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18 February 2014
Randolph County Woman Sentenced on Methamphetamine OffensesRead the Press Release
On February 13, 2014, Rachel S. Holt, 40, of Sparta, Illinois, was sentenced on three methamphetamine-related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Holt, who had previously pled guilty to a three-count indictment charging conspiracy to manufacture methamphetamine and two counts of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, was sentenced to 114 months in prison, to be followed by 4 years of supervised release and fined $600. Evidence at the plea and sentencing hearings established that between 2009 and March 2013, Holt was involved with others in the manufacture of methamphetamine in Jackson, Randolph, and St. Clair Counties. On March 17, 2010, Holt obtained pseudoephedrine pills at stores in both Sparta and Belleville. On September 30, 2011, Holt and four co-conspirators purchased pseudoephedrine pills together at Carbondale and Murphysboro stores. The pseudoephedrine was obtained for the purpose of manufacturing methamphetamine. At sentencing, the district court determined that Holt was responsible for illegally obtaining over 261 grams of pseudoephedrine.
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Racketeering and Arson Charges Filed Against Members of Ironworkers UnionRead the Press Release
PHILADELPHIA- An indictment was unsealed today, and arrests made, in a case charging ten members of Ironworkers Local 401 with allegedly participating in a conspiracy to commit criminal acts of extortion, arson, destruction of property, and assault, in order to force construction contractors to hire union ironworkers. Specifically, the indictment charges RICO conspiracy, violent crime in aid of racketeering, three counts of arson, two counts of use of fire to commit a felony, and conspiracy to commit arson. Eight of the ten individuals named in the indictment are charged with conspiring to use Ironworkers Local 401 as an enterprise to commit criminal acts. Joseph Dougherty, 72, of Philadelphia, the Financial Secretary/Business Manager of Local 401, was one of the eight individuals charged with racketeering conspiracy. The indictment details incidents in which the defendants threatened or assaulted contractors or their employees, and damaged construction equipment and job sites as part of a concerted effort to force contractors to hire and pay Local 401 workers, even when those workers performed no function. Among the criminal acts set forth in the indictment is the December 2012 arson of a Quaker Meetinghouse under construction in Philadelphia.
Charged with Dougherty are: business agents Edward Sweeney, 55, of Philadelphia; Francis Sean O’Donnell, 43, of Warminster, PA; Christopher Prophet, 43, of Richboro, PA; William O’Donnell, 61, of Cherry Hill, NJ; union members James Walsh, 49, William Gillin, 42, Richard Ritchie, 44, Daniel Hennigar, 53, and Greg Sullivan, 49, all of Philadelphia.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, Special Agent-in-Charge John Spratley with the Department of Labor’s Office of Inspector General, and Special Agent-in-Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to the indictment, the defendants had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The indictment alleges that business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. It is alleged that the defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
In the December 2012 arson of the Quaker Meeting House, the indictment alleges that after the contractor refused to hire union ironworkers, defendants Walsh, Gillin, and Hennigar went to the construction site at 20 East Mermaid Lane, in Philadelphia. They set a crane on fire and cut steel beams and bolts. In another episode set forth in the indictment, members of Local 401 picketed a construction site near King of Prussia Mall between May and June of 2010 because the contractor did not hire union workers. It is alleged defendant Richard Ritchie and three others later resorted to violence when they assaulted some of the non-union workers with baseball bats. In the July 2013 episode, the indictment alleges that defendants Sweeney and O’Donnell, under Dougherty’s direction, set up a picket line and threatened the contractor of an apartment complex under construction at 31st and Spring Garden Streets, if he did not hire Local 401 members. According to the indictment, the contractor relinquished his profits and turned the job over to a union-affiliated contractor as a result of the threats.
“While unions have the right to legally advocate on behalf of their members, my office will not tolerate the conduct of those who use violence to further union goals,” said United States Attorney Zane David Memeger. “Union officials and members who commit arson, destroy property, use threats of physical harm, and engage in other acts of violence to extort victims on behalf of their union need to be criminally prosecuted. Today’s indictment makes that clear.”
“The strong-arm tactics we have seen in this case are outrageous and brazen – and an unfortunate blow to the worthy intentions of unionism,” said Hanko. “The fight for workers’ rights may sometimes call for tough tactics, but violence, intimidation, arson, and sabotage are crimes which won’t be tolerated. This investigation has been wide-ranging, but it is far from over. Now that this indictment has been unsealed, we expect to hear from more victims and will aggressively pursue all other leads we receive.”
If convicted of all charges, defendants Dougherty, Sweeney, Walsh, and Gillin each face a mandatory minimum term of 35 years in prison up to a statutory maximum of 130 years; defendant Hennigar faces a mandatory minimum term of 15 years in prison up to a statutory maximum of 40 years; defendant Sullivan faces a mandatory minimum term of five years in prison up to a statutory maximum of 40 years; defendants Prophet and Ritchie face a statutory maximum of up to 40 years in prison; defendants Francis and William O’Donnell each face a statutory maximum of 20 years in prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.Click here to view the indictment
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An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pottawattamie County Resident Sentenced to 77 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
COUNCIL BLUFFS, IA - On February 14, 2014, Patrick Lawrence Estrada, a 35 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 77 months in prison followed by three years of supervised release for being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt.
Estrada pled guilty on November 1, 2013, to the charge, which was the result of an investigation conducted by the Council Bluffs, Police Department into a disturbance at a retail store on April 21, 2013. The investigation determined that Estrada possessed a .40 caliber Springfield semi-automatic firearm in his car’s glove box. Estrada has been prohibited from possessing a firearm since 2003.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Pocatello Man Sentenced for Assaulting Officer on ReservationRead the Press Release
POCATELLO – Lyle Plentywounds, Sr., 58, of Pocatello, Idaho, was sentenced today in United States District Court to 18 months in prison for assaulting an officer on the Fort Hall Indian Reservation, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Plentywounds to serve three years of supervised release. He pleaded guilty to the charge on November 26, 2013.
According to the plea agreement, on May 2, 2013, a Fort Hall Police officer responded to a report that Plentywounds was intoxicated and creating a disturbance at a residence on the reservation. After making contact and determining that Plentywounds was in fact intoxicated, the officer attempted to gain entry to the residence but was blocked by the defendant. Plentywounds told the officer he was a martial artist and an ex-convict and that he “hated cops. He then kicked the officer in the chest. When the officer attempted to arrest him, Plentywounds struck him in the face with his hand.
The case was investigated by the Fort Hall Police Department.
Playa Anasco Man Sentenced to Jail for Illegal Sale of Sea Turtle MeatRead the Press Release
SAN JUAN, Puerto Rico – Manuel Garcia-Figueroa, a resident of Playa Añasco, Puerto Rico, was sentenced to 15 days in jail, 150 hours of community service, and three years of supervised release for the illegal sale of sea turtle meat in violation of the Lacey Act, the U.S. Attorney's Office announced today.
On November 18, 2013, Garcia-Figueroa pleaded guilty to knowingly selling more than $350 of meat and carapaces from endangered hawksbill sea turtles (Eretmochelys imbricata) and meat from a threatened green sea turtle (Chelonia mydas), while knowing that the sea turtles had been taken in violation of the Endangered Species Act (ESA). The illegal sales took place on or about Dec.11, 2009, to on or about Jan. 4, 2010, in and around Playa Añasco. The case resulted from a joint-undercover operation by the National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and the FBI.
All species of sea turtles found in the Gulf of Mexico, Atlantic Ocean, Caribbean Sea and waters adjacent to the United States are protected by the ESA. Sea turtles are long-lived and slow to reach maturity. Pressures from habitat loss, fishing operations, pollution, illegal harvesting of eggs, and poaching of adults exacerbate the extinction risk faced by these animals. In addition to being important to tourism, sea turtles play a key role in the maintenance of marine ecosystems through their selective consumption of sea grasses, jellyfish, and sponges. In Puerto Rico, the green sea turtle (Chelonia mydas) is listed as “threatened” under the ESA; the hawksbill sea turtle (Eretmochelys imbricata) is listed as “endangered.”
The Lacey Act is the principal U.S. statute designed to reduce the role that wildlife poaching, selling, and smuggling plays in depleting protected species. Once an ESA-listed wildlife species is taken or possessed illegally, it is unlawful to “import, export, transport, sell, receive, acquire, or purchase” that species. A person commits a criminal violation of the Lacey Act if the illegal conduct involves the sale or purchase of wildlife with a market value in excess of $350, while knowing that the wildlife was taken in violation of or in a manner unlawful under, any underlying law, treaty, or regulation.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1,000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world.In 2013, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office in Puerto Rico announced the formation of the Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island. Under the task force, federal investigative agencies are coordinating their efforts to investigate and prosecute those responsible for committing serious environmental crimes.
