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14 February 2014
Three Individuals Sentenced on Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistTen others appear for pleas and sentencings
MARTINSBURG, WEST VIRGINIA – Three individuals sentenced on firearms charges by Judge Gina M. Groh.
United States Attorney William J. Ihlenfeld, II announced that:
CHARLES WILLIAM JONES, III, a/k/a “TREY,” age 27, of Glen Burnie, Maryland, was sentenced to 60 months in prison and 3 years of supervised release for “Possession of Firearms by a Drug User.” On August 27, 2012, in an undercover investigation, JONES sold 14 firearms which he had just stolen, to an undercover officer for $3,000. At that time, JONES was an illegal user of cocaine. JONES, who is free on bond, will self-report to the designated Federal institution on March 11, 2014.
CODY ASHBY, age 22, of Martinsburg, was sentenced to 51 months in prison and 3 years of supervised release for “Felon in Possession of a Firearm.” ASHBY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MATTHEW TODD CRIM, age 21, of Berkeley County, was sentenced to 27 months in prison and 3 years of supervised release for “Possession of a Firearm with an Obliterated Serial Number.” CRIM was remanded to the custody of the United States Marshal pending designation to a Federal institution.
These cases were prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Department.
In other hearings before Judge Groh: JOSEA LORENZO HICKS, age 35, of Washington, D.C., was sentenced to 16 months in prison and 3 years of supervised release for “Distribution of Crack Cocaine.” HICKS was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Brandon S. Flower.
ADAM BRADY, age 21, of Martinsburg, was sentenced to 12 months in prison and 6 years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of the Burke Street Elementary School.” BRADY was remanded to the custody of the United States Marshal pending designation to a Federal institution. Co-defendant MONICA GREEN, age 35, of Martinsburg, was sentenced to 5 years probation for “Aiding and Abetting the Distribution of Crack Cocaine.” This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin.
ASHLEY SEAL, age 25, of Bunker Hill, West Virginia, was sentenced to 3 years probation for “Aiding and Abetting the Distribution of Crack Cocaine.” This case was prosecuted by Assistant U.S. Attorney Jarod J. Douglas.
These three cases were investigated the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
BRANDON BARTLEY, age 30, of Martinsburg, was sentenced to 3 years probation for “Prescription Fraud.” This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the Drug Enforcement Administration.MITCHELL LAMONT FERNANDO, age 31, of Washington, DC, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Burke Street Elementary School.” FERNANDO, who is in custody pending sentencing, faces up to 40 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen Vogrin and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
TALBERT FOSTER DEHAVEN, III, age 36, of Winchester, Virginia, entered a plea of guilty to “Possessing a United States Marshal Badge.” DEHAVEN, claiming to be a U.S. Marshal engaged in the location and apprehension of a wanted criminal, displayed this badge at several nightclubs in Berkeley County. DEHAVEN, who is free on bond, faces up to six months in prison. This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the United States Marshals Service.
In plea hearings before Magistrate Judge James E. Seibert: RAHANEED GORDON, age 35, of Waynesboro, Pennsylvania, entered a plea of guilty to “Distribution of 100.2 Grams of Heroin.” GORDON, who is in custody pending sentencing, faces up to 40 years in prison, and as part of his plea, has agreed to forfeit his interest in $990.25 in U.S. currency. This case was prosecuted by Assistant U.S. Attorney Jarod J. Douglas.
MICHAEL STOTLER, age 23, of Martinsburg, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine.” STOTLER, who is in custody pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
The GORDON and STOTLER cases were investigated the Eastern Panhandle Drug & Violent Crime Task Force.PHILLIP WAYNE WERTZ, age 46, of Keyser, West Virginia, entered a plea of guilty to “Possession of Child Pornography.” WERTZ, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the West Virginia State Police.
Three Florida Residents Plead Guilty to Fraud Charges Related to Bogus Business OpportunitiesRead the Press Release
Three individuals charged in connection with operating a series of fraudulent business opportunity companies pleaded guilty this week in the U.S. District Court for the Southern District of Florida. Mitchell Berman (aka Brian Griffin) of Boca Raton, Fla., and Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo) of Coconut Creek, Fla., pleaded guilty this morning to one count of conspiracy to commit mail fraud. Steven Axelrod (aka Michael Hutton) of Wellington, Fla., yesterday entered a plea to one count of conspiracy to commit mail fraud. With their pleas, the defendants admit they operated a series of fraudulent companies that sold coffee display rack business opportunities to buyers who were told falsely that they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000 each.
The defendants admit that they operated, beginning in August 2000 and continuing through October 2011, a series of five companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. Each company operated for six months to a year, and after one company closed, the next one opened.
The defendants admit that Berman and Gallo ran the companies, while also working as salesmen together with Axelrod. All three defendants made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the false statements were that purchasers likely would earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman also was violating a December 2000 federal court order barring him from misrepresenting profits, locations and other aspects of business opportunities.
Also according to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants used aliases and gave out false addresses for the companies. Berman and Gallo also avoided listing their own names on corporate and promotional documents and instead paid people who did not work at the companies to be titular presidents.
All three defendants will be sentenced later this year by Judge William J. Zloch in Ft. Lauderdale, Fla. Each faces a maximum statutory term of 20 years in prison, a possible fine and mandatory restitution.
Assistant Attorney General of the Justice Department’s Civil Division Stuart F. Delery commended the investigative efforts of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Cindy Cho and Chris Parisi of the Consumer Protection Branch of the Justice Department’s Civil Division.Three Charged in Tax Fraud SchemeRead the Press Release
HOUSTON – Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, Carey Jermaine Johnson aka Jermaine Johnson, and Tarmera Renee Wyckoff aka Toni Wyckoff, are charged in a 23-count indictment alleging conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS), wire fraud and making false claims to obtain tax refunds, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (CI), and Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS).
“Today's announcement exemplifies IRS special agents' intense focus on the rigorous pursuit of refund fraud,” said Cruz. “At the IRS, protecting taxpayer money is a matter we take very seriously; IRS-CI will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
The sealed indictment, returned Jan. 30, 2014, was unsealed yesterday. At that time, Wyckoff appeared before U.S. Magistrate Judge George C. Hanks Jr. and was released upon posting bond. Carey Jermaine Johnson is set to appear today at 2:00 p.m.
A warrant remains outstanding for the arrest of Cheryl Reed Johnson.
The indictment alleges the defendants devised a scheme to acquire personal identifying information of various individuals and used that information in the filing of tax returns. According to the indictment, the returns were filed online through a tax preparation service and the refunds were directed to the bank accounts of the defendants and others. The returns submitted to the IRS by the defendants in 2008 falsely claimed a first time home buyer credit, according to the charges. These false claims allegedly totaled approximately $1.5 million.
“Since our founding in 1772, postal inspectors have sought to ensure the U.S. Mail is not used for illegal gain,” said Wemyss. “When criminals use the mail to commit fraud, postal inspectors will not hesitate to ensure they are brought to justice.”
The charges of conspiracy to commit mail or wire fraud as well as wire fraud each carry a possible 20-year federal prison term, upon conviction. If convicted of conspiracy to make false claims to the IRS, the three also face another 10 years, while making a false claim to obtain tax refunds is punishable by up to five years in prison. All the charges also carry a possible $250,00 fine upon conviction.
IRS-CI and USPIS investigated. Assistant United States Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Ten Individuals Convicted on Heroin Trafficking ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Ten individuals involved in the distribution of heroin in the Clarksburg and Morgantown areas entered pleas of guilty before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that:
TRAYVON TERELL SNOE, age 22, of Pittsburgh, Pennsylvania; MEGAN LEE GRAEBER, age 28, of Bridgeport, West Virginia; and, SAMANTA COTTRILL, age 22, of Hepzibah, West Virginia, entered pleas of guilty to “Distribution of Heroin within 1,000 Feet of Pierpont Community and Technical College,” and co-defendant CRYSTAL DAWN ROTH, age 31, of Walkersville, West Virginia, entered a plea of guilty to “Possession with Intent to Distribute Heroin.” SNOE and GRAEBER, who are in custody and COTTRILL, who is free on bond pending sentencing face up to 40 years in prison. ROTH, who is free on bond pending sentencing, faces up to 20 years in prison. As part of their pleas, $2,104 that was seized on October 29, 2013, will be forfeited. The case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the by the Greater Harrison County Drug and Violent Crime Task Force consists of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service. The case will be prosecuted by Criminal Chief Shawn A. Morgan
CHARLES E. JEFFERSON, JR. a/k/a “LC,” age 26, of Westover, West Virginia; WILLIAM A. BLOSSER, age 29, of Morgantown, entered pleas of guilty to “Distribution of Heroin.” Co-defendants WRIGHT BOWEN, age 31, of Core, West Virginia, BRITTANY BOWER, age 27 of Morgantown; BARTLEY JEFFERSON a/k/a “BART,” age 24, of Morgantown; and, JASON HUNT, age 32, of Core, entered pleas of guilty to “Distribution of Heroin within 1,000 feet of West Virginia University and Tot Lot playground at Marjorie Gardens.” JEFFERSON and BLOSSER, who are in custody pending sentencing, face up to 20 years in prison. BOWEN, JEFFERSON and HUNT, who are free on bond and BOWER who is in custody pending sentencing face up to 40 years in prison. This case was prosecuted by Assistant U.S. Attorney Zelda E. Wesley and was investigated by the Mon Valley Drug Task Force, comprised of officers from the Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration, assisted by the Federal Bureau of Investigation.
In another drug investigation:ROGIE JOHNSON, age 29, of Morgantown, entered a plea of guilty to “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” JOHNSON, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant U.S. Attorney Zelda E. Wesley and investigated by the West Virginia State Police-Bureau of Criminal Investigations.
Tax on the Run Owners and Others Sentenced for Roles in Tax Refund Scheme Involving Misuse of First-Time Home Buyer Tax CreditRead the Press Release
Impoverished Taxpayers Were Recruited to
Allow Their Names and SSNs to be Used in Filing Fraudulent ReturnsDALLAS — All six defendants convicted for their respective roles in a tax refund scheme involving the misuse of the First-Time Home Buyer Tax Credit, have now been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas
At a hearing yesterday afternoon, U.S. District Judge Jorge A. Solis sentenced Rickel Shine to 34 months in prison and ordered him to pay nearly $115,000 in restitution. Jarrod Phread Altman was sentenced to eight months’ home confinement as part of a three-year term of probation. Judge Solis will impose restitution as to Jarrod Phread Altman at a later date.
Three other defendants convicted in the case, Jason Phread Altman, Emanuel James Harrison and Fread Jamille Jenkins were each recently sentenced to 84 months in federal prison. Jason Altman, Harrison, and Jenkins were each ordered to pay restitution of more than $860,000. Billy Hamilton was sentenced to 13 months in federal prison and ordered to pay nearly $52,000 in restitution.
According to factual resumes filed in the case, Jason Altman and his brother, Jarrod Altman, and Emanuel James Harrison owned and operated a tax preparation business, Tax On the Run, located in Dallas. Jenkins worked as office manager for the business, while Shine and Hamilton worked as intermediaries and recruited clients on behalf of the owners.
Beginning in March 2009, Jason and Jarrod Altman, Jenkins, Harrison, Shine and Hamilton conspired to defraud the IRS, according to the factual resumes filed in the case. They used Tax On the Run to file false Forms 1040, in the names of numerous clients, which overstated and fabricated income and tax deductions on Schedule C and Forms 5405 by falsely representing that the taxpayers were entitled, under the provisions of the Housing and Economic Recovery Act of 2008, to claim a tax credit as a first-time homebuyer. As part of the scheme, according to factual resumes filed in their cases, Shine and Hamilton acted as intermediaries to recruit clients, and they were paid after they recruited impoverished taxpayers to allow their names and social security numbers to be used to file fraudulent tax returns. The fraudulent returns were routinely filed even though the tax preparers never met the taxpayers and with the full knowledge that none of the taxpayers qualified to claim the credit, according to the factual resumes.
