Ross was sentenced in connection with his guilty plea to being a felon in possession of a firearm. In accordance with 18 U.S.C. § 924(e)(1), the Armed Career Criminal Act (ACCA), Ross was also subject to a mandatory minimum of fifteen years imprisonment because he had at least three prior serious drug or violent felony convictions.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Brendan McCarthy advised the Court that at approximately 1:30 a.m. on September 12, 2012, an officer with the Billings Police Department was traveling westbound in his patrol vehicle on Broadwater Avenue when he observed that the 2003 Buick in front of him did not have a license plate light. The officer conducted a traffic stop and the driver of the Buick pulled the vehicle over into a nearby parking lot.
When the officer approached the driver side of the vehicle, he smelled marijuana. The officer questioned the driver, later identified as Ricardo Andre Ross. The officer ran a background check on Ross and the passenger, and discovered out that Ross was currently on state probation. The dispatcher spoke with Ross's probation officer and the probation officer consented to a search of the vehicle. Two other officers arrived to assist.
During the search, the officers recovered a Kel-Tec 9mm pistol with serial number 92378 from the driver's side door. In the center console of the vehicle, the officers recovered a Marlboro Red cigarette pack that had various items inside of it including a small bag containing a white crystalline substance which tested positive as methamphetamine. A black backpack was retrieved from the trunk of the vehicle from which officers recovered a Hi-Point, model JH, .45 caliber, semi-automatic pistol.
Ross had previously been convicted, on May 31, 1990, of a felony in the State of Virginia. That conviction prohibited him from possessing firearms, and his criminal record enhanced sentencing for that crime under the ACCA.
Another Mexican National Admits Growing Marijuana on Public LandsRead the Press Release
Two Plead Guilty in Boise County Marijuana Grow Case
BOISE — Carlos Cerda-Carpio, 40, a Mexican national, pleaded guilty today in federal court to unlawfully manufacturing more than 1,000 marijuana plants with intent to distribute and illegal possession of a firearm, U.S. Attorney Wendy J. Olson announced. A co-defendant, Mariah Villasenor-Rodriguez, 22, of Caldwell, Idaho, pleaded guilty to related charges of possession of marijuana with intent to distribute. Both defendants appeared before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
According to the plea agreements, on September 11, 2013, law enforcement conducted enforcement actions on an outdoor marijuana growing operation in the Boise National Forest, a few miles from Highway 21 in Boise County. Cerda-Carpio, along with co-defendants Marcos Solano-Farias and Jose Misael Ayala-Talavera, was apprehended by the officers at a camp located next to a marijuana grow site on Rabbit Creek, with 1,411 live plants as well as harvested marijuana. According to the plea agreements, investigators found and seized two semi-automatic handguns, an AK-47 type rifle, in the camp, and several hundred marijuana plants that had already been harvested from the growing operation. Investigators located and eradicated all live marijuana plants. A few days later, law enforcement took down a related grow site at Little Beaver Creek, where they removed 5,463 marijuana plants.
According to Villasenor-Rodriguez’s plea agreement, more than 100 kilos of harvested and packaged marijuana was found at the house she shared with her husband, lead co-defendant Juan Pablo Villasenor-Villa, and in another house in Caldwell.
Cerda-Carpio and five co-defendants were indicted by a federal grand jury on October 9, 2013, on charges of conspiracy to manufacture and distribute marijuana, possession of firearms in furtherance of drug trafficking, and injury to federal public lands. Juan Pablo Villasenor-Villa is currently set for trial on July 21, 2014. Gilberto Duran-Contreras is scheduled to plead guilty on March 3, 2014. Marcos Solano-Farias and Jose Misael Ayala-Talavera pleaded guilty on February 13, 2014, to related charges; sentencing is set for May 14.
The charge of manufacturing more than 1,000 marijuana plants with intent to distribute carries a penalty of not less than ten years up to life in prison, a maximum fine of $10 million, and five years of supervised release. The charges of possession of a firearm by a prohibited person—an undocumented alien—and injury to government property are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of possession of more than 100 kilos of marijuana with intent to distribute carries a penalty of not less than five years and up to 40 years in prison, a maximum fine of $5 million, and five years of supervised release.
Villasenor-Rodriguez is scheduled to be sentenced on May 14, and Cerda-Carpio on May 15, 2014, before Chief U.S. District Judge B. Lynn Winmill.
“Vigorous prosecution of those who grow illegal drugs on federal land is a high priority of this office,” said Olson. “Those who operate marijuana grows not only traffic in illegal drugs, but they also damage wildlife and the environment and, through their possession and possible use of firearms, pose a significant danger to all Idahoans who seek to use our national forests for hiking, hunting and recreation purposes.” Olson noted that Cerda-Carpia is the eighth defendant in 2014 to plead guilty or be sentenced in Idaho on federal drug trafficking charges that also involved the unlawful use, possession or sale of firearms. “Drugs and guns are a dangerous and often violent combination,” Olson said. “Today’s guilty pleas demonstrate that federal gun laws are carefully targeted at those who use or possess firearms for unlawful purposes.”
