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Monday 6 January 2014
Conspirators Plead Guilty to Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Baltimore, Maryland – Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on Friday, January 3, 2014, to conspiracy to commit bank fraud in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, beginning sometime in 2010 through February 2013, Chanell Cole, Yolanda Welch, and others participated in a scheme to defraud various financial institutions by stealing personal identifying information (“P.I.I.”) from medical providers and using the victims’ P.I.I. to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s, and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. The conspirators kept the goods; sold the goods to others in exchange for cash; or returned the goods to the retail stores for merchandise credit and for credit on the accounts of the conspirators.
According to her plea agreement, from 2008 through approximately May 2010, Chanell Cole was the sole employee of a rheumatologist with offices at Good Samaritan Hospital in Baltimore, and had access to the physician’s patient files, including electronic records. As part of the scheme, Cole used her position to unlawfully obtain the P.I.I. of numerous patients, including names, addresses, and social security numbers, which she provided to a co-conspirator.
In the early stages of the conspiracy, conspirators obtained false identifications in the names of the victims, but bearing the conspirator’s likeness. The fraudulent identifications and the P.I.I. were then used to open credit accounts at the retail stores. Once the accounts were opened, conspirators made purchases at stores in Maryland, Delaware, New Jersey, and New York. Later in the scheme, members of the conspiracy contacted Macy’s, Bloomingdale’s, and/or Nordstrom by telephone to determine if the victims had existing credit accounts with the retailers. Once it was learned that the victim had an existing credit account, members of the conspiracy used the victims’ P.I.I. to make purchases of merchandise over the phone, which were delivered to the residences of friends and family members of Cole, Welch and other conspirators, primarily in the Philadelphia area. After the merchandise was delivered, a conspirator picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery. The merchandise was sold for cash, or returned to the retail stores in exchange for gift cards. The gift cards were sold for cash or provided to friends and family members. Most of the merchandise was provided to Welch, who sold the merchandise to various individuals for approximately 50% of the retail value. Welch provided the cash to a co-conspirator, who paid her a cash fee in return. Welch listed some of the merchandise using her eBay account. Cole assisted in the sale of the merchandise and purchased some of the fraudulently obtained merchandise for her personal use.
During the course of the scheme, Cole provided the P.I.I. of at least 24 patients, which was used in the scheme causing a loss of at least $32,091.91, and Welch sold over $100,000 of fraudulently obtained merchandise. In total, the scheme resulted in the identities of over 100 individual victims being used to fraudulently obtain over $993,000 of merchandise from Macy’s, Bloomingdales, and Nordstrom.
Cole and Welch face a maximum penalty of 30 years in prison for the bank fraud conspiracy. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cole on April 4, 2014 at 9:00 a.m. and for Welch on April 25, 2014 at 12:00 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 thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Caldwell Man Sentenced for Distributing Meth and Unlawfully Possessing A FirearmRead the Press Release
BOISE — Matthew Navejar, 39, of Caldwell, Idaho, was sentenced today in United States District Court to 66 months in prison for unlawfully possessing firearms and distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Navejar to serve three years of supervised release and to forfeit his interest in two guns. He pleaded guilty to the charges on June 25, 2012.
According to the plea agreement, Navejar is prohibited from possessing firearms due to his 1997 conviction in Malheur County, Oregon, for manufacturing and/or possessing a destructive device. Navejar admitted that on November 21, 2011, he sold a rifle to another individual from his residence in Caldwell and assisted in the sale of a revolver. The price paid for both firearms was $165. Navejar further admitted that on November 30, 2011, he sold methamphetamine at a residence in the Nampa-Caldwell area.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force and is being prosecuted by the former Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Baltimore Store Robber Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Corey Washington, age 29, of Baltimore, today to 10 years in prison followed by three years of supervised release for robbing a clothing store. Judge Garbis enhanced Washington’s sentence upon finding that Washington is a career offender based on two previous convictions for armed robbery and possession with intent to distribute drugs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore Police Commissioner Anthony W. Batts; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, early on August 6, 2012, investigators intercepted phone calls between Washington and co-defendant Gerrod Richardson in which Richardson proposed that they rob the clothing store where he worked, which was located in the 5800 block of Baltimore National Pike in Baltimore County. The defendants met later that morning and finalized their plans. Washington entered the store at 9:30 a.m., posing as a customer. Washington walked to the store’s business office and brandished what appeared to be a gun at the store manager, demanding money from the store safe. The manager opened the safe and gave Washington $3,000 in cash and coins. Washington fled.
Later that day, investigators arrested Washington near his home and seized $1,000 in cash. They also seized empty coin wrappers matching those used by the store from Washington’s home and car. Washington admitted to the robbery.
Gerrod Richardson, age 40, of Baltimore, previously pleaded guilty to his participation in the robbery and was sentenced to 28 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments, and Baltimore City and County State’s Attorney=s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and James Wallner, who prosecuted the case.
Bakersfield Man Sentenced to More Than 7 Years in Prison for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — William George Gray, 51, of Bakersfield, was sentenced today by Senior United States District Judge Anthony W. Ishii to 7 years and 3 months in prison, to be followed by 10 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 30, 2011, and January 2, 2013, Gray received more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.
This case was the product of an extensive investigation by the Central California Internet Crimes Against Children task force and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, 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.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.Armed Marijuana Dealer Sentenced to 5 Years Behind BarsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jairus Quaintance (21, Jacksonville) to five years in federal prison for possessing a firearm while selling marijuana.
Quaintance pleaded guilty on August 28, 2013.
According to court documents, Quaintance was selling marijuana from a street corner just north of downtown Jacksonville. An officer with the Jacksonville Sheriff’s Office made contact with Quaintance and found that he was armed with a loaded 9mm pistol and marijuana packaged for sale.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.
Arizona Man Sentenced in Idaho Federal Court for Wire FraudRead the Press Release
Defendant Ordered to Pay Restitution of $606,989 to ClickBank
BOISE – Christopher L. Myers, 37, of Cave Creek, Arizona, was sentenced today in United States District Court in Boise to 37 months in prison for wire fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Myers to serve three years of supervised release, fined him $7,500, and ordered him to pay $606,989 in restitution to ClickBank, which includes $449,643 that Myers admitted he fraudulently wire transferred, and $157,346 for costs incurred by ClickBank in its internal investigation. Myers pleaded guilty to the charge on August 22, 2013.
According to the plea agreement, from April 2006 through November 2011, Myers was employed by Click Sales, Inc., doing business as ClickBank. For a portion of that time he served as the company’s comptroller. Click Sales, Inc., a subsidiary of Keynetics, Inc., operated a Boise-based internet business that facilitated payments between retailers and consumers. ClickBank received payments from consumers for the purchase price of goods and services, kept a portion of the purchase price as commission, and remitted the remainder to the retailers by checks, ACH transfers and wire transfers. Some of ClickBank’s retailer-clients failed to timely cash the checks. As comptroller, Myers was responsible for tracking these “issued but uncashed” checks.
According to the plea agreement, beginning in August 2008, on 26 separate occasions Myers wire transferred funds from ClickBank’s bank account to his personal bank accounts at a different bank. The funds that were wire transferred corresponded to the “issued but uncashed” checks to ClickBank retailer-clients. In total, Myers admitted he wire transferred approximately $449,643 from ClickBank’s bank account to his own bank accounts. According to the plea agreement, Myers did so with the specific intent to defraud and used the funds for personal purchases and expenditures, including mortgage payments and personal investment and retirement accounts.
The case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
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.
Friday 3 January 2014
Two Indicted in Stranger- Originated Life Insurance SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Cheryl Garcia, Acting Special Agent-in-Charge, U.S. Department of Labor – Office of Inspector General, Susan A. Hensley, Regional Director, U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), todayannounced that a federal grand jury in Hartford has returned a 33-count indictment charging DANIEL CARPENTER, 59, of Simsbury, and WAYNE BURSEY, 63, of Bloomfield, with wire fraud, mail fraud and conspiracy offenses stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of the defendants and other investors, also known as a stranger-originated life insurance scheme. The indictment was returned on December 12, 2013, and unsealed on December 30.
According to the indictment, CARPENTER and BURSEY ran a series of companies, based in Simsbury and Stamford, that developed an employee welfare benefit plan and trust (the “Trust”) whose primary objective was to secure insurance policies on the lives of elderly individuals that could be held by the defendants and others as investments, or resold on the life settlement market, which is a third-party market for life insurance policies. Typically, insurance agents working with, for, or on behalf of the defendants approached individuals who were over the age of 70 (the “Straw Insureds”). The agents promised to provide the Straw Insureds with free life insurance for two years, and, at the end of the two years, would attempt to sell the policies on the life settlement market. In most cases, the agents promised the Straw Insureds that they would receive a portion of any sale proceeds. In other cases, the Straw Insureds were offered a cash inducement up front to participate.
The indictment alleges that CARPENTER and BURSEY, working with insurance agents, caused to be submitted to several insurance providers numerous insurance applications that contained several material misrepresentations, including falsely denying that third-parties were paying the premiums for the insurance, falsely denying discussions about the resale of the policies, falsely inflating the net worth and/or income of the insured, and falsely claiming that the insurance was being purchased for legitimate estate planning-related needs. All applications were signed by BURSEY, who acted as trustee of the Trust, which was to be the “owner” of all policies in the Trust. Moreover, the applications purported that the Trust was a bona fide welfare benefit trust under Internal Revenue Code Section 419(e), wherein employers would be making contributions to the Trust in order to fund the life insurance policies for the benefit of certain select employees.
The indictment further alleges that, in truth, no “employer” or Straw Insured ever paid a premium into the Trust, and the premiums were funded by loans, which typically came to the Trust from another company headquartered in Simsbury and controlled by CARPENTER. In many cases, those loans were, in turn, financed by another third-party financing company based in Stamford. The loan arrangements were withheld from the insurance providers, who would likely not have issued policies had they known the true nature of the Trust, and had the insurance applications been filled out truthfully.
CARPENTER and BURSEY are scheduled to be arraigned on January 17 before U.S. Magistrate Judge Donna F. Martinez in Hartford.
If convicted, CARPENTER and BURSEYface a maximum term of imprisonment of 20 years on each count of wire fraud and mail fraud.
This case is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
This matter is being investigated by the U.S. Department of Labor – Office of the Inspector General, the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and the Special Inspector General for the Troubled Asset Relief Program. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
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[email protected]Two Fairbanks Men Plead Guilty to Illegal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that two Fairbanks men entered pleas of guilty in federal court today in Fairbanks, for two counts of trafficking in narcotics.