Tax On the Run used Santa Barbara Bank and Trust (SBBT) to process refund anticipation loans based on the fraudulent returns filed. The factual resumes filed further state that after electronically filing the false tax returns, Tax On the Run would be notified by SBBT that the loan had been approved and a check could be printed and provided to the taxpayer. Once the check was printed, the taxpayer was transported to a local check cashing business and instructed to cash the refund check. After it was cashed, members of the conspiracy paid the taxpayer a small percentage of the refund and kept the remainder of the proceeds, according to the factual resume.
Defendant Jarrod Altman admitted, according to the factual resume filed in his case, that during tax year 2009, he failed to report approximately $71,133 in taxable income that was obtained from his business, Tax On the Run. Of that amount, Jarrod Altman admitted that he received $53,140 in the form of a payment by check from Jason Altman for a 2007 Mercedes Benz S550, which was purchased in June 2009, for Jarrod Altman’s use, with money from Tax On the Run. He further admitted that he falsely reported $57,207 in taxable income for tax year 2009 that did not include the $71,133 income described above, and as a result of his false statements regarding his taxable income, Jarrod Altman caused $20,135 in tax harm to the IRS.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch, Brian Poe and Rick Calvert prosecuted.
Tamuning Christian Fellowship Invites U.S. Attorney to Speak to Youth GroupRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, Districts of Guam and the Northern Mariana Islands, was invited to speak with the youth of the Tamuning Christian Fellowship on January 26, 2014. They, along with adult mentors of the youth group, discussed problems experienced by youth, including violence, substance abuse, and discrimination including discrimination because of one’s ethnicity, race and gender identity. They shared ways to engage the community so as to raise awareness about these issues, including a forum to bring together students, parents, families, educators, law enforcement, victim service providers, social services, health professionals, faith-based organizations, Mayors, Consulate Offices, and other community stakeholders, to dialogue about these problems and establish effective programs, projects and other means to address and prevent violence, abuse and exploitation, and discrimination, and to encourage positive behavior and role-modeling.
U.S. Attorney Limtiaco also shared information about Department of Justice initiatives, including Project Safe Childhood (PSC), Project Safe Neighborhoods (PSN) and the Diverse Community Outreach.
Launched in May 2006, PSC is a nationwide initiative designed to protect children from online sexual exploitation and abuse. Led by U.S. Attorneys= Offices, the Child Exploitation and Obscenity Section of the Department=s Criminal Division, and Internet Crimes Against Children task forces, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. PSC’s goal is to educate parents about the potential dangers that their children face online, and warns potential online predators that exploiting a child online is a serious federal offense.
PSN is a nationwide commitment to aggressively prosecute offenders who engage in drug distribution, gang involvement and violent crime. U.S. Attorney Limtiaco talked about the Gang Resistance Education And Training (G.R.E.A.T.) Program, a program under PSN aimed at elementary and middle school students, which focuses on developing life skills to help students avoid delinquent behavior and violence, and to solve problems through communication and the exercise of good judgment.
The purpose of the Diverse Community Outreach Initiative is to increase and improve communication and collaboration between the community and law enforcement. Faith-based community members, Consulate Offices and other stakeholders are invited and participate in the initiative. Issues discussed at the Diverse Community Outreach Initiative meetings include human trafficking; hate crimes and civil rights; immigration; labor; cultural competency; national security; and crime prevention.
Photos taken at Tamuning Christian Fellowship.
Tampa Man Sentenced to Federal Prison for Possessing Destructive ExplosivesRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced James Lee Minyard (42, Tampa) to 30 months in federal prison for possessing destructive explosives. Minyard pleaded guilty on December 12, 2013.
He was originally indicted on August 14, 2013.
According to court documents, pursuant to a search of Minyard’s residence, law enforcement found multiple explosive devices and chemicals commonly used for explosive devices, including a powerful and destructive explosive named Triacetone Triperoxide (TATP). The search also uncovered a homemade remote control used to detonate explosive devices. During an interview with law enforcement, Minyard admitted to knowingly possessing these explosive devices and to manufacturing TATP. Three of the explosive devices found were firearms (destructive devices) that contained TATP, and were designed to be used as weapons.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Tampa Police Department, with the assistance of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case is also a part of ATF’s Frontline strategy - a comprehensive violent crime impact strategy that consolidates limited federal law enforcement resources and focuses ATF’s mission by deconflicting cases and coordinating all law enforcement efforts in critical communities.
Statement of U.S. Attorneys Jenny A. Durkan and Michael C. OrmsbyRead the Press Release
“Cash businesses such as marijuana distribution can be a magnet for criminal violence. Today's guidance seeks to mitigate the public safety concerns created by high volume cash based businesses without access to the banking and financial systems. The guidance also seeks to prevent criminal organizations from laundering their criminal proceeds beyond the reach of law enforcement. The guidance reaffirms the expectation that states that have enacted laws authorizing marijuana-related conduct will implement clear, strong and effective regulatory and enforcement systems. That obligation remains. This new guidance also makes it clear that banks have an obligation to continue to report and not offer services to businesses that operate outside such strong regulatory and enforcement regimes.”
A PDF copy of the guidance is attached to this release.
The U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing guidance today entitled “BSA Expectations Regarding Marijuana-Related Businesses,” which is referred to in the attached memorandum from the Deputy Attorney General. FinCEN's guidance will be available later today on this website:http://www.fincen.gov/
Statement of Michael C. Ormsby and Jenny A. Durkan, United States Attorneys for the Eastern and Western Districts of WashingtonRead the Press Release
"Cash businesses such as marijuana distribution can be a magnet for criminal violence. Today's guidance seeks to mitigate the public safety concerns created by high volume cash based businesses without access to the banking and financial systems. The guidance also seeks to prevent criminal organizations from laundering their criminal proceeds beyond the reach of law enforcement. The guidance reaffirms the expectation that states that have enacted laws authorizing marijuana-related conduct will implement clear, strong and effective regulatory and enforcement systems. That obligation remains. This new guidance also makes it clear that banks have an obligation to continue to report and not offer services to businesses that operate outside such strong regulatory and enforcement regimes."
The United States Department of Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing guidance today entitled "BSA Expectations Regarding Marijuana-Related Businesses," which is referred to in the attached memorandum from the Deputy Attorney General. FinCEN's guidance will be available later today on this website:
http://www.fincen.gov/statutes_regs/guidance
MEMORANDUM FOR ALL UNITED STATES ATTORNEYSFROM: James M. Cole Deputy Attorney General
SUBJECT: Guidance Regarding Marijuana Related Financial Crimes
On August 29, 2013, the Department issued guidance (August 29 guidance) to federal prosecutors concerning marijuana enforcement under the Controlled Substances Act (CSA). The August 29 guidance reiterated the Department's commitment to enforcing the CSA consistent with Congress' determination that marijuana is a dangerous drug that serves as a significant source of revenue to large-scale criminal enterprises, gangs, and cartels. In furtherance of that commitment, the August 29 guidance instructed Department attorneys and law enforcement to focus on the following eight priorities in enforcing the CSA against marijuana-related conduct:
- Preventing the distribution of marijuana to minors;
- Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels;
- Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
- Preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
- Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
- Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;
- Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
- Preventing marijuana possession or use on federal property.
Under the August 29 guidance, whether marijuana-related conduct implicates one or more of these enforcement priorities should be the primary question in considering prosecution under the CSA. Although the August 29 guidance was issued in response to recent marijuana legalization initiatives in certain states, it applies to all Department marijuana enforcement nationwide. The guidance, however, did not specifically address what, if any, impact it would have on certain financial crimes for which marijuana-related conduct is a predicate.
The provisions of the money laundering statutes, the unlicensed money remitter statute, and the Bank Secrecy Act (BSA) remain in effect with respect to marijuana-related conduct. Financial transactions involving proceeds generated by marijuana-related conduct can form the basis for prosecution under the money laundering statutes (18 U.S.C. §§ 1956 and 1957), the unlicensed money transmitter statute (18 U.S.C. § 1960), and the BSA. Sections 1956 and 1957 of Title 18 make it a criminal offense to engage in certain financial and monetary transactions with the proceeds of a "specified unlawful activity," including proceeds from marijuana-related violations of the CSA. Transactions by or through a money transmitting business involving funds "derived from" marijuana-related conduct can also serve as a predicate for prosecution under 18 U.S.C. § 1960. Additionally, financial institutions that conduct transactions with money generated by marijuana-related conduct could face criminal liability under the BSA for, among other things, failing to identify or report financial transactions that involved the proceeds of marijuana-related violations of the CSA. See, e.g., 31 U.S.C. § 5318(g). Notably for these purposes, prosecution under these offenses based on transactions involving marijuana proceeds does not require an underlying marijuana-related conviction under federal or state law.
As noted in the August 29 guidance, the Department is committed to using its limited investigative and prosecutorial resources to address the most significant marijuana-related cases in an effective and consistent way. Investigations and prosecutions of the offenses enumerated above based upon marijuana-related activity should be subject to the same consideration and prioritization. Therefore, in determining whether to charge individuals or institutions with any of these offenses based on marijuana-related violations of the CSA, prosecutors should apply the eight enforcement priorities described in the August 29 guidance and reiterated above. 1 For example, if a financial institution or individual provides banking services to a marijuana-related business knowing that the business is diverting marijuana from a state where marijuana sales are regulated to ones where such sales are illegal under state law, or is being used by a criminal organization to conduct financial transactions for its criminal goals, such as the concealment of funds derived from other illegal activity or the use of marijuana proceeds to support other illegal activity, prosecution for violations of 18 U.S.C. §§ 1956, 1957, 1960 or the BSA might be appropriate. Similarly, if the financial institution or individual is willfully blind to such activity by, for example, failing to conduct appropriate due diligence of the customers' activities, such prosecution might be appropriate. Conversely, if a financial institution or individual offers services to a marijuana-related business whose activities do not implicate any of the eight priority factors, prosecution for these offenses may not be appropriate.
The August 29 guidance rested on the expectation that states that have enacted laws authorizing marijuana-related conduct will implement clear, strong and effective regulatory and enforcement systems in order to minimize the threat posed to federal enforcement priorities. Consequently, financial institutions and individuals choosing to service marijuana-related businesses that are not compliant with such state regulatory and enforcement systems, or that operate in states lacking a clear and robust regulatory scheme, are more likely to risk entanglement with conduct that implicates the eight federal enforcement priorities. 2 In addition, because financial institutions are in a position to facilitate transactions by marijuana-related businesses that could implicate one or more of the priority factors, financial institutions must continue to apply appropriate risk-based anti-money laundering policies, procedures, and controls sufficient to address the risks posed by these customers, including by conducting customer due diligence designed to identify conduct that relates to any of the eight priority factors. Moreover, as the Department's and FinCEN's guidance are designed to complement each other, it is essential that financial institutions adhere to FinCEN's guidance.3 Prosecutors should continue to review marijuana-related prosecutions on a case-by-case basis and weigh all available information and evidence in determining whether particular conduct falls within the identified priorities.