The case was prosecuted by Trial Attorney Christopher Hale of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorneys Carmen Màrquez and Hector Ramirez of the District of Puerto Rico.
Philadelphia Man Charged with Escape from Reentry CenterRead the Press Release
Antonio Persinger, 32, of Philadelphia, PA, was charged today by Indictment with escape from The Kintock Group Residential Reentry Center, located at 301 E. Erie Avenue, Philadephia, on November 13, 2013, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years in prison, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Prisons and the United States Marshals and is being prosecuted by Assistant United States Attorney Arlene Fisk.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Perry County Woman Sentenced for Methamphetamine ConspiracyRead the Press Release
On February 12, 2014, Julie A. Keller, a/k/a Julie Smith and Julie Keller-Smith, 35, of Pinckneyville, Illinois, was sentenced in United States District Court in Benton on a charge of conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Keller, who had previously pled guilty to the methamphetamine offense, was sentenced to 97 months in prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2010 and November 2012, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Keller supplied pseudoephedrine to others for use in the manufacture of methamphetamine. At sentencing, the district court found that Keller was responsible for unlawfully possessing more than 100 grams of pseudoephedrine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Perry County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On February 14, 2014, Virgil L. Easton, of Cutler, Illinois, was sentenced in United States District Court in Benton for conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Easton had previously pled guilty to the methamphetamine offense, which occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Easton was sentenced to 108 months in federal prison, followed by 3 years of supervised release, and fined $200. Evidence at the plea and sentencing hearings established that Easton obtained and provided over 70 grams of pseudoephedrine for use during the manufacture of methamphetamine. Thirteen co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. One co-defendant has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, the Perry County Sheriff’s Office, the Percy Police Department, the Murphysboro Police Department, the Sparta Police Department, and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Perry County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On February 12, 2014, Michael J. Lasky, 55, of DuQuoin, Illinois, was sentenced in federal court on a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Lasky, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 108 months in prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between 2012 and June 2013, in Perry, Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Lasky was involved with others in the manufacture of methamphetamine. Lasky would travel with others to obtain pseudoephedrine pills and was also involved in the manufacturing process. At sentencing, the district court determined that Lasky was responsible for unlawfully possessing more than 123 grams of pseudoephedrine. Two co-defendants have previously pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, the Perry County Sheriff’s Office, the Perry County Drug Task Force, the Murphysboro Police Department, the DuQuoin Police Department, the Pinckneyville Police Department, the Illinois State Police Methamphetamine Response Team, and the Drug Enforcement Administration. The Perry County State’s Attorney’s Office also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Owners/Operators of Two Shreveport Businesses Sentenced for Money Laundering, Wire Fraud and Tax Evasion ChargesRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Michael Paul Boyter, 51, and Anthony Reuben Riley, 49, both of Shreveport, were sentenced by U.S. District Judge Elizabeth E. Foote, on charges arising out of a money laundering conspiracy operated from their businesses: Mike’s Auto Sales and A-1 Auto Finance Company.
Boyter was sentenced to 60 months in prison for wire fraud and for evading or defeating tax charges. He was also ordered to pay $290,381 restitution and a $200,000 fine. Riley was sentenced to 15 months in prison for the failure to file Form 8300 charges and was ordered to pay a $100,000 fine. They also received three years of supervised release. As part of their plea agreements with the United States, both men agreed to forfeit property of Mike’s Auto Sales and A-1 Auto Finance, and agreed to pay a money judgment in the amount of $1.3 million.
According to evidence presented at the guilty plea on August 26, 2013, the defendants engaged in a conspiracy to commit money laundering beginning in 1996 through November 2010. The defendants’ scheme concerned the sale and financing of used and new vehicles to individuals who derived, or represented that they derived, significant income from the distribution of illegal drugs. The defendants knowingly accepted cash proceeds from drug dealers, allowed vehicle purchases in the names of nominees, and falsified records of payments received. The defendants provided false information to multiple local and federal law enforcement agencies, including the Shreveport Police Department and the Harrison County Sheriff’s Office, to facilitate the release of vehicles seized from drug dealers.
In 2009 and 2010, the FBI conducted multiple “sting” operations directing cooperating individuals to purchase vehicles in the names of nominees and using large cash payments toward the purchase of those vehicles. These operations proved that the defendants readily accepted large amounts of money thought to be drug proceeds and skimmed cash from down payments by manipulating records to show lower sales prices and reduced amounts of down payments. Boyter pleaded guilty to one count of wire fraud because he made false statements to law enforcement regarding the true customer, purchase price and balance due on a vehicle he was told had been seized in a narcotics arrest.
"I hope this sends a message that the facilitation of criminal activity has consequences,” Finley stated. “The defendants sold vehicles to criminals that they knew were drug dealers and used the money to enrich themselves. They were not concerned about the harm the drug dealers caused, nor were they concerned about the laws they were breaking. Their primary focus was on hiding the proceeds and lying about their tax status so they would not have to report the illegally obtained funds. I want to thank all of the federal, state and local law enforcement agencies who participated in this investigation. Their efforts were outstanding and show what can be done to root out crime when we collectively bring to bear our law enforcement talent. My office will continue to vigorously prosecute those who do business with criminal elements in order to make quick profits.”
This case is part of an investigation called Operation NOMAS conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint multi-agency group consisting of federal, state, and local law enforcement agencies with a cooperative approach to combat drug trafficking.Operation NOMAS was a jointly conducted investigation by the Federal Bureau of Investigation’s Northwest Louisiana Violent Crimes Task Force, Internal Revenue Service-Criminal Investigations, Drug Enforcement Administration, U.S. Marshals Service, Immigration & Customs Enforcement, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier City Police Department, Louisiana State Police, the Louisiana National Guard Counter-Drug Task Force, and the DeSoto Parish Sheriff’s Office. The Harrison County Sheriff’s Office in Marshall, Texas, also assisted. Assistant U.S. Attorneys Allison D. Bushnell and Cytheria D. Jernigan, and Supervisory Assistant U.S. Attorney Richard A. Willis prosecuted the case.
Online Solicitation of A Child Sends Ohio Man to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Harley Michael Peterson, 23, has been ordered to prison for using a telephone and a computer connected to the Internet to coerce and entice a minor to engage in sexual activity, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Peterson pleaded guilty to online solicitation Monday, Sept. 16, 2013.
Today, Senior U.S. District Judge John D. Rainey took into consideration the need to protect the public and deter future criminal conduct and handed Peterson a total sentence of 120 months. Additional information was also presented today, including the fact that Peterson had been warned by friends in Ohio not to come to Texas and meet this child, yet he came anyway. Peterson will serve 10 years of supervised release following completion of his prison term, during which time he will be required to comply with numerous conditions of release designed to minimize his contact with children and access to the Internet. He will also be ordered to register as a sex offender.
"This case illustrates the lengths child predators will go to take their inappropriate relationship from text to talk to what they hope will be physical contact,” said Moskowitz. "Sadly, today’s technology in the hands of a predator with access to children has put our children at greater risk than ever before. HSI will continue to work tirelessly to protect our kids and brings their abusers to justice.”
Between April 1, and Aug. 4, 2012, Peterson admitted be began communicating with a child he knew to be 15 years of age. He met the child online and their contact primarily occurred on a social networking website and an online computer gaming community website. The communications eventually progressed to telephone calls.
Peterson, of Toledo, Ohio, and the child chatted explicitly about his desire to engage in sexual activities with the child who clearly identified herself as a 15-year-old. As the communications continued, Peterson agreed to travel from his home in Ohio to Corpus Christi to engage in sexual activity with the child.
On Aug. 3, 2012, the child was reported as a runaway by relatives. Through examination of her online activities, relatives were able to determine her whereabouts and those of Peterson, who was subsequently arrested in Corpus Christi.
Peterson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and Corpus Christi Police Department’s Internet Crimes Against Children Task Force ICAC investigated.
Assistant United States Attorney Lance Duke is prosecuting the case, which 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."
Nicholas Richard Blume Ordered Detained Pending Trial on Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Nicholas Richard Blume, 35, of Albuquerque, N.M., entered a not guilty plea this morning to a criminal complaint charging him with being a felon in possession of a firearm. Blume was ordered detained pending trial based on judicial findings that he poses a danger to the community and a risk of flight.
