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20 February 2014
Former CEO of Technology Start-Up Charged in Investment SchemeRead the Press Release
SAN FRANCISCO – Jonathan Edward (“Jon”) Mills, the former Chief Executive Officer of a San Francisco-based technology company, has been charged with wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
An affidavit filed by FBI Special Agent Brian Weber alleges that Mills, 30, of San Francisco, falsely represented that Motionloft, Inc., a company he founded and served as its CEO, was going to be acquired by Cisco, Inc., and that Cisco already had paid a good faith deposit of millions of dollars toward that acquisition. According to court documents, one victim invested $210,000 relying on Mills’ claims that this victim would obtain shares in Motionloft in return and huge profits when the acquisition closed. Mills allegedly made these false representations just days before Motionloft’s stockholders terminated him as CEO on or about December 1, 2013. According to court documents, representatives of Cisco and Motionloft’s largest investor have both stated there was no possible acquisition of Motionloft by Cisco. Furthermore, court documents reflect that Motionloft’s largest investor has been contacted by several victims of Mills, and that Mills has claimed he is trying to pay back those victims.
Mills was arrested yesterday in San Francisco, and he made his initial appearance in federal court in San Francisco this morning. Mills is in custody, at least until his next scheduled court appearance, tomorrow, February 21, 2014, at 9:30 a.m. before the Honorable Maria-Elena James, United States Magistrate Court Judge in San Francisco.
The maximum statutory penalty for wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, plus restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Authorities believe there are several additional victims of Mills’ alleged fraud. Anyone with information about Mills should contact the FBI in San Francisco at 415-553-7400.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note that a criminal complaint contains only allegations against an individual and, as with all defendants, Jonathan Edward (“Jon”) Mills must be presumed innocent unless and until proven guilty.
(Mills criminal complaint )
Former CEO of Luggage Manufacturer Charged in Manhattan Federal Court for Multimillion-Dollar Bank Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MARVIN JEMAL, the former Chief Executive Officer of a Manhattan-based company that designed, imported and distributed luggage, business bags, backpacks, and accessories (the “Company”), was arrested today for a fraudulent scheme to obtain millions of dollars in loans by making false statements and providing false and fraudulent documents to a commercial bank based in New York (the “Bank”). JEMAL was arrested this afternoon at John F. Kennedy International Airport in New York, and is expected to be presented later today in Manhattan federal court before United States Magistrate Judge Gabriel W. Gorenstein.
MARK BERNSTEIN, the former Chief Financial Officer of the Company, was previously arrested in August 2013 and pled guilty in October 2013 before U.S. District Judge Robert P. Patterson for his role in the scheme.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, former CEO Marvin Jemal and another executive at his luggage company set out to fleece a bank into lending their company millions of dollars by submitting documents loaded with lies and backing them up with false statements. Those millions were then allegedly funneled to Jemal’s personal accounts and used for mortgage payments and payments on a Porsche, among other things.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, the defendant thought he could ‘beat the bank’ with lies and misrepresentations to support a lavish lifestyle. He obtained millions of dollars in loans by submitting falsified and fraudulent documents to his commercial lender, then diverted that money to his personal accounts. Bank fraud is a serious crime that weakens the economic integrity of our financial institutions. The defendant’s arrest today should send a clear message to the public that bank fraud cases such as this one are, and will continue to be, a high priority for the FBI. Individuals who try to line their pockets by engaging in financial fraud schemes should be reminded that their criminal activity will not go undetected and they will be held accountable.”
According to the allegations contained in the Indictment unsealed today and other documents previously filed in Manhattan federal court:
From 2007 through October 2009, JEMAL and BERNSTEIN engaged in a scheme to fraudulently induce the Bank to lend millions of dollars to the Company. Among other things, JEMAL and BERNSTEIN knowingly made false representations to the Bank, concealed material facts from the Bank, and submitted false and fraudulent documents to the Bank, including fabricated invoices and shipping documents. In total, the Company obtained approximately $6.9 million in loans from the Bank and defaulted on approximately $6 million of those loans.
Further, although the loans were purportedly for the benefit of the Company’s business, in fact, JEMAL diverted approximately $3.5 million of the loan proceeds to personal bank accounts and used the money to pay for various personal expenses, including mortgage payments on properties he owned, credit card bills, and payments on his Porsche.
The Factoring Agreement
The Company obtained the loans from the Bank as part of a secured credit facility, pursuant to a factoring agreement between the Company and the Bank. Under the terms of the factoring agreement, the Company would assign and sell the Company’s interest in its accounts receivable to the Bank and, in exchange, the Company could borrow from the Bank up to 85% of the value of those receivables. In addition, the Company could borrow up to 50% of the value of its inventory. In order to draw down on its secured credit facility, however, the Company was required to provide the Bank with, among other things, an accurate listing of all accounts receivable, as well as supporting documentation, including copies of (i) relevant underlying invoices and (ii) shipping documents or other proof of delivery.
The Scheme to Fraudulently Obtain Loans
To fraudulently obtain loans from the Bank under the factoring agreement, JEMAL and BERNSTEIN made false statements and submitted false and fraudulent documents to the Bank, including the following:
- JEMAL and BERNSTEIN sent duplicate and/or fabricated invoices to the Bank that purported to reflect the sale of certain products by the Company and, thus, an outstanding receivable for the Company. In truth, however, the sales reflected on those invoices were false, as those sales either had never occurred or had already been invoiced separately.
- JEMAL and BERNSTEIN provided fraudulent shipping documents to the Bank to substantiate the purported sales of products by reflecting that those products had been shipped to customers. In truth, however, those shipping documents were false and fraudulent, as the products had not, in fact, been shipped to the customers as reflected in the shipping documents.
- JEMAL and BERNSTEIN concealed material facts from the Bank, including credits that the Company had provided to certain of its customers (which thereby reduced the total accounts receivable associated with those customers) and instances in which the Company had directly collected and deposited payments from its customers on the same invoices the Company assigned to the Bank.
- JEMAL and BERNSTEIN provided inaccurate monthly inventory spreadsheets to the Bank which overstated the Company’s existing inventory.
Further, in order to conceal the scheme, JEMAL made various oral misrepresentations to certain representatives of the Bank when those representatives confronted him about irregularities and other issues that the Bank had discovered with respect to the Company’s assignment of its accounts receivable.
The Money Laundering Scheme
Between approximately May 2007 and February 2012, after fraudulently inducing the Bank to loan millions of dollars to the Company, JEMAL and BERNSTEIN arranged to divert more than $3.5 million in loan proceeds to personal bank accounts controlled by JEMAL. To conceal that the money was being diverted to JEMAL’s personal accounts, the defendants first moved the funds through bank accounts in the name of two shell corporations that JEMAL controlled. From those accounts, the money was transferred to JEMAL’s personal accounts and used to pay for personal expenses, including, among other things, mortgage payments on properties owned by JEMAL, bills from credit cards in the name of JEMAL and his wife, and payments on a Porsche driven by JEMAL.
JEMAL, 60, of Brooklyn, New York, is charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison, and one count of money laundering, which carries a maximum sentence of 20 years in prison. U.S. District Judge Valerie E. Caproni is assigned to the case.
BERNSTEIN, 63, of Belle Harbor, New York, pled guilty to one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison. He also pled guilty to one count of wire fraud and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. BERNSTEIN awaits sentencing.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and JEMAL is presumed innocent unless and until proven guilty.
U.S. Marvin Jemal Indictment
Former Bayonne Official Admits Accepting $65,000 in Bribes for Awarding HUD Grant FundsRead the Press Release
TRENTON, N.J. - A Hudson County, N.J. man, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD) today admitted accepting $65,000 in bribe payments in exchange for his assistance in awarding projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.
Anselmo Crisonino, 53, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a four-count information charging him with one count of accepting bribe payments totaling approximately $65,000 from Joseph Arrigo, the owner of a contracting company in Bayonne. Crisonino also pleaded guilty to one count of theft and conversion of federal funds ($422,360), one count of conducting an illegal gambling business, and one count of submitting a false tax return for tax year 2011.According to documents filed in this case and statements made in court:
The CBDCD was an agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash bribe payments from Arrigo in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo as the owner of Shadow Contracting LLC. From September 2010 to February 2013, Crisonino received cash payments from Arrigo totaling approximately $65,000 in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo that totaled approximately $426,000.
Between September 2010 and February 2013, Crisonino awarded HUD grant funds to several contractors and plumbers in Bayonne through the CBDCD, despite the fact that Crisonino knew that the submitted bids for the projects were fraudulent and were the result of collusion by the contractors and plumbers. Crisonino also approved change orders on projects where little to no legitimate work had been done by the contractors and plumbers at the job sites. The approved change orders allowed the CBDCD to disperse additional HUD grant funds to the projects that had already reached the maximum $20,000 grant allotment.
Crisonino also pleaded guilty to conducting an illegal gambling business in northern New Jersey. The illegal gambling business was administered and managed through a website that Crisonino and others accessed through usernames and passwords.
He admitted making and subscribing a U.S. Individual Tax Return, Form 1040, for tax year 2011 filed with the IRS, which he did not believe to be true and correct as to every material matter, including approximately $65,000 in unreported income through the bribe payments.
The bribery and theft of government funds charges to which Crisonino pleaded guilty are each punishable by a maximum potential penalty of 10 years in prison. The charge of conducting an illegal gambling business is punishable by a maximum potential penalty of five years in prison. The charge of filing a false tax return is punishable by a maximum potential penalty of three years in prison. All of four charges are also punishable by a $250,000 fine. Sentencing is currently scheduled for June 4, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark: special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
14-056
Defense counsel: Daniel J. Welsh Esq., Jersey City, N.J.
Crisonino, Anselmo Information
Former Alabama Bank Employee Sentenced to Prison for Role in Tax Refund FraudRead the Press Release
Montgomery, Alabama - LaQuanta Clayton, a resident of Montgomery, Ala., and a former bank teller employed by the Community Bank and Trust, was sentenced on February 19, 2014 to serve 21 months in prison to be followed by three years of supervised release for participating in a fraudulent tax refund scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Clayton previously pleaded guilty to theft of government property in July 2013.
According to court documents and statements made in open court, Clayton used her position as a bank teller to open bank accounts in the name of another individual without his knowledge and bank accounts in the name of fictitious individuals for the purpose of receiving fraudulent tax refunds. It is further alleged that Tarrish Tellis, also from Montgomery, directed Clayton to open multiple bank accounts in order to receive electronic deposits of fraudulent tax refunds. Clayton would facilitate the withdrawal of this money and would give the money deposited into these accounts to Tellis and other individuals involved in the scheme. A final disposition concerning Mr. Tellis’ involvement in this case is still pending.
Clayton opened a total of at least five bank accounts at Community Bank and Trust, which she used to receive fraudulent tax refunds. Approximately $452,225 in fraudulent tax refunds were directed to be deposited into these accounts and the Internal Revenue Service (IRS) paid approximately $185,730 in fraudulent refunds, which were deposited into accounts Clayton opened and controlled. At her sentencing, Clayton was also ordered to pay restitution in this amount.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar, Jr. of the Justice Department’s Tax Division, and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Five NDCA Assistant United States Attorneys Among Fifty Seven Recipients of the California Lawyer Attorneys of the Year AwardRead the Press Release
SAN FRANCISCO – San Francisco Office, Assistant United States Attorneys Hartley M.K. West, Philip J. Kearney, John H. Hemann, Susan E. Badger, and Stacey P. Geis, have been chosen among 57 attorneys around the state to receive the 18th Annual California Lawyer Attorneys of the Year Award. The honored attorneys include prosecutors, public-interest lawyers, and attorneys from regional and international law firms. The recipients of the CLAY Awards will be featured in the March 2014 issue of California Lawyer.