As with the Department's previous statements on this subject, this memorandum is intended solely as a guide to the exercise of investigative and prosecutorial discretion. This memorandum does not alter in any way the Department's authority to enforce federal law, including federal laws relating to marijuana, regardless of state law. Neither the guidance herein nor any state or local law provides a legal defense to a violation of federal law, including any civil or criminal violation of the CSA, the money laundering and unlicensed money transmitter statutes, or the BSA, including the obligation of financial institutions to conduct customer due diligence. Even in jurisdictions with strong and effective regulatory systems, evidence that particular conduct of a person or entity threatens federal priorities will subject that person or entity to federal enforcement action, based on the circumstances. This memorandum is not intended, does not, and may not be relied upon to create any rights, substantive or procedural, enforceable at law by any party in any matter civil or criminal. It applies prospectively to the exercise of prosecutorial discretion in future cases and does not provide defendants or subjects of enforcement action with a basis for reconsideration of any pending civil action or criminal prosecution. Finally, nothing herein precludes investigation or prosecution, even in the absence of any one of the factors listed above, in particular circumstances where investigation and prosecution otherwise serves an important federal interest.
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1The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing concurrent guidance to clarify BSA expectations for financial institutions seeking to provide services to marijuana-related businesses. The FinCEN guidance addresses the filing of Suspicious Activity Reports (SAR) with respect to marijuana-related businesses, and in particular the importance of considering the eight federal enforcement priorities mentioned above, as well as state law. As discussed in FinCEN's guidance, a financial institution providing financial services to a marijuana-related business that it reasonably believes, based on its customer due diligence, does not implicate one of the federal enforcement priorities or violate state law, would file a "Marijuana Limited" SAR, which would include streamlined information. Conversely, a financial institution filing a SAR on a marijuana-related business it reasonably believes, based on its customer due diligence, implicates one of the federal priorities or violates state law, would be label the SAR "Marijuana Priority," and the content of the SAR would include comprehensive details in accordance with existing regulations and guidance.
2For example, financial institutions should recognize that a marijuana-related business operating in a state that has not legalized marijuana would likely result in the proceeds going to a criminal organization.
3Under FinCEN's guidance, for instance, a marijuana-related business that is not appropriately licensed or is operating in violation of state law presents red flags that would justify the filing of a Marijuana Priority SAR.Stamford Attorney Admits Role in Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut today announced that, on February 12, CHRISTOPHER BRECCIANO, 35, of Stamford, waived his right to indictment and pleaded guilty in Bridgeport federal court to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2006 and 2010, BRECCIANO, while working as an associate at a Stamford law firm, participated in mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport, Norwalk and Stamford. BRECCIANO acted as a closing attorney for at least 50 mortgage loan transactions in which materially false information was provided to mortgage lenders by BRECCIANO or his co-conspirators. The fraudulent information included false verifications of down payments for real estate transactions, false deeds, and false HUD-1 Forms. In many of the transactions, BRECCIANO knew that the borrower was a “straw buyer,” and that other individuals intended to control the property and collect rent from the property. In many transactions, BRECCIANO distributed mortgage loan funds to the straw buyer and other co-conspirators at the closing.
Many of these properties ended up in foreclosure, or in short sale transactions. In pleading guilty, BRECCIANO admitted that he was also involved in many short sale transactions in which he knew that the buyer and seller were working together to retain control of the property while representing to the lender that the sale was an arm’s length transaction.
Through this scheme, lenders suffered losses of more than $7 million.
BRECCIANO pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on May 7, 2014, and faces a maximum term of imprisonment of 30 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
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(203) 821-3722 [email protected]South Windsor Man Charged with Federal Firearms Offenses Related to Theft from East Windsor Gun StoreRead the Press Release
February 14, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that JORDAN MARSH, 26, of South Windsor, has been charged by criminal complaint with being a previously convicted felon in possession of a firearm, and theft of a firearm from a federally licensed firearms dealer.
MARSH appeared today before United States Magistrate Judge Donna F. Martinez in Hartford federal court. He is currently detained in state custody on related charges.
As alleged in the criminal complaint, on December 11, 2012, MARSH stole a Windham Weaponry 5.56 caliber semi-automatic rifle from the front counter of Riverview Gun Sales, a federal firearms dealer located in East Windsor. The theft was captured on the store’s video surveillance system, but no employee at Riverview observed the theft or realized the firearm was missing until the Hartford Police retrieved it from MARSH’s hotel room on December 17, 2012, two days after MARSH had been arrested for attempting to steal a different semi-automatic rifle from the same store.
The complaint further alleges that, in 2011, MARSH was convicted of a felony stemming from his prior thefts of firearms from Riverview.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Each of the federal charges carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford and East Windsor Police Departments. The case is being prosecuted by Assistant United States Attorney Robert M. Spector.
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(203) 821-3722 [email protected]South Mississippi Physician Indicted on Income Tax ViolationsRead the Press Release
Gulfport, Miss. – Timothy Dale Jackson, 49, of Pass Christian, Mississippi, an orthopedic physician, has been charged in a five count felony indictment alleging income tax evasion and obstruction of the due administration of the internal revenue laws, announced U.S. Attorney Gregory K. Davis and IRS Criminal Investigation Special Agent in Charge Gabriel L. Grchan.
Jackson appeared on February 13, 2014 before Chief United States Magistrate Judge John M. Roper for his initial appearance and was released on a $700,000 bond. His arraignment is set for Tuesday, February 18, 2014 at 11:00 before Judge Roper.
The indictment charges four counts of willful evasion of income tax, which each carry a maximum penalty of five years imprisonment and a fine of $250,000; he is also charged in an additional count of obstructing and impeding the due administration of the internal revenue laws, which carries a maximum penalty of three years imprisonment and a $250,000 fine.
“Tax evasion is not a victimless crime," said Special Agent in Charge Gabriel L. Grchan of IRS Criminal Investigation. "We all pay when others swindle the government. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers."
This case was investigated by IRS Criminal Investigation and the prosecution will be handled by Assistant U.S. Attorney Ruth Morgan.
The public is reminded that an indictment is a formal accusation of criminal conduct. A defendant is presumed innocent unless and until proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Serial Bankruptcy Filer Convicted of Lying During Bankruptcy ProceedingsRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Shelley R. Callahan, 49, of Clinton, Mo., guilty of making a false statement during a bankruptcy proceeding. United States District Judge Donald Walter presided over the three-day trial.
Callahan’s trial began Monday and was postponed Tuesday and Wednesday because of weather. The trial ended today with the jury returning the guilty verdict after deliberating for approximately 30 minutes. Witness testimony and exhibits admitted into evidence established that Callahan filed for bankruptcy protection on August 26, 2010, her eighth bankruptcy filing in nine years. Callahan falsely stated that she had not made any gifts or payments to family members prior to filing for bankruptcy protection. In truth, Callahan received more than $55,000 for a personal injury claim eight months before her latest bankruptcy filing. Instead of paying her creditors, she provided gifts during the Christmas season and gambling trips to casinos to her family.
Callahan faces up to five years in prison, three years of supervised release, and a $250,000 fine for one count of making a false statement during a bankruptcy proceeding. The sentencing date is May 22, 2014.The U.S. Trustee’s Office and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan is prosecuting the case.
Sentencing in Stolen Equipment CaseRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced today that Corey Sanchez Howard, a Birmingham, Alabama area resident, and Rickel Powell, a Camden, Alabama resident, were sentenced today by Federal District Judge DuBose.
Howard received a sentence of thirty-nine months and was ordered to make restitution. Powell was sentenced to sixty days to serve and ordered to make restitution. The defendants had previously entered guilty pleas to interstate transportation of stolen property in connection with thefts of heavy equipment in and around Huntsville, Safford, Thomasville, Grove Hill, and Frisco City Alabama. Some of the stolen equipment was transported to, and later recovered in, Mississippi.
The case arose from an investigation by the Clarke County, Alabama, Sheriff’s Office, the Thomasville Police Department, the Grove Hill Police Department and the FBI and was prosecuted by Assistant United States Attorney Deborah Griffin.
San Vicente Catholic School Invites U.S. Attorney to Judge Human Rights Day ContestRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was invited to San Vicente Catholic School (SVCS) on January 27, 2014, to be a judge of the middle school’s Human Rights T-Shirt Design Contest in observance of Human Rights Day and as part of its Catholic Schools Week festivities. The school’s 6th – 8th graders were tasked to design a t-shirt advocating the respect of human rights. This was coordinated by the Middle School Language Arts teacher and SVCS Catholic School Chairperson, Mrs. Belen De Fant, and sponsored by the SVCS Shalom Club. The contest was judged by U.S. Attorney Limtiaco, Mrs. Tina Blas, SVCS grandparent and wife of the former Lt. Gov. Frank F. Blas, and Ms. Ann Leon Guerrero, SVCS teacher.
Pictured above are some of the students showcasing their t-shirt design at San Vicente
Catholic School’s (SVCS) Human Rights T-Shirt Design contest in observance of
Human Rights Day and part of its Catholic Schools Week festivities.
The contest was judged by Ms. Alicia Limtiaco, the United States Attorney for the
Districts of Guam and the Northern Mariana Islands, Mrs. Tina Blas, SVCS grandparent and wife of the former Lt. Gov. Frank F. Blas, and Ms. Ann Leon Guerrero, SVCS teacher.San Francisco Attorney Pleads Guilty to Failing to Report More Than $1.3 Million of IncomeRead the Press Release
SAN FRANCISCO – James P. Kleier pled guilty yesterday to two counts of failing to file income tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to his plea agreement, Kleier is a practicing tax attorney focusing on federal and state tax controversies. From 1999 through 2005, Kleier was a partner at Preston, Gates, & Ellis, LLP. From 2005 through 2010, Kleier worked at Reed Smith, LLP. During those years from 1999 through and including 2010, Kleier failed to report any income he earned.
According to court documents, for 2008, 2009, and 2010 Kleier earned $624,923, $476,088, and $200,734, respectively. He was required by law to file an income tax return with the IRS and did willfully fail to do so. Kleier has agreed to pay past-due taxes to the government in the total amount of $650,993 for 2003, 2008, 2009, and 2010.
“Our tax system is vital to this country and our communities, funding programs and services like roads, water, education, and agriculture, accessed and needed by millions of people every day. The defendant, a tax attorney, should and did know that he is required to file tax returns and pay taxes. This office will continue to work with the IRS to ensure that each person pays his or her fair share,” stated U.S. Attorney Melinda Haag.
Special Agent-in-Charge José M. Martinez said, “The prosecution of individuals who brazenly attempt to avoid their tax filing and payment obligations and prevent the IRS from performing its mission is necessary to maintaining public confidence in our tax system.”
Kleier, of San Francisco, was charged on May 1, 2013, with three counts of failure to file income tax returns. He pleaded guilty to one count. As part of the plea, Kleier will be sentenced to 12 months in prison and pay restitution in the amount of $650,993. Sentencing is scheduled for May 29, 2014, before the Honorable Laurel Beeler, United States Magistrate Court Judge, in San Francisco.
The maximum statutory penalty for each count failure to file a tax return, in violation of 26 U.S.C. § 7203, is one year imprisonment and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation the Internal Revenue Service, Criminal Investigation.
(Kleier information )
Realtor Sentenced to Prison for Tax Evasion and False StatementsRead the Press Release
TALLAHASSEE, FLORIDA – William “Geri” Eaton, 60, was sentenced to 27 months in prison for tax evasion and for making false statements in a matter involving a health care benefit program.
Between 2004 and 2008, Eaton, a realtor, earned more than $1.18 million in taxable income. He failed to file his federal income tax returns as they became due and instead, in the fall of 2009, Eaton filed late returns for all four prior tax years. His total tax due, not counting interest and penalties, was more than $472,000. In early 2010, Eaton entered an agreement to pay his back-taxes in monthly installments of $1,000. He made six payments, and then stopped paying altogether. On April 29, 2011, Eaton opened an account under a false social security number at a Tallahassee credit union. One week later, he sold his beach house in St. Teresa, Florida, for more than $1.3 million. To conceal the money from the IRS, Eaton deposited the $727,437 in proceeds he received from the sale into his fraudulently-opened credit union account. He later transferred a portion of this money to a Pensacola credit union account, which he had also opened under a false social security number. Over the course of the next seven months, Eaton spent more than $125,000 of the sales proceeds. He made no payments on his taxes during this period.