Andrew Paul Newman, 51, and Jason Carl Heim, 36, both of Fairbanks, Alaska, pleaded guilty today before Chief United States District Judge Ralph R. Beistline, to charges that they conspired to violate federal drug trafficking laws, and possessed more than 50 grams of actual methamphetamine with the intent to distribute it.
According to the facts presented in court by Assistant U. S. Attorney Stephen Cooper to support the guilty pleas, the two men cooperated in shipping into Alaska for resale a parcel containing seven ounces of 71% pure methamphetamine. When the parcel came through the U.S. Post Office in August 2013, Postal Inspectors suspected it contained illegal drugs. They obtained a search warrant from the court, followed the parcel when it was delivered, and arrested both Newman and Heim as they were in the act of opening the parcel in a secluded wooded area near North Pole. Electronic mail and postal records showed the parcel was the latest in a series of shipments of methamphetamine that Newman and Heim received by mail from an unidentified source in California between April and August. According to law enforcement investigators in the case, the total value of the seized drugs alone exceeds $40,000 or $80,000 if the drugs were diluted before resale. The value of the additional drugs Newman and Heim had shipped into Alaska between April and August would be several times this amount.
The judge set sentencing proceedings for April 4, 2014, in Fairbanks. Newman and Heim were ordered detained in custody pending the sentencing.
Ms. Loeffler commends the U.S. Postal Inspectors, the Bureau of Alcohol, Tobacco and Firearms, and the Alaska State Drug Enforcement Unit for the investigation of this case.
Third Person Charged in HUD Mortgage Fraud CaseRead the Press Release
Defendant’s Mother and Former Husband Sentenced Last Year for Their Roles in the Scheme
POCATELLO – U.S. Attorney Wendy J. Olson announced today that Sarah Kate Henecke, 35, also known as Alessandra Valencia Toscanelli, of Las Vegas, Nevada, has been indicted for her role in a mortgage fraud scheme. Henecke was arrested in Nevada on December 11, 2013. She is scheduled to make her first appearance in federal court in Idaho at 11:00 a.m. on January 15, 2014, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Pocatello.
A federal grand jury in Boise indicted Henecke on November 13, 2013. Henecke is charged with one count of making a false statement on a residential loan application for a Department of Housing and Urban Development (HUD) guaranteed loan. The indictment alleges that Henecke, a co-borrower on the loan along with her then-husband, Darin John Henecke, misrepresented that she had employment income of $2,400 per month, when in fact she was not employed.
Darin Henecke, 37, of Pocatello, Idaho, and Sarah Henecke’s mother, Karen DeWall Shaw, 60, of Chubbuck, Idaho, pleaded guilty last year to a misdemeanor charge of making a false statement. They were sentenced on September 25, 2013, to five years of probation and each ordered to pay $42,905 in restitution. According to the plea agreement filed in the case, on March 13, 2009, Darin Henecke obtained a residential loan to finance the purchase of a residence in Eagle, Idaho. The loan was funded based in part on the false statement allegedly made by Sarah Henecke. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Darin Henecke admitted that he knew false employment information was submitted to obtain the loan. Shaw admitted that she assisted in the fraud by providing false employment information in order for the borrowers to qualify for the loan.
The case is being investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
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.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Stanton Heights Man Pleads Guilty to Drug Charges, Admits Operating Stash House and Using Juvenile "Runners"Read the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to federal drug trafficking charges, United States Attorney David J. Hickton announced today.
Brady Hall, 19, pleaded guilty to three counts before United States District Judge Cathy Bissoon. Specifically, Hall pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more heroin, possession with the intent to distribute a quantity of heroin, and employment of juveniles to distribute heroin. In total, Hall agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea, the Court was advised that from May 2012 to February 2013, Hall conspired together with his charged co-defendants, Jay Germany, Jaquan Washington, and others, to possess with the intent to distribute and distribute, heroin. In addition, Hall conspired with uncharged co-conspirator Andre Corbett and his associates to distribute heroin. Germany and Washington have both pled not guilty, while Corbett has pleaded guilty and was sentenced to 10 years in prison.
The Court learned that during the timeframe of the heroin trafficking conspiracy, Germany was the leader of the conspiracy, in that he operated the "customer phone," whereby retail heroin customers would call Germany to arrange a heroin transaction. Once the transaction had been finalized, Germany, in turn, called either Washington or Hall to deliver the heroin to the customer. Hall operated a heroin "stash house," located in Homestead. From that stash house, Hall used runners, including juvenile runners, to deliver heroin to customers.
Finally, Count Five of the Superseding Indictment related to a heroin transaction that took place at the Giant Eagle on the Waterfront in Homestead. On Oct. 30, 2012, a heroin customer arranged to purchase 100 stamp bags of heroin from Germany at the Giant Eagle. Germany drove Hall to complete the deal at Giant Eagle. Hall met the customer in the Giant Eagle bathroom. In the bathroom, Hall provided the customer with the 100 stamp bags of heroin. Law enforcement, who had been intercepting the telephone conversations of Germany, monitored this transaction, and later conducted a traffic stop of the customer as he drove away. Law enforcement recovered the purchased heroin from the customer.
Judge Bissoon scheduled sentencing for April 30, 2014, at 2:15 p.m. The law provides for a total sentence of up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Brady Hall.
San Antonio Mail Thief and Convicted Felon Sentenced to Federal PrisonRead the Press Release
In San Antonio this morning, 28-year-old John Michael Hawkins was sentenced to 77 months in federal prison for possession of stolen mail and being a convicted felon in possession of a firearm announced United States Attorney Robert Pitman and U.S. Postal Inspection Service Inspector in Charge Robert Wemyss, Houston Division.
In addition to the prison term, U.S. Chief District Judge Fred Biery ordered that Hawkins pay $4,228.56 restitution and be placed under supervised release for a period of three years after completing his prison term.
In February 2013, San Antonio Police Officers arrested Hawkins. At that time, Hawkins was in possession of stolen mail as well as a significant amount of credit cards in names other than his, various business checks, multiple personal checks, U.S. passports and Texas driver licenses. Hawkins was also in possession of a .357 caliber revolver.
On August 1, 2013, Hawkins pleaded guilty to the federal charges. Hawkins’ criminal history includes state felony convictions for burglary of a habitation, unauthorized use of a vehicle, vehicle theft and evading arrest/ detention with a vehicle.
“The Postal Inspection Service has sought those who steal mail for hundreds of years. The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission,” stated Robert Wemyss, Inspector in Charge, Houston Division.
This case was investigated by the U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Antonio Police Department. Assistant U.S. Attorney Michael Hardy prosecuted this case on behalf of the Government.
Rochester Man Sentenced for Fraud & Money LaunderingRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Griffin, 46, of Rochester, N.Y., who was convicted of conspiracy to commit mail and wire fraud and conspiracy to engage in money laundering, was sentenced to 46 months in prison by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Griffin was the owner of an employment staffing business that operated under various names, including LHT USA and Cambridge Personnel. From August 2007 to June 2008, the defendant spearheaded a conspiracy to defraud lenders by selling them false invoices in transactions known as factoring. The fraud involved creating false invoices and other supporting documents that the defendant then sold to a series of financing companies on a weekly basis for immediate cash. When a financing company realized that it had been sold uncollectible invoices and stopped dealing with Griffin's business, the defendant would change business names and continue the scheme with another financing company.
In total, Griffin and his confederates sold and attempted to sell more than $650,000 worth of bogus invoices to three separate factoring companies over a period of almost a year. He then laundered the proceeds of his crimes and used them to buy a Bentley, support a drug habit, and fund a lifestyle beyond his legitimate means.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Toni M. Weirauch, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Ramona Real Estate Agent Who Arranged Fraudulent Real Estate Sales Sentenced to 15 MonthsRead the Press Release
SAN DIEGO – Real estate agent Teresa Rose, of Ramona, California, was sentenced today to 15 months in custody by U.S. District Judge John A. Houston for her role in an investment and mortgage loan fraud scheme that generated tens of millions of dollars in fraudulent loans and millions in illegal kickbacks to the participants. In addition, Rose was ordered to pay more than half a million dollars in restitution to victims of the offense.
Rose was charged with participating in the scheme along with five others: Mary Armstrong, an unlicensed mortgage broker who orchestrated the scheme; William Fountain, Armstrong’s assistant; John Allen, a mortgage loan processor from Laguna Hills; Justin Mensen, a straw buyer who later recruited others and helped launder the funds; and Audrey Yeboah, a Los Angeles-based tax preparer who generated fake paperwork to support the loans.
Rose’s coconspirators, including Mary Armstrong, recruited real estate “investors” through advertisements in the Los Angeles Times, Monster.com, and elsewhere. They offered these “investors” the opportunity to purchase homes using their good credit with no money down. In order to get these “investors” to participate in the loan fraud, the participants in the fraud promised to make the mortgage payments on their behalf using rental income from the properties.
In reality, these so-called investors were nothing more than straw buyers who were promised $10,000 for each property purchased as part of the scheme. Rose helped secure mortgages on the properties by falsifying loan applications for the straw buyers. Among other things, the loan applications she helped to falsify claimed that the borrowers had exorbitant income from fake employers, and assets that they did not own. Rose and others used sham employers in order to verify the borrowers’ fabricated employment histories. In addition, Armstrong arranged for the borrowers to obtain 100% financing – and thus avoided having to make any down payment on the properties.
Rose acted as both the buyers’ and sellers’ real estate agent on a number of these sales, and convinced the sellers of each property to inflate the purchase price by $100,000 or more. These inflated amounts were allegedly for construction to improve the properties. In fact, no construction work was performed and the funds were diverted (or “kicked back”) to bank accounts controlled by Rose’s coconspirators. In this way, the conspirators pocketed nearly $15 million in kickbacks, made few if any mortgage payments, and allowed nearly all of the properties to swiftly fall into foreclosure. Rose earned real estate sales commissions from both the sellers and buyers on each transaction, and took home more than $200,000 for arranging the sales of nine properties in Ramona. In total, Armstrong arranged the purchase of approximately $100 million in loans through this scheme, resulting in estimated losses between $7 million and $20 million to the mortgage lenders and secondary purchasers Fannie Mae and Freddie Mac.
All of the defendants pled guilty to participating in the scheme and were sentenced by Judge Houston. Armstrong was sentenced to 100 months in custody. Fountain and Allen were sentenced to 42 months and 12 months in custody, respectively. Mensen and Yeboah were each sentenced to probation with terms of home detention or house arrest.