“Federal prosecutors work hard every day to keep the public safe. We are proud of the accomplishments of these Assistant United States Attorneys and congratulate them and all the other honorees for this well-deserved award,” said United States Attorney, Melinda Haag.
Regarding the CNET/Butler cases for which AUSAs West, Kearney, Hemann and Badger were honored, Ms. Haag said: “Color of law civil rights cases are difficult to investigate and prove, but AUSAs take their responsibility for enforcing our civil rights laws seriously. These four AUSAs all worked extraordinarily hard to see that justice was done, and to send the message that we cannot tolerate corrupt law enforcement officers who bring dishonor to the badge and cavalierly violate the rights of people they are sworn to defend and protect.”
Regarding the Wal-Mart case for which Ms. Geis was honored (along with Central District of California AUSA Joseph O. Johns), Ms. Haag added: “The Wal-Mart case resolution provided the seed money for the creation of the San Francisco Bay Estuary Conservation Fund that will fund Bay Area environmental projects going forward. Wal-Mart’s guilty plea shows Ms. Geis’ dedication to bringing one of the largest retailers in the United States to justice for failing to comply with regulations designed to ensure the proper handling, storage, and disposal of hazardous materials and waste.”
The Assistant United States Attorneys and their achievements are briefly described below.
Hartley M.K. West, Philip J. Kearney, John H. Hemann, and Susan E. Badger, U.S. Attorney’s Office, San Francisco
Category: Criminal LawThis team of federal prosecutors brought dozens of civil rights and corruption charges against the Central Contra Costa Narcotics Enforcement Team and four police officers which resulted in several convictions.
This team of federal prosecutors brought dozens of civil rights and corruption charges against the Central Contra Costa Narcotics Enforcement Team and four police officers which resulted in several convictions. This included the prosecutions of former CNET Commander Norman Wielsch and private investigator Christopher Butler for civil rights and narcotics conspiracies, narcotics distribution, extortion, and robbery; former Richmond Police Officers Danny Harris, Jr. and Raymond Thomas, Jr. on firearms and obstruction of justice charges in connection with running a private security business on the side; former San Ramon Police Officer Louis Lombardi for stealing money and property during searches that he performed as a law enforcement officer; and former Contra Costa County Deputy Sheriff Stephen Tanabe for honest services fraud and extortion for arranging “stings” against men involved in child custody disputes in exchange for cocaine and a firearm provided by private investigator Butler. As a result of these prosecutions, these corrupt law enforcement officers sustained felony convictions, lost their jobs, and are serving sentences imposed by the Court.
Stacey P. Geis, U.S. Attorney’s Office, San Francisco
Joseph O. Johns, U.S. Attorney’s Office, Los Angeles
Category: Environmental LawJohns and Geis successfully prosecuted Walmart Stores Inc. for illegally handling and disposing of hazardous waste throughout the country, resulting in the company pleading guilty to violating the Clean Water Act and paying more than more than $81 million, with $20 million used to fund various community service projects, including opening a $6 million Retail Compliance Assistance Center that will help retail stores across the nation learn how to properly handle hazardous waste and $4.5 million to go to the newly-created San Francisco Bay Estuary Conservation Fund that will fund Bay Area environmental projects. According to documents filed in U.S. District Court in San Francisco, from a date unknown until January 2006, Wal-Mart did not have a program in place and failed to train its employees on proper hazardous waste management and disposal practices at the store level. As a result, hazardous wastes were either discarded improperly at the store level – including being put into municipal trash bins or, if a liquid, poured into the local sewer system – or they were improperly transported without proper safety documentation to one of six product return centers located throughout the United States.
Final Defendants Sentenced in Colombia/Texas Drug Trafficking ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Four members of a Colombian drug trafficking organization have been sentenced to prison for federal violations after being convicted in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jaime Gonzalo Castiblanco Cabalcante, 58, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 360 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Julio Hernando Moya Buitrago, 49, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 292 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Oscar Orlando Barrera Pineda, 37, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of manufacturing cocaine for distribution into the United States and was sentenced to 292 months in federal prison on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Roberth William Villega Rojas, 40, of Florencia, Caqueta, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 235 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Sep. 9, 2013 by U.S. District Judge Marcia A. Crone.
The defendants were indicted by a federal grand jury on Oct. 15, 2009, along with 21 others charged with drug trafficking crimes, including conspiracy to import cocaine into the United States and manufacturing and distribution of cocaine to be imported into the United States. According to the indictment, the defendants are members of a drug trafficking organization responsible for sending cocaine from Colombia to the United States using Central America and Mexico as a transshipment point.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Direccion de Investigacion Criminal e Interpol (DIJIN) of the Colombian National Police (CNP), Fiscalia General de la Nacion (Office of the Attorney General of Colombia), Cuerpo Tecnico de Investigacion (CTI), Fuerza Aerea Colombiana (Colombian Air Force), U.S. Drug Enforcement Administration (DEA) Panama Country Office, DEA Houston Field Division, DEA Bogota, Colombia, DEA Dallas Field Division, Federal Aviation Administration (FAA), the Honduran National Police and the U.S. Coast Guard. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan, Jay Combs, and Camelia Lopez.
####Federal Law Enforcement Targets Child PredatorsRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced the following prosecutions for violations of federal child exploitation laws.
A grand jury in Fresno returned a one-count indictment today against Tyler Certuche, 20, of Bakersfield, charging him with receiving and sharing child pornography in August and September 2013. According to a previously filed criminal complaint, an FBI agent in Oklahoma City obtained several child pornography video files through a file-sharing program from a computer subsequently traced to Certuche. When a search warrant was executed at Certuche’s residence in Bakersfield on February 12, 2014, Certuche admitted that he had used the file sharing program to obtain and view child pornography videos in 2013. Certuche is out of custody and scheduled for arraignment on February 26, 2014.
This case is the product of an investigation by the FBI. Assistant U.S. Attorney David L. Gappa is prosecuting the case. (1:14-cr-032-AWI-BAM)
Yuba City Defendant Sentenced to More Than 8 Years in Prison
Derrick Jason Pair, 29, of Yuba City, was sentenced on February 11, 2014, by United States District Judge John A. Mendez to eight years and one month in prison, to be followed by a lifetime period of supervised release. According to court documents, Pair came to the attention of law enforcement during the investigation of another defendant. A search warrant executed at Pair’s residence located approximately 2,000 images of child pornography and 50 videos on his computer. Some of the images and videos showed prepubescent children and toddlers and sadistic and masochistic conduct. (2:12-cr-422 JAM)
Oroville Defendant Sentenced to 10 Years in Prison
Michael Adam Cruz, 23, of Oroville, was sentenced on February 12, 2014, by United States District Judge Kimberly J. Mueller to 10 years in prison, to be followed by a 10-year term of supervised release. According to court documents, in May 2012, Cruz posted an advertisement on Craigslist seeking a young-looking female. He arranged to meet a minor for the purpose of having sex with her and was arrested upon his arrival at the designated meeting point. (2:11-cr-239 KJM)
Chico, Rocklin and Roseville Defendants Indicted on February 12, 2014
A federal grand jury returned a one-count indictment charging John Franklin Bye, 45, of Chico, with receiving images of child pornography between 2011 and 2012. Bye was arraigned on February 14, 2014 and pleaded not guilty. He is in custody, and his next court date is April 1, 2014. (2:14-cr-034 JAM)
A federal grand jury returned a one-count indictment charging Paul Ross Pacini, 45, of Rocklin, with receiving images of child pornography between December 28, 2009, and October 13, 2013. At his arraignment on February 12, 2014, Pacini pleaded not guilty. He is in custody, and his next court date is March 11, 2014. (2:14-cr-033 LKK)
Robert Jones, 49, of Roseville, was indicted for receiving images of child pornography between October 23, 2011, and October 27, 2011. Jones pleaded not guilty at his arraignment on February 18, 2014. He was released on $50,000 bond. (2:14-cr-037 KJM)
The maximum statutory penalty for each violation of distributing or receiving child pornography is 20 years in prison and a $250,000 fine. A conviction for the violation would also carry a mandatory minimum term of five years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges in the indictments are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases, other than the Bakersfield case, were investigated by the Sacramento Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon is prosecuting the cases other than the Bakersfield case
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
February Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 24 indictments charging 28 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Tempest Amerson, age 23, of Lincoln, Nebraska; Yolanda Clemons, age 46, of Kansas City, Kansas; Isys Jordan, age 23, of Marietta, Georgia; Rosland Starks, age 44, of Council Bluffs, Iowa; and Thomas Whitlow, age 52, of Kansas City, Kansas are charged in a twelve-count Indictment. Beginning at least on or about May 31, 2011, and continuing through on or about November 1, 2013, the defendants allegedly devised a scheme to solicit money from elderly individuals under false pretenses. The defendants called elderly individuals and claimed to be family relatives or persons acting on their behalf. The caller claimed that the family member needed money immediately due to exigent circumstances. The elderly individual would then wire money immediately to the defendants. In all, these elderly individuals wired approximately $20,000. If convicted each of the twelve counts is punishable by 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Richard D. Avila, Jr., age 50, of Omaha, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about May 1, 2013 and continuing to on or about November 21, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Lamar Bertucci, age 45, of Walthill, Nebraska, is charged in a two-count indictment. Count I of the indictment alleges Bertucci shot and killed a bald eagle on or about February 10, 2014. The maximum possible penalty, if convicted, is 2 years imprisonment , a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count II of the indictment alleges Bertucci shot and killed a rough-legged hawk on or about February 20, 2014. The maximum possible penalty, if convicted, is 6 months imprisonment, a $5,000 fine and a $10 special assessment.
* Carlos Francisco-Hernandez, age 22, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about February 9, 2014. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about February 9, 2014, Francisco-Hernandez made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about February 9, 2014, Francisco-Hernandez misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jose Fuentes-Urbina, age 31, of Omaha, is charged with illegal reentry into the United States on or about September 24, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 5 years of supervised release, and a $100 special assessment.
* Jazmin Gallardo-Luna, age 27, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about December 10, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about December 10, 2009, Gallardo-Luna made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about December 10, 2009, Gallardo-Luna misused a Social Security Card and a State of Illinois Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Alfa Juarez-Miranda, age 45, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about August 28, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about August 28, 2009, Juarez-Miranda made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about August 28, 2009, Juarez-Miranda misused a Social Security Card and a State of Minnesota Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jose Antonio Lopez-Salas, age 26, of Omaha, is charged with illegal reentry into the United States on or about January 17, 2014, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Christo Lorenzo-Ortiz, age 30, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 12, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about March 12, 2009, Lorenzo-Ortiz made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about March 12, 2009, Lorenzo-Ortiz misused a Social Security Card and a State of Missouri driver’s license knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Deysi Magana-Flores, age 23, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about July 27, 2011. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about July 11, 2011, Magana-Flores made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about July 11, 2011, Magana-Flores misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Francisco C. Marin, age 24, of Offutt AFB, Nebraska, is charged with possession with intent to distribute 50 grams or more of actual methamphetamine on or about January 31, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to Life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to: United States currency seized on January 31, 2014, should be forfeited to the United States.
* James F. Parks, age 65, of Alliance, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges Parks with receipt and distribution of child pornography from at least on or about June 9, 2013 and continuing to on or about June 10, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for Life, and a $100 special assessment. Parks is charged in Count II of the Indictment with possession of child pornography on or about August 8, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Ryan William Perich, age 29, of Woodbridge, California, is charged with traveling in interstate commerce from on or between about March 1, 2013 through about January 24, 2014, to distribute the proceeds and to promote the carrying on of an illegal activity. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, 3 years of supervised release and a $100 special assessment.
* Lewis E. Phoenix, age 21, of Arlington, Texas, is charged with possession with intent to distribute 28 grams or more of a mixture or substance containing a detectable amount of cocaine base on or about October 30, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment.