In September 2011, Eaton was treated for a heart attack at Sacred Heart Hospital in Pensacola. He applied to the hospital for financial assistance in paying his bill. In his application for assistance, Eaton falsely claimed that he had a single checking account with a balance of only $1,588, when, in fact, the balances in his accounts totaled well over $600,000. In listing his assets on the application, Eaton also fraudulently omitted the fact that he had purchased two vehicles for $31,000 only a month before. In reliance on Eaton’s false statements, Sacred Heart Hospital wrote off $79,622 in charges for Eaton’s care.
In November 2011, the IRS levied Eaton’s fraudulently-opened credit union accounts and obtained approximately $610,000 as payments toward his tax liabilities.
In November 2013, Eaton pleaded guilty to charges of tax evasion and making false statements in a matter involving a health care benefit program. In addition to his prison sentence, Eaton was ordered to pay $99,126 in restitution to the IRS and to Sacred Heart Health System.
In announcing the sentence handed down by the court, United States Attorney Pamela C. Marsh expressed her deep gratitude for the work of the Assistant U.S. Attorney who prosecuted the case, as well as the agents of IRS Criminal Investigations who investigated the case. Ms. Marsh said, “Every year, millions of hard-working Americans comply with the law and pay their federal taxes. Those who evade and cheat the system hurt all of us. Criminal tax prosecutions are often difficult and complicated to investigate and prosecute, but they are necessary to deter potential violators and promote respect for the tax laws. The sentence in this case should serve as a stark warning to those who choose to cheat their fellow Americans by failing to pay their fair share.”
The case was prosecuted by Assistant United States Attorney Karen Rhew-Miller.
Pleasanton Man Sentenced to 6 Years in Prison for Folsom-Based Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Garland E. Burrell Jr. sentenced Kenneth Kenitzer, 70, of Pleasanton, today to six years in prison, to be followed by three years supervised release, for wire fraud in connection with a Ponzi scheme that took in more than $80 million between April 2006 and December 2008, United States Attorney Benjamin B. Wagner announced.
According to court records, beginning in 2006, Anthony Vassallo and Kenneth Kenitzer ran Equity Investments Management & Trading (EIMT). Vassallo claimed that he had developed computer software that enabled him to make profits of approximately 3 percent per month, or 36 percent per year. Investors were told that this strategy had worked successfully for years with one loss situation that had been corrected so that it would not happen again. In fact, Vassallo’s strategy had been historically unsuccessful, losing money overall. Investors generally funneled money into EIMT through a number of sub-funds. Kenitzer was an officer of EIMT and the primary administrator of several of the sub-funds that invested with EIMT. He also was the primary point of contact for investors and sub-fund managers to actually transfer money to and from EIMT. Although Kenitzer was aware that EIMT never functioned as promised, and ultimately became aware that Vassallo was lying about the returns on investments, Kenitzer maintained to investors and sub-fund managers that EIMT was a profitable investment platform.
The scheme began to unravel in late 2008, and investors began demanding their money back. Vassallo and his intermediaries engaged in stalling tactics, claiming that Vassallo was “restructuring” the funds, TradeStation was conducting an audit, or the SEC had frozen the TradeStation account due to a baseless complaint. Vassallo continued to recruit new investments. One investor transferred $250,000 to Vassallo’s account less than two weeks before Vassallo admitted to a group of investors that he had ceased trading and their money had been lost.
More than 300 individuals invested in the EIMT scheme, contributing at least $83 million. Of that amount, more than $55 million was returned to investors, although nearly $17 million of that constituted amounts paid to some investors above the amount of their original investments. Thus, actual loss to the investors totaled more than $40 million.
U.S. Attorney Wagner said: “While Kenitzer wasn’t the primary salesman of EIMT, his administration of the money and of some sub-funds was a crucial part of keeping the scheme running as long as it did, and contributed to the breathtaking quantity of victims and funds lost. His sentence today is an important measure of justice for the victims of the EIMT scam, many of whom lost their homes, health, and retirements to this fraud.”“Greed and Ponzi schemes go hand in hand. Although Kenitzer and others have been sentenced, time in federal prison cannot restore the millions lost by victims. FBI special agents are highly skilled at investigating elaborate, complicated cases such as these but I am hopeful that investors will cast a wary eye when presented with investment opportunities that seem too good to be true,” said Special Agent in Charge Monica M. Miller of the Sacramento field office of the Federal Bureau of Investigation.
“Today’s sentencing marks the end of a saga that has stretched over many years,” said IRS-Criminal Investigation Special Agent in Charge José M. Martinez. “This was a classic Ponzi scheme, the defendants preyed on investors with the promise of high returns with little risk. IRS-CI is committed to identifying and investigating those who line their pockets with profits from these schemes.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Lee S. Bickley prosecuted the case.
This case is part of the President’s Financial Fraud Enforcement Task Force that was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Otis Gene Crosby Browning Man, 74, Draws 10 Years in PrisonRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on February 13, 2014, before U.S. District Judge Brian M. Morris, OTIS GENE CROSBY, 74, of Browning, was sentenced to a term of 120 months imprisonment with ten years of supervised release to follow his release after pleading guilty to Aggravated Sexual Abuse.
The Court sentenced Crosby to the top of the range recommended under the federal sentencing guidelines. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Crosby will likely serve all of the time imposed by the court in prison. In the federal system, Crosby does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
No other details are being released. The Government's Offer of Proof and Sentencing Memorandum are public record and may be electronically accessed using the PACER system at PACER Case Reference: 13-96
This investigation was conducted by the Bureau of Indian Affairs.
Omaha, Nebraska Man Convicted of Fort Dodge Bank RobberyRead the Press Release
An Omaha, Nebraska, man was convicted by a federal jury on February 13, 2014, after a three and one-half day trial in federal court in Sioux City.
Michael Clayton, age 44, from Omaha, Nebraska, was convicted of one count of bank robbery. The verdict was returned following about five hours of jury deliberations.
The evidence at trial showed that, on February 7, 2013, Clayton robbed the Citizens’ State Bank in Fort Dodge, Iowa, taking $11,284. That day, Clayton asked Christopher Anderson to drive him to a location near the bank and wait for him. Clayton robbed the bank, returned to Anderson’s car with a bag, and urged Anderson to drive away quickly. Anderson drove Clayton to Omaha, Nebraska, in order to help Clayton escape arrest, prosecution and imprisonment for the Fort Dodge, Iowa, robbery. Clayton paid Anderson $1,000 for his role in the offense.
On June 27, 2013, Anderson pled guilty to being an accessory after the fact to the bank robbery and will appear before United States District Court Judge Mark W. Bennett for sentencing on March 5, 2014. He faces up to 10 years’ imprisonment, up to $125,000 in fines, a $100 special assessment, and up to five years of supervised release following any term of imprisonment.
Clayton’s sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Clayton remains in custody of the United States Marshal pending sentencing. Clayton faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.The case was investigated by the Fort Dodge Police Department, the Omaha Police Department, and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Forde Fairchild. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl
The case file number is 13-3022.Office Manager Convicted of Defrauding Former Employer of More Than $400,000Read the Press Release
HOUSTON – Carol Mack, 43, of Humble, has pleaded guilty to one count of wire fraud and defrauding her former employer of hundreds of thousands of dollars, announced United States Attorney Kenneth Magidson.
As outlined in documents filed with the court and admitted by Mack during her guilty plea today, from approximately February 2005 through August 2012, Mack embezzled at least $400,000 from a Houston area plastics company. She wired corporate funds into her bank account, using a credit card terminal to make the wire transfers look like customer refunds.
As part of her guilty plea, Mack admitted she worked at the company as an office manager and executive assistant to the company’s CEO. She had access to sensitive financial information and the ability to process credit card transactions using a point of sale terminal. Mack admitted that beginning in at least February 2005, she stole money from her employer by processing sham customer refunds on more than 500 occasions. She entered credit card numbers linked to her own bank accounts, then prompted the terminal to send refunds to those accounts. Mack admitted she spent the embezzled funds on herself.
Mack also admitted that in order to conceal her scheme, she made false entries in the company’s general accounting ledger. These entries offset the fraudulent customer refunds and made it seem as if the transactions had no cumulative impact on company accounts.
U.S. District Judge Sim Lake, who accepted the guilty plea today, has set sentencing for May 15, 2014. At that time, she faces up to 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney John Pearson.
North Richland Hills Man Sentenced to 80 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — A 57-year-old man from North Richland Hills, Texas, Joseph F. Greth, was sentenced this morning by U.S. District Judge John McBryde to 80 months in federal prison following his guilty plea in November 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Greth’s home. Among the items seized were 45 compact disks (CD) containing child pornography. Greth admitted that he used his computer to search for images and videos of child pornography, downloaded them and burned them onto CDs and DVDs.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department and ICE HSI. Assistant U.S. Attorney Aisha Saleem prosecuted.
North Dartmouth Man Pleads Guilty to Tax FraudRead the Press Release
BOSTON - A North Dartmouth male pleaded guilty yesterday to filing a false tax return in 2007 that grossly under-reported his income.
Gerald Sicard, 57, pleaded guilty to filing a materially false tax return. In January 2014, Sicard was charged by information as part of an agreement to plead guilty. Sentencing is scheduled for May 15, 2014.
According to the Information, in 2007, Sicard, a self-employed building contractor, intentionally under-reported his business income to his tax preparer, who then prepared Sicard's 2007 personal tax return in reliance on the false numbers. Sicard's actual gross income for 2007 was approximately $488,112, but he reported only $174,310 of gross income to his tax preparer, which was the amount the tax preparer entered on Sicard’s return. Sicard then verified his tax return as accurate and authorized the tax preparer to file it with the IRS on Sicard's behalf. Sicard's misrepresentations deprived the U.S. Treasury of about $111,969 in tax revenue for 2007.
The charge to which Sicard pleaded guilty carries a maximum sentence of three years of in prison, three years of supervised release and a fine of $100,000. Sicard may also be required to pay the costs of prosecution. By agreement, Sicard and the U.S. Attorney’s Office will recommend that Sicard serve a period of home confinement instead of incarceration.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
New York Man Stopped on I-95 with Crack, Oxycodone Sentenced to Six Years in PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on February 12, JABARI PETERSON, 27, of Brooklyn, N.Y., was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by four years of supervised release, for trafficking crack cocaine and oxycodone pills.
According to court documents and statements made in court, in the afternoon of January 29, 2013, a Connecticut State Trooper stopped PETERSON on Interstate 95 in Greenwich for speeding. The trooper determined that PETERSON did not have a license and subsequently performed a search. After the trooper felt a plastic bag of containing crack cocaine in PETERSON’s jacket and attempted to pull it out, PETERSON ran from the officer. PETERSON then threw the bag of crack, as well as two bags containing oxycodone pills, onto the highway. Although the narcotics were dispersed or destroyed by vehicles traveling on the highway, the trooper was able to recover nearly 190 grams of crack, 147 30-mg oxycodone pills, and an additional amount of crushed oxycodone powder. PETERSON was placed under arrest at the scene.
The investigation revealed that PETERSON was on his way to Vermont to distribute the drugs.
PETERSON has been detained since his arrest. On June 6, 2013, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
PETERSON’s criminal history includes a Vermont state conviction for selling cocaine. He was sentenced to 18 months of imprisonment on that conviction and was on probation at the time of his federal arrest.