The case is the result of a joint investigation result of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Altoona Spa Owner Sentenced to Probation with Home Detention for Money LaunderingRead the Press Release
JOHNSTOWN, Pa. - A resident of Suwanee, GA, has been sentenced in federal court to three years probation, with home detention for the first 12 months, on his conviction of laundering of monetary instruments, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Steve Park, 56, of Suwanee, GA.
According to information presented to the court, between Jan. 1, 2010, and Dec. 10, 2010, Park, while the owner of The SunSet Health Spa, located on Pleasant Valley Boulevard, Altoona, Pa., conducted financial transactions which involved proceeds derived from the unlawful interstate transportation of individuals for illegal sexual activity. By conducting these financial transactions with the illicit proceeds, he intended to engage in conduct constituting a violation of Sections 7201 or 7206 of the Internal Revenue Code.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Park.
Altoona Spa Co-Owner Sentenced to Probation with Home Detention for Transporting Person for ProstitutionRead the Press Release
JOHNSTOWN, Pa. - A Georgia woman has been sentenced in federal court to three years probation, with home detention for the first ten months, on her conviction of transportation for illegal sexual activity, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Yon Park, 61, of Suwanee. Ga.
According to information presented to the court, on Feb. 14, 2011, Park, while the owner of The SunSet Health Spa, located on Pleasant Valley Boulevard, Altoona, Pa., caused an individual to be transported in interstate or foreign commerce, with the intent that such individual engage in prostitution, or in any sexual activity for which any person can be charged with a criminal offense.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Park.
23 February 2014
Two Retailers Sentenced to Prison for Food Stamp Fraud, Nine Others to Be SentencedRead the Press Release
PROVIDENCE, R.I. – Two convenience store retailers have been sentenced to federal prison, nine other convenience store owners, managers and employees are scheduled to be sentenced in March, April and May, all having pleaded guilty to federal food stamp fraud charges brought as the result of a sweeping two-year federal investigation into various conspiracies to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program.
In September 2013, United States Attorney Peter F. Neronha, along with the U.S. Department of Agriculture, Office of Inspector General; the U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch; Internal Revenue Service Criminal Investigation; and the Rhode Island State Police announced the results of a sweeping investigation of convenience store owners, employees and others for their participation in various conspiracies and actions that defrauded the food stamp program of more than $3 million dollars.
The investigation revealed that store owners and/or employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer (EBT) cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. In return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient.
On Friday, Asra Qadir and Waqif Qadir, owners of Express Food Mart in Warwick, pleaded guilty to conspiring to defraud the food stamp program, and Amir Rasheed, owner of Stop & Go convenience store in Providence, pleaded guilty to conspiring to defraud the food stamp program, food stamp fraud and money laundering. Asra and Waqif Qadir are scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on May 15. Amir Rasheed is scheduled to be sentenced on May 22.
On December 19, 2013, Cristina Ramirez, owner of Cristina’s Market in Providence, was sentenced by U.S. District Court Judge Mary M. Lisi to12 months and 1 day in federal prison, to be followed by 3 years supervised release – the first 6 months to be served in home confinement, and ordered to pay restitution in the amount of $399,000 to the food stamp program. Ramirez pleaded guilty on October 4, 2013, to conspiracy to commit food stamp fraud and money laundering.
Glenda Lopez, owner of the Dugout convenience store in Providence, was sentenced by U.S. District Court Judge Mary M. Lisi on December 19, 2013, to 18 months in federal prison, to be followed by 3 years supervised release – the first 6 months to be served in home confinement, and ordered to pay restitution in the amount of $398,000 to the food stamp program. Lopez pleaded guilty on October 4, 2013, to conspiracy to commit food stamp fraud, money laundering and filing a false tax return.