* Rudy Alexander Reyes, age 32, of Fremont, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with illegal reentry into the United States on or about January 17, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 5 years of supervised release, and a $100 special assessment. Count II of the indictment charges Reyes with failure to register as a sex offender from on and before January 17, 2014. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 5 years up to Life supervised release, and a $100 special assessment.
* Wesley A. Roberts, age 62, of Bridgeport, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges Roberts with receipt and distribution of child pornography from at least on or about September 17, 2013, and continuing to on or about January 7, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for Life, and a $100 special assessment. Roberts is charged in Count II of the Indictment with possession of child pornography on or about January 7, 2014. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations, including but not limited to: One Samsung Tracphone, should be forfeited to the United States.
* Adrian Salgado-Sandoval, age 42, of Omaha, is charged with illegal reentry into the United States on or about September 11, 2013, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Inocencio Segura Jimenez, also known as Inocencio Segura, age 32, of Lincoln, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about September 5, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to Life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment.
* Amen Sheridan, age 53, and Julie L. Whiteskunk, age 53, both of Walthill, Nebraska, are charged in a two-count Indictment. Counts I and II of the Indictment charge Sheridan and Whiteskunk with theft of funds from the Omaha Tribal Housing Authority for their own personal use on or about November 24, 2009 and on and before August 5, 2009. The maximum possible penalty for both Counts if convicted is imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Anthony Slizoski, a 31, of Columbus, Nebraska is charged in a two-count indictment. Count I charges Slizoski with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about July 17, 2013 and continuing to on or about January 17, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about January 17, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment.
* Camilo Solorzano-Ramirez, also known as Victor Solorzano-Ramirez, age 43, is charged with illegal reentry into the United States on or about January 13, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Maria Solis_Lorenzo, age 24, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 10, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about March 10, 2009, Solis-Lorenzo made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about March 10, 2009, Solis-Lorenzo misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Pablo Vasquez Alvarado, also known as Juan Pablo Abrajan-Marino, age 38, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 20, 2013. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about March 20, 2013, Alvarado made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Israel Vicente-Ordonez, 25, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about December 14, 2010. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about December 14, 2010, Vicente-Ordonez made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about December 14, 2010, Vicente-Ordonez misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.Fayetteville Resident Sentenced for Receipt of Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court Chief United States District Judge James C. Dever III, sentenced DONALD HIGGINS , 64, originally from Rochester, New York, to 180 months imprisonment, followed by 10 years of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on July 17, 2013. On October 28, 2013, HIGGINS pled guilty to one count of receipt of child pornography.
According to the investigation, during the execution of a search warrant on August 6, 2012, agents located several books containing child pornography along with two computers, a hard drive multiple media storage devices and documentation giving instructions on how to sexually molest children. Forensic examination of the seized items revealed more than 60,000 images and an undetermined number of videos depicting child pornography.
Investigation of this case was conducted by the Fayetteville Police Department. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Ex-BLM Employee Sentenced for Theft of Government FundsRead the Press Release
PORTLAND, Ore. – Today, U.S. District Judge Michael H. Simon sentenced Maria Lana Gilbert for embezzling funds from her employer, the Bureau of Land Management (BLM), Salem District Office (SDO), between 2007 and 2011. A felony information, dated September 13, 2013, charged Gilbert with one count of theft of government funds. On November 13, 2013, pursuant to a plea agreement, Maria Gilbert pleaded guilty to the single count of theft of government funds. U.S. District Judge Simon sentenced Gilbert to two years of probation, including six months of home detention, and full restitution to BLM in the amount of $41,276.33.
In pleading guilty, Gilbert admitted that between September 1, 2007 and May 1, 2011, she knowingly stole and converted to her own use BLM funds using her government issued credit card to purchase items and gift cards for her personal use.
Historically, supervisors in the BLM and the SDO provided employees with gift cards as performance awards. BLM awards included gift cards for specific merchants and general use gift cards that could be used with any merchant capable of processing debit or credit card purchases. SDO authorized defendant Gilbert to purchase gift cards with her government credit card from merchants in Oregon and from retail Internet sites to be used as part of the reward program.
BLM undertook an agency-wide audit of the gift card program in 2010, including a review of Gilbert’s purchases, which resulted in the suspension of Gilbert’s government credit card in May 2011. The BLM investigation into Gilbert’s purchases revealed that she used her government issued credit card to buy items and gift cards totaling at least $41,276.33 for her personal use. Records from merchants confirmed that Gilbert submitted fraudulent receipts to her supervisor in an effort to hide the items she purchased for personal use.
According to the terms of the plea agreement, in addition to her sentence and restitution order, Gilbert resigned from the BLM effective November 13, 2013, and if Gilbert seeks future employment with any other federal agency, she must disclose the facts and details of this conviction. Also pursuant to the plea agreement, Gilbert paid the full amount of restitution to BLM at the time of sentencing.
BLM’s Office of Law Enforcement and Security investigated this case. Assistant U. S. Attorney Donna Brecker Maddux handled the prosecution.
Eagle Pass Businessman Pleads Guilty to Role in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio today, 64-year-old Saul Lombrana, owner and operator of Fiesta Contractors based in Eagle Pass, admitted to paying a bribe in order to receive a Maverick County construction contract announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division.
Appearing before United States District Judge Alia Moses this afternoon, Lombrana pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty, Lombrana admitted that in March 2011, he submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1. After being awarded the contract, Lombrana never constructed the concrete drain swell, but requested and received full payment for the project. Of the $14,500 he received, Lombrana admittedly only kept $5,000 while giving the rest to a Maverick County employee as a bribe.
Lombrana faces up to ten years in federal prison, a maximum $250,000 fine and restitution to be determined by the Court. He remains on bond pending sentencing which has yet to be scheduled.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Michael Galdo and Bryan Reeves are prosecuting this case on behalf of the Government.
Division of Highways Supervisor Indicted on False Statement ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – A supervisor with the state Division of Highways has been charged with making a false statement to a federal agent.
United States Attorney William J. Ihlenfeld, II, announced that Barry D. THOMPSON, 48 years old, of Mount Clare, West Virginia, was indicted by a federal grand jury yesterday on one count of "False Statement to a Federal Agent." THOMPSON is charged with making materially false statements last month to an F.B.I. agent who questioned him as part of an ongoing federal investigation into the Equipment Division of the West Virginia Division of Highways. THOMPSON works as a supervisor at the Buckhannon office of the DOH.
An indictment is merely an accusation and THOMPSON is presumed innocent until and unless proven guilty. THOMPSON faces up to five years in prison and a fine of up to $250,000 if he is convicted. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and his prior criminal history, if any.
This case is being prosecuted by Assistant United States Attorney John C. Parr and was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation, the West Virginia State Police, and the State Commission on Special Investigations are leading the inquiry.
Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Major Methamphetamine Distribution ConspiracyRead the Press Release
Defendants Obtained Meth from Supply Sources in the DFW Metroplex and Distributed it to Customers in Wichita Falls
DALLAS — Two defendants, who pleaded guilty in 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, have been sentenced to lengthy prison terms, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Yesterday, in federal court in Dallas, U.S. District Judge Reed C. O’Connor sentenced Steve Ysasaga, 41, of Arlington, Texas, to 240 months in federal prison. Earlier this week, Judge O’Connor sentenced Roberto Macias, 34, of El Paso, Texas, to 180 months in federal custody.
According to documents filed in the case, on multiple occasions between mid-October 2010 and August 23, 2012, Ysasaga received multi-ounce quantities of methamphetamine from supply sources in the Dallas-Fort Worth (DFW) metroplex, which he then delivered and distributed to numerous customers in the Wichita Falls area. He also coordinated the manufacturing, or cooking, of the methamphetamine and supplied the individuals who cooked it with the chemical precursors, such as pseudoephedrine tablets, which were needed to manufacture it. Ysasaga admits that during the conspiracy, he possessed with intent to distribute and distributed more than one kilogram of methamphetamine.
On one occasion, in August 2012, when Ysasaga was transporting methamphetamine from his home to Wichita Falls, he was stopped by a Trooper with the Texas Department of Public Safety (DPS). After a drug-detection dog alerted on Ysasaga’s truck, a search resulted in DPS seizing nearly 530 grams of methamphetamine that was concealed in a Portable 12v power source.
Macias admitted that on multiple occasions between August 24, 2011 and February 29, 2012, he also received multi-ounce quantities from supply sources in the DFW metroplex and distributed quantities of the methamphetamine to numerous customers in the Wichita Falls area. He further admitted transporting and arranging for others to transport methamphetamine from the DFW area to Wichita Falls.
To date, all 39 defendants charged in this conspiracy have entered guilty pleas; all but two defendants have been sentenced.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Convicted Felon Sentenced to Serve A Total of 120 Months in Federal Prison on Firearm and Drug ConvictionsRead the Press Release
DALLAS — A convicted felon from Wichita Falls, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor on firearm and drug convictions, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Juan Derrick Martinez, 32, was sentenced to 120 months in federal prison on each count of conviction, to run concurrently. He pleaded guilty in July 2013 to an indictment charging one count of being a felon in possession of a firearm and one count of possession with intent to distribute methamphetamine.
According to documents filed in the case, on June 1, 1012, a Wichita Falls Police officer initiated a traffic stop on a pickup truck after observing a traffic violation on Iowa Park Road in Wichita Falls. Martinez was the third passenger in the car, seated next to the passenger side door.
A narcotics detection canine alerted on the truck’s right front floorboard. A plastic bag containing three smaller plastic bags was located under the passenger seat. The contents of one plastic bag tested positive for cocaine while the contents of the other two bags tested positive for methamphetamine. Inside of a backpack, which was between Martinez’s legs when the truck was stopped, were several small plastic bags, a small plastic scale, and a loaded 9mm semi-automatic pistol.
This case was investigated by the Texas Department of Public Safety, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mary F. Walters prosecuted.
Computer Networking Expert Sentenced to 8 Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
Orlando, FL – U.S. District Judge Roy B. Dalton, Jr. sentenced Juan Gonzalez (60, Palm Bay) earlier this week to 8 years in federal prison for receipt and possession of child pornography. As part of his sentence, he was also ordered to serve a 10-year term of supervision, following his incarceration. Gonzalez pleaded guilty on July 8, 2013.
According to court documents, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) began investigating an Internet Protocol (IP) address that was located at a home in Palm Bay, Florida, where images of child pornography were available for download via a peer-to-peer file sharing program. HSI agents then executed a search warrant at the Palm Bay residence. However, after searching the residence and speaking to the home’s occupant, the agents learned that the occupant’s former neighbor, Juan Gonzalez, had been using the occupant’s wireless signal to download and view child pornography, without the occupant’s permission.
Further investigation identified numerous IP addresses, through different Internet service providers, that Gonzalez used to download and view child pornography. Employing his knowledge of computers, Gonzalez used Internet service providers that allowed him to direct his Internet traffic through Virtual Private Network services to obtain IP addresses, which may geo-locate to a different part of the country or the world. On December 13, 2013, agents connected to Gonzalez’s assigned IP address at his new home in Palm Bay and found dozens of files indicative of child pornography. During an interview with agents, Gonzalez admitted to having a large amount of child pornography on his computers. He also stated that he had been viewing child pornography for more than ten years. A forensic analysis of Gonzalez’s computers and electronic equipment revealed 174 movies and more than 1,200 still images of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.
Charges Filed Against Vendor Using Silk Road Website to Sell Drugs and GunsRead the Press Release
Baltimore, Maryland – Sheldon Kennedy, age 26, of Lincoln, Nebraska was charged by complaint on charges arising from the sale of drugs, guns and counterfeit currency on an online site known as Silk Road. The complaint was filed on January 31, 2014 and unsealed today after his arrest yesterday in Miami, Florida.