United States Attorney Laura Duffy said the American public is the actual victim of this type of widespread mortgage fraud, which played such a significant role in destabilizing the country’s financial situation and neighborhoods rocked by foreclosures and abandoned homes. She emphasized that her office would aggressively prosecute such crimes and urged anyone in the community who has information relating to these charges to contact the San Diego branch of the Federal Bureau of Investigation at (858) 565-1255 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
This matter was investigated jointly by agents from the FBI and FHFA-OIG. The case is being prosecuted by FHFA-OIG Investigative Counsel and Special Assistant U.S. Attorney Emily W. Allen and Assistant U.S. Attorney Valerie Chu of the Southern District of California.
DEFENDANTS Criminal Case No. 12CR1848-JAH Mary Armstrong
Teresa Rose
William Fountain
John Allen DEFENDANT Criminal Case No. 12CR1458-JAH Justin Mensen DEFENDANT Criminal Case No. 12CR4322-JAH Audrey Yeboah SUMMARY OF CHARGESMary Armstrong, Teresa Rose, and William Fountain
Count 1: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to
Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of
$250,000 or twice the gain derived from or loss caused by the offense, and $100
special assessment.Mary Armstrong
Count 2: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum
sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived
from or loss caused by the offense, and $100 special assessment.Counts 3-5: Title 18, United States Code, Section 1956(a)(1)(B)(I) -- Money Laundering --
statutory maximum sentence of 15 years’ custody, a maximum fine of $500,000 or
twice the value of the property involved in the transaction, and $100 special
assessment.Justin Mensen
Information: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud
and to Launder Money -- statutory maximum sentence of 5 years custody, a maximum
fine of $250,000 or twice the gain derived from or loss caused by the offense, and
$100 special assessment.Audrey Yeboah
Information: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum
AGENCIES
sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived
from or loss caused by the offense, and $100 special assessment.Federal Bureau of Investigation
Federal Housing Finance Agency - Office of Inspector GeneralNine Trey Gangster Sentenced to 9 1/2 YearsRead the Press Release
RICHMOND, Va. – Ricky Timothy Wyatt, Jr., a.k.a. “Knuckles,” 27, of Petersburg, Va., was sentenced today to 114 months’ in prison, to be followed by 3 years of supervised release for charges of possession of firearms by a convicted felon and manufacturing counterfeit currency.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office; and John I. Dixon, III, Chief of Police, City of Petersburg, made the announcement after the sentence was imposed today by United States District Judge Henry E. Hudson.
To date, more than one dozen members of the Nine Trey Gangster (NTG) organization have been indicted and convicted of various federal charges involving illegal firearms, manufacturing counterfeit currency, and drug trafficking. Charges against more than one dozen other Nine Trey Gangsters are currently pending.
Wyatt, who proceeded to trial on September 26, 2013, was convicted on September 27, 2013 of all six counts in the Criminal Indictment. At the sentencing hearing today, the United States introduced evidence showing that Wyatt was in charge of NTG members in Petersburg, Virginia and elsewhere, and that he was responsible for leading a group involving five or more people, or was otherwise extensive. The United States linked the firearms he illegally possessed, and his manufacturing of counterfeit currency to Wyatt’s leadership role in the Nine Trey Gangsters, where Wyatt held the rank of “Lo Stain.”
NTG is part of the United Blood Nation (UBN). UBN was the first unified Blood gang alliance on the East Coast, and started on Riker’s Island at the George Machen Detention Center in the New York City jail system. There were five original sets under the UBN, one of which was NTG, which was formed in 1993. Since its inception, NTG has been one of the most active East Coast Blood gang sets. NTG has spread across the eastern United States, and the FBI and numerous dedicated gang task forces have undertaken a long-term investigation of NTG activities in Virginia and neighboring states. NTG members are organized into “line-ups.” There were multiple active “line-ups” in Virginia and elsewhere under Wyatt’s control. The “High Stain” appoints a “Lo Stain” who has generals ranking from five stars down to one star reporting to him. “Soldiers” are the lowest ranking members in the gang. The “High Stain” of each line up reports to two “Godfathers,” both of whom are in New York. At NTG meetings, dues were collected, a portion of which was sent to NTG leadership in New York. In addition, meetings included assigning discipline to NTG members who violated NTG codes. Discipline may involve a loss of rank, or a 31 second beating.
This case was initiated and investigated by the Federal Bureau of Investigation as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, Full Blooded Ink. Assistant United States Attorney Angela Mastandrea-Miller 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.Newport Man Sentenced for Receiving Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that John Kuhl, 42, of Newport, Vermont, was sentenced in United States District Court in Rutland, Vermont, on January 2, 2014, to serve 60-months imprisonment and a five (5) year term of supervised release following his conviction on one count of receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). Chief Judge Christina Reiss also ordered Kuhl to pay a $100 special assessment.
According to court records, Kuhl gave a cell phone to a minor female and instructed her to take photos of her genitalia and to send the photos to him, which the minor female did. A forensic examination of Kuhl’s telephone revealed the existence of the photos the minor had taken and sent to him. This activity came to law enforcement attention when it investigated allegations that Kuhl had inappropriately touched four other minors during a boat trip in Newport, Vermont.
The prosecution of Kuhl was being handled by Assistant U.S. Attorney Barbara Masterson. Kuhl was represented by David McColgin of the Federal Defender’s Office.
U.S. Attorney Coffin commended the efforts of the Newport Police Department, Homeland Security Investigations, and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Kuhl.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Miami Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Orlando, FL – Acting United States Attorney A. Lee Bentley, III announces that Camorette James (28, Miami) today pleaded guilty to one count of conspiracy to commit bank fraud. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
James was indicted on March 12, 2012.
According to court documents, James and others engaged in a conspiracy to commit bank fraud and to defraud the Navy Federal Credit Union ("NFCU"). They facilitated the conspiracy by opening fraudulent accounts by telephone, while claiming to be members of the United States Armed Forces, and by using the identification of others without authorization. Following these telephone calls, the conspirators requested account access cards, known as "CuCards," to be mailed to addresses in Central Florida.
As part of the scheme, James deposited worthless checks into the fraudulently opened NFCU accounts, in order to inflate the accounts’ balances. These checks were drawn on accounts in which there were no funds. Along with other conspirators, James then withdrew funds from the fraudulent accounts, before the bank realized that the deposited checks were worthless.
On November 2, 2012, Brittany Jones was sentenced 48 months’ imprisonment for her role in the scheme, after pleading guilty to conspiracy to commit bank fraud, three counts of bank fraud, and aggravated identity theft. Jones was also ordered to pay $180,034.72 in restitution.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
Metro Station Armed Carjacker Pleads GuiltyRead the Press Release
Carjacking Victim Shot and Seriously Injured
Greenbelt, Maryland – Samuel Damien Bynum, age 23, of Washington, D.C., pleaded guilty today to conspiring to use a gun during a carjacking, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George=s County Police Department; Prince George=s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.
“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.
Two alleged co-conspirators have been charged in federal court and another was prosecuted in state court.
Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
Bynum faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. U.S. District Judge Paul W. Grimm scheduled sentencing for May 6, 2014 at 11:00 a.m.United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General=s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
McLaughlin Woman Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman convicted of Larceny was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Tabitha Good House, age 27, was sentenced to 5 years of unsupervised probation, $16,761 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Good House was indicted by a federal grand jury on July 17, 2013. She pled guilty on October 7, 2013.
The conviction stems from incidents occurring between December 1, 2012, and March 25, 2013, when Good House, who was employed by KLND Radio Station in McLaughlin, forged the signature of station board members and negotiated several checks, knowing she was not entitled to the monies to which she received. The total amount of the checks was $16,761.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
McLaughlin Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Lehi James Demarrias, Sr., age 31, was sentenced to 57 months in custody, 3 years of Supervised Release, $3,287.41 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Demarrias was indicted by a federal grand jury on July 23, 2013. He pled guilty on September 23, 2013.
The conviction stems from an incident that happened in McLaughlin on July 17, 2013, when Standing Rock Agency Dispatch received a call regarding a male who had been stabbed in the stomach. Bureau of Indian Affairs police officers arrived on the scene and were informed by the victim that he had been stabbed by Demarrias.
The victim was originally taken to the Mobridge hospital where he was stabilized and then transferred to a hospital in Bismarck, North Dakota. Upon arrival in Bismarck, the hospital determined it was necessary for the victim to undergo emergency surgery due to the possibility that one of his organs was possibly ruptured. As a result of this incident, the victim sustained serious bodily injury.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Demarrias was immediately turned over to the custody of the U.S. Marshals Service.
Kentland Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Brian Hudson, a/k/a “Country,” age 33, of Hyattsville, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Hudson’s plea agreement, from June 2010 to August 2011, Hudson conspired with Philip Whitehurst and others to distribute cocaine in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. During the investigation, law enforcement intercepted numerous calls where Hudson was overheard discussing the sale of cocaine with Whitehurst. During the conspiracy, Hudson also sold 3.5 grams of crack cocaine to a source, who conducted the purchase at the direction of the Prince George’s County Police Department. On February 21, 2012, Prince George’s County police officers and FBI Task Force officers blocked Hudson’s car when he attempted to leave his apartment. Hudson rammed several of the police vehicles with his car and attempted to run away before he was arrested. Hudson admits that he was responsible for the distribution of between five and 15 kilograms of cocaine during the conspiracy.Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, was previously sentenced to 294 months in prison for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine. Twenty-one other Kentland co-conspirators have been sentenced to between 27 and 210 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem, Arun G. Rao and Thomas M. Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.Jicarilla Apache Man Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Jeremiah Burns, 32, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to an indictment charging him with involuntary manslaughter.
Burns was arrested in Aug. 2013, based on an indictment charging him with killing a man on Oct. 22, 2011, while driving under the influence of alcohol within the Jicarilla Apache Indian Reservation. In entering his guilty plea, Burns admitted killing the victim while driving under the influence of alcohol and marijuana which rendered him incapable of exercising clear judgment and a steady hand in handling a vehicle. As such, Burns acknowledged that he operated the vehicle without due caution and with a reckless disregard that imperiled the lives of others.
Under the terms of his plea agreement, Burns will be sentenced to 20 months in federal prison followed by a term of supervised release to be determined by the court. Burns’ sentencing hearing has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Holter in Great Falls, on December 31, 2013, and entering pleas of Not Guilty were:
- DERRICK LEE DRIVDAHL, a 50-year-old resident of Helena appeared on charges of child pornography. If convicted, DRIVAHL faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years in prison.