This matter was investigated by Connecticut State Police and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
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(203) 821-3722 [email protected]New Orleans Police Officers, Rafael Dobard and Quincy Jones, Plead Guilty to Theft Conspiracy and Wire Fraud ConspiracyRead the Press Release
RAFAEL DOBARD, age 39, and QUINCY JONES, age 33, both New Orleans Police Department (“NOPD”) narcotics detectives, pled guilty today before U.S. District Court Judge Nannette Jolivette Brown, to conspiracy to commit theft from programs receiving federal funds and conspiracy to commit wire fraud, announced U. S. Attorney Kenneth Allen Polite, Jr. Judge Brown set sentencing of both defendants on June 19, 2014 at 10:00 am.
According to court documents, DOBARD and JONES both admitted that they conspired to enrich themselves and others by obtaining NOPD confidential informant funds by fraud and by corruptly making payments to other officers in their unit. They also admitted that they conspired to commit wire fraud by submitting NOPD timesheets that indicated they were working on duty for the NOPD when, in fact, they were working at non-NOPD detail jobs.
DOBARD and JONES have served as NOPD officers for eight and eleven years, respectively. Both officers were most recently assigned as detectives to NOPD’s Fourth District Narcotics Unit and are currently suspended.
The maximum penalty for conspiracy to commit theft from programs receiving federal funds is five years imprisonment and a $250,000 fine. The maximum penalty for conspiracy to commit wire fraud is twenty years imprisonment and a $250,000 fine. Any term of imprisonment must be followed by a term of supervised release of up to three years.
The case was investigated jointly by the Federal Bureau of Investigation and the NOPD Public Integrity Bureau. The case is being prosecuted by Assistant United States Attorney Mark A. Miller and Special Assistant United States Attorney Michael B. Redmann, who is detailed to the U.S. Attorney’s Office from the Orleans Parish District Attorney’s Office.
(Download Factual Basis )
Nashville Gang Member Sentenced to Life in Prison for Drug Trafficking and Firearms Offenses Near Elementary SchoolRead the Press Release
Four Life Sentences Imposed by the Court
Christopher Ray Moody, 30, of Nashville, Tenn., was sentenced today in U.S. District Court, to life in prison, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Moody was convicted by a jury on November 25, 2013, of all eight charges against him involving drug trafficking and firearms offenses. Moody’s crimes were committed from 2008 – 2011 and many were committed in and near specially protected areas around schools and public housing.
U.S. Attorney David Rivera stated, “This defendant had multiple previous convictions for drug trafficking, firearms, and violent crime. He continued committing crimes even while on bond or on probation for state offenses. He had no intention of turning away from a lifestyle of crime, as evidenced by the video recording introduced at trial in which he said he was taking penitentiary chances every day, and was never going to stop. The four life sentences imposed against him stops him cold, and helps protect this community and the children at the elementary school near his drug house. This is another example of using federal laws to remove armed recidivist gang members from our streets."
According to the proof at trial, Moody was a 98 Mafia Crip street gang member and repeatedly cooked multiple ounces of crack cocaine for distribution at a residence near Jones Paideia Elementary School, in Nashville. Moody kept firearms at this location, including a compact semi-automatic style firearm which he had previously obtained in a drug transaction.
Moody was arrested on unrelated state charges in April 2009. While he was incarcerated on these charges, investigators determined that Moody had instructed his girlfriend to hold his drugs and a gun for him so that he could start drug trafficking again when he completed his state sentence. Moody was released from custody in May 2010 and the evidence showed he went back to drug trafficking at the same residence.
A federal search warrant was issued in February 2011 and resulted in the Moody’s arrest, as well as the seizure of evidence showing that he cooked crack cocaine. Shotgun shells were also found at the home and the trial proof showed that Moody possessed a shotgun at that location during drug deals. Moody was also a previously convicted felon, and was found to be illegally in possession of firearms and ammunition.
The investigation was conducted by the FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne T. Ingram represented the United States.
Narwhal Tusk Trafficker Convicted of Conspiracy and Money LaunderingRead the Press Release
Andrew L. Zarauskas, 60, of Union, N.J., was found guilty today by a federal jury in Bangor, Maine, of illegally trafficking and smuggling narwhal tusks, and associated money laundering crimes, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division .
The defendant was convicted of conspiracy, money laundering conspiracy, smuggling, and money laundering violations for buying narwhal tusks knowing the tusks had been illegally imported into the United States from Canada, as well as selling or attempting to sell the tusks after their illegal importation.
“The Justice Department takes seriously our responsibility to prosecute those who engage in the illegal trade of any protected wildlife species,” said Acting Assistant Attorney General Dreher. “Zarauskas and his co-conspirators flouted U.S. law and international agreements that protect marine mammals such as the narwhal for their own personal financial benefit. The Justice Department will continue to investigate and prosecute those engaged in this insidious trade in order to protect species for future generations to enjoy.”
"The success of this investigation was a direct result of the uncompromising cooperation between special agents of the U.S. Fish and Wildlife Service, NOAA and Environment Canada. It is this type of international teamwork which exemplifies the ongoing fight against illegal wildlife trafficking." said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service.
“This investigation is an example of excellent coordinated efforts between NOAA, Office of Law Enforcement (OLE) and the U.S. Fish and Wildlife Service, Office of Law Enforcement” said Logan Gregory, Special Agent In Charge for NOAA. The protection of Marine Mammals and enforcement of the Marine Mammal Protection Act is a high priority for OLE and we will continue to work with our enforcement partners and the Department of Justice to ensure compliance.”
From 2002 to 2008, Zarauskas knowingly purchased approximately 33 narwhal tusks that he knew were illegally imported into the United States in violation of federal law. A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw, often referred to as the unicorn of the sea. As marine mammals narwhals are protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
According to evidence presented at the trial, Zarauskas conspired with others, including persons located in Canada, to illegally import the protected tusks for re-sale in the United States and to launder the funds used to purchase the narwhal tusks by transporting, transmitting, or transferring checks and money orders from New Jersey to Canada, intending that the money be used for further illegal imports of narwhal tusks.
On Jan. 7, 2014, Jay G. Conrad, of Lakeland, Tenn., who had been charged in the same indictment, pleaded guilty to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks. On that same date, a plea agreement was also unsealed in which Eddie T. Dunn, of Eads, Tenn., pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
Throughout the conspiracy, Zarauskus and his co-conspirators made payments to the Canadian supplier for the narwhal tusks, by sending the payments to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Zarauskus and Conrad with more narwhal tusks that they could then re-sell. Conrad sold between $400,000 and $1 million worth of narwhal tusks and Dunn sold approximately $1.1 million worth of narwhal tusks as members of the conspiracy.
Earlier this week, President Obama announced the National Strategy for Combating Wildlife Trafficking, recognizing that record high demand for wildlife products, coupled with inadequate preventative measures and weak institutions has resulted in an explosion of illicit trade in recent years. Like other forms of illicit trade, wildlife trafficking undermines security across nations. While t he Department of Justice has long worked to protect threatened and endangered wildlife species through its enforcement of the Lacey Act and the Marine Mammal Protection Act, among other laws, the National Strategy identifies priority areas for increased interagency coordination, with the objectives of harnessing and strategically applying the full breadth of U.S. Government resources to end the pernicious trade in protected species both at home and abroad.
Zarauskus and Conrad are to be sentenced by U.S. District Court Judge John A. Woodcock in the District of Maine. A sentencing date has not been set. They each face a maximum of twenty years incarceration for their involvement in this narwhal tusk trafficking scheme, and a fine of up to $250,000. Dunn is scheduled to be sentenced by U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014, and may be imprisoned up to five years and fined $250,000. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
The case was investigated by agents from National Oceanic and Atomospheric Administration Office of Law Enforcement, the United States Fish and Wildlife Service Office of Law Enforcement and in coordination with Environmental Canada Wildlife Enforcement Division and the Department of Justice’s Office of International Affairs. The case is being prosecuted by Trial Attorneys Todd S. Mikolop and James Nelson of the Justice Department’s Environmental Crimes Section.More Than $10 Million to Be Returned to Victims of Traders International Return Network FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that the U.S. Department of Justice has authorized the return of $10,129,254.56 to victims of the Traders International Return Network (TIRN) fraud. Operators of TIRN deceived investors by making claims that investments in TIRN, as advertised on www.MyTirn.com, would yield exceptionally high returns not achievable anywhere in the legitimate business world. These claims were made via the Internet and at business opportunity meetings. Specifically, investors were told they could receive between 9% and 22% in returns on their investment, per month. While TIRN advertised on its website that investments were made in the FOREX market, the buying and selling of commodities, the purchase of gold mines in Africa, and the buying and selling of real estate, such investments were not actually made on behalf of TIRN's investors.
TIRN investors were not actually told where their money was being invested. TIRN's website merely indicated that it “pool[ed] investor funds” for the investments and that "professional money managers" managed such investments. However, federal law requires that entities or individuals be licensed and registered in order to serve as a pool operator for the purpose of purchasing commodities. Neither TIRN nor any of its operators held any type of investment license with the National Futures Association or the Commodities and Futures Trading Commission.
In total, TIRN collected more than $15 million from more than 500 investors (both domestic and international). TIRN’s operators misappropriated some of those investors' funds for their own personal benefit. They used the money to purchase vehicles, buy homes, pay off home mortgages, and also sent money to accounts that they controlled both in the United States and overseas.
The U.S. Attorney’s Office completed the criminal forfeiture against more than $10 million worth of assets obtained through the TIRN fraud. Three individuals were prosecuted for their roles in this scheme. David Merrick, Japheth Paramanandam, and Nathan Betances all received prison sentences (8 years, 5 years and 5 years, respectively) as a result of their roles in the fraud.
“The enforcement of asset forfeiture laws is an integral part of our law enforcement mission,” said U.S. Attorney A. Lee Bentley, III. “By recovering the ill-gotten gains of criminals, and returning them to victims, we hope to send a clear message to the public – that we will use every tool available to disrupt and dismantle criminal activities, and take the profit out of crime.”
This case was investigated by the United States Secret Service. The forfeitures were handled by Assistant United States Attorney Nicole Andrejko.
Victims of this scheme were notified throughout the criminal process, and as a result, had an opportunity to share in the forfeiture proceeds. Official decisions and remission distributions have already occurred. The Department of Justice is no longer accepting petitions for remission.
Mizrahi Bank Client Pleads Guilty to Filing False Tax ReturnRead the Press Release
Monajem Hakimijoo, also known as Manny Hakimi, of Beverly Hills, Calif., pleaded guilty on Feb. 13, 2014, in the U.S. District Court for the Central District of California to filing a false federal income tax return for tax year 2007, the Justice Department and Internal Revenue Service (IRS) announced today.
According to court documents, Hakimijoo, a U.S. citizen, and his brother maintained an undeclared bank account in Israel at Mizrahi Bank in the name of Kalamar Enterprises, a Turks and Caicos Islands entity they used to conceal their ownership of the account. Hakimijoo and his brother used the funds in the Kalamar account as collateral for back-to-back loans obtained from the Los Angeles branch of Mizrahi Bank. Although Hakimijoo and his brother claimed the interest paid on the back-to-back loans as a business deduction for federal tax purposes, they failed to report the interest income earned in their undeclared, Israel-based account as income on their tax returns. In total, Hakimijoo failed to report approximately $282,000 in interest income. The highest balance in the Kalamar Enterprises account was approximately $4,030,000.
According to court documents, in March 2013, Hakimijoo was scheduled to be interviewed by Justice Department attorneys and IRS special agents. Prior to the interview, Hakimijoo, through counsel, provided the attorneys and special agents with copies of his amended tax returns for 2004 and 2005. When asked if the amended tax returns had been filed with the IRS, Hakimijoo indicated that the returns had been filed. Shortly thereafter, the IRS determined there was no record of the amended returns being filed with the IRS. When Hakimijoo was asked to provide copies of cancelled checks to prove that the taxes reflected on the amended returns had been paid, none were provided.