Blume was arrested on Feb. 12, 2014, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Feb. 10, 2014, in Bernalillo County, N.M. According to the criminal complaint, on Feb. 10, 2014, a woman (victim) called the Albuquerque Police Department dispatch to report a domestic violence incident at her southeast Albuquerque home. The victim alleged that Blume broke her nose by punching her nose with a closed fist after she complained about his bringing firearms into her home and demanded that he leave her home. When officers responded to the call, they allegedly found a semi-automatic rifle loaded with 72 rounds of ammunition which the victim claimed was brought into her home by Blume.
On Feb. 10, 2014, Blume was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 2nd Judicial District Court (Bernalillo County) for the State of New Mexico: aggravated battery and receiving or transferring a stolen vehicle in 2004; the manufacture, distribution and possession of imitation controlled substances and extortion in 2005; possession of a controlled substance in 2008; and robbery in 2012.
If convicted on the offense against him, Blume faces a maximum sentence of ten years in federal prison. If Blume is determined to be a career criminal, he faces an enhanced sentence of not less than 15 years in federal prison upon conviction. The charge against Blume in the criminal complaint is merely an accusation and Blume is presumed innocent unless found guilty in a court of law.
Blume is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and David M. Walsh.
New London Cocaine Dealer Sentenced to Three Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANKIE RIVERA, 32, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by five years of supervised release, for distributing cocaine.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy were obtaining kilogram-quantities of cocaine in Puerto Rico and then mailing the drug to locations in and around New London where is was sold to distributors and customers. RIVERA used his business “PR Speed Shop,” an auto-repair service on Westwood Avenue in New London, to sell cocaine to customers.
RIVERA has been detained since his arrest on April 3, 2013. On November 15, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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(203) 821-3722 [email protected]Navajo Man Sentenced to 204 Months in Prison for Sexual Assault of A Minor at the Boys and Girls ClubRead the Press Release
PHOENIX – On Feb. 18, 2014, Ty Colin Bia, 22, of Many Farms, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Court Judge G. Murray Snow to 204 months in prison, followed by a lifetime term of supervised release. Bia is also required to register as a sex offender in compliance with federal, state and local laws.
In January 2013, the Federal Bureau of Investigation received a report that a Navajo man had been texting inappropriate messages to a minor. Through further investigation, agents determined that Bia, a staff member at the Boys and Girls Club, had sexually assaulted a juvenile female while she was under his care on the Navajo Nation Indian Reservation. Bia pled guilty on Nov. 13, 2013, to abusive sexual contact.
The investigation in this case was conducted by the Federal Bureau of Investigation, Gallup Resident Office. The prosecution was handled by Melissa B. Karlen, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8085-PCT-GMS
RELEASE NUMBER: 2014-011_BiaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Miami Physician Pleads Guilty in Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce today that Christopher Gregory Wayne, an osteopathic physician residing in Miami, pled guilty before U.S. District Judge Robert N. Scola, Jr., to a criminal information that charges him with health care fraud and conspiracy to violate the narcotics laws of the United States. Sentencing has been scheduled for May 16, 2014.
At sentencing, Wayne faces a maximum sentence of ten years in prison and a $250,000 fine on the health care fraud charge. The narcotics charge carries a maximum sentence of five years in prison and a $250,000 fine.
In his plea, Wayne admitted to executing a scheme to defraud the Medicare program and attempting to cause a loss in excess of $2,500,000 to Medicare. Wayne agreed to the entry of a forfeiture judgment in the amount of $1,649,042, and the forfeiture of real property and a car, representing proceeds traceable to the health care fraud offense. Wayne also agreed to entry of a money judgment in the amount of $428,300 as proceeds of the narcotics distribution.
Mr. Ferrer commended the investigative efforts of HHS-OIG, FBI and DEA. The case is being prosecuted by Assistant U.S. Attorneys Eric Morales and Brent Tantillo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Malheur County Man Faces 15-Year Mandatory Minimum Sentence After Pleading Guilty to Felon in Possession of a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – On February 18, 2014, Ramiro Martinez Tristan, 39 and a resident of Ontario, Oregon, pled guilty today in federal court in Eugene to a single count of Felon in Possession of a Firearm and Ammunition. Law enforcement caught Tristan with a loaded .40 caliber handgun on September 10, 2013, and he has prior felony convictions for multiple counts of assault, felon in possession of a firearm, and burglary in the second degree. At sentencing on May 28, 2014, Tristan will face a 15-year mandatory minimum sentence as an Armed Career Criminal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ontario Police Department, and is being prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Local Tax Preparer Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – JENNIFER WALTER was indicted on multiple tax fraud charges including filing false tax returns, creating false W2 forms and the use of stolen personal information to file for a tax refund.
According to the indictment, in January 2010, Walter filed a false tax return for 2009 and between 2010 and 2011, Walter created fraudulent W-2 forms for people to use for preparation by another local tax return preparer. The indictment states that for the tax years 2010 and 2011, Walter provided false W-2s, which aided in the filing of approximately 13 false tax returns, claiming approximately $84,727 in false refunds.
Beginning in 2013, while she was employed by Liberty For All Tax Service, in St. Louis, the indictment alleges that she prepared false returns for clients by including fraudulent items and tax credits, such as wage information which allowed her to falsely claim the earned income tax credit and child tax credits for her clients. For the tax year 2012, Walter filed or assisted in filing approximately 18 false tax returns claiming approximately $129,447 in false refunds.
"Dishonest return preparers use a variety of methods to cheat the government," said IRS Criminal Investigation Acting Special Agent in Charge Tanya Brewer. "Knowingly falsifying documents filed with the IRS is a crime."
Finally, the indictment states that in February 2013, Walter filed a false tax return using someone else’s personal information, and received the $6,134 tax refund due from that return.
Jennifer Walter, St. Louis, MO, was indicted by a federal grand jury on five felony counts of filing false tax returns, one felony count of theft of government funds and one felony count of aggravated identity theft. The indictment was returned on February 5, but remained sealed until the arrest of the defendant earlier today.If convicted, each count of filing false tax returns carries a maximum penalty of five years in prison and/or fines up to $250,000; theft of government funds carries a maximum of 10 years in prison and/or fines up to $250,000; aggravated identity theft carries a maximum of two years prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation, the Missouri Department of Revenue, Criminal Tax Investigation Bureau and University City Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Justice Department Reaches Settlement with Ganado School District to Ensure Equal Opportunities for English Language Learner StudentsRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Ganado Unified School District in Ganado, Ariz., to ensure that its English Language Learner (ELL) students have equal opportunities to participate in its educational programs, as mandated by federal law. The agreement stems from the department’s compliance review of the district’s ELL program under the Equal Educational Opportunities Act of 1974. The district, which is located on the Navajo Indian Reservation, cooperated throughout the review and is committed to improving its services for its Navajo ELL students and parents.
The settlement agreement requires the district to implement wide-ranging measures, beginning with the proper identification of ELL students when they enroll in the system and language-accessible communication with their parents about ELL program offerings and other essential information. The agreement further requires the district to: improve language acquisition instruction to ELL students; conduct significant training for staff and teachers of ELL students; provide adequate materials to support their acquisition of English and academic content; monitor students who opt out of ELL services and, after they exit such services, ensure they are participating equally; and evaluate the effectiveness of the ELL program.
“We applaud the Ganado Unified School District for undertaking this significant step toward ensuring the success of every student in the district,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We look forward to continuing our collaboration with the district as it implements this comprehensive plan to serve effectively its Navajo students who are not yet proficient in English.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on the division website.
Huntington Men Sent to Federal Prison for Trafficking Detroit HeroinRead the Press Release
Huntington, W.Va. – Zachary Merritt and Keith Wood were sentenced to 11 years and six months and four years and two months imprisonment, respectively, for their roles in a heroin distribution ring, United States Attorney Booth Goodwin announced today. Merritt and Wood had previously pleaded guilty to distribution of heroin in November of 2013.
Merritt admitted that between September of 2012 and June of 2013 he sent heroin from Detroit, Michigan to Huntington, West Virginia to be sold by others. Drug dealers deposited money from the heroin sales in Merritt’s account at Chase Bank in Huntington. Merritt withdrew the money from a Chase Bank branch in Detroit. A total of $38,250 in deposits were identified as drug money. Merritt also received at least $7,000 in drug money delivered by courier from Huntington to Detroit.
On November 18, 2012, Merritt also provided heroin to Lindsey Thacker, who, along with Wood and others, trafficked heroin from Detroit to Huntington. Thacker and Wood provided housing to a drug dealer also engaged in the heroin trafficking. In return, Thacker and Wood received heroin for personal use.