Appearing before U.S. Magistrate Judge Lynch in Missoula, on January 2, 2014, and entering pleas of Not Guilty were:
- TIMOTHY GARDINER, a resident of Yakima, Washington appeared on charges of distribution of methamphetamine. If convicted, GARDINER faces possible penalties of life imprisonment.
- JEFFREY LACKMAN, a 24-year-old resident of Butte, appeared on charges of distribution of methamphetamine. If convicted, LACKMAN faces possible penalties of life imprisonment.
Appearing before U.S. Magistrate Judge Ostby in Billings on January 3, 2014, and entering pleas of Not Guilty were:
- GAYLON LANCE LAMEWOMAN, a 33-year-old resident of Lame Deer, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted, LAMEWOMAN faces possible penalties of 10 years in prison.
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Homestead Man Conspired to Distribute Heroin from ACJ, SCI-Camp HillRead the Press Release
PITTSBURGH - A resident of Homestead, Pa., pleaded guilty in federal court to federal drug trafficking charges, United States Attorney David J. Hickton announced today.
Jordan Murphy, 22, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, before United States District Judge Cathy Bissoon. In total, Murphy agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea, the Court was advised that from May 2012 to February 2013, Murphy conspired together with his charged co-defendants Andre Corbett, Sterling Marshall, and others, to possess with the intent to distribute and distribute, heroin. Those named co-defendants have previously pleaded guilty.
Specifically, the Court learned that during the timeframe of the heroin trafficking conspiracy, Murphy was incarcerated on state charges at Allegheny County Jail and SCI-Camp Hill. However, Murphy still participated and coordinated heroin sales from those facilities. Specifically, Murphy, in recorded "jail calls," had Corbett and Marshall sell heroin through uncharged co-conspirator Brady Hall, who used "runners" to deliver this heroin to heroin customers in Homestead. This conspiracy was primarily supplied heroin by uncharged co-conspirator Brandon Thompson, amongst others. Murphy set pricing and coordinated drug payments over the telephone. Thompson has pleaded not guilty in a related indictment.
Judge Bissoon scheduled sentencing for April 24, 2014, at 2:15 p.m. The law provides for a total sentence of up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Jordan Murphy.
Fourteen Charged After Joint Investigation into Drug Trafficking and Violence in BridgeportRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Bridgeport Police Chief Joseph L. Gaudett, Jr. today announced that 14 individuals have been charged by indictment with various narcotics and firearms offenses as part of joint investigation into drug trafficking and violence in Bridgeport. The majority of the defendants were arrested on criminal complaints in early December and a federal grand jury in Bridgeport returned an 18-count indictment on December 18.
According to statements made in court, since January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force has been conducting an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport.
Charged in the indictment are:
RONELL HANKS, a.k.a. “Biz” and “Ace,” 24, of Bridgeport
OMAR BAHAMONDE, a.k.a. “Dirk,” 29, of Bridgeport
JONATHAN BOHANNON, 25, of Bridgeport
JERMAINE BUCHANAN, a.k.a. “Hot Main,” 18, of Shelton
MOYAN FORBES, 22, of Bridgeport
RASHAD HEARD, a.k.a. “Shotty,” 23, of Bridgeport,
SYBIL HOPKINS, 55, of Stratford
STEVEN HUTCHINSON, a.k.a. “L,” 24, of Bridgeport
TAVAR JOHNSON, 30, of Bridgeport
YAZMINE MORALES, 36, of Newington
CARLOS SOTO, a.k.a. “Machon,” 49, of Newington
EBONEY WOOD, a.k.a. “Sis,” 33, of New Haven
D’METRIUS WOODWARD, a.k.a. “Flea,” 29, of Bridgeport
TYSHEEM WRIGHT, 25, of BridgeportDuring the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
The indictment charges each defendant with conspiracy to possess with intent to distribute narcotics. If convicted of this charge, based on the type and quantity of narcotics charged, BAHAMONDE, BOHANNON, FORBES, HANKS, HEARD, HOPKINS, MORALES, SOTO, WOOD, WOODWARD and WRIGHT face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. BUCHANAN, HUTCHINSON and JOHNSON face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Certain defendants are also charged with possessing with intent to distribute, and distribution of, heroin and/or cocaine base (“crack cocaine”).
The indictment also charges HANKS and BOHANNON with one count of possession of a firearm and ammunition by a previously convicted felon, which carries a maximum term of imprisonment of 10 years; BOHANNON and BUCHANAN with one count of possession of a firearm in furtherance of drug trafficking crimes, which carries a mandatory five-year sentence; HANKS and BUCHANAN with one count of possession of a stolen firearm, which carries a maximum term of imprisonment of 10 years, and WOOD with transfer of a firearm to a convicted felon (HANKS), which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to Chief U.S. District Judge Janet C. Hall in New Haven.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, Norwalk Police Department, Trumbull Police Department and Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former McHenry County Sheriff's Deputy Pleads Guilty to Federal Child Sexual Abuse and Exploitation ChargeRead the Press Release
ROCKFORD — A former McHenry County Sheriff=s Deputy pleaded guilty today in federal court before U.S. District Court Judge Frederick J. Kapala to crossing a state line with intent to engage in a sexual act with a person who had not attained the age of 12 years. The defendant, GREGORY M. PYLE, 38, of Crest Hills, Ill., formerly of Crystal Lake, Ill., admitted that on Dec. 13, 2008, he had custody of a child under 12 years of age, when he drove the child from Crystal Lake, Ill. to Milwaukee, Wisc., with the intention to engage in sexual acts with the child and to produce visual depictions of such acts. Pyle admitted that he stayed overnight in a Milwaukee hotel and engaged in sexual acts with the child that were sadistic, masochistic, and violent. The defendant produced images of the child engaged in these sexual acts and later distributed the images over the Internet.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois State Police, the McHenry County Sheriff’s Department, and the Illinois Internet Crimes Against Children Taskforce assisted in the investigation.
Pyle’s sentencing hearing is scheduled for April 14, 2014, at 2:30 p.m. Crossing a state line to engage in a sexual act with a minor under 12 carries a mandatory minimum sentence of 30 years and a maximum of life in prison, a period of supervised release following imprisonment of at least five years and up to life, and a maximum fine of $250,000.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Former Jpd Detective Sentenced on Bribery ChargeRead the Press Release
Jackson, Miss. -- Robert Nikita Shegog, of Terry, Mississippi, was sentenced in U.S. District Court today to 22 months and 15 days imprisonment for bribery, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Shegog was also ordered to pay a $10,000.00 fine.
Shegog pled guilty to the bribery charge in July, 2012, admitting that, while employed as a Narcotics Detective with the Jackson Police Department in 2010, he advised a Hinds County criminal defendant that he would assist him in getting a sentence reduction on an outstanding drug charge if he would pay Shegog $45,000.00.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.###
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Former El Paso County Judge Anthony Cobos Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
This afternoon, former El Paso County Judge Anthony Cobos and Lorenzo Hilario Aguilar were each sentenced to four years in federal prison followed by three years of supervised release for their roles in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the 46–year-old Cobos pay a $10,000 fine; the 63-year-old Aguilar, a $50,000 fine. Furthermore, Judge Montalvo ordered Cobos and Aguilar to surrender to federal authorities on or before February 11, 2014, to begin serving their prison terms.
In September, Cobos and Aguilar each pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services. By pleading guilty, the defendants admitted that in 2007, they participated in a bribery scheme involving former El Paso County Judge Anthony Cobos’ vote and influence on El Paso County contracts. According to court records, Cobos accepted bribes in the form of cash money and other benefits, including campaign contributions to Cobos-supported individuals running for the El Paso City Council, in exchange for his vote and influence in refinancing approximately $40 million of El Paso County debt and to terminate the then El Paso County financial advisor’s contract and replace with another company.
“The sentences handed down today should reassure the public that we will be relentless in pursuing those who would attempt to corrupt public officials as well as those public officials who violate their public trust for personal gain,” stated U.S. Attorney Robert Pitman.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
“Nothing destroys public confidence more than those who illegally conspire to benefit from taxpayer dollars. The FBI is committed to protecting the El Paso community by holding violators personally accountable for their actions,” stated FBI SAC Douglas E. Lindquist.
Assistant United States Attorney William F. Lewis, Jr. prosecuted this case on behalf of the Government.
Final Defendant in Meth Trafficking Case Sentenced to 30 Years in Federal PrisonRead the Press Release
Five Co-Conspirators Serving Sentences Ranging from 21 Months to 35 Years
POCATELLO – U.S. Attorney Wendy J. Olson announced today Juan Carlos Garcia, 36, of Idaho Falls, Idaho, was sentenced today to 30 years in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. Chief U.S. District Judge B. Lynn Winmill also ordered Garcia to serve 10 years of supervised release and pay a $3,000 fine. He pleaded guilty to the charge on August 12, 2013.
Five co-conspirators were sentenced late last year to serve lengthy prison sentences. Fausto Urias, of Idaho Falls, the leader/organizer of the criminal organization, was sentenced in October 2013 to 35 years in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. Benito Joya, of Rigby, Idaho, was sentenced in October to 121 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine. Marco Antonio Echeverria, of Idaho Falls, was sentenced in December 2013 to serve 97 months in prison for distributing methamphetamine. Erica Rodriguez, of Idaho Falls, was sentenced in December to 92 months in prison for possession to with intent to distribute 50 grams or more of actual methamphetamine. Misti Chapman, of Idaho Falls, was sentenced in October to 21 months in prison for distribution of methamphetamine and violating a previously imposed term of supervised release.
According to plea agreements filed in the case, between November 2009 and October 23, 2012, Urias and Garcia conspired to possess and distribute methamphetamine to other individuals in the Idaho Falls area. Urias and Garcia were previously convicted of felony possession of a controlled substance in Bonneville County, Idaho, on November 9, 2004, and June 7, 2005, respectively.
“This drug trafficking organization brought significant amounts of this highly addictive drug into our communities,” said Olson. “Through the cooperative efforts of local, state and federal authorities, we have successfully dismantled this operation. The U.S. Attorney’s Office and its law enforcement partners will use all lawful means to bring to justice and seek punishment for those who traffic methamphetamine in Idaho.”
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Espanola Man Pleads Guilty to Robbing Espanola Bank in September 2013Read the Press Release
ALBUQUERQUE – Stephen Gurule, 34, of Espanola, N.M., pleaded guilty this morning to an indictment charging him with bank robbery.
Gurule was arrested on Oct. 3, 2013 on a criminal complaint charging him with robbing the Community Bank located at 411 Carr Lane, Espanola, N.M. on Sept. 27, 2013, and subsequently was indicted on a bank robbery charge.