, an employee of Stop & Go in Providence, pleaded guilty on December 9, 2013, to one count each of conspiracy to commit food stamp fraud and making false statements. He is scheduled to be sentenced on March 7; , manager of Corner Store in Providence, pleaded guilty on December 17, 2013, to one count of conspiracy to commit food stamp fraud. He is scheduled to be sentenced on March 6; , manager of Stop & Go in Providence pleaded guilty on December 20, 2014, to one count of conspiracy to commit food stamp fraud and seven counts of food stamp fraud. She is scheduled to be sentenced on April 3, 2014; , owner of the Corner Store and the Regency Mart in Providence, pleaded guilty on February 4 to one count of conspiracy to commit food stamp fraud, three counts of food stamp fraud, eight counts of wire fraud and six counts of money laundering. He is scheduled to be sentenced on May 1;, an employee of the Regency Mart convenience store, pleaded guilty on February 4 to one count of conspiracy to commit food stamp fraud and four counts each of food stamp fraud and wire fraud. He is scheduled to be sentenced on May 1; and , an employee of the Regency Mart convenience store, pleaded guilty on February 7 to one count of food stamp fraud. He is scheduled to be sentenced May 2.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.###
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]Philadelphia Man Charged with Felon in Possession of A FirearmRead the Press Release
James Robinson, 34, of Philadelphia, Pennsylvania, was charged today by Indictment with Felon in Possession of Firearm, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years imprisonment, a three year period of supervised release, a $250,000 fine, and a $100 special assessment
The case was investigated by ATF and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
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, 215-861-8525Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 12, 2014 and entering pleas of Not Guilty were:
- BENJAMIN SCOTT HINEMAN, a 29-year-old resident of Whitefish, appeared on charges of conspiracy to distribute cocaine, possession with intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious offenses charged in the indictment, HINEMAN faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Montana Drug Task Force. PACER Case Reference: 14-03
- SCOTT JOSEPH HINEMAN, a 60-year-old resident of Kalispell, appeared on charges of conspiracy to distribute cocaine, possession with intent to distribute cocaine, distribution of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious offenses charged in the indictment, HINEMAN faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Montana Drug Task Force. PACER Case Reference: 14-04
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 18, 2014 and entering pleas of Not Guilty were:
- RONALD JAY KEMP, a 31-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious offense charged in the indictment, KEMP faces 40 years imprisonment, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Tri-Agency Drug Task Force.. PACER Case Reference: 13-102
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
22 February 2014
Statement on the Apprehension of Joaquin "Chapo" Guzman LoeraRead the Press Release
Today Mexican authorities announced the capture of Joaquin "Chapo" Guzman Loera, the alleged leader of the Sinaloa Cartel. The Sinaloa Cartel is designated a Significant Foreign Narcotics Trafficker by the U.S. Government.Attorney General Holder stated: "Today's apprehension of Joaquin "Chapo" Guzman Loera by Mexican authorities is a landmark achievement, and a victory for the citizens of both Mexico and the United States. Guzman was one of the world's most wanted men and the alleged head of a drug-running empire that spans continents. The criminal activity Guzman allegedly directed contributed to the death and destruction of millions of lives across the globe through drug addiction, violence, and corruption. We salute the Government of Mexico, and the professionalism and courage of the Mexican authorities, for this arrest. We are pleased that we were able to work effectively with Mexico through the cooperative relationship that U.S. law enforcement agencies have with their Mexican counterparts. We look forward to ongoing cooperation, and future successes."
Secretary of Homeland Security Johnson stated: "The operation led by the Mexican government overnight to capture Joaquin "Chapo" Guzman Loera is a significant victory and milestone in our common interest of combating drug trafficking, violence and illicit activity along our shared border. We congratulate our Mexican partners in this achievement and we will continue to work collaboratively with them to ensure a border region that is safe and secure, for the communities and citizens of both our nations."
Goodwin Announces Guilty Plea from Defendant Who Scammed Elderly VictimsRead the Press Release
CHARLESTON, W.Va. – An individual who participated in a scheme that netted more than $60,000 in one week from senior citizens in West Virginia and elsewhere has pleaded guilty to conspiracy to commit wire fraud, U.S. Attorney Booth Goodwin announced today. According to the plea agreement, Sheray J. McKay, 21, of Suitland, Md., pleaded guilty to an offense under 18 U.S.C. 1349.
"Scams to steal from older West Virginians are downright shameful,” U.S. Attorney Booth Goodwin said. “Protecting our state’s senior citizens is one of my top priorities, and in 2014, we’re going to work harder than ever to catch criminals who cheat seniors.”
According to the plea agreement, beginning in or about November 7, 2012, and continuing through November 13, 2012, McKay and others participated in a scheme to solicit money from about 16 elderly individuals who resided in West Virginia and other states. As part of the scheme, numerous elderly individuals were called at their homes and asked for money under false pretenses. It was a part of the scheme that the callers, posing as family members or clergymen of the elderly citizens, or lawyers for the so-called family members or clergymen, often falsely stated that they had been in car accidents or had been arrested for driving while intoxicated and needed money to get out of jail and pay attorney’s fees. Based on these misrepresentations, the elderly victims wired money to McKay in Maryland. McKay then picked up the monies from the wire transfers, kept a portion of the monies for herself, and handed over the rest of the monies to other individuals. Under the plea agreement, McKay agrees that she owes restitution in the amount of at least $33,400.oo and up to $61,788.00.
The defendants charged in the indictment picked up the funds from the wire transfers in Maryland and New York. The victims targeted in the alleged scheme ranged in age from 70 to 95 years old.
McKay was arrested in Maryland in December 2013 on an indictment which charged her and two co-defendants, Kacey K. Moise of New York, and Charnita E. Ryland, also of Maryland, with 12 counts of conspiracy to commit wire fraud and wire fraud. McKay was specifically charged with four counts: conspiracy to commit wire fraud and three counts of wire fraud. Based upon her guilty plea, McKay faces up to 20 years in prison at sentencing. McKay’s sentencing is set for June 5, 2014 at 3:00 p.m.
McKay’s plea hearing was conducted by United States District Judge Thomas E. Johnston.Today’s plea is part of U.S. Attorney Goodwin’s work to protect West Virginia’s senior citizens. Over the past few years, Goodwin has visited senior center locations in nearly twenty West Virginia counties to offer tips to protect seniors in their homes and help them avoid financial scams like this one. Additional information regarding this initiative can be found at http://www.justice.gov/usao/wvs/safe-seniors.html.