In June of 2013, two homes in Detroit owned by Merritt were searched. Agents located 2 packages of what was later determined to be a cutting agent for heroin, along with other items consistent with drug trafficking, and a loaded Glock handgun.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Humane Society of the United States Give Five Law Enforcement Officials an AwardRead the Press Release
Montgomery, Alabama - The Humane Society of the United States is presenting its 2014 Humane Law Enforcement Awards to law enforcement in the Middle District of Alabama who are responsible for taking down the second largest dog fighting organization in the country. Two FBI Agents; one Auburn Police Detective; Keith Baker, a former FBI agent; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Clark Morris, Assistant U.S. Attorney for the Middle District of Alabama all received this award.
On Friday, August 23, 2013, agents executed 13 search warrants, 11 in Alabama and two in Georgia. Agents have seized approximately 458 pit bull terriers, guns, illegal narcotics, drugs used to treat and train dogs, and other evidence indicative of dog fighting. During the course of this investigation, agents have further seized over $500,000 from dog fighters involved in this organization. As a result of this investigation 14 people were indicted and are awaiting trial scheduled for May 8, 2014.
While only the lead agents and prosecutors received this award, the success of this investigation is a result multiple law enforcement agencies including the Alabama Alcoholic Beverage Control Board; the Coffee County Sheriff’s Office; Alabama State Troopers; the Lee County District Attorney’s Office; the Alabama Department of Public Safety; Bainbridge, Georgia Department of Public Safety; the United States Marshal’s Service; the Lee County Sheriff’s Office; the Houston County Sheriff’s Office; the Opelika Police Department; the Georgia Highway Patrol; the Georgia Bureau of Investigation; the Mississippi Bureau of Investigation; the Pensacola, Florida and Columbus, Georgia offices of the Drug Enforcement Administration; and Taylor Crossing Animal Hospital.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Hobbs Man Sentenced to Ninety-Six Months in Federal Prison for Methampethamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Curtis Lee Alemany, 28, of Hobbs, N.M., was sentenced this morning to 96 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Commander Mike Wilson of the Lea County Drug Task Force (LCDTF).
Alemany was arrested on July 17, 2013, on a criminal complaint alleging federal methamphetamine trafficking and firearms charges. He has been in federal custody since that time. According to the criminal complaint, on June 5, 2013, officers of the LCDTF executed a state search warrant at Alemany’s residence in Hobbs. In the master bedroom of the residence, the officers seized a plastic bag containing approximately 66 grams of methamphetamine which was concealed in a “Comet” brand scrubbing cleanser can. The officers also seized two semi-automatic handguns that contained chambered rounds and loaded magazines, digital weight scales and $12,265 in cash concealed in a “Crown Royal” bag.
On Sept. 5, 2013, Alemany entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Alemany admitted that when the officers executed a search warrant at his residence on June 5, 2013, they found methamphetamine and two handguns concealed in a hollowed out space in the wall of the master bedroom. Alemany further admitted that he intended to sell the methamphetamine found in his residence.
This case was investigated by the Roswell office of the FBI and the Lea County Drug Task Force, with assistance from the 5th Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Fresno Man Sentenced to 8 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. — Albert Hood, 49, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to eight years in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
Hood was found guilty by a jury on October 17, 2013. At trial, the government introduced evidence that on December 4, 2011, a Fresno police officer stopped Hood after seeing him commit a traffic violation. Hood ran from the officer, and the officer saw and heard the defendant drop an object that turned out to be a loaded Ruger, Model Vaquero, .44-caliber revolver. According to court documents, Hood has felony convictions for vehicle theft, felony domestic violence, and assault with a deadly weapon not a firearm and felon in possession of a firearm.
“Every time we seize a single firearm from a convicted felon, we prevent impending violent acts from occurring in our neighborhoods,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “ATF and our partners will not surrender to those criminals who are a threat to our communities and possess a firearm unlawfully.”
Fresno Police Chief Jerry Dyer stated: “This is yet another example of the strong partnership between the Fresno Police Department and the US Attorney's office toward prosecuting armed felons and removing firearms from the streets of Fresno.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department under the Project Safe Neighborhoods initiative bringing together local and federal law enforcement agencies to combat gun violence. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case.
Four Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
On February 4, 2014, Gregory A. Emery, 47, Murphysboro, and Brandon K. Craig, 31, Tasha L. Craig, 30, and Rachel L. Simmerman, 41, all of Carbondale, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. The four co-defendants made their initial appearances in federal court on February 10, 2014. At February 14, 2014, detention hearings, Emery, Brandon Craig, and Tasha Craig were ordered held without bond pending an April 21, 2014, jury trial.
The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, the Murphysboro Police Department, the Carbondale Police Department, the Illinois State Police/Southern Illinois Drug Task Force, and the Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Former Virginia Subcontractor Pleads Guilty to BriberyRead the Press Release
Dwayne Allen Hardman, 44, of Charleston, W.V., pleaded guilty today to paying bribes to public officials.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service Mid-Atlantic Field Office (DCIS), Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.
Hardman was charged by criminal information on Feb. 12, 2014, with paying a bribe to public officials. Hardman faces a maximum penalty of 15 years in prison when he is sentenced on June 6, 2014.
According to a statement of facts filed with the plea agreement, in November 2004, Hardman and another businessman established a government contracting corporation in Chesapeake, Va., to provide support to the Military Sealift Command (MSC) on various telecommunications projects. Shortly thereafter, in early 2005, Hardman and his business partner agreed to pay cash bribes to two MSC officials in exchange for official action to steer government contracts to Hardman’s corporation. From March 2005 and until 2007, Hardman, his business partner and others paid the MSC officials approximately $3,000 each month in cash bribes. During this time, Hardman and his business partner withdrew approximately $144,000 in cash, which was then provided to the two MSC officials in exchange for their assistance in securing MSC contracting and subcontracting business for Hardman’s company.
According to court documents, in February 2009, Hardman left his former business and formed another government contracting company in Chesapeake with another businessman. The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for receiving bribes from Hardman and his new business partner. In May 2009, Hardman and his new business partner paid each of the two MSC officials $25,000 in cash bribes.
On Feb. 12, 2014, one of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme.
This case was investigated by Special Agents of the FBI, the Naval Criminal Investigative Service, and the Defense Criminal Investigative Service. Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie are prosecuting the case.Former Puerto Rico Correctional Officer Sentenced <br /> for Scheme to Smuggle Heroin into State PrisonRead the Press Release
A former correctional officer at the Puerto Rico Department of Corrections was sentenced to serve 37 months in prison for attempting to smuggle heroin into the prison where he worked, Bayamón State Penitentiary, in exchange for a $3,000 payment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement.
Luis Lebron-Lebron, 38, of Maunabo, Puerto Rico, pleaded guilty on Oct. 29, 2013, to a one-count indictment charging him with attempt to distribute a controlled substance. Lebron-Lebron was sentenced by U.S. District Judge José A. Fusté .
On Sept. 9 and 10, 2010, Lebron agreed to introduce 1/8 of a kilogram of heroin to an inmate at the Bayamón State Penitentiary, where Lebron worked as a correctional officer. Lebron was paid $3,000 to make that delivery. On Sept. 10, 2010, Lebron met with an undercover agent, who he believed was a drug dealer, and was given what he believed to be 1/8 of a kilogram of heroin. He delivered the purported heroin to an inmate in the prison that same day.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico.Former Chief Executive Officer of Oil Services Company <br /> Pleads Guilty to Foreign Bribery ChargesRead the Press Release
The former chief executive officer of PetroTiger Ltd., a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey, pleaded guilty today for his role in a scheme to pay bribes to foreign government officials and to defraud PetroTiger.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.
Knut Hammarskjold, 42, of Greenville, S.C., the former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Josephy E. Irenas in Camden, N.J., to an information charging one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud and is scheduled for sentencing on May 16, 2014. Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty to the same charges on Nov. 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants allegedly first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of several of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013. Hammarskjold was arrested on Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold and Weisman were unsealed on Jan. 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost.
As to the charges in the complaint pending against Sigelman, they are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, and the Republic of Panama for their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Former Chesapeake, Virginia Subcontractor Pleads Guilty to BriberyRead the Press Release
NORFOLK, Va. – Dwayne Allen Hardman, 44, of Charleston, W.V., pleaded guilty today to charges of paying bribes to public officials.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office (DCIS); Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Douglas E. Miller.
Hardman was charged by criminal information on Feb. 12, 2014, with paying a bribe to public officials. Hardman faces a maximum penalty of 15 years in prison when he is sentenced on June 6, 2014.