According to court filings, the Community Bank was robbed at approximately 3:00 pm on Sept. 27, 2013 by a man who passed a handwritten note demanding money to a bank teller. On Oct. 1, 2013, the FBI received a call from an individual who reported that Gurule had confessed to robbing the Community Bank. The following day, another individual called the FBI to report that Gurule had confessed to robbing a bank in Espanola. The FBI obtained an arrest warrant for Gurule on Oct. 3, 2013, after comparing a driver’s license photograph of Gurule to the robber shown on the bank surveillance video and determining that the robber appeared to be Gurule.
During today’s proceedings, Gurule entered a guilty plea to the indictment and admitted robbing Community Bank on Sept. 27, 2013. Gurule has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Gurule faces a maximum penalty of 20 years in federal prison.
This case was investigated by the Santa Fe Office of the FBI and City of Espanola Police Department, and is being prosecuted by Assistant U.S. Attorney David M. Walsh.
District Man Sentenced to Nine Years in Prison for Stabbing Man Following Argument over $20 Debt-Defendant Tells Victim, “Get Me My Money”-Read the Press Release
WASHINGTON - Charles Link, 53, of Washington, D.C., was sentenced today to nine years in prison on a charge of assault with a dangerous weapon stemming from the stabbing of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Link was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Link will be placed on three years of supervised release.
According to the government’s evidence at trial, the victim and Link were close friends for more than four years. They socialized together and played chess, and the victim even helped Link at his job at a funeral home. From time to time, Link would loan the victim small amounts of money. In the fall of 2012, the two men got into a disagreement over the repayment of a $20 loan. The victim had given Link his food assistance card and had told Link to use it to buy $40 of food, to cover the $20 debt. When Link never used the card and failed to return it, the victim cancelled the card so that he could get a new one and access his food benefits.
On the evening of Nov. 13, 2012, as the victim was walking near his home, he encountered Link and the two began arguing over the debt. When the victim reached the entrance to an alley off the 500 block of Newton Place NW, he was pushed from behind by an unidentified man and fell to the ground. Link joined in the attack and kicked and punched the victim, stating “get me my money.” Link then pulled out a knife and stabbed the victim five times - twice in the chest and rib cage. He and the unidentified man fled, leaving the victim bleeding in an alley.
In sentencing the defendant, Judge Canan took note of that fact that Link was convicted in 1993 of second-degree murder while armed in another stabbing in the District of Columbia. In that case, he and another person stabbed a man to death in an alley over a petty disagreement about moving trash. Link was sentenced to 15 years in prison for that attack.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department, including detectives from the Fourth Police District. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Wanda Trice and Debra McPherson. Finally, he commended the work of Assistant U.S. Attorney Vivien Cockburn and former Assistant U.S. Attorney Trevor N. McFadden, who assisted in the investigation, and Assistant U.S. Attorney Brittain Shaw, who investigated and prosecuted the case.
14-001District Man Sentenced to Nine Years in Prison for Stabbing Man Following Argument over $20 Debt-Defendant Tells Victim, “Get Me My Money”-Read the Press Release
WASHINGTON - Charles Link, 53, of Washington, D.C., was sentenced today to nine years in prison on a charge of assault with a dangerous weapon stemming from the stabbing of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Link was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Link will be placed on three years of supervised release.
According to the government’s evidence at trial, the victim and Link were close friends for more than four years. They socialized together and played chess, and the victim even helped Link at his job at a funeral home. From time to time, Link would loan the victim small amounts of money. In the fall of 2012, the two men got into a disagreement over the repayment of a $20 loan. The victim had given Link his food assistance card and had told Link to use it to buy $40 of food, to cover the $20 debt. When Link never used the card and failed to return it, the victim cancelled the card so that he could get a new one and access his food benefits.
On the evening of Nov. 13, 2012, as the victim was walking near his home, he encountered Link and the two began arguing over the debt. When the victim reached the entrance to an alley off the 500 block of Newton Place NW, he was pushed from behind by an unidentified man and fell to the ground. Link joined in the attack and kicked and punched the victim, stating “get me my money.” Link then pulled out a knife and stabbed the victim five times - twice in the chest and rib cage. He and the unidentified man fled, leaving the victim bleeding in an alley.
In sentencing the defendant, Judge Canan took note of that fact that Link was convicted in 1993 of second-degree murder while armed in another stabbing in the District of Columbia. In that case, he and another person stabbed a man to death in an alley over a petty disagreement about moving trash. Link was sentenced to 15 years in prison for that attack.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department, including detectives from the Fourth Police District. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Wanda Trice and Debra McPherson. Finally, he commended the work of Assistant U.S. Attorney Vivien Cockburn and former Assistant U.S. Attorney Trevor N. McFadden, who assisted in the investigation, and Assistant U.S. Attorney Brittain Shaw, who investigated and prosecuted the case.
14-001Department of Justice Takes Steps to Strengthen Federal Background Check System for Firearms TransfersRead the Press Release
The Department of Justice today announced it is proposing a regulation that will clarify who, due to mental health reasons, is prohibited under federal law from receiving, possessing, shipping or transporting firearms. In addition to providing general guidance on the federal law, this clarification will help states determine what information may be appropriately shared with the federal background check system for firearms transfers – the National Instant Criminal Background Check System (NICS) – in order to keep guns out of the hands of individuals who may be a danger to themselves or others.
The revised definition clarifies that the statutory terms “adjudicated as a mental defective” and “committed to a mental institution” include persons who are found incompetent to stand trial or not guilty by reason of mental disease or defect; persons lacking mental responsibility or deemed insane; and persons found guilty but mentally ill, regardless of whether these determinations are made by a state, local, federal or military court. The proposed regulation also clarifies that the statutory term includes a person committed to involuntary inpatient or outpatient treatment.
“We are taking an important, commonsense step to clarify the federal firearms regulations, which will strengthen our ability to keep dangerous weapons out of the wrong hands,” said Attorney General Eric Holder. “This step will provide clear guidance on who is prohibited from possessing firearms under federal law for reasons related to mental health, enabling America’s brave law enforcement and public safety officials to better protect the American people and ensure the safety of our homes and communities. And it is emblematic of the Justice Department’s broader commitment to use every tool and resource at its disposal to combat gun violence and prevent future tragedies while respecting the Constitutional rights to which all Americans are entitled.”The NICS background check system is a critical tool in keeping guns out of the hands of those who cannot legally have one. To date, NICS has prevented more than 2 million guns from falling into the wrong hands. In order for background checks to continue to be effective, the system must have access to relevant, correct and complete information.
Clarifying the existing Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regulation is just one of many common-sense steps the department has taken to keep guns out of the wrong hands. The department is working diligently to reduce gun violence and is committed to using every tool at its disposal, including implementing effective prevention, enforcement and re-entry strategies. In addition, the department is working with other federal departments and agencies to ensure relevant information is shared with the NICS and has also provided monetary support to states to improve their abilities to share this information.
The NPRM will be available for review beginning at 4:15pm on Friday, Jan. 3, 2014, at: http://www.federalregister.gov. Comments can be submitted to http://www.regulations.gov.Denver Man Pleads Guilty for Failure to Pay over Million in Employment TaxesRead the Press Release
DENVER – Lucilious J. Ward, age 63, of Denver, Colorado, pled guilty before U.S. District Court Judge Lewis T. Babcock today to one count of failure to account for and pay over the employment taxes withheld from his employees’ paychecks and one count of making a false claim against the United States, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Ward, who is free on a bond, is scheduled for further sentencing proceedings before Judge Babcock on February 3, 2014. Ward was indicted by a federal grand jury on October 2, 2012. On September 8, 2011, Special Agents with IRS Criminal Investigation executed a search warrant on Ward’s business, Global Access, LLC, dba, Global Transportation (“Global Access”), located at 5455 East 52nd Avenue, Commerce City, Colorado.
According to the facts contained in the Indictment as well as the stipulated facts contained in the plea agreement, since at least 2004, Ward has owned and operated Global Access. Global Access has provided public and private transportation services including hotel and airport shuttles, para transit services, and charter bus tours. Its largest client has been the Regional Transportation District (“RTD”), which contracted with Global Access to provide a portion of RTD’s Access-a-Ride bus services. RTD has paid Global Access more than $35,000,000 during the period 2003 through 2012, and Global Access incurred substantial costs under the RTD contract. During this time, the Internal Revenue Code required Global Access to withhold its employees' shares of Federal Insurance Contribution Act taxes ("FICA" or social security and Medicare taxes) and income taxes (collectively referred to as "employment taxes") from the salaries or wages of its employees, and to account for and pay over the withheld amounts to the IRS.
From January 2005 through the second quarter in 2011, Ward withheld employment taxes from Global Access’s employees’ paychecks. Ward knowingly and willfully failed to file with the IRS Forms 941 (employment tax forms) as required by law and failed to pay to the IRS the employment taxes that Ward had withheld from their paychecks. With the exception of the first quarter of 2008 which was paid in part and filed automatically by a payroll company Ward hired. Ward also failed to pay the required employer’s matching portion of FICA. Rather than paying the IRS the employment taxes owed by Global Access, Ward kept that money in Global Access’s bank account(s) and spent it on a variety of expenses.
At the end of 2008 Global Access’s office manager recommended to Ward that he elect to have a payroll company take care of paying the employment taxes for Global Access; however, defendant Ward declined. Furthermore, a CPA who performed various accounting functions for Global Access and Ward repeatedly told Ward about Global Access’s growing employment tax liability, he needed to pay these taxes, and about the consequences associated with not paying these taxes.
Additionally, in 2010, Ward filed with the IRS an amended personal tax return (Form 1040X) for the tax year 2007 which falsely claimed that $76,479.44 of federal income tax withholdings had been withheld from his paychecks by Global Access and paid to the IRS. At the time Ward filed this Form 1040X, he knew that he and Global Access had not paid to the IRS the $76,479.44. Ward intentionally filed this false return so that he would be assessed a refund of $76,479 to which he was not legitimately entitled.
The government asserts that the employment tax due and owing for restitution purposes is approximately $5,955,866
Failure to account for and pay over employment taxes and filing a false claim against the United States both carry a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Anna Edgar.
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Defendants David and Dominica Quichocho Sentenced Today in U.S. District CourtRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that DAVID TAIMANGLO QUICHOCHO, JR. was sentenced today in the District Court of Guam to 37 months incarceration, and five years of supervised release. QUICHOCHO, JR’S wife, DOMINICA BATO QUICHOCHO, was also sentenced today to a two-year term of Probation which includes six months of home confinement and community service.