Hakimijoo is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with concealing undeclared bank accounts in Israel that were used to obtain back-to-back loans in the United States.
U.S. citizens and residents who have an interest in, or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. They must also file a Report of Foreign Bank and Financial Reports with the U.S. Treasury disclosing the aforementioned financial account(s).
Hakimijoo will be sentenced on April 28, 2014, and faces a statutory maximum prison term of three years and a maximum fine of $250,000. In addition, Hakimijoo has agreed to pay a civil penalty to the IRS in the amount of 50 percent of the highest balance of his one-half interest in the Kalamar account.
Assistant Attorney General Kathryn Keneally of the Tax Division and U.S. Attorney André Birotte Jr. for the Central District of California thanked special agents of IRS-Criminal Investigation, who investigated the cases, Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden for the Tax Division, who prosecuted the cases, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office, who assisted with the prosecutions.
Additional information about the Tax Division and its enforcement efforts may be found at the division's website .
Missouri Man Sentenced to Federal PrisonFor Two Attempted Bank RobberiesRead the Press Release
KANSAS CITY, KAN. A Missouri man was sentenced Wednesday to 210 months in federal prison for two attempted bank robberies, including one in Anderson County, Kan., during which he exchanged shots with law enforcement officers, U.S. Attorney Barry Grissom said.
Daniel Lee Waddell, 29, Carthage, Mo., pleaded guilty to two counts of attempted bank robbery. In his plea, he admitted that on March 5, 2013, he and co-defendant Stephen Hudson drove to Kincaid, Kan., where they attempted to rob the Citizens State Bank at 201 North Commercial Street. Hudson parked the car near the bank. Waddell got out and pulled on the bank’s doors only to find them locked. Waddell returned to the car and the two drove away from the bank. When law enforcement officers pursued them, Waddell fired his gun at the officers before he and Hudson were taken into custody.Waddell also admitted that on July 2, 2012, he entered the Corner Stone Bank in Langan, Mo., armed with an SKS Chinese rifle. He walked up to a teller window and shouted: You’ve got five seconds to do what I say.” Bank employees dropped to the floor behind bullet proof glass and activated an alarm. Waddell fled the bank and drove away with Hudson at the wheel.
Waddell also told investigators he obtained the guns used in the bank robberies while assisting in the tornado cleanup in Joplin in May 2011.
Co-defendant Stephen Hudson is awaiting sentencing.
Grissom commended the Kansas Bureau of Investigation, the Anderson County Sheriff’s Office, the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.Mission Man Indicted for Burglary, Assault, Use of A Firearm During A Crime of Violence, and A Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, Assault with a Dangerous Weapon, Use of a Firearm During a Crime of Violence, and Possession with Intent to Distribute a Controlled Substance.
Rigoberto Ortiz, age 45, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 14, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and up to $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 18, 2013, Ortiz unlawfully entered a residence, assaulted two victims with a firearm, and possessed marijuana that he intended to distribute.The charges are merely accusations and Ortiz is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Ortiz was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Sentenced to 15 Years for Illegal Firearms, MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for his role in conspiracies to distribute a large quantity of methamphetamine and to illegally possess firearms.
Armando Dominguez-Morales, 33, a citizen of Mexico, was sentenced by U.S. District Judge Fernando J. Gaitan to 15 years in federal prison without parole. The court also ordered Dominguez-Morales to forfeit to the government $66,000, which was seized by law enforcement officers.
On Sept. 7, 2012, Dominguez-Morales pleaded guilty to participating in a conspiracy to distribute methamphetamine since January 2008 and to participating in a conspiracy to possess firearms in relation to a drug-trafficking offense.
According to court documents, Dominguez-Morales, an illegal alien, was one of the primary distributors for a drug-trafficking organization that was led by co-defendant Mauricio Ramos-Hernandez, 39, a Mexican national residing in Kansas City, Kan. (who has also pleaded guilty and awaits sentencing). Dominguez-Morales had multiple people selling methamphetamine for him and was a main supplier of the narcotics.
Between Jan. 14, 2009, and Aug. 24, 2010, there were 20 controlled drug purchases from this drug-trafficking organization, totaling nearly 730 grams of actual methamphetamine “ice,” an unusually strong purity and concentration of this addictive controlled substance. In addition to trafficking methamphetamine, Dominguez-Morales engaged in gun trafficking.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives NITRO Task Force and the Drug Enforcement Administration.Mexican National Sentenced for Growing Marijuana on Federal Land in Trinity CountyRead the Press Release
SACRAMENTO, Calif. — Andres Reyes Valenzuela, 31, a Mexican national, was sentenced today by United States District Judge Garland E. Burrell, Jr. to three years and one month in prison for cultivating marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, in June 2012, federal and state agents raided a marijuana grow site in the Trinity National Forest in Trinity County. Agents first spotted Valenzuela processing marijuana plants. Initially, Valenzuela ran away from law enforcement, but he and a co-defendant were caught and arrested after a short chase. Agents eradicated a total of 7,343 marijuana plants from the cultivation site.
This case was the product of an investigation by the United States Forest Service, Siskiyou County Sheriff’s Office, Trinity County Sheriff’s Office, and the Bureau of Land Management. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Livery Fleet Owner Sentenced in Manhattan Federal Court to 121 Months for Multimillion-Dollar Insurance ScamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SCOTT ERIC SANDERS was sentenced today in Manhattan federal court to 121 months in prison for his participation in a long-running automobile insurance fraud scheme and aggravated identity theft. As part of the scheme, SANDERS, who owns fleets of commercial vehicles, systematically misled insurance companies as to where the vehicles he owned were garaged and operated, and how those vehicles were being used, so that he could obtain automobile insurance for those vehicles at substantially lower premiums. SANDERS was convicted in April 2013 of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and one count of aggravated identity theft following a four-week jury trial before U.S. District Judge Lewis A. Kaplan, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Scott Sanders was convicted of repeatedly falsifying insurance applications to save millions of dollars in premiums. He lied about where the insured vehicles were garaged and operated, as well as about what the vehicles were used for and who actually owned them. He also compounded the felony when he committed the same crime on behalf of other fleet owners. Now he will pay the consequences for his criminal conduct.”
According to evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
In New York State, owners of fleets of commercial vehicles, including livery cars and ambulettes, are required to obtain commercial automobile liability and physical damage insurance coverage. The automobile insurance policy premiums are based, in part, on where the insured vehicles are garaged and operated as well as how the vehicles are being used. Vehicles that are principally garaged or operated in New York City are charged substantially higher insurance premiums than vehicles that are principally garaged or operated elsewhere in New York and adjoining states. In addition, vehicles that are primarily used as livery cabs are charged substantially higher insurance premiums than vehicles that are operated for many other commercial purposes. Owners of livery fleets obtain automobile insurance through the voluntary insurance market or, when they are unable to obtain insurance through the voluntary market, through the New York Automobile Insurance Plan (“NYAIP”). The NYAIP assigns policy applications to insurance carriers doing business in New York State, who are then required to provide insurance coverage to the applicant.
From at least 2005 through 2010, SANDERS controlled fleets of commercial vehicles that were garaged and operated in New York City. During that time period, SANDERS engaged in a widespread scheme to defraud automobile insurance companies in order to obtain automobile insurance for his vehicles at lower premiums by misrepresenting where the vehicles were garaged and operated, and in some instances, how those vehicles were being used. Specifically, SANDERS caused to be submitted insurance applications to both NYAIP and directly to insurance companies that claimed that SANDERS’s vehicles were garaged and operated outside New York City, when they were not. In addition, on some of those applications, SANDERS represented that SANDERS’s vehicles were being used for commercial purposes other than as livery vehicles when these vehicles were, in fact, being used as livery vehicles. In these insurance applications, SANDERS also listed the names, and in some instances the dates of birth and driver’s license numbers, of other individuals, some of whom had previously rented livery vehicles from SANDERS, as the presidents and owners of SANDERS’s companies, when those individuals were not in fact the presidents or owners of those companies. Relying on these misrepresentations, the insurance companies issued insurance policies for the vehicles controlled by SANDERS at lower premiums than those for which the vehicles would have been eligible had the insurance companies been aware of the true locations of garaging and operation, as well as the true use, of the vehicles.
In addition, as part of the same scheme, SANDERS helped other commercial fleet owners whose vehicles operated in New York City obtain insurance at lower premiums using the same misrepresentations about how those vehicles were being used and where those vehicles were being garaged and operated. Over the course of SANDERS’s scheme, insurance companies lost millions of dollars in premiums that they would have otherwise charged had they been provided accurate garaging, operating, and usage information about the vehicles.
SANDERS was convicted of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and one count of aggravated identity theft.
In addition to prison, SANDERS, 42, of Saddle River, New Jersey, was sentenced to three years of supervised release and ordered to pay a fine of $50,000, restitution of $4,878,592.30, and forfeiture of $4,878,592.30.
Mr. Bharara praised the work of the Postal Inspectors from the United States Postal Inspection Service and investigators from the New York Automobile Insurance Plan.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Paul Krieger and Brent Wible are in charge of the criminal case.
Liverpool Woman Sentenced to 55 Months Imprisonment for Fraud Against the New York State Department of Labor and the Internal Revenue ServiceRead the Press Release
SYRACUSE, NEW YORK – Patricia Harrington, age 50, of Liverpool, New York, was sentenced in U.S. District Court today in connection with her guilty pleas to 11 Wire Fraud, Tax Fraud and Aggravated Identity Theft charges according to U.S. Attorney Richard S. Hartunian.
U.S. District Judge Glenn T. Suddaby sentenced Harrington to 24 months imprisonment in connection with her September 11, 2013 guilty pleas to submitting six false federal tax refund claims in the name of family members, without their knowledge, during 2011 and 2012. She also received a concurrent sentence of 24 months in connection with her guilty pleas to four counts of wire fraud in connection with a scheme to fraudulently obtain monies from the New York State Department of Labor in 2011 and 2012 by submitting false claims for unemployment benefits in the name of various family members, again, without their knowledge. Harrington also received an additional consecutive sentence of 24 months in connection with her guilty plea to Aggravated Identity Theft. Harrington had admitted she used the identity of another person to commit her crimes. She was also ordered to pay restitution to the New York State Department of Labor in the amount of $19,424 and $28,031.86 to the Internal Revenue Service along with interest and penalties.
At the time she committed these offenses she was serving a term of federal Supervised Release in connection with a conviction for a similar fraud scheme in Pennsylvania in 2009. In admitting that she violated the terms of her release, Judge Suddaby sentenced Harrington to serve an additional seven months imprisonment consecutive to the 48 month sentence imposed. She will serve a total of 55 months imprisonment. Upon her release, she is ordered to serve a term of supervised release of three years and ordered to complete 220 hours of community service.
Harrington had been previously prosecuted in Pennsylvania in 2008 for committing identity fraud over a two year period. There, she had submitted a series of fraudulent student loan applications in the names of relatives without their knowledge. In entering a guilty plea in Harrisburg in December 2008, she admitted that she had applied for approximately 13 fraudulent federal student loans, totaling some $139,000. Following her release from prison for that offense, she began serving a term of supervised release in April of 2010, which was transferred to the Northern District of New York. While living in the Syracuse area, she began the new scheme of applying for fraudulent unemployment benefits and federal tax refunds in the name of family members for which she was sentenced today.
U.S. Attorney Richard S. Hartunian stated, “I want to commend the local, state and federal investigators who worked closely together in bringing this case to justice. We will continue our efforts to seek out and prosecute those who seek to defraud honest citizens of their tax dollars.”