The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the affidavit in support of the complaint and court documents, an online, international marketplace known as Silk Road, operated from January 2011 through September 2013. Silk Road allowed users to anonymously buy and sell illegal drugs, false identifications, counterfeit currency, guns and other contraband over the Internet. In September 2011, HSI Baltimore special agents initiated an investigation into the Silk Road website. Thereafter, the Baltimore Silk Road Task Force was created to address the contraband being sold on Silk Road.
The complaint alleges that on January 6, 2012, a USPS express mail package from China was opened in San Francisco pursuant to a border search. The package was being sent to Kennedy in Nebraska and was found to contain 55 grams of 4-fluoroamphetamine, a psychoactive drug and research chemical similar to MDMA, also known as ecstasy. Agents began investigating Kennedy. Thereafter, undercover agents in Baltimore bought contraband from Kennedy on Silk Road, who used aliases to sell cocaine and a pistol. Further investigation revealed that Kennedy was not licensed to sell firearms.
According to the complaint, Kennedy also sold counterfeit currency to another individual in Maryland on Silk Road. And in May 2012, agents intercepted a package Kennedy mailed to an individual in England. The package was found to contain 110 grams of DMT, a controlled substance. Kennedy also posted pictures online, such as on Facebook and Google+, of firearms, firearm accessories and large amounts of U.S. currency, which he advertised for sale.
On June 28, 2013, a search warrant was executed at Kennedy’s home. Ten firearms were seized, along with ammunition and illegal drugs.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Kennedy faces a maximum sentence of 20 years in prison for conspiracy to traffic controlled substances; and five years in prison each for possession of a firearm in furtherance of a drug trafficking offense, interstate sale or transfer of a firearm without a license to another unlicensed person and conspiracy to pass counterfeit money.
In related cases, Curtis Green, a/k/a “Flush,” and “chronicpain,” age 47, of Utah, previously pleaded guilty to conspiracy to distribute and possess with attempt to distribute cocaine. Green admitted to being an administrator of the Silk Road website. Jacob Theodore George IV, age 32, of Edgewood, Maryland, also previously pleaded guilty to conspiracy to distribute and possess with intent to distribute drugs, including heroin. George admitted to selling drugs on Silk Road. Green faces a maximum sentence of 40 years in prison and George faces a maximum sentence of 20 years in prison for conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Judge Catherine C. Blake scheduled sentencing for Green on July 11, 2014. No sentencing date is scheduled for George.
Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 29, of San Francisco, California, has been indicted in Maryland on charges of conspiracy to distribute a controlled substance, attempted witness murder and using interstate commerce facilities in the commission of murder-for-hire. Silk Road was allegedly created and operated by Ross Ulbricht, a/k/a “Dread Pirate Roberts,” who collected a fee for each transaction on the website. Ulbrecht faces a maximum of 40 years in prison for the drug distribution conspiracy; a maximum sentence of 30 years in prison for attempted witness murder; and a maximum of 10 years in prison for using interstate commerce facilities in the commission of murder-for-hire. No court appearance in Maryland has been scheduled.
Ulbricht faces a related indictment in the U.S. District Court for the Southern District of New York. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, ATF, U.S. Postal Inspection Service, U.S. Secret Service and IRS-Criminal Investigation for their work in the investigation. U.S. Attorney Rosenstein recognized U.S. Attorneys Preet Bharara and Gary S. Shapiro of the Southern District of New York and the Northern District of Illinois, respectively, and their offices; the FBI; and Senior Trial Counsel James Silver of the U.S. Department of Justice Computer Crimes and Intellectual Property Section for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Justin S. Herring, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Ceres Mortgage Broker Pleads Guilty to Filing A False Tax ReturnRead the Press Release
FRESNO, Calif. — Maria Vega, 53, a mortgage broker and real estate agent in Ceres, pleaded guilty today to filing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to her plea agreement, Vega owned and operated Vega's Financial Services and was licensed as a broker by the California Department of Corporations. Vega earned income from working as a loan officer on mortgage transactions at Vega's Financial Services, and she also earned income as real estate agent in connection with the purchase, sale, and refinancing of residential properties. Although Vega received substantial income in tax years 2005, 2006 and 2007, she did not file federal income tax returns for tax years 2005 and 2006, until 2008. When Vega did file federal income tax returns in April 2008 for tax years 2005, 2006, and 2007, she substantially underreported both her income and tax due for those tax years. For example, Vega admitted that she underreported taxable income on her income tax return for the 2006 tax year of approximately $415,235.
According to IRS-Criminal Investigation Special Agent in Charge José M. Martinez, "All Americans have a duty to pay their fair share. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS."
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Michael G. Tierney are prosecuting the case.
Vega is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on June 9, 2014. The maximum statutory penalty for filing a false tax return is three years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Career Offender Charged with Illegally Possessing Weapons and DrugsRead the Press Release
PITTSBURGH – A Pittsburgh man with multiple state court convictions has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Feb. 18, named Jeremiah Pashuta, 35, as the sole defendant.
According to court filings, on Aug. 6, 2013, Pashuta possessed a sawed-off shotgun and two semi-automatic pistols on the day Pittsburgh Police Officers executed a search warrant at his residence. Police also located approximately 649 stamp bags containing a total of 49.84 grams of heroin, thousands of dollars in cash, a drug scale and records of drug debts. Pashuta has had multiple state court convictions for drug dealing, illegal gun possession and threats in the past. Federal law makes it illegal for a person to possess a firearm or ammunition after a state court conviction for an offense carrying a maximum penalty of more than one year in prison.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bulgarian National Admits Role in Largest Identity Theft Ring of Its TimeRead the Press Release
NEWARK, N.J. - A Bulgarian national today admitted his participation in the Shadowcrew forum, an online marketplace for hacking and identity theft that was the largest of its kind when dismantled by the Department of Justice and the U.S. Secret Service in 2004, U.S. Attorney Paul J. Fishman announced.
Aleksi Kolarov, 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of the indictment, which charges him with conspiracy to commit both identity theft and access device fraud.
“Aleksi Kolorov has now admitted his role in the most notorious online cybercrime marketplace of its time, selling the means to steal money and identities to other criminals,” U.S. Attorney Fishman said. “His efforts to hide his illegal activity behind computers and foreign borders did not deter us. It is vital that law enforcement work internationally to bring cybercriminals to justice, no matter how long it takes.”
Kolarov evaded capture until June 14, 2011, when Paraguayan law enforcement authorities arrested him at a hotel in Asunción, Paraguay. He was found in possession of hundreds of thousands of dollars in various currencies, counterfeit payment cards and electronic implements to re-encode cards.
“The arrest and extradition of Aleksi Kolarov to the United States demonstrates the steadfast commitment of the Secret Service to protect our nation’s financial infrastructure from unlawful acts committed by cyber-criminals on our homeland,” Special Agent in Charge James Mottola of the U.S. Secret Service, Newark Field Office, said. “The successful apprehension of suspects is due to the efforts our special agents and participating members of the electronic crimes task forces which include federal, state and local law enforcement agencies, private industry and academia.”
According to documents filed in this case and statements made in court: Shadowcrew.com was an illegal online marketplace that trafficked in at least 1.5 million stolen credit and bank card numbers and caused more than $4 million in losses to the institutions issuing the cards.
Kolarov, along with the other 18 individuals charged in the indictment, participated in the international conspiracy to operate the Shadowcrew site. As part of the organization, Kolarov served as a vendor, using the site to sell illicit merchandise and services to other members. At one time, Shadowcrew.com had approximately 4,000 members dedicated to facilitating malicious computer hacking and the dissemination of stolen credit card, debit card and bank account numbers and counterfeit identification documents, such as drivers’ licenses, passports and Social Security cards. The conspiracy to commit this activity, often referred to as “carding,” facilitated the use of account numbers and counterfeit identity documents to steal identities and defraud banks and retailers.
Of the 19 international participants charged in the indictment, only three remain at large.
The count to which Kolarov pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of pecuniary gain or loss resulting from the offense. Sentencing is scheduled for May 28, 2014.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge Mottola, with the investigation leading to the charges. He also thanked the Computer Crime and Intellectual Property Section and Office of International Affairs in the Department of Justice’s Criminal Division for its role in the case and the U.S. Marshals Service for facilitating the extradition. U.S. Attorney Fishman also praised the Paraguayan authorities for their vital role.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark.
14-054Defense counsel: Nicholas Wooldridge Esq., New York
Kolarov, Aleski Indictment
Buffalo Woman Sentenced for Falsifying Passport Application and Tax EvasionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Diane Abram, 61, of Buffalo, N.Y., who was convicted of making false statements in a passport application and tax evasion, was sentenced to two years supervised release with five months of home confinement by U.S. District Court Chief Judge William M. Skretny.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in January, 2013, the defendant applied for a U.S. Passport, in the name Diane Ballard, at the U.S. Passport Office in Buffalo. On the application, the defendant failed to disclose that she had previously utilized the name Diane Abram, and had previously obtained passports in the name Diane Abram. The passport office detected the fraud and Abram admitted that she lied on the application and intentionally attempted to obtain passports in two separate names and social security numbers to avoid collection of outstanding taxes in the amount of $25,000.
The plea is the culmination of a joint investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge Toni Weirauch, and Agents of the U.S. Department of State Diplomatic Security Service, under the direction of Special Agent in Charge Roy Stillman.Buffalo Man Pleads Guilty to Drug Charges as Jury Trial was to CommenceRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Wallace D. Peace, 39, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute more than 280 grams of crack cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 20 years in prison, a maximum of life, and a fine of $8,000,000.
Assistant U.S. Attorneys Mary Clare Kane and George C. Burgasser, who handled the case, stated that between January 2008 and July 29, 2008, the defendant was intercepted over New York State wiretaps, on numerous occasions, discussing cocaine-related transactions. These included conversations between Peace and co-defendant Patrick Perry during which they attempted to arrange to purchase cocaine from multiple sources of supply. Other conversations between the defendant and his customers involved the purchase and sale of crack cocaine.
On July 29, 2008, law enforcement officers executed a search warrant at Peace’s residence and seized digital scales, cell phones, packaging material, 129 grams of crack cocaine, small quantities of cocaine and marijuana, $1,157 in United States currency, and two firearms.
Peace was arrested along with 30 other defendants in July 2008. All 31 defendants now stand convicted. Testimony in the defendant’s jury trial was scheduled to begin today.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon, Special Agent in Charge; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for June 6, 2014 at 1:00 p.m. before Judge Arcara.Broken Arrow Woman Pleads Guilty to Embezzlement of Mail by Postal EmployeeRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MEGAN LEE McMAHAN, age 37, of Broken Arrow, Oklahoma, pled guilty to Embezzlement Of Mail By Postal Employee, in violation of Title 18, United States Code, Section 1709.
Charges arose from an investigation by the United States Postal Service, Office of Inspector General. The defendant was indicted in November, 2013.
The Indictment alleged that on or about July 24, 2013, within the Eastern District of Oklahoma, the defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully embezzle a package entrusted to her while performing her assigned duties as an employee of the United States Postal Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain on bond pending sentencing.
The statutory range of punishment is up to 5 years imprisonment and/or up to a $250,000 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Brighton Man Sentenced to 30 Years for Sex TraffickingRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Thomas Cramer, 41, of Brighton, N.Y., who was convicted of sex trafficking of minors, was sentenced to 30 years in prison by U.S. District Court Frank P. Geraci, Jr.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated from April through December 2011, the defendant enticed, promoted and profited from the commercial sex activities of four young girls knowing, or in reckless disregard of the fact, that the girls were all under 18 years old. Cramer used the internet to identify and recruit victims who typically came from broken homes or who were runaways. The defendant lured young girls into the commercial sex business claiming that they would live a “fancy life style,” living and working in hotels while making money.