The investigation was conducted by the United States Postal Service Inspectors. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Defendants QUICHOCHO, JR. and DOMINICA BATO QUICHOCHO both pled guilty in December 2012, to Conspiracy to Distribute Methamphetamine Hydrochloride, in violation of Title 21 U.S.C. Section 841(a)(1). Defendant QUICHOCHO, JR. ordered over five grams of methamphetamine hydrochloride from a supplier in California. The supplier concealed small amounts of methamphetamine hydrochloride in letters sent via First Class mail to Guam. QUICHOCHO, JR. then instructed his spouse, DOMINICA BATO QUICHOCHO, to pick up the letters containing the drug. Notably, the letters containing approximately 1.88 grams of the drug were detected and intercepted by a United States Postal Inspector.
U.S. Attorney Limtiaco thanks the United States Postal Inspector and the United States Postal Inspection Service for their efforts in our fight against drug trafficking.Columbia Man Indicted on Federal Charges of Receiving Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that a federal grand jury, in Jacksonville, has returned an indictment against Samuel Franklin Crews (31, Lake City), charging him with three counts of receiving child pornography over the Internet. Crews faces a mandatory minimum penalty of not less than 5 years, up to 20 years in federal prison on each count, and a potential life term of supervised release. Crews was arrested on December 31, 2013, in Lake City, and has been ordered detained pending his trial in March 2014.
The indictment alleges that between on or about April 28, 2013 through on or about April 30, 2013, in the Middle District of Florida, Crews knowingly received visual depictions of minors engaged in sexually explicit conduct, over the Internet.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Columbia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Colorado Springs Real Estate Agents Settle Allegations That They Engaged in Real Estate FraudRead the Press Release
DENVER -- Jana DeWitt and Kenneth Westfall, licensed real estate agents operating in Colorado Springs, have paid the United States $93,500 in civil penalties to settle allegations that they engaged in deceptive conduct that violated the Financial Institutions Reform Recovery and Enforcement Act (FIREEA).
According to the United States, Jana DeWitt engaged in fraud in at least seventeen bank-owned properties, by falsely listing her daughters as the buyers, in order to conceal the fact that Ms. DeWitt herself was the real party in interest. Ms. DeWitt’s employing broker, Mr. Westfall, was the listing agent for each of these transactions. He had a responsibility, and in some cases a duty based on the language of the listing contracts used in the transactions, to disclose to the sellers that the real party in interest purchasing the property was affiliated with him and his company. But he did not do so, despite the fact that he knew that Ms. DeWitt, his employee, was the real party in interest purchasing the properties.
To facilitate each of these transactions, Ms. DeWitt wired money from her own accounts to the closing company as the purchase funds for the transaction. She falsified her own bank account statements to make them appear that the account was held in the name of her daughters, thus providing the seller with proof of funds for purchase while concealing that she was the real party in interest. For each of these transactions, Mr. Westfall knowingly failed to notify the seller that Ms. DeWitt was the real party in interest purchasing the property and that Ms. DeWitt was affiliated with him and his company.
The investigation leading to the settlement was conducted in conjunction with the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorney Jamie Mendelson handled this matter on behalf of the government.
The settlement agreement is neither an admission of liability by Ms. DeWitt or Mr. Westfall, nor a concession by the United States that its claims are not well founded.
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Cannonball Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Jan. 3, 2014, Christopher Thunder Hawk, 19, Cannonball, N.D., pleaded guilty in U.S. District Court to a charge of assaulting a federal officer.
On Dec. 30, 2012, Thunder Hawk kicked a BIA police officer in the chest.
The charge of assaulting a federal officer carries a statutory maximum penalty of eight years in federal prison and a $250,000 fine.
The case was investigated by Bureau of Indian Affairs – Standing Rock Agency and the Standing Rock Police Department, with the assistance of the Standing Rock Tribal Prosecutor’s Office.
Sentencing for Thunder Hawk has been scheduled for April 14, 2014, in U.S. District Court in Bismarck, N.D., at 11:00 a.m.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
California Man Who Defrauded 'Computers for Schools' Program Pleads Guilty to Wire Fraud, Identity Theft, and Tax CrimeRead the Press Release
A Palmdale, California resident who defrauded a government program designed to provide computers to needy schools and non-profits pleaded guilty today to three felony charges in the U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. STEVEN ALEXANDER BOLDEN, 50, pleaded guilty to wire fraud, aggravated identity theft, and filing a false income tax return. When sentenced by U.S. District Judge Ricardo S. Martinez on April 3, 2014, BOLDEN faces a mandatory minimum two years in prison on the aggravated identity count in addition to the sentences imposed on the other counts.
According to the facts admitted in the plea agreement, between 2007 and 2013, BOLDEN defrauded a program called “Computers for Learning,” that transfers excess government and related peripheral equipment directly to qualified schools and educational non-profit organizations. BOLDEN posed as 14 different non-profits to obtain the computers for free, and then sold them for his personal profit. Over the course of the scheme, BOLDEN obtained 19,442 items through the system with an original purchase cost of $30.3 million. Using a standard “fair market value” formula, the computer equipment has a value of about $7.2 million. BOLDEN also failed to pay the shipping costs associated with the delivery of the computer equipment – more than $100,000.
The plea agreement details how one transaction occurred. BOLDEN became acquainted with a person operating a legitimate non-profit in Southern California. BOLDEN convinced the head of the non-profit to let him review the paperwork for the organization. Using the non-profit organization’s information, BOLDEN created an account in the Computers for Learning program, and in July of 2010, obtained 41 Dell and HP computers that were made available by the Border Patrol at Blaine, Washington. BOLDEN claimed the computers and later sold them for his own benefit. The conviction for aggravated identity theft is based on BOLDEN’s use of the identities of the non-profit organization and his acquaintance.
Finally, records indicate that BOLDEN failed to report any income from the sale of computers. In fact, records from a computer recycler in Santa Ana, California show it paid BOLDEN more than $64,892 in 2012. BOLDEN failed to report the income on his tax return.
The amount of restitution BOLDEN owes will be determined at sentencing.
The case was investigated by multiple law enforcement partners led by the General Services Administration Office of Inspector General (GSA-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the Department of Transportation Office of Inspector General (DOT-OIG), and the FBI. The case is being prosecuted by Assistant United States Attorney David Reese Jennings.Bullhead Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Derek Archambault, a/k/a John Martinez, age 31, was sentenced to 46 months in custody, 3 years of Supervised Release, and a $200 special assessment to the Federal Crime Victims Fund.
Archambault was indicted by a federal grand jury on July 17, 2013. He pled guilty on September 23, 2013.
The conviction stems from an incident occurring on May 20, 2010, when Archambault’s girlfriend called the Standing Rock Police Department and reported that her boyfriend had assaulted her. When a Bureau of Indian Affairs (BIA) officer arrived at her residence, the victim informed him that Archambault had been hitting her in the face. The officer took pictures of her mouth which was swollen and bruised, with cuts on her lips, and also pictures of scratches on her chest and neck.
The victim further reported that her son, who was 11 years old at the time, attempted to stop Archambault from hitting his mother, and Archambault punched her son in the face with a closed fist. The victim’s son demonstrated for the officer how Archambault hit him by using a closed fist and motioned toward his mouth. The victim also told the officer she has been assaulted by the defendant in the past, but he does not stay detained.
In an attempt to locate Archambault, the officer met with the school resource officer and an animal control officer, who advised that Archambault also goes by the name of John Martinez. The victim then arrived at the McLaughlin Police Department to speak with the officer again. She reported she had just met with Archambault and he broke her toe. The officer located Archambault and arrested him for the assault.
At the time this incident occurred, Archambault had two prior domestic abuse convictions in the Standing Rock Tribal Court for assaulting a prior intimate partner. In criminal case 08-22146, Archambault admitted to the BIA officer that he struck his girlfriend in the facial area causing bodily injury. In criminal case 09-20614, Archambault struck and kicked his girlfriend, breaking her ribs.
This case was investigated by the BIA. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Archambault was immediately turned over to the custody of the U.S. Marshals Service.
Attorney Admits Role in Extensive Insurance Fraud ConspiracyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that attorney JOSEPH P. HADDAD, 65, of Orange, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to federal charges related to his participation in an extensive insurance fraud scheme.
This matter stems from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation. The investigation included the use of recordings of an undercover special agent meeting with HADDAD, various doctors and chiropractors in relation to auto-accident personal injury litigation.
According to court documents, statements made in court and the admissions of his co-conspirators, HADDAD, a Bridgeport-based personal injury attorney, conspired with chiropractors and others to defraud several insurance companies by exaggerating the auto accident injuries of HADDAD’s clients, and the cost of their medical care, to justify larger monetary settlements with the insurance companies. As part of the scheme, the co-conspirators fabricated medical records, prescribed unnecessary pain medication, performed unnecessary chiropractic treatment, ordered and billed for diagnostic tests of questionable medical value, and overstated injuries or permanent partial disabilities that were allegedly caused by the accidents.
“This extensive scheme was perpetrated by a corrupt attorney and equally corrupt doctors who brazenly chose illegal profits over professional ethics,” stated U.S. Attorney Daly. “Their actions bilked insurance companies of millions of dollars inflating the cost of health insurance for all of us. Prosecuting professionals who breach their duties for personal gain will always be a priority for our Office and the FBI.”
“Attorney Haddad was the centerpiece of a large-scale conspiracy to commit automobile insurance fraud in the Greater Bridgeport area,” stated FBI Special Agent in Charge Ferrick. “As officers of the court, attorneys are held to a higher standard and expected to uphold its laws and ethics. Instead, Mr. Haddad orchestrated an extremely lucrative criminal conspiracy. The FBI and the U.S. Attorney’s Office are fully committed to investigating insurance fraud and those lawyers and doctors who put their own interests above that of their clients and patients.”
Between December 2006 and February 2010, HADDAD conspired in the scheme with Francisco R. Carbone, who had been licensed to practice medicine until his license was revoked by the State of Connecticut in March 2005, and with Dr. Marc Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford.
As part of the scheme, HADDAD paid “runners” to locate and deliver to him clients for his personal injury practice. Because state law barred attorneys from hiring runners in personal injury cases, HADDAD attempted to hide this practice by paying the runners in cash. Dr. Kirshner regularly met with HADDAD to provide him with thousands of dollars in cash and, in return, HADDAD reimbursed Kirshner with checks written from his business account. HADDAD often included on the checks false memo lines suggesting that the checks were for medical expenses incurred by his clients. During the course of the conspiracy, Kirshner gave HADDAD more than $100,000 in cash. HADDAD also paid runners with checks directly from his client trust account, often disguising these payments as “independent investigative services.”