“New York State is a national leader in both preventing and identifying Unemployment Insurance Fraud,” said State Labor Commissioner Peter M. Rivera. “Fraud hurts businesses, those who depend on Unemployment Insurance benefits to support a family and all New Yorkers. Today’s sentencing brings to conclusion a case that exemplifies just how adept our investigators are and our mission to ensure anyone who commits fraud is caught.”
The case was investigated by the New York State Department of Labor, Office of Special Investigations, the Onondaga County Sheriff’s Department, the Onondaga County District Attorney’s Office, and the Internal Revenue Service, Criminal Division, Syracuse, New York.
The case was prosecuted by Executive Assistant United States Attorney John G. Duncan.
Leader and A Member of an International Ethnic-Albanian Organized Crime Syndicate Sentenced to 120 Months and 110 Months Respectively for Drug TraffickingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Gjavit Thaqi, one of the leaders of an international drug trafficking syndicate run by ethnic Albanians located in the United States, Canada and Europe (the “syndicate”), and Robert Rudaj, a member of the syndicate, were sentenced to 120 months and 110 months, respectively. Thaqi, whose 22-year criminal history includes prior convictions for cocaine trafficking and illegal gun trafficking, previously pled guilty to trafficking more than a thousand pounds of marijuana from Canada and Mexico, and large quantities of diverted prescription pills, such as oxycodone. Rudaj, a Career Offender whose criminal career includes multiple prior convictions for assault and burglary, previously pled guilty to trafficking hundreds of pounds of marijuana and to assault. The sentences also included terms of supervised release of five years for both defendants.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James Hunt, Acting Special Agent-in-Charge of the Drug Enforcement Administration, New York; and James T. Hayes, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York.
“The sentences announced today hold to account two of the most prolific drug traffickers and violent members of an international criminal syndicate that smuggled narcotics throughout North America and the world. For over a decade, the defendants ran a global clearinghouse for illegal narcotics, with America’s streets and youth their ultimate end point,” stated United States Attorney Lynch. “We will continue to vigorously prosecute those who would poison the streets of our communities with drugs and violence.”
The syndicate operated by Thaqi was comprised of inter-related ethnic Albanian family clans (also known as “fis”) with hundreds of associated members, workers and customers spanning three continents. In operation for more than a decade, the syndicate was responsible for organizing the importation and distribution of tens of thousands of kilograms of hydroponic marijuana from Canada and Mexico, substantial quantities of MDMA from the Netherlands and Canada, hundreds of kilograms of cocaine from Mexico, Colombia, Venezuela and Peru, and large quantities of diverted prescription pills, such as oxycodone. The drugs were distributed in various locations in the United States, including New York, California, Georgia, Colorado and Florida, as well as in Canada and Europe.
The four-year investigation revealed that most of the marijuana smuggled from Canada and Mexico was concealed in tractor trailers, typically in hundred pound quantities, with some shipments weighing as much as 1,200 pounds. The marijuana shipments were stored in warehouses and stash locations throughout Brooklyn, Queens and the Bronx, before distribution. Kilogram quantities of cocaine were obtained from sources in the United States and exported to Albania and other locations in Europe concealed in hidden compartments inside luxury automobiles – ostensibly under the auspices of legitimate car dealerships which were actually controlled by syndicate members. Until the arrests of its members in July 2011, members of the syndicate, including Thaqi, were involved in negotiations to obtain hundreds of kilograms of cocaine from sources in South America for transport through the United States to Canada and Europe. Thaqi and other members of the syndicate were also involved in obtaining large shipments of oxycodone, and distributed thousands of oxycodone pills in New York which had been diverted from pain clinics in Florida.
Members of the syndicate were undeterred from committing further violence even after their arrest. For example, defendant Rudaj, who was often used by the syndicate to intimidate drug trafficking associates who owed the syndicate drug proceeds, was involved in the brutal assault of a fellow inmate at the Metropolitan Detention Center in Brooklyn, New York.
During the course of the investigation, federal agents seized more than 1,200 pounds of marijuana, approximately $2,000,000 in suspected drug proceeds, 22 handguns, a military/police-issue assault rifle and hundreds of rounds of ammunition. In total, 49 members and associates of the syndicate have been convicted in the case.
U.S. Attorney Lynch expressed her grateful appreciation to the DEA Special Operations Division, the Department of Justice Office of International Affairs, DEA Newark Division, DEA Denver Division, DEA Miami Division, DEA Albany District Office, DEA Rome Country Office, the HSI Attache in Vienna, HSI Attache in Toronto, HSI Albany Office, HSI Denver Office, HSI Newark Office, HSI Miami Office, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monmouth County (New Jersey) Prosecutor’s Office, the Westchester District Attorney’s Office and the New York Attorney General’s Office for their assistance.
The sentencing proceedings were held before by U.S. District Judge Dora L. Irizarry.
The government’s case is being prosecuted by Assistant United States Attorneys Steven Tiscione, Gina Parlovecchio and Claire Kedeshian.
The Defendants:
GJAVIT THAQI
Age: 43
ROBERT RUDAJ
Age: 40
Lafayette Resident Sentenced to 120 Months in Prison for His Role in A Drug Conspiracy Distribution RingRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that John Cedric Dauphin, 36, of Lafayette, was sentenced by U.S. District Judge Elizabeth Foote to 120 months in prison and five years of supervised release for conspiracy with intent to distribute and distribution of cocaine. Dauphin pleaded guilty on October 17, 2013.
Dauphin along with co-defendants German Rodriguez, Tyrone Thibeaux, Fernellis Woods, and Glenn Charles, were indicted in April 2012 for conspiracy to possess with intent to distribute cocaine between August 2008 and April 2011. Depending on their respective roles, they participated in distributing between 5 and 10 kilos of cocaine. According to evidence presented at the guilty pleas, Rodriguez supplied multi-kilogram quantities of cocaine from Houston to a large scale Lafayette drug trafficking/distribution organization that included Dauphin, Charles, Woods and Thibeaux.
Rodriguez, Charles, Thibeaux and Woods previously pleaded guilty to conspiracy with intent to distribute and distribution of cocaine. Rodriguez is scheduled for sentencing March 14, 2014, and Thibeaux is scheduled for sentencing on April 11, 2014. Woods was sentenced on October 18, 2013, to 135 months in prison with five years of supervised release, and Charles was sentenced on December 12, 2013, to 71 months in prison with five years of supervised release.
The Drug Enforcement Administration, the Carencro Police Department, the Houston Texas Police Department and the Waller County Texas Sheriff’s Office participated in this OCDETF investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Kane County Man and Co-Defendant Sentenced to Federal Prison Terms for $6.6 Million Financing Fraud SchemeRead the Press Release
CHICAGO ― Two defendants who engaged in a fraudulent financing scheme involving the offer and sale of investments in four Las Vegas companies were sentenced to 3½ and four years in federal prison, respectively, for defrauding approximately 125 investors of about $6.6 million, including some victims who lost some or all of their retirement or college savings funds.
RODERICK RIEMAN, 69, of St. Charles, who owned and operated Innovative Financial Services, Inc., a former insurance and investment business in St. Charles, was sentenced to four years in prison and ordered to begin serving his sentence on May 27. MICHAEL CROOK, 55, of Los Angeles and formerly of Chicago and Las Vegas, the former president of the Las Vegas companies, which purportedly engaged in interactive kiosks, prepaid debit cards, and restaurant reservation software, was sentenced to 42 months in prison and ordered to begin serving his sentence on June 24.
U.S. District Judge Harry Leinenweber, who sentenced both men yesterday, also ordered each to pay $6.6 million in restitution.
Crook, was president of Z Touch Systems, Inc., Global Payment Solutions, Inc., Bluko Information, Inc., and Smart Restaurant Solutions, Inc., and Rieman, through his company and salesmen working for him, was primarily responsible for making the offers and sales of investments in Crook’s companies. Crook cooperated with the government’s investigation and both defendants pleaded guilty to mail fraud after they were indicted in 2011.
According to court documents, between 2004 and August 2007, Crook and Rieman misrepresented the expected return on investments, the risks associated with the investments, the existence and value of collateral, the use of proceeds, the source of funds used to make promised payments, the status of investments, and the financial condition and business transactions of the companies. They misappropriated a part of the funds raised to make Ponzi-type payments to investors and to benefit companies and individuals other than those directly relating to the particular investment.
For example, the defendants offered and sold investments in interactive kiosks called “ODIEs” (On Demand Interactive Environments), purportedly manufactured and sold by Z Touch. The investments offered an annual return of 18 percent in monthly payments, repayment of principal in 36 months and a security interest in a particular ODIE. Although the defendants offered and sold more than 250 of these investments, only a small number of ODIEs were ever built, none were successfully placed in businesses, and no revenues were generated.
One victim, a retired school teacher, made two separate investments totaling $500,000 of her retirement funds in what Rieman purported were 27 ODIEs and, ultimately, she lost more than $400,000 of her investment.
The government was represented by Assistant United States Attorneys Edward G. Kohler and Kruti Trivedi.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Department of Securities assisted in the investigation.
Justice Department Finds Substantial Evidence of Gender Bias in Missoula County Attorney’s OfficeRead the Press Release
Today, the Department of Justice issued a letter of findings describing problems in the Missoula County, Mont., Attorney’s Office’s response to sexual assault, and concluding that there is substantial evidence that the County Attorney’s response to sexual assault discriminates against women. The department opened civil pattern or practice investigations of the Missoula County Attorney’s Office, along with the Missoula Police Department and the University of Montana’s Office of Public Safety, in May 2012. The department investigations, brought under the Violent Crime Control and Law Enforcement Act of 1994, and the anti-discrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968, focused on allegations that the three law enforcement agencies were systematically failing to protect women victims of sexual assault in Missoula. The department, along with the Office for Civil Rights at the Department of Education, also opened an investigation of the University of Montana’s handling of allegations of sexual assault and harassment of students under Title IV of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972. The investigation of the Missoula Police Department and both investigations of the University of Montana were resolved in May 2013, via cooperative agreements with the Justice Department.
“Prosecutors play a critical role in ensuring that women victims of sexual assault have effective and equal access to criminal justice,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We uncovered evidence of a disturbing pattern of deficiencies in the handling of these cases by the County Attorney’s Office, a pattern that not only denies victims meaningful access to justice, but places the safety of all women in Missoula at risk. We hope that this letter will enable us to move forward with constructive discussions with the County Attorney to resolve these serious concerns.”
The department’s investigation uncovered evidence indicating that the Missoula County Attorney’s Office engages in gender discrimination in violation of the Equal Protection Clause of the 14th Amendment to the Constitution as well as relevant federal laws. In particular, the investigation found evidence that the decisions of the County Attorney’s Office regarding the investigation and prosecution of sexual assaults and rape, particularly non-stranger assaults and rapes, are influenced by gender bias and gender stereotyping and adversely affect women in Missoula. The investigation found that the following, taken together, strongly suggest gender discrimination:
· Despite their prevalence in the community, sexual assaults of adult women are given low priority in the County Attorney’s Office;
· The County Attorney does not provide Deputy County Attorneys with the basic knowledge and training about sexual assault necessary to effectively and impartially investigate and prosecute these cases;
· The County Attorney’s Office generally does not develop evidence in support of sexual assault prosecutions, either on its own or in cooperation with other law enforcement agencies
· Adult women victims, particularly victims of non-stranger sexual assault and rape, are often treated with disrespect, not informed of the status of their case and revictimized by the process; and
· The County Attorney’s Office routinely fails to engage in the most basic communication about its cases of sexual assault with law enforcement and advocacy partners.
“Over the past eight months, the City of Missoula, the University of Montana and the Missoula Police Department already have made important strides toward improving their response to sexual assault and strengthening the community’s confidence in its local police,” said U.S. Attorney Michael Cotter for the District of Montana. “It is our sincere hope that the Missoula County Attorney will follow that example and work cooperatively with the Justice Department to address the deficiencies identified in our investigation, and to improve the safety of women in this community.