The investigation was conducted by the United States Secret Service. Assistant United States Attorneys Eumi Choi and Meredith Thomas are handling the prosecution.
21 February 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Christopher A. Nuechterlein)
Michael Hillebrand III, 30, of Mishawaka, Indiana pled guilty to the felony offense of theft of government property. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has been set for 5/22/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Joseph Golden, 27, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of attempting to enter a bank to commit larceny. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has been set for 5/22/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS (before District Judge Robert L Miller, Jr.)
Rick Franklin, 55, of South Bend, Indiana was sentenced to 71 months imprisonment with 3 years supervised release and to pay $40,000 in restitution after pleading guilty to the felony offense of knowingly and intentionally possessing a vehicle which had altered or removed VIN numbers with the intent to dispose of the vehicle.According to documents filed in this case, in February 2013, law enforcement stopped a trailer hauling a Bobcat Skid Steer loader on US 31. The Bobcart Skid Steer loader had been “re-vinned” (the proper VIN number removed and a different one substituted) and Franklin was involved with the re-vinning. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Christopher Wilhite, 33, of Monon, Indiana was sentenced to 120 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of possession of child pornography plus forfeiture allegation.According to documents filed in this case, from October 2011 to May, 2012, Wilhite possessed a laptop computer onto which he had downloaded numerous images and videos that depicted minors engaged in sexually explicit conduct. Wilhite subsequently transferred those computer files to an external hard drive. In October 2012, the laptop and external hard drive were seized at Wilhite’s residence by law enforcement. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Department of Homeland Security, state and local task force.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Michael Spurgeon, 47, of Elkhart, Indiana was sentenced to 2 years probation after pleading guilty to the felony offense of knowingly manufacturing marijuana.According to documents filed in this case, in February 2013, DEA entered a garage in Elkhart, Indiana. Law enforcement discovered marijuana plants, grow materials, and grow lights in the building. The marijuana growing equipment and items were the property of Spurgeon. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Raymond Belsan, 33, of Syracuse, Indiana was to 120 months imprisonment with 7 years supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, in September 2012, Belsan possessed a custom built desktop computer onto which he had downloaded numerous images and videos that depicted minors engaged in sexually explicit conduct. Belsan also utilized file sharing programs which he used to download these images from others via the internet. Belsan also enabled file sharing for others to access some of the child pornography on his machine.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
(before District Judge Jon E. DeGuilio.)
Dontrell Smith, 24, of South Bend, Indiana was sentenced to 40 months with 3 years supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon.According to documents filed in this case, in August 2013, Smith possessed a PT111 Pro Millennium, Caliber: 9mm handgun loaded with ammunition.Previously, Smith had been convicted of possession of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Mario Stokes, 41, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 5/23/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jose Arriaga, 44, of Merrillville, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of possession with the intent to distribute cocaine. Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Joiey Jones, 36, of East Chicago, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Tonja Muldrow, 33, of Michigan City, Indiana, was sentenced by Chief Judge Philip Simon to 24 months of probation after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Muldrow illegally possessed one firearm and traded it in to a firearms store in exchange for another firearm. Muldrow has a prior conviction for the felony offense of financial identity theft. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Kevin Wilkerson, 39, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 108 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of the bank robbery of Peoples Bank in Gary.This case was a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Mark Bozovich, 32, of Lake Village, Indiana, a defendant in the case US v Humphrey et al., was sentenced by Senior District Judge Rudy Lozano to 235 months imprisonment and 3 years of supervised release after being found guilty at trial of the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed in this case, Bozovich, along with others, would drive to Illinois to get heroin from Cortez Humphrey and would then redistribute it upon returning to Indiana.This case was a result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
Lamar Johnson, 26, of Minneapolis, Minnesota, was sentenced by Chief Judge Philip Simon to 132 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of transporting a minor in interstate commerce with the intent that she engage in prostitution.This case was a result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Brealon Miller, Jr., 25, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 280 months of imprisonment with 3 years of supervised release after pleading guilty to the felony offense of the December 2012 armed bank robbery of BMO Harris Bank in Hammond, and discharging and carrying a firearm in furtherance of an aggravated bank robbery. According to documents filed in this case, Miller shot a Hammond police officer three times in his leg as he was leaving the bank after the robbery. David Lee Hardin, his co-defendant, was sentenced to 355 months imprisonment in September 2013. This case was a result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Hammond Police Department. This case was prosecuted by Assistant United States Attorney David Nozick.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA (before Magistrate Judge Roger B. Cosbey:)