HADDAD regularly instructed clients to see Carbone for purported medical treatment, even though HADDAD was aware that Carbone had lost his medical license. Carbone provided HADDAD’s clients with prescription pain medication, even if the medication was not needed and, in reports, fabricated the clients’ injuries, medical conditions and permanent partial disability ratings. In multiple instances, Carbone did no medical examination at all. Carbone billed the victim insurance carriers in his name or in the name of another physician for services he allegedly rendered, and provided prescriptions, bills, medical reports and final reports to HADDAD, who submitted the documents to the victim carriers to support requests for settlement.
HADDAD also referred clients to Dr. Kirshner’s Bridgeport chiropractor offices, which operated under the name Health First Medical, P.C. Kirshner often permitted HADDAD to influence the course of patients’ medical treatments by acquiescing to HADDAD’s instructions that a patient receive more treatment and diagnostic tests despite the questionable need for both. Kirshner and other chiropractors at Health First, including Jennifer Netter, established a protocol to treat patients in HADDAD’s cases for six months, regardless of medical need, and would not resolve treatment of patients unless instructed to do so by HADDAD. Netter and others at Health First often falsified medical records by indicating that they had examined the patients when they had not, and by misrepresenting that patients’ pain complaints and other symptoms continued. After the six-month period, each patient would receive a permanent partial disability rating, regardless of the permanence of the medical condition. If a patient had received a permanency rating for a prior accident, the protocol was to give a higher or different disability rating for the present accident.
Kirshner also owned a diagnostic testing company, Midas Medical LLC, and instructed his employees to conduct Nerve Conduction Velocity (NCV) tests whenever a patient’s symptoms could potentially implicate testing, even though he knew the test results would not change the course of treatment. HADDAD and Kirshner arranged for Carbone to order the tests, believing that, if ordered by a doctor, the tests would be given greater weight by the victim insurance companies and increase the likelihood of higher settlement payments. HADDAD summoned at least one chiropractor to his office so that Kirshner could explain that the chiropractor would receive a kickback of several hundred dollars for each referral of HADDAD’s clients for NCV testing. Kirshner’s office would provide to HADDAD a bill of approximately $2,000 for each NCV test, and HADDAD would submit the bills to the victim carriers as part of settlement discussions.
More than 10 insurance carriers lost a total of up to $2.5 million as a result of this fraud scheme.
HADDAD pleaded guilty to one count of conspiracy to commit mail fraud and one count of mail fraud. Judge Underhill scheduled sentencing for March 28, 2014, at which time HADDAD faces a maximum term of imprisonment of 20 years on each count, and a fine of up to approximately $3.5 million. HADDAD also has agreed to pay restitution of $1,758,368.
Carbone, Kirshner, Netter, two other chiropractors and a licensed doctor of osteopathic medicine have pleaded guilty to charges stemming from this scheme. Each awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau, the Metropolitan Property and Casualty Insurance’s Special Investigation Unit and the Travelers Insurance Company.
The case is being prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and David J. Sheldon.
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[email protected]Alleged Sinaloa Drug Cartel Leader ArrestedRead the Press Release
SAN DIEGO –Jose Rodrigo Arechiga-Gamboa, also known as “Chino Antrax” and “Norberto Sicairos-Garcia,” was arrested Monday, December 30, 2013, at the Schiphol Airport in Amsterdam, Netherlands at the request of the United States.
A federal grand jury in San Diego returned a sealed indictment on December 20, 2013, charging Arechiga-Gamboa with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. That same day, the Clerk of the Court issued a sealed warrant for his arrest. The indictment was unsealed today.
Archiga-Gamboa was taken into custody at the airport under a fraudulent name as he deplaned from KLM Flight 686 from Mexico City, Mexico to Amsterdam. The United States made formal requests for assistance from foreign authorities via a provisional arrest warrant and an Interpol Red Notice.
The United States Attorney is currently seeking his extradition to face charges in the Southern District of California.
DEFENDANT Criminal Case No. 13-CR-4517-DMS Jose Rodrigo Arechiga-Gamboa, aka “Chino Antrax,” aka “Norberto Sicairos-Garcia” SUMMARY OF CHARGESCount 1: Title 21, United States Code, Sections 959, 960 and 963 - Conspiracy to Distribute Controlled
Substances Intended for ImportationCount 2: Title 21, United States Code, Sections 952, 960 and 963 - Conspiracy to Import Controlled
INVESTIGATING AGENCIES
SubstancesDrug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
San Diego Law Enforcement Coordination Center
Homeland Security Investigations
Internal Revenue Service
Interpol
Thursday 2 January 2014
White Plains Federal Grand Jury Indicts Former Chief Financial Officer on Charges He Embezzled $5.7 Million from His EmployerRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced today that a grand jury sitting in White Plains has returned a two-count Indictment charging GREGG PIERLEONI with mail fraud and wire fraud.
The Indictment alleges that PIERLEONI embezzled more than $5.7 million over a period of more than six years from a Westchester-based moving and storage company where he had served as the Chief Financial Officer from 1987 to April 2013.
Manhattan U.S. Attorney Preet Bharara stated: "As alleged, PIERLEONI abused the trust placed in him by his employer to steal a substantial amount of money so that he could enjoy a lavish lifestyle. He now faces having to pay the real price for that lifestyle."
Assistant FBI Director George Venizelos stated: “As alleged in the Indictment, motivated by personal greed, PIERLEONI stole millions of dollars from his long-time employer. He lived beyond his means while repeatedly betraying his company’s trust. The FBI will continue to investigate and hold accountable individuals who steal and line their pockets with their victim’s hard-earned money.”
According to allegations in the Indictment unsealed earlier today:
PIERLEONI moved funds from the moving company's operating account to other accounts held by the moving company and a related entity. He then wrote checks from those other accounts to pay his personal American Express bills. PIERLEONI used the funds he embezzled to pay for collectible items, sports memorabilia, airline tickets and other travel expenses, artwork, tickets to sporting events and meals in restaurants.
PIERLEONI, 59, of New Fairfield, CT, faces upon conviction maximum sentences of 20 years' imprisonment on the mail fraud count and 20 years' imprisonment on the wire fraud count.
Mr. Bharara praised the investigative work of the FBI.
This prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Gregg Pierleoni Indictment
Wheat Ridge Doctor Is Sentenced to Federal Prison for the Illegal Distribution of OxycodoneRead the Press Release
DENVER – Dr. Kevin R. Clemmer, age 60, of Evergreen, Colorado, was sentenced today by U.S. District Court Judge Robert E. Blackburn to serve 48 months in federal prison for the illegal distribution of oxycodone and money laundering, federal authorizes announced. Following his prison sentence, Clemmer was ordered to spend 3 years on supervised release. Judge Blackburn also ordered Clemmer to pay restitution. The defendant, who appeared at the sentencing hearing free on bond, was ordered to report to a U.S. Bureau of Prisons facility by noon on the date that it is designated.
Clemmer was indicted by a federal grand jury in Denver on May 16, 2011, and pled guilty on May 23, 2013 to count one (illegal distribution) and count sixty-two (money laundering) of the indictment. According to the stipulated facts contained in the plea agreement, as well as the indictment, the investigation began in April 2009 and continued through September 2010. The investigation established Clemmer knowingly and intentionally distributed and dispensed oxycodone, a schedule II controlled substance, outside the scope of professional practice and not for legitimate medical purposes. Specifically on May 20, 2010, Clemmer met with an undercover officer. The undercover officer described minimal pain management needs and symptoms which did not require, as part of the scope of professional practice, the prescription of oxycodone. However, Clemmer did prescribe 120 doses (pills) of 15 milligram oxycodone to the undercover officer after a very limited medical screen and evaluation. These prescriptions were done outside the scope of professional practice and not for legitimate medical purposes.
Additionally, Clemmer did distribute by prescription, outside the scope of professional practice and not for legitimate medical purposes, oxycodone to Ryan Lujan. Specifically, on September 2, 2010, Clemmer did prescribe oxycodone to Ryan Lujan. On September 3, 2010, Ryan Lujan died. The cause of death is listed as an accidental aspiration of gastric contents associated with oxycodone toxicity. The prescription written by Clemmer (with numerous pills missing) was found at the scene of the death as well as other oxycodone pills which were not prescribed by the defendant. Clemmer’s prescription helped contribute to the death of Ryan Lujan which was not charged as part of this case.
On May 29, 2010, Clemmer purchased a 1999 Lincoln Continental, using cash which was derived from the illegal distribution of a schedule II controlled substance. For purposes of relevant conduct, Clemmer stipulates that the total drug quantity for which he is accountable is 186,340 milligrams of oxycodone.
“Doctors who use their prescription pads as a stack of blank checks to write and cash, instead of as a means to heal and comfort the sick, will be held accountable,” said U.S. Attorney John Walsh. “The powerful prescription drugs that Clemmer trafficked are highly addictive and dangerous, as the tragic and fatal consequences of Clemmer’s conduct demonstrate.”
“The indictment, guilty plea and subsequent sentencing of Dr. Clemmer demonstrates the law enforcement community’s commitment to identifying those medical professionals who divert medications in an unauthorized manner and misuse their position of trust for personal gain,” said DEA Special Agent in Charge Barbra Roach.
“Prescription drug abuse is a serious problem with serious consequences and we will continue to work with our law enforcement partners to insure those individuals who contribute to such abuse are brought to justice,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
This case was investigated by the Drug Enforcement Administration (DEA) Tactical Diversion Squad and the Internal Revenue Service (IRS) – Criminal Investigation.
The case was prosecuted by Assistant U.S. Attorney Zachary Phillips.####
U.S. Attorney's Office Programs Strengthen Local Law Enforcement with Training in 2013Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. –United States Attorney Stephanie A. Finley announced today that the Western District of Louisiana, through its Law Enforcement Coordinator Mike Campbell, had an outstanding year in providing training courses to local law enforcement agencies in 2013.
As the district’s Law Enforcement Coordinator, Campbell acts as a liaison between the U.S. Attorney=s Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs. The mission of the Law Enforcement Coordinating Committee is to develop coordination, communication, and cooperation between local, state, and federal law enforcement agencies throughout the Western District of Louisiana by providing education, training, and technical assistance to all federal, state, and local law enforcement agencies in the district.
In 2013, Campbell worked with federal, state, local, military and tribal offices and spearheaded 28 training courses, which were provided in the district’s 42 parishes. A total of 2,193 federal, state, local, and tribal law enforcement officers participated in various training events provided at no-cost to the attendees. Cities where the training events took place included: Shreveport, Bossier City, Monroe, West Monroe, Natchitoches, Plain Dealing, Many, Alexandria, Lafayette, Lake Charles, and New Iberia. Topics covered included: investigation techniques, personal safety, narcotics, search and seizure, and many others.