In one exchange of text messages, between Cramer and a victim, the defendant enticed the girl by telling her she could make much more money performing commercial sex acts than she could working at a grocery store. Although the girl initially told Cramer she was older than 18, when she informed the defendant that she was 17 years old, Cramer was undeterred and continued to engage in salacious texting with the female.
Cramer placed advertisements on adult web sites regarding the availability of the young girls for commercial sex acts. The acts took place at hotels in the Rochester and Buffalo and in the defendant’s residence. Customers were charged between $180 and $200 per hour to engage in sexual activities with the victims and Cramer received a portion of those proceeds.
In requesting a sentence within the Federal Sentencing Guidelines range of 30 years to life, the Government cited the fact the defendant spent the vast majority of his adult life in jail, or, when released, committing more criminal acts. Cramer has three prior felony convictions in federal court for fraud related offenses. The Government urged the Court to impose the severe sentence as necessary to protect the public from an individual who, despite lengthy jail sentences in the past, was never deterred from committing criminal acts of increasing severity. In imposing sentence, Judge Geraci stated that he wanted to send a strong message that abuse of young people will not be tolerated and those who chose to engage in that conduct “pay the price.”
‘The United States Attorney’s Office, along with our partners at all levels of law enforcement, are aggressively fighting all forms of human trafficking, with includes the sex trafficking of minors,” said U.S. Attorney Hochul. “The 30 year sentence handed down in this case could mean that the defendant will spend the rest of his natural life behind bars. Let the penalty also serve as a warning to any other individuals who would consider similar behavior, we will arrest you and prosecute you to the fullest extent of the law.”“The defendant sexually exploited vulnerable minor females for profit and his own gratification,” said Special Agent in Charge James C. Spero of Homeland Security Investigations in Buffalo. “The reprehensible nature of these crimes, which included intentionally addicting his victims to drugs and threatening them with violence if they sought to leave his ‘business,’ should leave no doubt that he has earned every minute in prison he has received.”
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the Greece Police Department, under the direction of Todd K. Baxter.Barbour County Sheriff Admits to Fraud, Resigns PositionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – The Barbour County Sheriff admitted to insurance fraud on Thursday in federal court and resigned his position as the chief law enforcement officer in the county.
United States Attorney William J. Ihlenfeld, II announced that JOHN W. HAWKINS, 47 years of age, of Philipi, West Virginia, entered a guilty plea to a felony Information charging him with “Mail Fraud.” HAWKINS admitted to staging an automobile accident in April of 2013 and then, with the assistance of one his deputies, fabricating a report for submission to Nationwide Insurance Company so that his claim would be approved. HAWKINS asserted that while driving his 2004 GMC Envoy he accidentally drove off Jerusalem Church Road in Philipi and ran into a tree. However, a review of the claim file revealed inconsistencies in HAWKINS’ story. Photographs taken by the insurance adjuster and information from the vehicle’s data recorder contradicted HAWKINS’ version of events. Witnesses familiar with the scheme advised investigators that the story provided by HAWKINS was false.
HAWKINS used the United States Mail to make a fraudulent claim in the amount of $8,262.65, which was paid to him by Nationwide last year. HAWKINS also used his official Barbour County email account to communicate with Nationwide regarding his false claim.
“The defendant used his position as sheriff to take advantage of the insurance claims process and to receive a substantial financial benefit,” said U.S. Attorney Ihlenfeld. “The false accident report that he ordered his deputy to create helped to substantiate his claim, as did the fact that he was a law enforcement officer himself. By abusing the authority of his position Sheriff Hawkins violated the trust that the citizens of Barbour County placed in him when he was elected.”
As part of his plea agreement HAWKINS must make full restitution to Nationwide Insurance Company. HAWKINS also is required to resign as the Sheriff of Barbour County, to relinquish his West Virginia Law Enforcement Certification, and to agree to never again serve as a law enforcement officer.
The United States Attorney’s Office agreed not to pursue other investigations into the conduct of HAWKINS, including his alleged mishandling of an estate in his official capacity as sheriff, allegations of missing funds from the sheriff’s tax office, and potential civil rights violations.
The investigation into others who may have been involved in the scheme is ongoing, according to Ihlenfeld.
HAWKINS faces up to twenty years and a fine of up to $250,000 when he is sentenced. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and his prior criminal history, if any.This case was prosecuted by Assistant United States Attorney John C. Parr and was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation and the West Virginia State Police led the inquiry into HAWKINS. Assistance was provided by the West Virginia Insurance Commission, Fraud Investigations Division.
Ihlenfeld urges anyone with information regarding public corruption in their community to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (1-855-982-3337), or to send an email to [email protected].
Attorney Pleads Guilty in Connection with Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Douglas L. Bates, 55, of Parkland, pled guilty today in U.S. District Court in West Palm Beach to a Superseding Information charging conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At sentencing, Bates faces up to five years in prison.
The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to the factual stipulation filed in support of the guilty plea, while Bates was a partner in the Law Offices of Koppel and Bates located at 817 South University Drive, Suite 100, Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by drafting false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The Superseding Information further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
Sentencing for Bates is scheduled for May 1, 2014 at 11:00 a.m. in West Palm Beach before U.S. District Judge Donald M. Middlebrooks.
U.S. Attorney Wifredo A. Ferrer stated, “It is unconscionable and unacceptable when attorneys violate the oath of office they swear to uphold. Bates, an attorney, violated the oath of office he swore to uphold by participating in the furtherance of Rothstein’s Ponzi scheme. As I have previously stated, the tentacles of Rothstein’s billion dollar Ponzi scheme reached far and wide. One by one, Rothstein’s criminal associates are being held accountable for their crimes. Today, Bates’ criminal actions make him the sixth attorney - and the 16th accomplice - to be held accountable.”
José A. Gonzalez stated, “Today’s guilty plea should send a message to those who violate their ethical obligations by participating in a massive fraud – no matter who you are or the fraudulent means employed, you will be held accountable for your actions. This investigation is not over. Together with our law enforcement partners we will continue to aggressively pursue those who assisted Rothstein in perpetrating this complex financial fraud.”
“Scott Rothstein needed accomplices who were willing to gamble away their ethical obligations in exchange for the promise of financial gain,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Douglas Bates took that gamble and lost. Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
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.
Atlanta Doctor Sentenced for Defrauding Medicare and IRSRead the Press Release
ATLANTA – Lawrence Eppelbaum has been sentenced to 50 months in prison and fined $3.5 million following his trial conviction on health care fraud, tax fraud and money laundering charges.
“Our Medicare system is premised on the ability of patients to make a choice about their doctor and their treatment without undue interference, and our tax system is based on each taxpayer paying his or her fair share,” said United States Attorney Sally Quillian Yates. “The defendant cheated both systems by illegally enticing his patients with gifts and then evading paying taxes on the substantial income he earned from treating those patients. His choice to practice fraud along with medicine has earned him substantial time in federal prison.”
“Those who swindle and deceive the Medicare program should expect to pay dearly for their crimes,” said Derrick L. Jackson, Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services Atlanta Region. “Having been outsmarted by federal law enforcement, Eppelbaum was aggressively prosecuted and will now do years of hard time.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Dr. Eppelbaum should serve as a reminder to others considering similar such fraudulent and criminal activities targeting our publicly funded health care programs that federal agencies, including the FBI, are prepared to investigate them and hold them accountable for those criminal actions.”
“In addition to abusing the Medicare system, Eppelbaum committed tax fraud by claiming contributions to charitable organizations that he did not make,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “The sentence announced today reinforces the commitment by law enforcement and the United States Attorney’s Office that individuals who steal from the government will be held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: Eppelbaum is a physician who is licensed to practice medicine in Georgia and operates the “Atlanta Institute of Medicine and Rehabilitation” (“AIMR”) and the “Pain Clinic of AIMR” in Atlanta. In 2004, Eppelbaum created the “Back Pain Fund,” a purported charitable organization that he controlled both directly and indirectly. Eppelbaum, through the Back Pain Fund, paid for Medicare patients to travel to Atlanta to receive medical treatment from his practice, then travel to Florida to visit a local hot spring for approximately four days, before returning to Atlanta to receive additional treatment.
Eppelbaum was the primary donor to the Back Pain Fund and paid the vast majority of its operating expenses. Eppelbaum tried to disguise his financial control over the Back Pain Fund by entering into an arrangement with the Torah Day School, a Jewish Day School in Atlanta, whereby the parents of students attending the Torah Day School were instructed to make their tuition checks payable to the Back Pain Fund instead of to the school, and in turn, Eppelbaum repaid the Torah Day School for the amount of the tuition, plus an additional 25 percent. Eppelbaum entered into similar arrangements with other organizations, and even caused patients who were treated at his medical practice to make their checks payable to the Back Pain Fund. Between 2004 and 2009, Eppelbaum treated hundreds of Back Pain Fund patients and received approximately $16 million for their treatment from Medicare.
Eppelbaum also utilized the Back Pain Fund as a vehicle for committing tax fraud. Between 2006 through 2008, Eppelbaum deducted as charitable donations all the payments he made to the Back Pain Fund, the Torah Day School, and other organizations with which he had a financial arrangement, even though Eppelbaum derived substantial personal income from treating Back Pain Fund patients. Eppelbaum evaded approximately $1 million in federal income taxes through his scheme.
Eppelbaum, 54, of Roswell, Georgia, was sentenced by United States District Judge Amy Totenberg. He was charged with 27 counts of healthcare fraud, tax fraud and money laundering. Following a two-week trial in June 2013, the jury found him guilty of all 27 counts.
This case was investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Steven D. Grimberg and Stephen H. McClain prosecuted 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 is www.justice.gov/usao/gan.Arizona Man and His St. Louis Area Associate Sentenced on Drug and Money Laundering ChargesRead the Press Release
St. Louis, MO – Both men were sentenced involving their operation of a large marijuana distribution network and laundering the proceeds through a Tucson, Arizona, business to avoid reporting requirements. VAN J. SANDERS, JR., of Tucson, AZ, was sentenced to 24 months incarceration. LEON ROBINSON III, of Florissant, MO, was sentenced to 12 months and 1 day. Both appeared before United States District Judge E. Richard Webber.
According to court documents, Van J. Sanders maintained an account at Bank of America under the name of Ultimate Trainer, LLC. He was the signatory for the account. Leon Robinson III deposited money into Sanders' Ultimate Trainer Bank account at various Bank of America branches in the greater St. Louis area by making cash deposits in amounts under the $10,000 reporting requirement. These monies are proceeds from their marijuana distribution conspiracy from June 2012 to September 2012. The marijuana was transported via U.S. Postal Express Mail parcels.
Van J. Sanders, Jr. of Tucson, AZ, and Leon Robinson III of Florissant, MO, each pled guilty last October to two felony counts of conspiracy to distribute over fifty (50) kilograms of marijuana and conspiracy to structure currency transactions for the purpose of evading the reporting requirements. Robinson also pled guilty to three felony counts of structuring currency to evade reporting requirements.
This case was investigated by the St. Louis and Tucson offices of the Postal Inspection Service. Assistant United States Attorney John T Davis handled the case for the U.S. Attorney's Office.
Annual African American Heritage Celebration at the Baton Rouge Federal CourthouseRead the Press Release
BATON ROUGE, LA - Chief Judge Brian A. Jackson, Judge James J. Brady and Judge Shelly D. Dick of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Nineteenth Annual Federal Courthouse African American History Month Program at 1:00 p.m. on February 26, 2014, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be civil rights pioneer A. P. Tureaud, Jr. Tureaud sued to become the first African-American student admitted to Louisiana State University’s undergraduate campus. Musical entertainment will be provided by local soloist Earl Taylor.
Members of the public and the press are invited to attend. For further information, please contact Michael Jefferson, Assistant United States Attorney, at (225) 389-0443.