Michael Bure, 27, of Fort Wayne, Indiana pled guilty to the felony offense of bank robbery. The Magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by a joint task force of the Federal Bureau of Investigation, state and local law enforcement.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Jerome Burney, 40, of Fort Wayne, Indiana was sentenced to 18 months imprisonment, 3 years supervised release and to pay $461,254.72 restitution after pleading guilty to the felony offense of wire fraud.According to documents filed in this case, Burney faxed fraudulent military deployment orders to companies that were employing him at the time. The fraudulent military paperwork was used to take advantage of the military pay differential policy.The policy provides employees who are members of any branch of the United States military, or who are called up to active duty in the uniformed services as a result of an active military conflict or mission to be paid the difference between their military pay and their base rate of pay at that particular company.Because these fraudulent payments to Burney were electronically deposited into his personal bank account or made by check was sent via United States mail, his actions violated federal law.This case was the result of an investigation by the Department of Defense-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Curtis Wittwer, 66, of Spencerville, Indiana was sentenced to 18 months imprisonment (with the remainder as of the day of sentencing’s date to be served in a residential re-entry facility), with 2 years supervised release after pleading guilty to the felony offense of maintaining a drug-involved premises.According to documents filed in this case, a confidential informant notified law enforcement of Curtis Wittwer’s selling and growing of marijuana at his residence.After additional investigations, Wittwer’s residence was searched.During the search, sixteen guns, marijuana smoking devices, rolling papers, marijuana residue, and a bag with marijuana seeds were discovered.In addition, $88,600 in cash was obtained during the search.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Jamison Gudorf, 41, of Fort Wayne, Indiana was sentenced to 27 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, in 2011 and 2012, the FBI Safe Streets Task Force was investigating marijuana trafficking activity and became interested in Jamison Gudorf’s activities which involved illegal drug sales.In December 2012, officers served a federal search warrant of Gudorf’s residence.During the search, officers found a large number of firearms, including several weapons that were suspected of being fully automatic.Marijuana was also discovered during the search.In 1996, Gudorf was convicted of criminal confinement and residential entry.He was also convicted in 2007 for OWI and intimidation.This case was the result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Nicole Andrews, 36, of Fort Wayne, Indiana was sentenced to two years probation, and to pay restitution in the amount of $16,405.39, joint and several with co-defendants, after pleading guilty to the felony offense of being an accessory after the fact to a bank robbery.According to documents filed in this case, in April 2013, a local credit union was robbed by two assailants.Local law enforcement investigations determined that Andrews was involved in the robbery’s planning and execution.Andrews also attempted to misdirect law enforcement during questioning.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Lizbeth Correa, 35 of Wawaka, Indiana was sentenced to 18 months imprisonment after pleading guilty to the felony offense of knowingly making a drug-involved premise available for use.According to documents filed in this case, in March 2013, Correa worked with others to conceal methamphetamine by hiding it inside a fake cake.Correa was employed at a restaurant that she helped use to facilitate illegal drug sales. This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Chad Pyles, 22, of Arlington, Va., has pled guilty to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Pyles pled guilty on Feb. 20, 2014, in the U.S. District Court for the District of Columbia. The Honorable Richard J. Leon is to sentence him on May 16, 2014. Pyles faces a maximum sentence of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a maximum of 20 years for possession of child pornography, as well as potential fines.
According to the government's evidence, on Aug. 7, 2013, Pyles contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Pyles engaged in e-mail and text message conversations with the undercover officer, whom he believed was the father of an under-aged girl. Pyles arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During their communications, Pyles also sent the undercover officer five images of child pornography. On Sept. 10, 2013, Pyles traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. Pursuant to a search of Pyles’s computer, law enforcement recovered several videos of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's 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.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-043Veterans Support Group Director Gets 30 Months for Stealing Veteran's IdentityRead the Press Release
Richard M. Gordon, 65, of Philadelphia, PA, was sentenced today to 30 months in prison for conversion of government property. Gordon implemented a scheme to steal from the Department of Veterans Affairs (VA) by using another veteran’s identity to obtain unauthorized healthcare benefits and to receive a VA non-service connected disability pension. For over seven and a half years, defendant Gordon continuously defrauded the VA, and ultimately converted more than $178,000 in government healthcare benefits and pension payments that he knew he was not entitled to receive.
Gordon, who reported that he is the founder and director of Veterans Support Group of America, was convicted of conversion of government property after pleading guilty in July 2013.
In addition to the prison term, Judge Eduardo C. Robreno also ordered the defendant to serve 3 years of supervised release, and to pay full restitution of $178,607.20.
"Mr. Gordon went to great lengths to not only defraud the Department of Veterans Affairs, but to avoid detection," said Jeffrey G. Hughes, Special Agent in Charge of Northeast Field Office of the Office of the Inspector General of the Department of Veterans Affairs. "The VA Office of Inspector General is committed to bringing Mr. Gordon and other individuals, who take valuable resources away from deserving veterans and their families, to justice. We would like to extend our gratitude to the Department of State, Department of Homeland Security-Immigration and Customs Enforcement (DHS-ICE), and the Dutch International Police for their assistance with this investigation."
The case was investigated by the Office of the Inspector General of the Department of Veterans Affairs, and was prosecuted by Special Assistant United States Attorney Thomas Moshang III.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Utah Man Pleads Guilty to Soliciting Gifts and Property Under False PretensesRead the Press Release
ALBUQUERQUE – Michael Vernon Rupert, 42, of Alton, Utah, pleaded guilty this morning in Las Cruces federal court to an indictment charging him with three counts of solicitation and use of gifts. Rupert entered his guilty plea without the benefit of a plea agreement.