Campbell joined the Western District of Louisiana U.S. Attorney's Office in November 2007 after a 33-year career in law enforcement with the Shreveport Police Department. He entered service in 1974 as a patrol officer and retired as Chief of Police in 2007. He is a retired officer from the Louisiana National Guard with 21 years of service. During his military career, he served with the U.S. Air Force Reserve, U.S. Army Reserve, and the Louisiana National Guard. Campbell holds a bachelor’s degree of science from Louisiana Tech. He is a graduate of the FBI National Academy and a member of the Louisiana Association of Chiefs of Police.
“We are proud to be able to continue to join with other organizations to provide these important services to law enforcement agencies within the Western District of Louisiana,” Finley stated. “The training improves the knowledge and strengthens the skills of personnel working in the field. I applaud Mike Campbell, the participating organizations, local law enforcement, and all of the trainers/speakers for their hard work and dedication that make these programs possible. We are grateful to our law enforcement partners who assist us every day to get the job done and look forward to providing training for 2014 as well.”
For more information and a listing of resources that the LECC provides in the Western District of Louisiana visit www.justice.gov/usao/law/lecc.U.S. Attorney Limtiaco Invited as Panel Member at Association of Pacific Island Legislatures Meeting on “Preventing Human Trafficking in the Pacific Region”Read the Press Release
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, along with Sarah Thomas-Nededog, Vice-President, West Care Pacific Islands; Dr. Julie Ulloa-Heath, President, Micronesian Youth Services Network; and Carol Hinkle-Sanchez, Assistant Attorney General, Guam Attorney General’s Office, were invited by the Association of Pacific Island Legislatures (APIL) to speak on the topic of “Preventing Human Trafficking in the Pacific Region.” According to their website, APIL membership is comprised of legislators from the Pacific region, including American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia (Chuuk, Kosrae, Pohnpei and Yap), Guam, Hawaii, the Republic of Kiribati, the Republic of the Marshall Islands, the Republic of Nauru, and the Republic of Palau. The APIL meet to consider matters in areas where regional cooperation, coordination, exchange and assistance may help governments achieve their goals through collection action.
U.S. Attorney Limtiaco and the panel members shared information on the “Pacific Regional Response to Combat Human Trafficking” initiative, which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands (NMI), the National District Attorneys Association, the Department of State, the Department of Interior, Guam Human Trafficking Task Force, NMI Human Trafficking Intervention Coalition, and other community partners. The panel also discussed the intersection and relationship between human trafficking, sexual assault, child abuse, and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Photos of the presenters are attached.
U.S. Attorney Alicia Limtiaco addressing the Association of Pacific Island Legislatures.Presenters:
United States Attorney Alicia A. G. Limtiaco Dr. Julie Ulloa-Heath, President, MYSN
Carol Hinkle-Sanchez, Assistant Attorney Sarah Thomas-Nededog, Vice-President,
General, Guam Attorney General’s Office West Care Pacific IslandsU.S. Attorney Alicia A.G. Limtiaco Guest SpeakerAt 2013 Micronesian Youth Services Network ConferenceRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was the guest speaker at the 2013 Micronesian Youth Services Network (MYSN) Conference held on April 17-19, 2013, at the Fiesta Resort in Saipan. This year’s theme was entitled, “Pursue, Cultivate, and Sustain a Balance.”
U.S. Attorney Limtiaco discussed during her presentation on “Bullying, Cyberbullying and On-line Sexual Predators,” the impact of bullying on those being victimized, the emotional, mental and psychological harm including youth suicide, and safety tips for youth and families. U.S. Attorney Limtiaco also discussed the dangers posed on the internet including on-line solicitation by sex predators, and internet safety tips for youth and families. U.S. Attorney Limtiaco spoke about Project Safe Childhood, a U.S. Department of Justice initiative, committed to the protection of children against child sexual exploitation and child pornography; and Project Safe Neighborhood, a U.S. Department of Justice initiative, focused on public awareness and prevention efforts against youth violence, gangs, and gun violence.
MYSN is a non-profit, non-governmental organization that is committed to showcasing practical, culturally competent ideas, strategies, challenges, and best practice efforts aimed at addressing the unique needs of youth and families in Micronesia to continually improve comprehensive youth services in Micronesia. The MYSN’s mission is to support, collaborate, coordinate, promote and strengthen youth programs and services throughout Micronesia.
Photos taken at the conference, courtesy of Kenny Reklai, are attached.
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U.S. Attorney Alicia Limtiaco addressing the attendees.
Conference attendees enjoying one of the workshops.Three Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Three Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in U.S. District Court for the Northern District of California in Oakland against Rudolph Silva of Concord, Calif., Thomas Bishop of Pleasant Hill, Calif., and Leslie Gee of Danville, Calif. Including Silva, Bishop and Gee, a total of 43 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Silva, Bishop and Gee conspired with others, for various lengths of time between January 2008 and January 2011, not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County, Calif. Silva, Bishop and Gee were also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Additional charges were filed against Gee for his involvement in similar conduct in Alameda County, Calif., from as early as April 2009 until about November 2009.
"Today’s plea agreements are the latest step in the Antitrust Division’s efforts to hold accountable investors for their fraudulent and collusive activities at real estate foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to prosecute individuals who participated in illegal conspiracies and harmed distressed homeowners and lenders.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda and Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“The FBI and our partners have an obligation to investigate and pursue those who disrupt a free and fair marketplace,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We will continue to educate the public on the criminality of bid rigging at real estate foreclosure auctions.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Three Area Men Charged After Armed Robbery of Arlington BankRead the Press Release
Subjects allegedly involved in multiple robberies in Maryland, Virginia and Washington, D.C.
ALEXANDRIA, Va. – James McNeal, 63, of Hyattsville, Md., James Link, 56, of Washington, D.C., and Alphonso Stoddard, 59, of Forest Heights, Md., were charged today by criminal complaint with armed bank robbery.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the initial appearance of defendants Link and Stoddard before United States Magistrate Judge John F. Anderson.
The defendants each face a maximum penalty of 25 years’ imprisonment if convicted.
According to court documents and court proceedings today, the FBI received information in December 2013 that McNeal, Link and Stoddard had been responsible for the armed robberies of multiple banks in the Washington metropolitan area. After identifying the subjects, the FBI kept the three men under close surveillance, which included observing the defendants as they cased banks in Arlington, Va. for potential robberies.
On December 31, 2013, FBI agents followed the three subjects as they drove from Maryland to a Wells Fargo bank branch in Arlington. At approximately 1:15 p.m., Link and Stoddard entered the bank with their faces covered. Link brandished a gun and pointed it at individuals in the bank, while Stoddard jumped the teller counter and removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to their vehicle, where McNeal was waiting.
As the three subjects attempted to flee the scene, FBI and Arlington County Police apprehended them approximately one block away. A handgun and cash were found in the vehicle. A search of McNeal’s house in Hyattsville, Md. led to the discovery of additional firearms, gloves and items of clothing that are believed to be linked to previous bank robberies.
The investigation was conducted by the FBI’s Washington Field Office with the assistance of the FBI’s Baltimore Division and the Fairfax County and Arlington County police departments. The United States Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Shelburne Man Sentenced to 26 Months in Federal Prison for Illegal Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 2, 2014, Justin Bosley, 27, of Shelburne, Vermont was sentenced to 26 months in federal prison after his guilty plea to charges that he possessed firearms while being a heroin user. Chief United States District Judge Christina Reiss, sitting in Rutland, also ordered that Bosley serve two years of supervised release following his prison term.
According to court records, Bosley was connected to a large-scale heroin ring led by New York City man, Videsh Raghoonanan, a.k.a. ABush.@ Raghoonanan sold large quantities of controlled substances, including over one kilogram of heroin, during a drug distribution conspiracy that lasted from at least 2011 until Raghoonanan=s arrest in December of 2012. Raghoonanan obtained primarily heroin, and sometimes cocaine base, in New York City and transported it to Vermont for re-sale at a significant profit. Raghoonanan would obtain handguns from customers in Vermont in exchange for heroin and then transport those firearms back to New York City. Raghoonanan would also carry a handgun while dealing drugs in Vermont.In 2011, Bosley provided a semi-automatic handgun to a South Burlington heroin dealer in exchange for heroin. The South Burlington dealer, who worked for Raghoonanan, subsequently provided the handgun to him. Also in 2011, Bosley provided a second semi-automatic handgun directly to Raghoonanan in exchange for heroin. At the time of these exchanges, Bosley was abusing heroin, which made his possession of the firearms illegal under federal law. The two handguns have not been recovered.
For his crime, Bosley was subject to a maximum term of 10 years in prison and up to a $250,000 fine. In determining the sentence, Judge Reiss balanced, among other factors, the seriousness of Bosley=s offense, his significant heroin addiction, and his lack of a criminal record.
During the course of this investigation, a number of Raghoonanan=s associates and co-conspirators have been convicted of federal offenses. On November 11, 2012, Justin Morrill was sentenced to serve 37 months in prison on a heroin conspiracy charge. On January 15, 2013, Maria Hunton was sentenced to serve 30 months in prison on a heroin conspiracy charge. On January 17, 2013, Ryan Orvis was sentenced to serve 57 months in prison on a cocaine conspiracy charge. On June 3, 2013, Patrick Lepore was sentenced to time-served on a cocaine base conspiracy charge. On October 9, 2013, Eric Jophlin was sentenced to 60 months in prison on a heroin conspiracy charge. On October 17, 2013, Videsh Raghoonanan was sentenced to 145 month in prison for conspiring to distribute heroin and possessing firearms in furtherance of that conspiracy. On December 2, 2013, Marc Wells was sentenced to 24 months in prison for possession with intent to distribute heroin. On December 18, 2013, Barton Gray was sentenced to 59 months in prison on a heroin conspiracy charge. Bosley was the last of the defendants associated with the Raghoonanan ring to be sentenced.
This case was investigated by the Burlington Police Department, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Drug Enforcement Administration. United States Attorney Tristram J. Coffin commended the efforts of these agencies during this lengthy investigation.The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr. Bosley is represented by defense attorney Douglas G. Kallen.
Sentencing for December 27, 2014Read the Press Release
Bryan Lee Gimbel, 32, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 27, 2013, for possession of a stolen firearm. Gimbel was arrested in Casper, Wyoming. He received 92 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.