Anchorage Drug Trafficker Sentenced to 138 Months in PrisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Micah Sean Ramirez, a resident of Anchorage, has been sentenced in federal court in Anchorage to 138 months in prison for his convictions of the crimes of possession of a controlled substance with intent to distribute, and felon in possession of a firearm.
United States District Court Judge Sharon L. Gleason imposed the sentence on 39 year-old Ramirez.
According to information presented to the court by Special Assistant United States Attorney Erin Bradley, who prosecuted the case, Ramirez sold 13.4 grams of methamphetamine to an undercover law enforcement officer. At the time of the sale, Ramirez had a loaded pistol on his lap and a stolen Glock handgun in the back of the vehicle. Ramirez has a prior felony conviction for Assault in the Third Degree, which prohibits him from possessing firearms. In addition to the methamphetamine that he actually sold, Ramirez also had 44.8 grams of pure methamphetamine stored in a pocket behind the front passenger seat.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, the defendant’s history, and the need to protect the public and to deter future crimes of this nature.
Ms. Loeffler commends the Federal Bureau of Investigation’s Safe Streets Task Force and the Anchorage Police Department for the investigation leading to the convictions in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.Alabama Family Sentenced to Prison for Identity Theft SchemeRead the Press Release
Mary Young and her husband, Christian Young were sentenced today, and her son, Octavious Reeves, was sentenced late yesterday, for their involvement in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Mary Young was sentenced to serve 87 months in prison, Christian Young was sentenced to serve 70 months in prison, and Octavious Reeves was sentenced to serve 51 months in prison. Reeves pleaded guilty in February 2013 to conspiracy and aggravated identity theft and the Youngs pleaded guilty to conspiracy and aggravated identity theft in November 2013. All three defendants’ prison sentences will be followed by three years of supervised release. Mary and Christian Young were each ordered to pay restitution in the amount of $415,070, and Reeves was ordered to pay $42,257 in restitution.
According to court documents, between January 2010 and June 2012, Mary Young, Christian Young, Octavious Reeves and others obtained stolen identities from individuals and used this information to file false tax returns. The false tax returns were filed from the Youngs’ residence and the conspirators directed the false tax refunds to prepaid debit cards in the names of the identity theft victims. The prepaid debit cards were mailed to several addresses in and around Elmore, Ala. Both Youngs and Reeves used the prepaid debit cards to withdraw the fraudulent proceeds. In total, the co-conspirators received over $400,000 in fraudulent tax refunds.
The case was investigated by Special Agents of the IRS - Criminal Investigation with assistance from the Elmore County Sheriff’s Department. Trial Attorneys Michael Boteler, Charles Edgar Jr., and Gregory Bailey of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website
Alabama Family Members Sentenced to Prison for Identity Theft SchemeRead the Press Release
Montgomery, Alabama - Mary Lois Young, her husband, Christian Malone Young, and her son, Octavious Reeves, all from Wetumpka, Ala., were sentenced in federal court for their involvement in a stolen identity refund fraud scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Today, Mary Young was sentenced to 87 months and Christian Young to 70 months of imprisonment. Yesterday, February 19, 2014, Octavious Reeves was sentenced to serve 51 months in prison. Each of these sentences will be followed by three years of supervised release. Previously, the Young’s pleaded guilty to conspiracy and aggravated identity theft in November 2013, and Reeves pleaded guilty in February 2013 to conspiracy and aggravated identity theft.
According to court documents, between January 2010 and June 2012, Mary Young, Christian Young, Octavious Reeves, and others obtained stolen identities from individuals and used those stolen identities to file false tax returns. The false tax returns were filed from the Young’s residence and the conspirators directed the false tax refunds to prepaid debit cards in the names of the identity theft victims. The prepaid debit cards were mailed to several addresses in and around Elmore County. Mary Young, Christian Young, and Octavious Reeves then used the prepaid debit cards to withdraw the fraudulent proceeds. In total, the co-conspirators received over $400,000 in fraudulent tax refunds. For his part in the scheme, Reeves was ordered to pay $42,257.80 in restitution. Mary and Christian Young were ordered to pay $415,070.00.
This case was investigated by Special Agents of the IRS - Criminal Investigation with assistance from the Elmore County Sheriff’s Department. Trial Attorneys Michael Boteler, Charles Edgar, Jr., and Gregory Bailey of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Bank Employee Sentenced to Prison for Role in Tax Refund FraudRead the Press Release
LaQuanta Clayton, a resident of Montgomery County, Ala., and a former bank teller employed by the Community Bank and Trust, was sentenced on Feb. 19, 2014, to serve 21 months in prison to be followed by three years of supervised release for participating in a fraudulent tax refund scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Clayton pleaded guilty in July 2013 to theft of government property.
According to court documents and statements made in open court, Clayton used her position as a bank teller to open bank accounts in the name of another individual without his knowledge, as well as to open banks accounts in the name of fictitious individuals for the purpose of receiving fraudulent tax refunds. Tarrish Tellis, the leader of the tax-fraud ring, directed Clayton to open multiple bank accounts in order to receive electronic deposits of fraudulent tax refunds. Clayton would facilitate the withdrawal of this money, then give it to Tellis and other individuals involved in the scheme. Clayton opened at least five bank accounts at Community Bank and Trust, which she used to receive fraudulent tax refunds. Tellis pleaded guilty to related crimes in October 2013. Approximately $452,225 in fraudulent tax refunds were directed to be deposited into these accounts, and the Internal Revenue Service (IRS) paid approximately $185,730 in fraudulent refunds, which were deposited into accounts Clayton opened and controlled. At her sentencing, Clayton was also ordered to pay restitution in this amount.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar Jr. of the Tax Division prosecuted the case. Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Abita Springs Man, Jonathan Johnson, Charged with Operating International Child Exploitation EnterpriseRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announces the recent unsealing of a bill of information charging JONATHAN JOHNSON, age 27, of Abita Springs with Operating a Child Exploitation Enterprise in violation of Title 18, United States Code, Section 2252A(g).
According to court documents, from 2012 through 2013, JOHNSON administered two child pornography websites identified as Website A and Website B out of his Abita Springs, Louisiana home in order to distribute images and videos depicting the sexual victimization of children. JOHNSON’s illegal websites had over 27,000 members located throughout the world. As the administrator of these websites, JOHNSON regulated membership in the websites and created two categories of website users: members and uploaders. JOHNSON required members to register with a user name and password before they could download video files, comment on videos, or exchange private messages. Uploaders had the same privileges as members, but were also permitted to upload sexually explicit material directly to JOHNSON’s websites. JOHNSON’s websites also included tutorials that provided guidance to members and uploaders on ways to communicate with minor boys in order to coerce them into creating sexually explicit videos and JOHNSON’s websites also provided instructions so members and uploaders could avoid detection from law enforcement. JOHNSON frequently utilized and encouraged other members and uploaders to access popular social networking sites in order to search for and locate unsuspecting minor boys for the purpose of having them create sexually explicit videos. JOHNSON and other website members and uploaders created fake female Internet personas in order to initiate online communications with young boys.
During the course of the investigation of JOHNSON, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Postal Inspection Service determined JOHNSON’s websites contained approximately 2,000 videos depicting the sexual exploitation of young boys. The case against JOHNSON has resulted in 10 different individuals being charged by the U.S. Attorney’s Office in New Orleans. They are:
- DANIEL NOLAN DEVOR, age 39, of Brunswick, Georgia;
- JOHN C. FOSTER, age 44, of Tipp City, Ohio;
- AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California;
- SEAN JABBAR, age 32, of Minneapolis, Minnesota;
- CHRISTOPHER JAMIESON, age 30, of Douglasville, Georgia;
- ANDREW J. KORPAL, age 29, of Granger, Indiana;
- NICHOLAS SAINE, age 27, of Seattle, Washington;
- STANLEY ZDON, III, age 27, of Tuckerton, New Jersey;
- CHRISTOPHER SCHWAB, age 25, of New Orleans, Louisiana;
- VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 26, of Tucson, Arizona.
These defendants are charged as follows:
U.S. v. Daniel Nolan Devor, Criminal Docket No. 13-255 “G,” Conspiracy to Produce Child Pornography, Distribution of Child Pornography, and Receipt of Materials Involving the Sexual Exploitation of Minors;
U.S. v. John C. Foster, Criminal Docket No. 13-251 “N,” Conspiracy to Produce Child Pornography, Distribution of Child Pornography, and Receipt of Materials Involving the Sexual Exploitation of Minors;
U.S. v. Aung Gaw, Criminal Docket No. 13-250 “R,” Receipt of Child Pornography;
U.S. v. Sean Jabbar, Criminal Docket No. 13-252 “C,” Receipt of Child Pornography;
U.S. v. Christopher Jamieson, Criminal Docket No. 13-252 “F,” Receipt of Child Pornography;
U.S. v. Andrew J. Korpal, Criminal Docket No. 13-254 “J,” Receipt of Child Pornography;
U.S. v. Nicholas Saine, Criminal Docket No. 13-256 “N,” Receipt of Child Pornography;
U.S. v. Stanley Zdon, III, Criminal Docket No. 13-257 “E,” Conspiracy to Produce Child Pornography;
U.S. v. Christopher Schwab, Criminal Docket No. 13-237 “R,” Production of Child Pornography, Distribution of Child Pornography, and Receipt of Child Pornography;
U.S. v. Vittorio Francesco Gonzalez-Castillo, Criminal Docket No. 14-014 “K,” Conspiracy to Produce Child Pornography.
In addition, this joint investigation has resulted in over twenty-five (25) additional defendants being arrested and charged with various state and federal charges throughout the United States and approximately 160 child victims have been identified and/or rescued by law enforcement officials.
JOHNSON will have an initial appearance on February 24, 2014 to be formerly arraigned on these charges. JOHNSON has been in federal custody since his arrest on June 13, 2013, and he is represented by the Federal Public Defender’s Office.
JOHNSON is facing a mandatory minimum term of incarceration of twenty (20) years to a maximum sentence of life imprisonment. JOHNSON will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that the Superseding Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Fraud Unit Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Superseding Bill of Information )
ATF and Pittsburgh Police Team up to Put Illegal Gun Possessor Back in Federal PrisonRead the Press Release
PITTSBURGH – A convicted felon from Penn Hills, Pa., has been indicted by a federal grand jury in Pittsburgh for a second time on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 18, named Michael Tyrone Waller, a/k/a Maurice Murray, a/k/a Donald Maurice Murray, a/k/a James Woods, a/k/a Stickman, 28, as the sole defendant.
According to the indictment, on or about Feb. 4, 2013, Waller, being a convicted felon, illegally possessed a .40 S&W caliber semi-automatic Springfield Armory pistol and ammunition after his release from federal prison on a prior conviction for being a felon in possession of a firearm and possession of heroin with the intent to distribute it. Waller also has been convicted of felony crimes in Allegheny County for providing weapons to inmates and being a fugitive in possession of a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum sentence of up to 10 years in prison, a fine of $250,000 or both, as well as an additional period of incarceration for committing the crime while under the supervision of the United States Probation Office after his release from jail. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crimes Section of the United States Attorney's Office is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department conducted the investigation leading to the indictment of Waller. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 February 2014
“Dirty DUI” Cop Sentenced to Fifteen Months for Extortion and Honest Services FraudRead the Press Release
SAN FRANCISCO – Stephen Tanabe, a former Deputy with the Contra Costa County Sheriff’s Office, was sentenced to fifteen months’ imprisonment in federal prison today, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
A federal jury convicted Tanabe on September 3, 2013, on two counts of extortion under color of official right, in violation of 18 U.S.C. § 1951; three counts of wire fraud on a deprivation of honest services theory, in violation of 18 U.S.C. §§ 1343 and 1346; and one count of conspiracy to commit honest services fraud, in violation of 18 U.S.C. § 1349. Tanabe was acquitted on one extortion count.