Rupert, a former U.S. Army sergeant, was arrested on a criminal complaint in Utah on Oct. 11, 2013, and was transferred to Las Cruces federal court to answer the charges on Nov. 12, 2013. On Jan. 15, 2014, Rupert was indicted on three counts of unlawful solicitation and use of gifts. According to the indictment, in July 2012, Rupert solicited gifts and property from three companies by falsely claiming that they were for use by the U.S. Army. At the time of the offenses charged in the indictment, Rupert was residing in Hondo, N.M.
According to the criminal complaint, Homeland Securities Investigations (HSI) initiated an investigation into Rupert in Nov. 2012, after receiving information that Rupert was soliciting military and law enforcement type clothing and shooting gear from manufacturers by falsely claiming to be a U.S. Army Command Sergeant Major stationed at White Sands Missile Base. During the solicitations, Rupert claimed the goods would be used for testing and evaluation by the U.S. Army and implied that the Army would purchase large quantities of the manufacturers’ products depending on testing and evaluation, and his recommendation. HSI’s investigation revealed that Rupert solicited merchandise valued at approximately $35,000 from 37 manufacturers and distributors between July 2012 and May 2013. Although Rupert relocated from Hondo, N.M., to Alton, Utah, in Oct. 2012, he unlawfully solicited approximately $32,000 of merchandise before moving to Utah.
The criminal complaint alleges that Rupert continued his unlawful solicitation scheme when he moved to Utah, and that an investigation by Utah state authorities led to the discovery of three more manufacturers and distributors from whom Rupert unlawfully solicited merchandise. In Oct. 2013, Utah authorities searched a trailer Rupert was towing as he was in the process of moving to Missouri and found merchandise sent to him by a number of the manufacturers who had responded to Rupert’s solicitations.
Rupert remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. At sentencing, Rupert faces a maximum penalty of five years in prison on each of the three counts to which he pleaded guilty.
This case was investigated by the Las Cruces office of HSI with assistance from the Kane County (Utah) Sheriff’s Department, and is being prosecuted by Special Assistant U.S. Attorney Michael S. Pleters of the U.S. Attorney’s Las Cruces Branch Office.
Two Defendants Sentenced in Stolen Identity Tax Refund Scheme Relating to A Health Care ProviderRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Angelo Ponds, 32, of Miami Gardens, and Sean Guillaume, 31, of Miramar, were sentenced today for their participation in a stolen identity tax refund scheme relating to a health care provider. Ponds was sentenced to 48 months in prison, to be followed by three years of supervised release. Guillaume was sentenced to 94 months in prison, to be followed by three years of supervised release.
Both defendants previously pled guilty to one count of conspiracy to defraud the government, in violation of Title 18, United Stated Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A.
According to court documents, Guillaume worked for a company that performed medical laboratory tests where he had access to medical records with names, dates of birth, and Social Security numbers (personal identity information or “PII”) of individuals in the course of his employment with that company.
During the conspiracy, Guillaume stole PII from the company and sold five thousand individuals’ PII to Ponds. Guillaume knew that Ponds would use the PII for the filing of fraudulent and unauthorized tax returns. Ponds caused other individuals to file false and fraudulent tax returns with the Internal Revenue Service (IRS) seeking refunds using the PII provided by Guillaume.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Troy Man Sentenced for Illegal Possession of A FirearmRead the Press Release
TROY, NEW YORK – RICHARD S. ELY, age 27, of Troy, New York, was sentenced today to 63 months in prison by the Honorable Mae A. D’Agostino, announced United States Attorney Richard S. Hartunian, Joseph Anarumo, Special Agent-in-Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Police Chief Steven Krokoff of the Albany Police Department. The sentence follows ELY’s February 18, 2013 guilty plea to illegally possessing a firearm.
On June 7, 2012, when executing a search warrant, police found a .22 caliber firearm and ammunition in ELY’s residence. ELY, who had two prior felony convictions (a 2007 conviction for criminal sale of a controlled substance and 2012 conviction for aggravated driving while under the influence with a child under age fifteen as a passenger), was prohibited from possessing firearms.
This prosecution resulted from an investigation conducted by the Albany Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives Albany Field Office. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Topeka Man Sentenced on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to federal prison on a firearm charge, U.S. Attorney Barry Grissom said.
Joseph S. Buschbom, 31, Topeka, Kan., was sentenced Thursday to 41 months in prison. Buschbom pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that he possessed a .380 caliber handgun on June 12, 2013, when drove into a driver’s license check lane being operated by the Topeka Police Department. He recognized one of the officers and said to him: “Give me a break.” Then he tried to drive away from the check lane with an officer partly inside in the car window. Buschbom yelled, “I can’t get stopped, I have a gun in my waistband.” Officers found later that the car was stolen and there was an outstanding warrant for Buschbom’s arrest.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.Three Men Charged with Conspiracy to Possess Destructive DevicesRead the Press Release
ROME, Ga. - Brian Cannon and Cory Williamson appeared in federal court today for preliminary and bond hearings on federal charges of conspiring to receive and possess unregistered destructive devices, specifically pipe bombs and thermite devices. According to a federal complaint filed this week, the defendants sought to obtain the explosive devices as part of a militia operation.