According to a statement of facts filed with the plea agreement, in November 2004, Hardman and another businessman established a government contracting corporation in Chesapeake, Va. to provide support to the Military Sealift Command (MSC) on various telecommunications projects. Shortly thereafter, in early 2005, Hardman and his business partner agreed to pay cash bribes to two MSC officials in exchange for official action to steer government contracts to Hardman’s corporation. From March 2005 and until 2007, Hardman, his business partner and others paid the MSC officials approximately $3,000 each month in cash bribes. During this time, Hardman and his business partner withdrew approximately $144,000 in cash, which was then provided to the two MSC officials in exchange for their assistance in securing MSC contracting and subcontracting business for Hardman’s company.
According to court documents, in February 2009, Hardman left his former business and formed another government contracting company in Chesapeake with another businessman. The two MSC officials again agreed to steer contracting work to Hardman’s new company in exchange for receiving bribes from Hardman and his new business partner. In May 2009, Hardman and his new business partner paid each of the two MSC officials $25,000 in cash bribes.
On Feb. 12, 2014, one of the MSC officials, Kenny Toy, who was the Afloat Programs Manager for MSC’s N6 Command, Control, Communication, and Computer Systems Directorate, pleaded guilty to accepting bribes in conjunction with this scheme.
This case was investigated by Special Agents of the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the FBI Norfolk Field Office. Assistant United States Attorney Stephen W. Haynie and Trial Attorney Emily Rae Woods, of the Criminal Division’s Public Integrity Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Ceo of Oil Services Company Pleads Guilty to Foreign Bribery ChargesRead the Press Release
CAMDEN, N.J. - A former chief executive officer of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – today admitted his role in a scheme to pay bribes to foreign government officials and defraud PetroTiger.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division, made the announcement.Knut Hammarskjold, 42, of Greenville, S.C., a former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty to the same charges on Nov. 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami, Fla., and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013. Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold, and Weisman were unsealed on January 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Sentencing for Hammarskjold is scheduled for May 16, 2014.
As to the charges in the complaint pending against Sigelman, they are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, for its assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
14-049
Defense counsel: Hammarskjold: Kevin G. Walsh Esq., Newark
Sigelman: Andrew C. Lourie Esq., Washington, D.C., and William A. Burck Esq., Washington, D.C.Gregory Weisman: Michael A. Schwartz Esq., Philadelphia, Pa.
Hammarskjold, Knut Information
Former Alton Resident Pleads Guilty to Aiding and Abetting an Armed RobberyRead the Press Release
Case is one of many brought as a result of United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
A former Alton, Illinois, resident pled guilty in federal court on February 18, 2014, to a charge that she and her co-defendant, Ramone C. Cunningham, aided and abetted each other in the commission of an Armed Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Armed Robbery count is a federal “Hobbs Act Robbery.” “The Hobbs Act is just one of the federal tools I will use to keep the citizens of Southern Illinois safe.” said United States Attorney Wigginton. “As I noted when I rolled this initiative out, the Hobbs Act is a tough law which results in a tough sentence. I urge people to think before they risk their freedom for a few dollars.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois.
Taylor C. Harkey, 28, faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years at her sentencing. Sentencing is scheduled for May 30, 2014, in East St. Louis, Illinois.
According to facts revealed in court, the offense occurred on July 18, 2013, when Harkey and Cunningham were at her residence in Alton discussing ways in which to get “quick money.” At Cunningham’s suggestion, Harkey and Cunningham devised a plan to rob a cab driver. Harkey used another individual’s cellular telephone to call Comfort Cab to have a cab sent to a vacant residence in Alton. The two parked in an alley near the vacant house. Prior to committing the robbery, Cunningham provided Harkey with a small black Co2, .177 caliber BB gun that looked like a real gun.
Harkey got out of the car and approached the cab that was already at the residence. The cab driver, having noticed that the residence was vacant, notified his dispatcher who told him to wait while they tried to contact the original caller. While waiting for the dispatcher to call back, Harkey reached through the open rear driver’s side window and pointed the gun at the cab driver’s head, stating “Give me your money or I’ll blow your brains out.” Harkey also reached inside the cab and grabbed the cab driver’s company cellular telephone. The driver threw $36.00, consisting of cab fares, out of the window. As Harkey bent down to pick up the money, the cab driver drove away. He was able to contact Comfort Cab to report that he had just been robbed. Comfort Cab subsequently called the Alton Police Department. Using the original number that was used to call the cab, the officers were able to identify Harkey as a suspect. Both Harkey and Cunningham were subsequently arrested a short time later at Harkey’s residence. The BB gun given to Harkey to use during the robbery was recovered from under the mattress of one of her children’s bed. Both Cunningham and Harkey provided voluntary, videotaped statements to Alton police officers in which they both admitted their role in the robbery of the Comfort Cab driver.
The case was investigated by the Alton, Illinois, Police Department. The case is assigned to Assistant United States Attorney Angela Scott.
Falcon Drilling CEO Conspired to Embezzle $9M from CompanyRead the Press Release
PITTSBURGH – An Indiana, Pa., resident pleaded guilty in federal court to charges of conspiracy to commit mail fraud and forge checks, as well as charges of mail fraud and tax fraud, United States Attorney David J. Hickton announced today.
Larry Dean Winckler, 53, pleaded guilty to seven counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that between 2007 and 2012, Winckler, the Chief Operating Officer at Falcon Drilling Company in Indiana, Pa., conspired to embezzle nearly $9,020,687 from his employer by creating forged checks and fake company invoices. The government represented to the court that Winckler conspired to defraud Falcon through embezzlement of company funds by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors.
Judge McVerry scheduled sentencing for May 30, 2013, at 9:30 a.m. The law provides for a total sentence of 74 years in prison, a fine of $1,300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Winckler.
Elyria Man Convicted of Human Trafficking, Drug CrimesRead the Press Release
An Elyria man was convicted of human trafficking, drug crimes and obstruction of justice after forcing four females, including a 16-year-old girl, to have sex for money, law enforcement officials said.
Jeremy Mack, 38, of Elyria, was found guilty by a jury on all nine counts following a weeklong trial. U.S. District Court Judge Sara Lioi scheduled sentencing for May 29.
“With today's verdict, Jeremy Mack's time roaming our community and preying on the most vulnerable will finally come to an end,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“The FBI is pleased with the guilty verdict for the despicable acts committed by Jeremy Mack.,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “Thankfully, Mr. Mack will not be able to prey on and victimize children from where he is -- behind bars.”
“This is an example of local police and federal law enforcement working together to make our community safer,” said Elyria Police Chief Duane Whitely.
Ashley Onysko, 24, of Avon Lake, previously pleaded guilty to charges related to her role in the conspiracy.
Between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin or cocaine to four females and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.
They did this, in part, by posting photographs of the females on backpage.com on a user account that Mack and Onysko created, according to the indictment.
In March 2013, Victim 2, a 16-year-old minor, went to Mack’s residence in Elyria after school, at which time Mack gave her cocaine. Mack later told and caused others to tell Victim 2 that she needed to engage in commercial sex acts. She did, after which she turned over all proceeds to Mack, according to the indictment.
From March through April 9, 2013, Mack brandished a firearm in front of three of the females. He choked and threatened to kill one of the female victims, according to the indictment.
Count 1 charged Mack with conspiring with Onysko to force the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion
Counts 2 through 5 charged Mack with forcing each of the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion.
Count 6 and 7 charged Mack with distribution of heroin and cocaine, respectively.
Count 8 and 9 charged Mack with obstruction of justice. Count 8 charged Mack with advising his son, identified only as T.L., to “stick with the script” when testifying before the Federal Grand Jury. Count 9 charged Mack with providing money to Onysko in May 2013 to purchase personal items for Victim 4 and to advise the victim not to “flip”. He also told the victim not to speak with FBI agents attempting to contact her and advising her not to make incriminating statements against Mack, according to the indictment.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
Elkville Man Pleads Guilty to Methamphetamine OffenseRead the Press Release
On February 13, 2014, Kenneth R. Tyner, 53, Elkville, Illinois, pled guilty to conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, between August 2011, and April 2012, Tyner was involved with others in the manufacture of methamphetamine in Alexander, Union, and Pulaski Counties. Tyner obtained and provided pseudoephedrine to others to use in the manufacture of methamphetamine. Tyner is currently being held without bond pending a May 16, 2014, sentencing date. The methamphetamine offense carries a penalty of up to 20 years in prison, followed by 3 years of supervised release, and up to a $1,000,000 fine.
The investigation was conducted by the Illinois State Police/Southern Illinois Drug Task Force. The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Crawford County Man Arrested on Federal Firearm ChargeRead the Press Release
WICHITA, KAN. - A man from Crawford County, Kan., was arrested Tuesday on federal firearm charges, U.S. Attorney Barry Grissom said.
James D. Russian, 56, Pittsburg, Kan., is charged in U.S. District Court in Wichita with one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Nov. 27, 2013, in Crawford County.