According to evidence presented at trial, Tanabe conspired to and did engage in a scheme to take bribes in exchange for his services as a Deputy Sheriff, thereby depriving the people of Contra Costa County of their right to his honest services. Specifically, the evidence showed that Christopher Butler, a former Antioch Police Officer turned private investigator, was hired by wives and ex-wives engaged in divorce and child custody proceedings to arrange “stings” against their spouses, whom they told Butler had a propensity to drive under the influence of alcohol. Butler used “decoys” to entice the sting targets to bars in downtown Danville, where Tanabe was assigned to patrol. The decoys would encourage the men to drink and then drive while intoxicated.
For one sting, Tanabe joined Butler in a bar while off-duty, watching two attractive young women working for Butler drink with a sting target. Evidence showed that, in exchange for a promise of cocaine, Tanabe notified an on-duty Deputy that the sting target was about to drive away, having been lured by the prospect of a hot tub with the two women. For two other stings, the evidence showed that Tanabe, then on-duty, waited outside the Vine Bar in Danville and then arrested the targets. He received a Glock handgun in exchange for his participation in these sting operations.
The sentence imposed by the Honorable Charles R. Breyer, Senior United States District Court Judge, also included 240 hours of community service, a three year period of supervised release, as well as forfeiture of the Glock handgun he obtained in connection with two of the arrests. The Court ordered Tanabe to surrender to the United States Marshals Service to serve his term of imprisonment on April 15, 2014.
“This sentence reflects the serious nature of Stephen Tanabe’s criminal conduct – taking bribes in exchange for setting up unsuspecting citizens and abusing the public’s trust in law enforcement,” said United States Attorney, Melinda Haag.
“This sentencing is symbolic of the unwavering commitment of the FBI through our partnership with the U.S. Attorney’s Office in preserving the public’s trust in those who serve in a law enforcement capacity,” said Johnson. “No one is above the law and all are accountable for their actions.”
Tanabe, 50, was originally indicted on December 15, 2011. The Superseding Information on which he was tried was filed on June 12, 2013.
Hartley M. K. West and Philip J. Kearney are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Alycee Lane. The prosecution is the result of a lengthy investigation by the FBI with the invaluable assistance of the Contra Costa County District Attorney’s Office.
(Tanabe superseding information )
Woonsocket Resident Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Christopher Marion, 26, of Woonsocket, R.I., was sentenced today to 24 months in federal prison for possession of child pornography.
United States Attorney Peter F. Neronha, Cheryl DiPrizio, Special Agent in Charge of the Northeast Field Office of the United States Naval Criminal Investigative Service (NCIS), Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI), and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Marion to serve 10 years supervised release upon completion of his prison term. Marion pleaded guilty on August 23, 2013, to one count of possession of child pornography.
According to information presented to the court, in June 2012, a Special Agent from NCIS was conducting an on-line Internet investigation of file-sharing networks to identify users possessing and sharing child pornography. The agent observed numerous files of child pornography being shared from an IP address in Woonsocket, R.I. The agent made a direct connection to the IP address and downloaded two movie files containing child pornography. The IP address was later identified as belonging to the defendant’s residence.
On November 16, 2012, a court authorized search of the defendant’s residence by agents from Homeland Security Investigations resulted in the seizure of a laptop computer. A forensic analysis of the computer revealed that it contained 552 images and 52 videos of prepubescent females engaged in sexual acts with adult males.
Marion was arrested by HSI agents on June 13, 2013, on a federal criminal complaint charging him with receipt and distribution of child pornography.
Marion, who was released to home confinement at the time of his arrest and initial appearance in federal court, was ordered to self-surrender by March 10, 2014, to begin serving his term of imprisonment.The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Rhode Island State Police Internet Crimes Against Children Task Force assisted NCIS and HSI agents in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Washington-Based Medical Device Manufacturer to Pay up to $5.25 Million <br /> to Settle Allegations of Causing False Billing of Federal Health Care <br /> ProgramsRead the Press Release
Medical device manufacturer EndoGastric Solutions Inc. has agreed to pay the government up to $5.25 million to resolve allegations that it violated the False Claims Act by misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks, the Justice Department announced today. EndoGastric Solutions is located in Redmond, Wash.
“Health care providers that cause the government to pay more than it should for medical devices not only cost us money as taxpayers, they raise the cost of health care for everyone,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Medical device manufacturers must deal fairly and honestly with federal health care programs if they want to participate in them.”
EndoGastric Solutions manufactures and sells a device called EsophyX that is intended to treat gastroesophageal reflux disease. The device was developed as an alternative to a more invasive procedure that requires incisions in the abdomen. The government alleged that EndoGastric Solutions knowingly caused health care providers to bill for the less invasive EsophyX procedure using codes applicable to the more invasive procedure, which provided for a higher level of reimbursement. As a result, federal health care programs allegedly paid more than they should have for the procedures using EsophyX.
The government also alleged that EndoGastric Solutions knowingly paid illegal remuneration to certain physicians for participating in patient seminars and co-marketing agreements to induce them to use EsophyX, in violation of the Federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering or paying remuneration to induce referrals of items or services covered by federally funded health care programs. The statute is intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and are based solely on the best interests of patients.
“A medical device manufacturer violates the law when it advises physicians and hospitals to report the wrong codes to federal health insurance programs in order to increase reimbursement rates,” said U.S. Attorney for the District of Montana Michael W. Cotter. “Health care providers are required to bill federal health care programs truthfully for the work they perform.”
As part of the settlement, EndoGastric Solutions has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General. The agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“Those seeking to maximize profits by encouraging others to bill government health care programs improperly should expect to pay a heavy price,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Law enforcement agencies will continue using all available tools to bring violators to justice.”
The civil settlement resolves a lawsuit filed in the U.S. District Court of Montana by Glenn Schmasow, a former employee of EndoGastric Solutions, under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and to obtain a portion of the government’s recovery. Schmasow will receive up to $945,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement with EndoGastric Solutions was the result of a coordinated effort among the U.S. Attorney’s Office for the District of Montana, the Department of Justice’s Civil Division, the U.S. Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General and the Office of Program Integrity of the Department of Defense’s Defense Health Agency.
The civil lawsuit is captioned United States ex rel. Glenn Schmasow v. EndoGastric Solutions Inc., Case No. 1:12-cv-00078 (D. Mont.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Union County, N.J., Man Admits Distributing Images of Chlld Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Union County, N.J., man today admitted distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
John Ellenbacher, 48, of Linden, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of distributing images of child pornography over the Internet.
According to documents filed in this case and statements made in court:
Ellenbacher admitted that between August 15, 2012, and August 21, 2012, he distributed 90 images and 6 videos depicting child sexual abuse to others via email. As part of his guilty plea, Ellenbacher agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
The distribution of child pornography count to which Ellenbacher pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a mandatory minimum prison sentence of five years, and a fine of $250,000. Sentencing is scheduled for July 8, 2014.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
14-053
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Ellenbacher Information
U.S. Attorney Goodwin, Corrections Commissioner Rubenstein Celebrate Donations for Foster ChildrenRead the Press Release
Correctional Industries Crafts Hundreds of Bags Uniquely Designed for West Virginia Foster Children
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and West Virginia Division of Corrections Commissioner Jim Rubenstein today visited St. Mary’s Correctional Center, in St. Mary’s, West Virginia, to again celebrate the donation of hundreds of blankets, scarves and bags crafted by St. Mary’s and Lakin inmates to give to foster children. The bags, specifically designed to meet the needs of kids transitioning into the foster care system, allow for versatility and storage of a large volume of belongings. The donated items were presented to representatives from Mission West Virginia, a community service organization, in conjunction with the Carry On Campaign, which collects luggage, essential personal care items, and items of comfort for children who are in transition to the state’s foster care system. West Virginia currently has more than 4,000 children in the foster care system.
U.S. Attorney Booth Goodwin said, "No child should have to use a trash bag to transport their belongings. I am proud to partner with Mission West Virginia and the Division of Corrections to help give kids who are moving into foster care the essentials they need for that difficult transition.”
The Carry On Campaign began in October 2010 as a collaborative, multi-agency partnership that includes the U.S. Attorney’s Office for the Southern District of West Virginia, the West Virginia Department of Health and Human Resources, Mission West Virginia, Inc., the West Virginia Prosecuting Attorney’s Institute and the West Virginia Drug Endangered Children Task Force. Donated luggage bags and other essential items are provided to child protective service workers, law enforcement and advocates across the state to be given to children in transition to foster care. These children often have few or no personal belongings or comfort items, and no luggage. The program addresses the immediate needs of abused and neglected children and helps to minimize trauma during this difficult experience.
St. Mary’s Correctional Center, located on North Pleasants Highway in St. Mary’s, is a medium security correctional facility designed to house minimum to medium security level offenders and inmates deemed as geriatric or chronically ill. SMCC has a current capacity of 610 inmates.
Mission West Virginia sponsors programs that find families for children waiting in the foster care system. In addition to the Carry On Campaign, the agency also sponsors Sunday’s Child, a regular column featured weekly or monthly in newspapers throughout the state. This column spotlights children who are legally eligible to be adopted and are waiting for a loving, permanent family. The column provides a brief description of the child along with a photograph.
Click here to see photographs from the campaign.
Two More Conspirators Plead Guilty in Fraudulent Tax Refund SchemeRead the Press Release
Claimed False Income and Credits on Fraudulent Tax Returns for Persons Who Had Little or No Income
Baltimore, Maryland – Jasmine L. Thomas, age 26, of Baltimore, and Kiara A. Skipwith, age 24, of Parkville, Maryland, pleaded guilty today to a conspiracy to defraud the government arising from the filing of fraudulent tax refunds.
The guilty pleas were 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 Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington D.C. Regional Office.“Criminal conspiracies involving fraudulent refund schemes are loathsome crimes that victimize our nation’s honest taxpayers,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s pleas are a reminder that IRS-CI will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”
According to their plea agreements, from February 2010 through April 2013, Skipwith, Thomas and their mother, Tonia Lawson, recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. The defendants paid a referral fee to those who brought recruits to them.
The defendants provided the recruits’ personal information to another conspirator who would prepare the fraudulent return. The recruits did not provide any income information. False wages, educational expenses and dependents were used to falsely claim tax credits. Once the tax refund was received, the defendants took a portion of the refund and paid the recruit a smaller amount.
Over the course of the scheme, Thomas conspired to file at least 15 fraudulent tax returns with a resulting loss to the government of $90,579; and Skipwith conspired to file at least 37 fraudulent tax returns with a resulting loss of $199,722.
Thomas and Skipwith face a maximum sentence of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense, whichever is greater. U.S. District Judge Richard D. Bennett scheduled sentencing for Thomas and Skipwith on May 20, 2014 and May 28, 2014, respectively.
Tonia Patrice Lawson, age 43, of Middle River, Maryland, previously pleaded guilty to conspiring to file 84 fraudulent tax refunds with a loss to the government of $546,785. Lawson is scheduled to be sentenced on March 27, 2014 at 4:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who are prosecuting the case.
Two Charged with Sex Trafficking of MinorsRead the Press Release
BOSTON – In an indictment unsealed today, two Boston men have been charged in the U.S. District Court with the sex trafficking of minors.
Miriam Kizzie, also known as “Keys” and “Keyshawn,” 21, was charged with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
Anthony Pledger, also known as “Polo,” “Polo B.” and “Jaden,” 26, was charged in the same indictment with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
According to the indictment, in October 2013, Kizzie and Pledger conspired with each other to sex traffic two minors and to transport them between Massachusetts and Rhode Island with intent that they engage in prostitution. Kizzie and Pledger are also charged with aiding and abetting each other in sex trafficking the two minors and in actually transporting them between Massachusetts and Rhode Island with intent that they engage in prostitution.