"This case is a stark reminder of the threat we face not just from abroad, but from within our own borders from our own citizens,” said United States Attorney Sally Quillian Yates. “When plans turn violent, law enforcement must step in to protect our communities from harm. Fortunately, the FBI was able to stop these defendants before they were able to carry out their plans."
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI can no longer wait to respond to the aftermath of a radicalized individual's or group's threats. Instead, we have to bring our investigative and analytical assets to bear in getting ahead of those threats and potential attacks and do so within the rule of law. The FBI would like to thank the Bartow-Cartersville Drug Task Force, Floyd County Police Department, Polk County Police Department, Rome Police Department, and the Bartow County Sheriff's Office for their investigative and operational assistance in this matter.”
According to United States Attorney Yates, the charges, and other information presented in court: Between January 23, 2014, and February 15, 2014, Cannon, Williamson, and Terry Eugene Peace, the third defendant, participated in online chat discussions during which they discussed carrying out an operation against the government. During on online chat on January 23, 2014, Peace spoke about a mission that was to be launched in February. Peace encouraged members of the militia to review guerilla warfare tactics, small unit tactics, accumulate supplies, and prepare their families. Peace also identified targets such as “…TSA, DHS, non-emergency FEMA, road blocks, etc.” The discussions were reported to the FBI, and the FBI then began consensually monitoring the communications.
Pursuant to this mission, Peace asked a cooperating witness to provide them with 12 pipe bombs and two thermite grenades. Peace, Cannon and Williamson subsequently planned to meet with the cooperating witness in order to take possession of the items after the items were made.
On February 15, 2014, Peace, Cannon and Williamson drove to a location in Cartersville to meet the cooperating witness. Prior to their arrival, the cooperating witness was provided with 12 inert pipe bombs and 2 inert thermite devices that were constructed to look like real explosives. The three defendants were arrested as they were taking possession of the devices.
Terry Peace, 45, Brian Cannon, 37, and Cory Williamson, 28, of Rome, Ga., all had initial appearances before Walter E. Johnson, United States Magistrate Judge, on February 18. Cannon and Williamson were detained at the conclusion of today’s hearing. All three were charged in a criminal complaint on February 18, 2014.
Members of the public are reminded that the criminal complaint only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Tracia King and Ryan Buchanan are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Tax Return Preparer Sentenced to 15 Years in Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Kenyon Lamont Williams to 15 years in federal prison for a stolen identity refund fraud conspiracy. As part of his sentence, the court also entered a money judgment in the amount of $1,575,304.49, the proceeds of this tax fraud conspiracy. In addition, the court ordered Williams to pay $1,013,285.00 in restitution to the Internal Revenue Service.
Williams was found guilty after a jury trial on November 1, 2013.
According to testimony and evidence presented at trial, Williams worked in San Diego, California as a certified tax return preparer. Between 2007 and 2010, he worked for a national company as a part-time seasonal tax preparer. Around the beginning of 2011, Williams opened his own tax preparation service, which he operated out of his residence.
On January 25, 2012, Williams called his friend and fellow tax return preparer, Alesia Spivey, who lived in Tampa. Spivey and Williams discussed the 2012 tax season and Williams's desire to maximize the refund amounts for his clients. During this conversation, Williams solicited information from Spivey regarding methods to increase refunds. Spivey and Carlista Hawls, another co-conspirator, explained to Williams that individuals in Tampa were using a particular interest income scheme to file bogus tax returns with the IRS. Spivey advised Williams on how to fill out the tax returns to employ this interest income scheme. Between January 25 and July 19, 2012, Williams prepared and filed 168 fraudulent tax returns for tax year 2011, using bogus interest income figures provided by Spivey and Hawls. In addition, during this time period, Williams filed several hundred more tax returns from San Diego, employing other fraudulent claims to obtain refunds from the IRS.
On March 2, 2012, Spivey and Hawls flew to San Diego to meet with Williams. During the trip, Williams provided Spivey and Hawls with a list of names, dates of birth, and social security numbers for purposes of preparing and filing fraudulent tax returns in Tampa. Most of the individuals on the list were homeless, unemployed, or incarcerated. Williams also gave Spivey and Hawls a stack of U.S. Navy blood donor records so they could use the identities of servicemen and servicewomen to file bogus tax returns. Spivey and Hawls used the first list to file fraudulent tax returns with the IRS, but Spivey refused to use the list of military personnel because her son was in the U.S. Marine Corp.
Williams was arrested in January 2013, and released on bond with various conditions, including that he could not prepare or file tax returns for any third parties. Within two weeks of his release, Williams began filing tax returns for the 2013 tax season. By April, he had filed 381 tax returns, most of which were fraudulent. Upon discovery, the court revoked Williams’s bond and he remained detained pending trial.
This case was investigated by the Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Simon Gaugush and Adam Saltzman.
Suspect in Shooting of Highway Patrol Officer Pleads Guilty to Federal ChargeRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Mikel Edward Brady, age 23, of Durham, North Carolina, received a prison term for possession of a firearm by a felon.