The indictment alleges Russian unlawfully possessed a 9 mm handgun, 82 rounds of 9 mm ammunition and eighteen 20 gauge shotgun cartridges.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the charge involving the handgun and a maximum penalty of five years and a fine up to $250,000 on the charge with the ammunition. The Crawford County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Couple Sentenced in Idaho Federal Court for Trafficking MethRead the Press Release
Defendants Admit Transporting More Than 50 Pounds of Meth from California to Minnesota
POCATELLO – Sergio Javier Varela-Vallecillo, 30, and his wife, Felicia Inez Varela, 29, of Navasota, Texas, were sentenced today in United States District Court for possession with intent to distribute more than 500 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. The defendants appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
Varela-Vallecillo, a Honduran national, was sentenced to 70 months in prison; he will be deported following his release. Felicia Varela was sentenced to 30 months in prison followed by four years of supervised release. The defendants pleaded guilty to the one-count indictment on November 26, 2013. The government is seeking forfeiture of assets derived from the offense conduct.
According to plea agreements filed in the case, on March 9, 2013, the defendants were stopped by an Idaho State Police trooper while traveling in a U-Haul truck on U.S. Highway 20 in Idaho Falls. In the back of the truck, officers found approximately 50 pounds of methamphetamine and a large quantity of cocaine. The defendants admitted they knew the substance they were transporting was methamphetamine and they were transporting it from California to Minnesota with the intention of delivering it to another individual in Minnesota.
The case was investigated by Idaho State Police, the Federal Bureau of Investigation (FBI), and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Corpus Christi Doctor Convicted in Connection with Fraudulent Health Care Billing SchemeRead the Press Release
CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 49, of Robstown, has entered a plea of guilty to mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
Ramirez, a licensed physician in Texas since 1997 and owner of Health Resolutions Inc., was indicted by a federal grand jury on Oct. 9, 2013, for a scheme to defraud Medicare and Medicaid through fraudulent billings. He was set for trial this morning, but opted to enter a guilty plea to one count of mail fraud for using the United States Postal Service (USPS) for the purpose executing his scheme. His medical office in Corpus Christi is now closed.
Ramirez admitted he knowingly and willfully engaged in a scheme to defraud Medicare and Texas Medicaid and submitted false and fraudulent billings for medical services he did not provide. He also admitted he committed mail fraud by using USPS to receive payment on the fraudulent bills.
Court documents indicated that Ramirez knowingly and willfully engaged in the scheme from May 2008 through December 2011 by submitting fraudulent billings for physician services he did not provide. Thousands of false and fraudulent bills were submitted, according to the charges. Ramirez billed for medical services he claimed he personally provided to patients who had actually died prior to the dates of his claimed services. He also submitted bills claiming he personally provided services to patients at his clinic when he was actually overseas or in another state. Some of the bills also indicated he would have personally worked more than 24 hours in a single day. Court documents also alleged that when he provided medical services to Medicare and Medicaid patients in nursing homes, he would send fraudulent bills claiming he had seen the patients in private residences in order to collect the higher fees paid for house calls.
Senior U.S. District Judge Hayden Head, who accepted the guilty plea, has set sentencing for May 15, 2014, at which time Ramirez faces up to 20 years in federal prison and a $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The investigation was conducted by the FBI, U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney (AUSA) Robert D. Thorpe Jr. and Special AUSA Rex G. Beasley are prosecuting.
Cheektowaga Man Sentenced for Enticement of a MinorRead the Press Release
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Salvatore Tantillo, II, 32, of Cheektowaga, N.Y., who was convicted of enticement of a minor to engage in sexual activity, was sentenced to 10 years in prison and five years of supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that the defendant met a 16 year old over the internet. Tantillo misrepresented his age to the victim, advising her that he was 18 years old. After communicating with the victim over the internet for a few months, the defendant met the girl in person for the purpose of engaging in sexual activity. It is a violation of New York State Penal Law, for a person who is 21 years or older to engage in sexual intercourse with a person less than 16 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of a joint investigation on the part of Special Agents of the Federal Bureau of Investigation, members of the Cheektowaga Police Department under the direction of Chief David Zack, and Lancaster Police Department, under the direction of Chief Gerald Gill.Cass County Resident Sentenced to 60 Months in Prison for Conspiracy to Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On February 14, 2014, Azucena Carmen Cordero, a 35 year-old resident of Atlantic, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 60 months in prison followed by four years of supervised release for conspiracy to distribute methamphetamine from July of 2012 until January 21, 2013, announced United States Attorney Nicholas A. Klinefeldt.
Cordero pled guilty on October 15, 2013, to the charge, which was the result of an investigation conducted into methamphetamine distribution in and around the Atlantic, Iowa area. Cordero obtained methamphetamine from a source in South Omaha, Nebraska, distributing it in Atlantic, Iowa, and to a person in Polk City, Iowa. Co-defendant Paul Jessen was previously sentenced to 122 months by Judge Rose.
The investigation was conducted by the Cass County Sheriff’s Office, the Atlantic, Iowa, Police Department and the Iowa Division of Narcotic Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Carbondale Man Pleads Guilty to Heroin OffenseRead the Press Release
On February 14, 2014, Michael Burns, 45, of Carbondale, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, between August 2012, and August 23, 2013, Burns was involved with others in the distribution of heroin in Carbondale, Jackson County. On multiple occasions between November 2012 and August 2013, Burns sold heroin to confidential sources working for law enforcement. When agents executed a search warrant at Burns’ Carbondale residence, they located heroin, cannabis, drug packaging materials, and a large amount of United States currency. At his plea hearing, Burns admitted that he was responsible for the distribution of more than one kilogram of heroin and 200-300 grams of cocaine. Burns is currently being held without bond pending a May 22, 2014, sentencing hearing. The heroin offense carries a penalty of up to 20 years in prison, 3 years of supervised release, and up to a $1,000,000 fine.
The investigation was conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Illinois State Police Tactical Response Team also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Burlington County Woman Sentenced to Three Years in Prison for Defrauding Retailers of $500,000 Through Debit Card SchemeRead the Press Release
NEWARK, N.J. - A Burlington County, N.J., woman who used a debit card fraud scheme to steal more than $500,000 from clothing retailers was sentenced today to 36 months in prison, U.S. Attorney Paul J. Fishman announced.
Temeshia McDonald, 29, of Mount Holly, N.J., previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of access device fraud. As part of the sentence, McDonald was ordered to pay $557,690.18 in restitution to the retailers victimized by her fraud, including Victoria’s Secret, Banana Republic, Wet Seal, and BCBG. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: McDonald took advantage of a particular type of debit card transaction known as a “forced sale,” which is used from time to time in regular business dealings and is described briefly below.
Ordinarily, when a merchant swipes a credit or debit card, a computerized check is performed to determine whether the account associated with the card is valid. If the account is open and funds are available, the transaction goes through; if the account is closed or funds are unavailable, the transaction is denied. If the transaction is denied, a merchant has two choices: ask the customer for another card, or perform a “forced sale” using the declined card. During a typical forced sale, the merchant calls the card issuer (i.e., the customer’s bank or credit card company) and receives an authorization code. The merchant types the code into the credit card terminal and “forces” the transaction, essentially overriding the denial and allowing the sale to go through. At some later date, the merchant and the card issuer settle the outstanding charge.
But for technical reasons relating to the forced sale process, it does not actually matter what code the merchant types into the terminal. Any combination of digits will override the denial. So long as the customer provides a fake authorization code and convinces the merchant to enter it into the terminal, the transaction will go through. The merchant is unlikely to discover the fraud until days or weeks later.
From April 2011 to September 2012, Defendant McDonald convinced retail merchants to “force” more than 500 transactions on her behalf, totaling more than $800,000 in attempted credit card purchases. Defendant McDonald used this “forced sale” scheme to obtain gift cards, clothes, and accessories from a variety of retail stores, including Victoria’s Secret, Wet Seal, Banana Republic, and BCBG, in New Jersey and other states.
In McDonald’s case, when the cashier finished ringing up McDonald’s goods, McDonald would provide an expired or counterfeit card. The transaction would be denied. McDonald would then pretend to call the card issuer and/or claim to possess an “authorization code” that would allow the purchase to go through. The cashier would then enter the code, thereby forcing the sale and permitting the purchase. Only later, when the merchant and the credit card company attempted to settle the charge, would the retail store realize that McDonald had provided a fake code.