The investigation was conducted jointly by the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of Montana. The prevention of sex-based discrimination is a top priority of the Civil Rights Division and U.S. Attorney’s Offices. The Civil Rights Division has worked to ensure that women are not subject to discriminatory practices by law enforcement in New Orleans, Puerto Rico and elsewhere. Additional information about the Civil Rights Division is available on its website. Additional information about the U.S. Attorney’s Office for the District of Montana can be found on its website.
Jury Convicts Paxton, Ill. Man for Running Large-Scale Cocaine Trafficking Network in Central IllinoisRead the Press Release
Urbana, Ill. – A jury has found a Paxton, Ill., man, Eddi Ramirez, 32, guilty of running a cocaine trafficking network that regularly distributed large quantities of cocaine throughout central Illinois including Decatur, Springfield and Champaign. The jury deliberated approximately one and one-half hours yesterday afternoon before finding Ramirez, aka "Migo," guilty of conspiring with others to distribute cocaine and distribution of cocaine.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield, Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization, from 2011 to September 2012, that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona and Chicago, various couriers to transport the cocaine to central Illinois, and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Ill., as a ‘stash’ house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it. A list of those defendants is attached.
Known as "Operation Tres Ciudades (Three Cities,)" the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. "The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois," he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines, into Decatur and central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois, said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”Joseph Thomas Obresley Sentenced for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 12, 2014, before U.S. District Judge Donald W. Molloy, Joseph Thomas Obresley, was sentenced to 33 months imprisonment followed by 5 years of supervised release. Obresley was sentenced in connection with his October 8, 2013, guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that on June 28, 2013, as part of a controlled drug enforcement operation, task force officers arranged to meet with an individual who was obtaining methamphetamine intending to sell the drugs to agents acting in an undercover capacity.
After the individual had indicated that he had the methamphetamine, members of the task force responded and the individual and others were arrested. Approximately 225 grams of methamphetamine were recovered from the individual's vehicle.
The investigation revealed that Obresley had brokered the June 28, 2013 drug deal.
John P. Gizzi Sentenced for Tax CrimesRead the Press Release
ROCHESTER, N.Y.-- United States Attorney William J. Hochul, Jr., announced that John P. Gizzi, 65, of Rochester, New York, who previously pled to filing false tax returns for 2008 and 2009, was sentenced today to 1 year of home confinement, 5 years of probation, and ordered to pay a $15,000 fine by United States District Judge Frank P. Geraci. Previously, a business that Gizzi owned, Rochester Business Machines Supplier, Inc., was sentenced to pay a fine of $500,000.
In imposing this sentence, the Court noted that Gizzi and his business had paid the United States approximately $11.5 million in back taxes, fraud penalties, interest, fines and forfeitures, in this and related tax proceedings. The Court also expressed concern that, given Gizzi’s serious and complicated health condition, a sentence that included a term of imprisonment and separated Gizzi from his physicians could potentially be fatal. The Court rejected the defense’s request for probation with no home confinement.
Assistant United States Attorney John J. Field, who handled the case, stated that Gizzi criminally cheated the United States out of $1,901,633 in federal income taxes that he owed over a period of 6 years.
The plea was the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations division, under the direction of Tony Weirauch .Jacksonville Man Indicted by Federal Grand Jury for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Shaun Andrew Copenhaver (28, Jacksonville) was indicted by a federal grand jury yesterday on three counts of receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison on each of the three counts. Copenhaver was arrested pursuant to a criminal complaint on February 6, 2014. On February 10, 2014, he was ordered detained pending the resolution of the case. His arraignment is scheduled for February 19, 2014, at 2:00 p.m., before United States Magistrate Judge Monte C. Richardson.
According to the criminal complaint, on February 6, 2014, agents with the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff's Office executed a federal search warrant at Copenhaver's residence, after conducting an undercover online investigation. Copenhaver was at the residence and was interviewed by agents. During the interview, Copenhaver indicated that he used a particular file sharing program and certain search terms to search for and download child pornography videos “many times,” and that he had saved child pornography to his hard drive on his desktop computer. He stated that the hard drive was encrypted with a password, and that he knew child pornography would be discovered on the drive. An onsite examination of one of Copenhaver's computer disk drives revealed that it contained child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 11, 2014 and entering pleas of Not Guilty were:
- DAVID J. LEWIS, a 50-year-old resident of Brockton, appeared on charges of first degree murder and second degree murder. If convicted of the most serious offense charged in the indictment, LEWIS faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-06
- JAY HARWOOD OLD CHIEF, a 25-year-old resident of Browning, appeared on charges of aggravated sexual abuse and sexual abuse. If convicted of the most serious offense charged in the indictment, OLD CHIEF faces life imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-02
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 12, 2014 and entering pleas of Not Guilty were:
- FRANK ANTHONY TAKALA, a 51-year-old resident of Fairfield, appeared on charges of illegal possession of a machine gun, possession of an unregistered gun, and possession of a gun without a serial number. If convicted of the most serious offenses charged in the indictment, TAKALA faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-07
Appearing before U.S. District Judge Watters in Billings on February 13, 2014 and entering pleas of Not Guilty were:
- BRANDON LEE TOUCHETTE, a 36-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the offense charged in the indictment, TOUCHETTE faces life imprisonment, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and Billings Drug Task Force. PACER Case Reference: 13-83
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Independent Contractor in Afghanistan Pleads Guilty for His Role in Offering $54,000 in Bribes to a U.S. Government OfficialRead the Press Release
Earlier today at the federal courthouse in Brooklyn, N.Y., Akbar Ahmad Sherzai, 49, of Centreville, Va., an independent contractor for a trucking company operating in Afghanistan that was responsible for delivering fuel to U.S. Army installations, pleaded guilty to his role in offering a U.S. Army serviceman $54,000 in bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. Sherzai faces a maximum of 15 years imprisonment and a $250,000 fine.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and United States Attorney for the Eastern District of New York Loretta E. Lynch made the announcement.
“The defendant sought to use deception, corruption and greed to enrich his company at the risk of jeopardizing the U.S. Army’s supply lines in Afghanistan,” said U.S. Attorney Lynch. “Attempts to corrupt American officials will not be tolerated, either at home or abroad.” U.S. Attorney Lynch extended her grateful appreciation to the Special Inspector General for the Afghanistan Reconstruction, Homeland Security Investigations and the FBI for their assistance in this case.
The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed before approving payments to the trucking companies.
In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify fourteen TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.
Sherzai was arrested on a criminal complaint on Sept. 24, 2013. The guilty plea proceeding was held before U.S. Magistrate Judge Robert M. Levy.
The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.Independent Contractor in Afghanistan Pleads Guilty for His Role in Offering $54,000 in Bribes to A U.S. Government OfficialRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Akbar Ahmad Sherzai, an independent contractor for a trucking company operating in Afghanistan that was responsible for delivering fuel to U.S. Army installations, pleaded guilty to his role in offering a U.S. Army serviceman $54,000 in bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. When sentenced, he faces a maximum of 15 years imprisonment and a $250,000 fine.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
“The defendant sought to use deception, corruption and greed to enrich his company at the risk of jeopardizing the U.S. Army’s supply lines in Afghanistan. Attempts to corrupt American officials will not be tolerated, either at home or abroad,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Special Inspector General for the Afghanistan Reconstruction, Homeland Security Investigations, and the Federal Bureau of Investigation for their assistance in this case.
The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed, before approving payments to the trucking companies.
In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify fourteen TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.
Sherzai was arrested on a criminal complaint on September 24, 2013. The guilty plea proceeding was held before U.S. Magistrate Judge Robert M. Levy.
The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Fraud Section, Criminal Division, U.S. Department of Justice.
The Defendant:
AKBAR AHMAD SHERZAI
Age: 49
Centerville, Virginia
Citizenship: Dual United States and Afghanistan
E.D.N.Y. Docket No. 14-Cr-60 (MKB)
Houston Man Pleads Guilty to Producing Child PornographyRead the Press Release
HOUSTON – Daniel M. Layne, 33, of Houston, has been convicted of production of child pornography, announced United States Attorney Kenneth Magidson.
The investigation began in Maine when the mother of a 14-year-old girl discovered a motel key card in her daughter’s pants pocket and sexually graphic text messages on her cell phone. She contacted local authorities who then determined that Layne had traveled to Maine after meeting the girl over the Internet. The investigation revealed Layne had taken sexually explicit photos of the young girl.
As a result of the information gathered in Maine, authorities in the Houston area conducted a search at Layne’s residence on Sept. 24, 2013, at which time they seized computers, a tablet and cell phones from the house. A forensic analysis revealed images of the 14-year-old on the tablet and a cell phone.
U.S. District Judge David Hittner, who accepted the guilty plea today, has set sentencing for May 13, 2014, at which time Layne faces at least 15 and up to 30 years imprisonment and a $250,000 maximum fine. Upon completion of any prison term imposed, Layne also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. Layne was arrested on the federal charges in October 2013 and has been in custody since that time where he will remain pending his sentencing.
Homeland Security Investigations and the Harris County Sheriff’s Office investigated the case in conjunction with the Houston Metro Internet Crimes Against Children Task Force and the Westbrook, Maine, Police Department.
This case, prosecuted by Assistant United States Attorney Robert Stabe, 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."
Harry S. Truman Elementary School Invites U.S. Attorney to Talk with Students About Bullying and CyberbullyingRead the Press Release
United States Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited to speak on January 31, 2014, with approximately seventy-five 5th grade students at Harry S. Truman Elementary School, about bullying and cyberbullying, including the dangers and tragic consequences of bullying and cyberbullying, and ways to keep safe.
These students also graduated from the Gang Resistance Education And Training (GREAT) Program in November 2013. The GREAT Program=s primary objective is to raise awareness about and prevent delinquency, youth violence, and gang membership. The GREAT lessons taught by GREAT certified law enforcement officers and aimed at elementary and middle school students, focus on developing life skills to help students avoid delinquent behavior and violence, and learn to solve problems through communication and the exercise of good judgment.
U.S. Attorney Limtiaco at Harry S. Truman Elementary School.
Fifth grade students listening to U.S. Attorney Alicia Limtiaco.Greenfield Doctor Sentenced for Multiple Tax Related CrimesRead the Press Release
BOSTON - A Greenfield, Mass. doctor was sentenced this week in U.S. District Court in Springfield for tax evasion and other charges.
On Feb. 12, Richard C. McGinn, 67, was sentenced by U.S. District Court Judge Michael A. Ponsor to 30 months in prison and two years of supervised release. In 2013, a jury convicted Dr. McGinn of tax evasion, five counts of failing to pay over employment taxes, and failure to file a tax return.
From 2007 until 2009, Dr. McGinn owned and operated a medical practice in Greenfield. During that time, he evaded the payment of a tax liability of over $1 million which he had accumulated from 1987 to 2003. Among other things, Dr. McGinn paid personal expenses with corporate funds, and he used the bank account of a family member to conceal the income from the medical practice. During this time, Dr. McGinn also withheld employment taxes from the paychecks of his employees, and he kept the money for himself, rather than paying the money to the IRS as he was required to do. Additionally, Dr. McGinn failed to file corporate income tax returns for his medical practice.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Unit.
Getaway Driver in Murder of Rhode Island <br /> Gas Station Manager Sentenced to 40 Years in PrisonRead the Press Release
Jose A. Santiago, 36, of Springfield, Mass., was sentenced yesterday in Providence, R.I., to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket, R.I., gas station manager David D. Main.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on Sept. 5, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on Dec. 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on Feb. 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.