On February 21, 2014, Chief United States District Judge William L. Osteen, Jr. sentenced Brady to 480 months in prison followed by 5 years of supervised release.
On February 18, 2013, a vehicle operated by Brady was stopped on Highway 70 in Durham, NC by North Carolina State Highway Patrolman Michael Potts. Brady shot Trooper Potts twice before fleeing. Brady was apprehended the following day. Potts sustained multiple injuries and recently returned to duty. Brady is currently serving a state court sentence of more than twenty-four years for shooting Trooper Potts with the firearm Brady possessed illegally.
“We will continue to work together closely and effectively with state and local law enforcement to fight violent crime,” said United States Attorney Rand. “We are dedicated to making sure that those who possess guns illegally and commit crimes with those guns receive just punishment.”
The case was investigated by the Durham Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Special Assistant United States Attorney Kyle Pousson.
St. Thomas Man and St. John Woman Arrested for Impersonating Fbi AgentsRead the Press Release
St. Thomas, USVI – Alana Liburd, 30, of St. John and Yamini Potter, 31, of St. Thomas were arrested today by agents from the Federal Bureau of Investigation (FBI) for impersonating FBI employees as part of a scheme to defraud people out of hundreds of dollars, United States Attorney Ronald W. Sharpe announced. Both Liburd and Potter appeared today in District Court in St. Thomas before U.S. Magistrate Judge Ruth Miller, and were released on a $5,000 unsecured bond.
According to court documents, Potter and Liburd told several individuals that they were FBI employees responsible for forming a new FBI Taskforce in the Virgin Islands. Potter and Liburd then recruited several individuals to become FBI agents, but only after receiving hundreds of dollars from them, which they claimed was for initial paperwork and training. Under federal law it is a felony offense to falsely assume or pretend to be an officer or employee of a federal agency and demand or obtain money or thing of value.
If convicted, Potter and Liburd each face up to three years in prison and fines of up to $250,000. The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office.
St. Petersburg Man Sentenced to 8 Years for Possession of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Barry Anthony McGill (30) to 8 years in federal prison for possession of child pornography. The court also ordered McGill to forfeit two computers traceable to the offense. McGill pleaded guilty on November 26, 2013.
According to court documents, an undercover agent downloaded multiple files depicting child pornography from McGill, in August 2013. On October 1, 2013, federal agents executed a search warrant at McGill’s residence. During an interview with agents, McGill confessed to downloading images of child pornography and making them available for others via the Internet. Agents also seized McGill’s computers and found that they contained images of child pornography.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, the Largo Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
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 (CEOS), 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.projectsafechildhood.gov.
Sicily Island Farmer Sentenced to 12 Months in Prison for Lying in Order to Receive $1.2 Million in LoansRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that James Goode Jr., 45, of Sicily Island, La., was sentenced by U.S. District Judge Dee D. Drell, to 12 months in prison and three years of supervised release for lying to the Farm Service Agency (FSA) in order to obtain more than $1.2 million in loans. He was also ordered to pay $322,356 in restitution.
According to evidence presented at the guilty plea on October 16, 2013, Goode admitted to applying for three FSA sponsored loans totaling $1,263,800 in early 2009. On the applications for the loans, Goode withheld reporting numerous debts totaling $357,470 from government agencies, banks and private companies, which he was required by law to disclose as it affected his eligibility to receive those loans. As a result of the omissions on the loan applications, he was able to fraudulently obtain the money and defaulted on $322,356.
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.Sex Offender Sentenced to 6 Years for Child Sexual ExploitationRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Oregon man was sentenced in federal court in Anchorage for transporting child pornography from Alaska to Canada. Aaron Bruno Finn, was sentenced to 6 years in prison, followed by 15 years of supervised release.
Finn, age 57, was a commercial truck driver, and transported over 600 images of child pornography on digital materials he carried in his truck while driving from Alaska to Oregon. He was stopped at the Canadian Border, and was arrested for importing child pornography into Canada. Finn was sentenced to serve 2 years in prison in Canada before being turned over to American authorities.
United States District Court Judge Sharon L. Gleason sentenced Finn to 72 months (6 years) in prison, after considering the 2 years of imprisonment he had already served in Canada. Judge Gleason also sentenced Finn to serve 15 years of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment. Finn’s truck was also administratively forfeited by Homeland Security Investigations when it was released by Canadian authorities.
The sexually explicit images of children depicted children as young as 2 years old. At sentencing on February 20, 2014, Judge Gleason stated, “This is not a victimless crime.” “It troubles me that I didn’t hear (from Mr. Finn) an understanding of how these children are being victimized.” “…for gratification of adults.”
Over 600 images of child pornography were found on Finn’s laptop computers. Several child victims who were identified in those images submitted letters describing the serious harms they had suffered as a result of being sexually exploited. Judge Gleason acknowledged those harms and the seriousness of child pornography crimes when she sentenced Finn to the 6-year prison sentence, and 15 years of supervised release.
Ms. Loeffler commends Homeland Security Investigations (HSI) for their extensive investigation of this case, and acknowledges HSI’s persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators that harm children.