In addition to the prison term, Judge Wigenton sentenced McDonald to three years of supervised release and ordered her to pay restitution of $557,690.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Bruck and Special Assistant U.S. Attorney Thomas Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
14-048Defense counsel: Lorraine Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
McDonald, Temeshia Complaint
McDonald, Temeshia InformationBoothbay Harbor Man Sentenced to over Five Years in Prison for Transporting Stolen Vehicle and Violating Release ConditionsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Ronald
Fuller, 63, of Boothbay Harbor, was sentenced today in United States District Court by Judge
George Z. Singal to a total of 5 years and 4 months imprisonment, consisting of 16 months imprisonment for transporting a stolen vehicle in interstate commerce and an additional 4 years imprisonment for violating conditions of supervised release. Fuller pleaded guilty to the stolen vehicle offense on November 8, 2013, and also admitted on that date that he had violated the conditions of his federal supervised release.According to court documents, in April of 2013, Fuller, a suspect in numerous unsolved burglaries in Boothbay Harbor and Wiscasset, stole a 1971 Chevrolet Malibu from Woolwich.
He drove the stolen car from Maine to Missouri, where he was found and arrested. Court records show that at the time he committed this new offense, he was on federal supervised release following a 1998 conviction for possession of a firearm and ammunition by a convicted felon.The investigation was conducted by the Sagadahoc County Sheriff’s Department, the St.
Francois County (Missouri) Sheriff’s Department, and the Federal Bureau of Investigation.Boise Man Sentenced in Illegal Gambling CaseRead the Press Release
BOISE – Skinner “Skip” Anderson, II, 57, of Boise, Idaho, was sentenced today for misprision of a felony, U.S. Attorney Wendy J. Olson announced. Anderson appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. Judge Winmill sentenced Anderson to a one year term of probation, fined him $2500, and ordered him to complete 120 hours of community service.
Anderson pleaded guilty on December 9, 2013, to a one-count information. He admitted to having knowledge of the illegal gambling operation owned by Kings Santy that was being run out of a house he owns located at 6655 W. Victory Road in Boise. Anderson further admitted to taking steps to conceal the illegal gambling operation and not reporting it to the proper authorities. The property on Victory Road was also used as a clubhouse for the Red Warriors Motorcycle Club, which is affiliated with the Hells Angels Motorcycle Club. Anderson previously served as the treasurer for the Red Warriors. Because of Anderson’s involvement with Outlaw Motorcycle Gangs, Judge Winmill ordered as a condition of probation that he not have any contact with documented gang members or gang paraphernalia.
In a related case, Kings Santy pleaded guilty on February 3, 2014, to operating an illegal gambling business. Santy faces up to five years in prison, a maximum fine of $250,000, and not more than three years of supervised release. Sentencing for Santy is set for April 21, 2014, before U.S. District Judge Edward J. Lodge.
In a separate civil proceeding, the United States is seeking forfeiture of the residence where the illegal gambling operation occurred.
This case was investigated by the Treasure Valley Metro Violent Crime Task Force. The task force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction. The Metro Task Force was assisted by Internal Revenue Service-Criminal Investigation.
Bakersfield Drug Dealer Pleads Guilty to Conspiring to Distribute Methamphetamine, Heroin and CocaineRead the Press Release
FRESNO, Calif. —Miguel Sanchez-Mendoza (Sanchez), 46, of Mexico, pleaded guilty today to conspiring to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Sanchez and co-defendant Gamaliel Salas-Mendoza, aka Rene Salas Mendoza (Salas), 38, also of Mexico, maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, a half-pound of heroin, all packaged for sale. In addition to the drugs, officers found digital scales, cutting agents, a kilogram press, and $9,483 in cash.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Salas has requested a jury trial, which is currently set for July 8. The charges against Salas are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sanchez is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on April 28, 2014. Sanchez faces 10 years to life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. In addition, both men are subject to deportation following the completion of any prison term imposed.
Alabama Woman Sentenced in Kidnapping CaseRead the Press Release
Jackson, Miss. – Jessie Mae Brown Pollard, of Northport, Alabama, was sentenced today in U.S. District Court to serve a total of 25 years in federal prison followed by two years of supervised release for conspiracy to commit kidnapping, kidnapping, and obstruction of justice, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. She was also ordered to pay restitution in the amount of $1,400. A jury found Pollard guilty of the charges after a November, 2013 trial before U.S. District Judge William Barbour, Jr. in Jackson.
The proof at trial showed that Pollard decided to kidnap Jashayla Hopson from East Kemper Elementary School so she contacted Wanda Faye Dancy, a secretary at East Kemper Elementary School, who agreed to assist with the kidnapping. On April 30, 2013, Pollard and co-defendant Shamarious Ruffin traveled to East Kemper Elementary School in a car rented by Pollard. Pollard called Wanda Faye Dancy to determine the location of Jashayla Hopson within the school building. Dancy said Jashayla was in the library and described the clothing she was wearing. Pollard told Ruffin to go into the library to get Hopson and to tell the librarian that “Miss Wanda said it was alright”. Ruffin went into the school library, gave the librarian Dancy’s message, and took Jashayla Hopson. Ruffin returned to the car with the child.
Thereafter, Jessie Mae Brown Pollard drove to Bessemer, Alabama, with Shamarious Ruffin and Jashayla Hopson where they checked into a hotel. Later, Pollard went to a store in Bessemer and purchased a cell phone. She activated the phone and sent the following text message to Jashayla’s mother: “don’t call the police I will call you later if you call the police u won’t see her again.”
Meanwhile, Jessie Mae Brown Pollard’s son, Devonta Pollard, drove to Boligee, Alabama, picked up Shaquayla Johnigan, and took her to meet Jessie Mae Brown Pollard. Jessie Mae Brown Pollard then gave the child, Jashayla Hopson, to Johnigan, who took the rental car and traveled to Laurel, Mississippi where she checked into a hotel room. Later, Jessie Mae Brown Pollard called Shaquayla Johnigan and told her to send a text message to Jashayla’s mother from the cell phone, which was still in the rental car, stating “since you called police, I want $50,000 by 3 p.m., I will tell you location later.”
Shaquayla Johnigan then met Joyce Johnigan in Vossburg, Mississippi. Together, they drove Jashayla Hopson to a remote location near Enterprise, Mississippi and dropped her off near an unknown residence telling her that “her mom was in the trailer and to run up to it”.
Jessie Mae Pollard called Shaquayla Johnigan and told her to take the rental car to the USM campus and leave it, but instead she and Joyce Johnigan drove it into a ditch and threw the keys into a pond. Shaquayla Johnigan gave the black gym back containing the broken cell phone and other evidence to James Shurman Johnigan and told him to “get rid of it”. She also threw the key to the Laurel hotel room in the garbage. James Shurman Johnigan burned the black gym bag containing the broken Samsung phone.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Cirminal Division John Dowdy and Assistant U.S. Attorney Jerry Rushing.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Adair County Resident Sentenced to 120 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On February 14, 2014, Jason Shane Steckelberg, a 49 year-old resident of Fontanelle, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 120 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine on April 3, 2013, announced United States Attorney Nicholas A. Klinefeldt.
Steckelberg obtained methamphetamine from a source in South Omaha, Nebraska, and transported it back to Adair County for redistribution. On April 3, 2013, Steckelberg was stopped by law enforcemen,t and over 125 grams of pure methamphetamine was located in his car along with cash and other items that are indicative of drug trafficking. Steckelberg pled guilty on November 1, 2013, to the charge, which was the result of an investigation conducted into methamphetamine distribution in and around the Adair and Cass County area.
The investigation was conducted by the Adair County Sheriff’s Office, the Cass County Sheriff’s Office, and the Iowa Division of Narcotic Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
14 February 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Christopher A. Nuechterlein):
Felix Gonzalez-Cedillo, 47, of Granger, Indiana, pled guilty to the felony offense of being an illegal alien in possession of a firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service.Sentencing has been set for 5/16/2014.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Brian Cruz, 37, of Elkhart, Indiana, pled guilty to the felony offense of failure to register as required under the sex offender registration and notification act. Magistrate Christopher A. Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by United States Marshal Service.Sentencing has been set for 5/16/2014.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
(pled before District Judge Robert L. Miller, Jr.)