Further, according to the indictment, in July 2013, Kizzie trafficked two other minors.
Pledger had been previously charged, first in state court and then by complaint in U.S. District Court, based on the incidents that occurred in October 2013. Pledger and Kizzie will be arraigned together on the indictment on Feb. 27, 2014.
If convicted, Kizzie and Pledger face minimum mandatory sentences of 15 years on the sex trafficking charges and 10 years on the transportation charges. They face maximum sentences of a lifetime in prison.
U.S. Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement, Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The U.S. Attorney’s Office would like to thank the Suffolk County District Attorney’s Office, Plymouth County District Attorney’s Office, Middlesex District Attorney’s Office, Rhode Island Attorney General’s Office, Rhode Island State Police, Brookline Police Department, Brockton Police Department and Providence Police Department for providing assistance in this case.
The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team (CRET) in 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In the last two years, the office has charged multiple defendants with sex trafficking and other criminal civil rights violations.
Two Brooklyn Men Indicted in Lottery FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Corey Anthony Buddle, 22, of Brooklyn, New York, and his father, Horace Anthony Buddle, 44, of Brooklyn, New York, and Montego Bay, Jamaica, with conspiracy to commit mail fraud and wire fraud. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment, the defendants defrauded elderly individuals residing in the United States by leading the victims to believe they won cash prizes of more than $1,000,000 and, in at least one case, a Mercedes Benz automobile. The victims were told they must pay “taxes” and other administrative expenses in order to collect their “prizes.”
One victim, a man from the Rochester, N.Y. area, was told numerous times, in phone calls originating in Jamaica, to send packages of money to an address in Brooklyn. As a result, between May 20 and July 18, 2011, the victim sent a total of $130,000 in 16 packages via UPS and the U.S. Mail to the defendants’ residence at 536 Thatford Avenue in Brooklyn.
Another victim, a resident of Missouri, was directed to deposit money into Corey Buddle’s accounts at Bank of America. As a result, she made 26 deposits adding up to approximately $140,000 into Corey Buddle’s accounts from July 11, 2012, through April 4, 2013. The Indictment further alleges that, after April 4, 2013, the victim from Missouri was directed to send cash to 536 Thatford, which she did by sending more than $50,000 in 10 different packages sent via UPS and Federal Express. According to the indictment, some of the money deposited into Corey Buddle’s Bank of America accounts was withdrawn in Jamaica.
A third victim, who lives in Florida, lost $37,000 by wiring it into Corey Buddle’s bank accounts in nine separate transfers between August 2, 2012, and April 4, 2013. According to the indictment, the victim received a letter in April 2012 purporting to be from the FBI and the Department of Homeland Security, telling him he was $25,000 in arrears on his taxes.
None of the victims received anything as a result of their “winnings.”
The Indictment is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Trust Administrator Pleads Guilty to Embezzlement of over $1 MillionRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Brian Lee of San Diego County pleaded guilty today to participating in a scheme he created to obtain over $1 million from accounts he had opened on behalf of any elderly couple. Lee entered his guilty plea to one count of wire fraud before Magistrate Judge Jan M. Adler, and is scheduled to appear before U.S. District Court Judge Barry Ted Moskowitz on May 16, 2014 for sentencing.
In approximately June 2004, a San Diego couple hired Lee to create trusts and corporations on their behalf, and to control bank accounts he opened in the name of the various entities. As Lee admitted in today’s hearing and in court documents, between 2004 and 2012, he made unauthorized transfers of the couple’s funds, through interstate transactions, into other bank accounts over which he had exclusive control. He systematically withdrew funds for his personal use from various accounts, including one opened as a trust for the couple’s grandchildren. In total, Lee siphoned over $1 million from the couple.
United States Attorney Duffy added, “In order to have confidence in the financial service professionals, all consumers – and especially our senior citizens – must be able to trust that their hardearned money is safe from those they hire to help administer their estates. With the continued diligence of our partners in the FBI, we will continue to investigate allegations of embezzlement in order to deter such unscrupulous practices.”
DEFENDANT Case Number: 14cr0385BTMBrian P. Lee
Age: 44 SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1343 (Wire Fraud) Maximum penalty: 20 years of custody; $250,000 Fine
AGENCYFederal Bureau of Investigation
Three Individuals Convicted of Sabotage at the Y-12 National Security Complex SentencedRead the Press Release
KNOXVILLE, Tenn.- On Feb.18, 2014, Michael Walli, Megan Rice, and Greg Boertje-Obed, were sentenced in U.S. District Court by the Honorable Thapar, U.S. District Judge. Sister Megan Rice was sentenced to serve 35 months in prison. Walli and Boertje-Obed were each sentenced to serve 62 months in prison. All three will serve three years supervised release upon their release from prison. Additionally, these individuals were ordered to pay $52,953 in restitution to the Department of Energy.
These individuals were convicted in May, 2013, of one count of injuring national defense premises, that is, the Y-12 National Security Complex, with the intent to interfere with the national defense of the United States, and another count of depredation against property of the United States.
On Jul. 28, 2012, in the middle of the night, the Walli, Rice and Boertje-Obed unlawfully intruded upon the Y-12 National Security Complex in Oak Ridge, Tenn. They used bolt cutters and cut through three highly-sensitive security fences and made their way to the Highly Enriched Uranium Materials Facility (HEUMF), which houses weapons-grade uranium. They splashed human blood and painted slogans on the exterior wall of the HEUMF.
Agencies participating in the investigation of these charges, which resulted in today’s sentences, included the U.S. Department of Energy - Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey E. Theodore represented the United States.
U.S. Attorney William C. Killian commended the sentences and said he hoped it would send a strong message. “The Y-12 National Security Complex plays a critical role in our country’s national defense. People cannot take the law into their own hands and unlawfully intrude upon sensitive government facilities. Those who violate the law and compromise the security of the Y-12 National Security Complex will be vigorously prosecuted.”
Task Force Investigating Homicides Announces Tip LineRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Federal and local law enforcement agencies have established a tip line as a way to encourage people to call with information on 15 homicides that have occurred in central Ohio between 1998 and 2013.
The tip line number is 614 849-1766.
“Information developed through an ongoing, year-long task force investigation suggests that the shootings may have some common threads,” U.S. Attorney Stewart said in announcing the tip line. “Callers can leave the information anonymously, but it would be most helpful if they leave their contact information so a member of the task force can reach out to them.”
U.S. Attorney Stewart commended the FBI, DEA, Columbus Police, Franklin County Sheriff Zach Scott and Franklin County Prosecutor Ron O’Brien for their cooperation, commitment of resources, diligence and determination.
“Our goal here is not just to solve these crimes. Our goal is to bring justice and relief for the victims’ families,” U.S. Attorney Stewart said.
St. Thomas Man Arrested and Charged for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Jevon O. Stridiron, 25, of St. Thomas was arrested yesterday by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Stridiron appeared in District Court in St. Thomas today before U.S. Magistrate Judge Ruth Miller for arraignment and was released on a $5,000 unsecured bond, and other conditions, after a not guilty plea. A trial date has been scheduled for April 7, 2014.
According to court documents, Stridiron was convicted in 2007 of a sex offense in Orange County, Florida. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense who travels in interstate commerce, is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Stridiron alleges that he failed to register as a sex offender as required by the law when he traveled from Florida, changing his residence to the Virgin Islands.
If convicted of this offense, Stridiron faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
St. Louis County Woman Pleads Guilty to Embezzlement ChargesRead the Press Release
St. Louis, MO – STACEY BROTHERTON, of St. Louis County, pled guilty to embezzling funds from two area schools between 2010 and 2013 today. She appeared before U.S. District Judge John A. Ross.
According to the plea agreement, while in the human resources department of Villa Duchesne and Oak Hill School, Brotherton manipulated payroll records to send extra paychecks and paychecks purportedly owed to former employees to bank accounts she controlled. After leaving that employment, Brotherton worked as a payroll consultant to another St. Louis area school and quickly tried to implement a similar scheme, again directing a phony paycheck to a substitute teacher to her own bank account. Shortly thereafter, her misconduct was discovered. In all, Brotherton embezzled approximately $30,000.
Brotherton faces up to 20 years imprisonment and/or a fine up to $250,000 on each count of mail fraud. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencing has been set for May 22, 2014.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
St. Croix Man Arrested for Failing to Register as Sex OffenderRead the Press Release
St. Thomas, USVI – Christopher Mitchell, 45, of St. Croix was arrested today by the United States Marshals Service after being indicted by a federal grand jury for failing to register as a sex offender announced United States Attorney Ronald W. Sharpe. Mitchell appeared today in United States District Court in St. Croix before U.S. Magistrate Judge George W. Cannon and was released on conditions.
According to court documents, Mitchell was convicted in 1998 of a sex offense under the Uniform Code of Military Justice. Under the Sex Offender Registration and Notification Act of 2006, a person convicted of a sex offense is required to register with local authorities as a sex offender. The failure to do so is a crime under federal law. The indictment charging Mitchell alleges that he failed to register as a sex offender as required by the law.
If convicted of this offense, Mitchell faces up to 10 years in prison and fines of up to $250,000. The public is reminded that an indictment is only a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
Richmond Woman Sentenced for Defrauding the U.S. Department of Veteran AffairsRead the Press Release
NORFOLK, Va. – Kimberly Gregory, 54, of Richmond, Va., was sentenced today to twenty months in prison, followed by three years of supervised release, for defrauding the U.S. Department of Veterans Affairs.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Gregory pleaded guilty to the charge of making a false statement on November 19, 2013. According to court documents, Gregory defrauded the Veteran Affairs (VA) out of educational benefits. Gregory ran a beauty school in Richmond called Become New Beauty (BNB) and was certified by the VA to receive educational funds for veterans enrolled in its programs. Rose Simmons, who ran a beauty school called Advanced Cosmetology Institute (ACI) located in Chesapeake, was not certified by the VA to receive VA educational funds for veterans enrolled in that school. In order to tap into the veteran funds, Simmons and Gregory agreed to falsely submit claims to the VA for ACI students by falsely stating that they were attending BNB. In addition, they raised the tuition of BNB from approximately $5,000 to nearly $17,000. Gregory and Simmons caused a loss to the government in excess of $85,000. Simmons also pled guilty on November 14, 2013 and will be sentenced in April.
This case was investigated by the U.S. Department of Veteran Affairs, Office of Inspector General. Assistant United States Attorney Joseph Kosky prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Rehoboth Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – MacDavis Bahe, 31, an enrolled member of the Navajo Nation who resides in Rehoboth, N.M., was sentenced this morning to ten years in federal prison followed by three years of supervised release for his conviction on methamphetamine trafficking and firearms charges.
Bahe was indicted in June 2012, and charged with distributing methamphetamine and marijuana in McKinley County, N.M., between Feb. 2012 and May 2012. He also was charged with being a felon in possession of a firearm and possession of an unregistered firearm.
On Sept. 6, 2013, Bahe admitted that he distributed methamphetamine on Feb. 17, 2012, to an individual who, unbeknownst to him, was an undercover officer. Bahe also admitted that he unlawfully possessed a shotgun on May 1, 2012. Bahe acknowledged that he was prohibited from possessing firearms and ammunition because he previously had been convicted of the following f elony offenses in the 11th Judicial District Court for the State of New Mexico in McKinley County: burglary, aggravated fleeing from a law enforcement officer, and being a felon in possession of a firearm or destructive device.
The case was investigated by the Albuquerque office of the FBI, the Middle Rio Grande Valley Narcotics Task Force, the Gallup Police Department and the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The Middle Rio Grande Valley Task Force is comprised of agents and officers from the Albuquerque Police Department, the Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office, and Valencia County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program that was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.