Robert Alexander Loft, 45, of Mishawaka, Indiana, pled guilty to the felony offense of distributing methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 5/20/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Richard Maxson, 50, of Elkhart, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 21 months imprisonment, 2 years supervised release and to pay $30,000 in restitution after pleading guilty to the felony offense of knowingly and intentionally possessing a vehicle which had an altered or removed VIN number with the intent to dispose of the vehicle.According to documents filed in this case, in February 2013, law enforcement stopped a truck Maxson was driving while hauling a Case skid-steer loader. Maxson had rented the skid-steer loader the day before and was aware the VIN number had been altered or removed. Maxson admitted to being in possession of the skid-steer loader and his intent to dispose of it.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Jacalyn Selman, 54, of Kouts, Indiana was sentenced by District Judge Jon E. DeGuilio to 2 years supervised probation and to pay $502.00 in restitution after pleading guilty to the felony offense of embezzling mail.According to documents filed in this case, in December 2012 through July 2013, Selman, a Postal Service employee, embezzled mail which came into her possession. This case was the result of an investigation by the Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Andrew Bolden, 30,pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 5/13/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Robert Sanders, 25, of Gary, Indiana, a defendant in the case US v Harris et al., was sentenced by Chief Judge Philip Simon to 15 months imprisonment, $6,636.00 in restitution to be paid joint and several with Willie Harris, and 2 years of supervised release after being found guilty at trial of the felony offense of conspiracy and attempt to commit fraud with identification documents.According to documents filed in this case, the defendants obtained the account and personal information of individuals in over 21 states and fraudulently added their names to the victims’ accounts in an account takeover scheme. The defendants either utilized their own names or utilized aliases with the accounts which had been taken over. They purchased gift cards, Postal money orders, and made numerous retail purchases with the fraudulently obtained credit cards throughout Indiana, Illinois, Wisconsin, and Georgia. They also made cash withdrawals on the accounts and utilized the convenience checks associated with the accounts at various financial institutions located in Indiana, Illinois, Wisconsin, and Georgia. Throughout the criminal conduct, the defendants would also mail gift cards, Postal money orders, and U.S. currency from Indiana and Wisconsin to Georgia. This case was a result of an investigation by the United States Postal Inspection Service.This case was prosecuted by Assistant United States Attorney Toi Houston.
Joshua Mijares, 34, of Griffith, Indiana, was sentenced by Senior District Judge Rudy Lozano to 7 months and 18 days imprisonment, time considered served, and 1 year of supervised release after pleading guilty to the felony offense of re-entry of a deported alien.According to documents filed in this case, law enforcement, responding to information from a tip line that Mijares was an illegal alien, received fingerprint records and other material confirming that Mijares had indeed been deported in 2005.According to criminal history records, Mijares, also known as Jose Lucas, was convicted of aggravated child abuse in Florida in 2002. This case was a result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Nathan Arnold, 30, of Berne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of theft or receipt of stolen mail matter. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the United States Postal Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS before District Judge Theresa L. Springmann:
Booker Sewell, 33, of Fort Wayne, Indiana was sentenced to 360 months imprisonment with 3 years supervised release after pleading guilty to being a felon in possession of a firearm and 240 months imprisonment with 3 years supervised release for maintaining a place for the purpose of distribution and using cocaine and marijuana, both to be served concurrently. According to documents filed in this case, Sewell was involved in controlled buys of cocaine and crack. Upon his arrest, Sewell’s house contained a revolver, multiple containers and bags with marijuana, approximately $21,917 in cash and evidence of cocaine and chemicals used to multiply (or “cut”) the amount of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Anthony Geller.
Damarcus Johnson, 34, of Fort Wayne, Indiana was re-sentenced after having been found guilty of possession with the intent to distribute crack cocaine and carrying a firearm during and in relation to the drug trafficking offense. Johnson will serve 168 months imprisonment for possession with the intent to distribute crack cocaine to run consecutively to 60 months for carrying a firearm during and in relation to a drug trafficking crime all to run concurrently to 120 months for being a felon in possession of a firearm. According to documents filed in this case, after an encounter with law enforcement in the parking lot of a local late night establishment, Johnson was found in possession of the handgun, marijuana, cocaine, 286 grams of crack cocaine and over two thousand dollars. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
Two Truck Drivers Plead Guilty to Transporting an Individual to Texas for ProstitutionRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., area commercial truck drivers – one of whom is a registered sex offender – have pleaded guilty to transporting an individual across state lines for prostitution.
Tony Eugene Wardlow, 55, of St. Joseph, pleaded guilty before U.S. District Judge Dean Whipple today to the charge contained in Jan. 30, 2014, federal indictment. Co-defendant Thomas Farrell, 49, of DeKalb, Mo., pleaded guilty on February 7, 2014, to aiding and abetting Wardlow’s transportation of this individual.
Wardlow is a registered sex offender who was convicted in 1997 in Nodaway County, Mo., of two counts of endangering the welfare of a child (involving two separate child victims) and one count of sexual misconduct (involving one of those victims). Wardlow is self-employed as a commercial truck driver, doing business as Prideco, LLC.
Wardlow admitted that he transported an individual (identified as “Child Victim” or “CV”) to Texas to engage in prostitution activity with himself from Sept. 18 to 21, 2011. Wardlow met CV in August 2011 when s/he was working as a prostitute on Independence Avenue in Kansas City, Mo. Wardlow admitted that he took CV to St. Louis, Mo., and Big Spring, Texas to engage in illicit sexual activity.
Farrell admitted that he aided and abetted Wardlow’s transportion of this same individual to Texas, knowing that Wardlow was engaged in prostitution activity with the child victim prior to and during the trip.
Under the terms of today’s plea agreement, Wardlow will be sentenced to 10 years and three months in federal prison without parole. Farrell is subject to a sentence of up to three years in federal prison without parole. Sentencing hearings will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Prairie Village, Kan., Police Department, the Kansas City, Mo., Police Department, the U.S. Department of Transportation, the Missouri State Highway Patrol and the Overland Park, Kan., Police Department in conjunction with the Human Trafficking Rescue Project.Two Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two members of the Aryan Brotherhood of Texas gang (ABT) have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise.
United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Ronald Lee Prince, aka “Big Show,” 44, of Dallas, pleaded guilty today before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity. Stephen Tobin Mullen, aka “Scuba Steve, 44, of Dallas, previously pleaded guilty to the same charge.
According to court documents, Prince, Mullen and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Prince, Mullen and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Prince and Mullen admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 9, 2014, each defendant faces a maximum penalty of life in prison.
Prince and Mullen are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 19 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Trio Convicted of $1.4 Million Fraud ConspiracyRead the Press Release
Three people from the Greater Cleveland area were convicted for their roles in a $1.4 million fraud conspiracy involving property in North Carolina, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
Camille M. Harris, 43, of Cleveland, Kenneth T. Embry, 57, of Lyndhurst, and Deon D. Levy, 44, of Bedford, were convicted following a jury trial on conspiracy to commit wire fraud and related charges.
They are scheduled to be sentenced on May 7.
All three were also affiliated with a general contracting company known as Ameribuild Management Company (AMC) in Cleveland: Harris was president, Embry was chief financial officer and Levy was director of operations from May 2007 through February 2008, according to the indictment.
Together, the trio conspired to enrich themselves by making false representations on a mortgage-loan application and other documents related to the North Carolina property and using fictitious invoices as a means to extract money, according to the indictment.
Around November 2007, Levy had been working with a realtor to find a property around Charlotte, N.C. Embry sent Levy bank statements for Harris’ personal account that falsely stated her bi-weekly salary payments were $31,260. Embry also emailed Harris’ personal tax returns and AMC’s corporate tax returns, both of which contained misrepresentations about the financial condition of Harris and AMC, according to the indictment.
On Dec. 21, 2007, Embry sent an invoice to a North Carolina escrow agent for $340,000 from an Ohio business called Wolfco, Inc. The invoice requested payment for work done on the North Carolina property, when in fact no work had been done, according to the indictment.
Embry again sent false bank statements and balance sheets that misstated the financial conditions of Harris and AMC, according to the indictment.
On Dec. 28, 2007, Harris executed and submitted a loan application for the North Carolina property to Fairway Independence Mortgage Corp. that contained several false statements, including claims that she had a monthly income of $62,520, she had more than $1.2 million in two bank accounts and that she owned property on East 141st Street in Cleveland with a market value of $80,000, according to the indictment.
That day, Harris and Embry caused the sale and closing on the North Carolina property with a disbursement check from Fairway of $1,393,873. That included $340,000 that was distributed to Wolfco, Inc. Five days later, Embry opened a bank account in the name of Wolfco, Inc. d/b/a Kenneth Embry, according to the indictment.
On Jan. 7, 2008, Harris and Embry caused the escrow agent to transfer $340,000 to Wolfco’s account. Later that day, Embry drafted a check in the amount of $181,000 made out to “cash.” He then transferred $150,000 from his Wolfco account to the AMC account controlled by Harris, according to the indictment.
Two days after that, Harris drafted a check in the amount of $80,000 from the AMC account payable to herself and deposited it into her personal account.
Harris and Embry caused a loss of approximately $599,388 to Fairway and Amtrust Bank, as the purchaser of the North Carolina property’s mortgage from Fairway, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann following an investigation by Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.