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13 February 2014
Thornton Woman Indicted for Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Geraldine Juanita Sotelo, age 64, of Thornton, Colorado, was indicted by a federal grand jury in Denver on January 28, 2014 on charges of aiding and assisting in the preparation of false tax returns, the United States Attorney’s Office and IRS – Criminal Investigation announced. The indictment remained under seal until Sotelo made her initial appearance on Tuesday in U.S. District Court in Denver. At that hearing, U.S. Magistrate Judge Craig B. Shaffer advised the defendant of her rights as well as the charges pending against her. She was also arraigned and then released on bond. A tentative trial date of April 14, 2014 has been set.
According to the indictment, from February 2008 continuing through March 2008, Geraldine Sotelo willfully aided and assisted in, procured, counseled, and advised, in the preparation and presentation of six 2007 Form 1040, U.S. Individual Income Tax Returns for various taxpayers. The tax returns were fraudulent and false in that they included claims for credits for child and dependent care expenses, child tax credits, personal property taxes paid, gifts to charity paid by cash or check, and unreimbursed employee expenses. This fraudulent tax returns gave certain taxpayers credits who were not entitled to receive them, did not make the described payments or did not have unreimbursed employee expenses which all fraudulently reduced the taxpayer’s income.
Sotelo continued a similar pattern in 2009 and 2010 during tax filing season by assisting or preparing ten 2008 and ten 2009 Form 1040, U.S. Individual Income Tax Returns for various taxpayers. The tax returns were fraudulent and false as they included expenses and credits as mentioned above and further including business losses, medical and dental expenses for which the taxpayers were not entitled to which also fraudulently reduced they taxpayer’s income.
“We all have a responsibility to file our tax returns accurately, and not to take fraudulent advantage of our fellow taxpayers,” said U.S. Attorney John Walsh. “Filing false tax returns not only hurts the American taxpayer, it is also a crime with serious consequences.”
"As we approach tax filing season, this is a reminder taxpayers should choose carefully when hiring a tax preparer. In the end the taxpayer is ultimately responsible for their tax liability,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. For tips on Choosing a Tax Professional go to www.irs.gov .
Sotelo was charged with 26 counts of aiding and assisting in the preparation of false tax returns, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $100,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Support Program Available for the Families of Those Who Have Died Due to Opiate OverdosesRead the Press Release
The Office of the United States Attorney for the District of Vermont announces an innovative, free, statewide support program for the families of those who have died due to opiate overdoses.
This innovative, free, statewide support program will consist of three components: a three-hour educational presentation that focuses on the complicated and prolonged grief experienced by families impacted by these sudden, unexpected deaths; individual family follow-up for those participating families who would like additional support; and the development of an informal, statewide support network among these families.
U.S. Attorney Tris Coffin described the motivation behind this initiative. “We have had way too many families suffer the death of loved ones from drug overdoses. The pain from this is something they experience every day. I hope this group provides some small measure of help to grieving survivors and creates a network of mutual support for those who have suffered these devastating losses.”
This free service is available to any family member who is interested in participating in this specialized program.
For information or to refer families, please contact Aimee Stearns at the U.S. Attorney’s Office at [email protected] or at (802) 651-8261.
Staten Island Man Charged in Manhattan Federal Court for Multimillion-Dollar Scheme Related to Purchase of Maxim MagazineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Steven G. Hughes, the Special Agent-in-Charge of the New York Office of the United States Secret Service, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that CALVIN DARDEN, JR., was arrested yesterday in connection with two schemes in which he defrauded victims of more than $8 million and attempted to defraud another victim of approximately $20 million. In one scheme, DARDEN tricked several lenders into providing more than $8 million in financing for the potential acquisition of Maxim Magazine and related assets. In the other scheme, DARDEN obtained $500,000 from a Taiwan-based company by falsely claiming that he was arranging for the New York Knicks to play an exhibition game in Taiwan. DARDEN surrendered yesterday to the Secret Service, and is expected to be presented later today in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Calvin Darden, Jr., sought to mislead and deceive his victims at virtually every opportunity, and he used the full spectrum of fraudulent devices, including false documents, 'spoofed' emails, and outright impersonation. This Office has zero tolerance for those who allegedly engage in this type of conduct, especially when it is to the tune of millions of dollars.”
Secret Service Special Agent-in-Charge Steven Hughes said: “Partnerships fostered by the Secret Service’s Electronic Crimes Task Force have allowed our agency to focus resources and respond quickly to criminal activity such as this. The investigation and subsequent arrest in this case is another example of how the Secret Service strives to combat fraud and provide a secure cyber environment.”
FBI Assistant Director-in-Charge George Venizelos said: “Like we’ve seen time and time again, the defendant was up to the same worn-out tricks in an elaborate scheme of fake emails, fictitious bank accounts, and fabricated statements all to rip off unwitting investors. Everyone deserves the right to make an honest living, but not by lying, cheating, or at the expense of others. Today, Mr. Darden finds himself under arrest and in trouble with the law.”
According to the allegations contained in the Criminal Complaint unsealed today in Manhattan federal court:
DARDEN carried out two separate schemes in which he concocted an elaborate set of lies that included, among other things, phony emails, fabricated bank account statements, and his repeated impersonation of his father, a former corporate executive who sits on the Board of Directors of several publicly-traded corporations in the United States, during phone calls and in emails , to defraud multiple victims of more than $8 million and to attempt to defraud another victim of approximately $20 million.
The Maxim Fraud Scheme
In connection with the potential purchase of Maxim Magazine (“Maxim”) by a media company (the “Media Company”) associated with DARDEN and his father, DARDEN attempted to secure financing from various lenders, lying extensively to them to trick them into funding the Media Company’s purchase of Maxim.
As part of the scheme, in order to trick one of the lenders into believing they would receive sufficient collateral for their loan, DARDEN provided the lender with a fabricated bank account statement. The fabricated statement purported to be for an account held by his father and purported to show his father’s holdings in the stocks of at least three publicly-traded companies for which DARDEN’s father serves as a Director. His father’s alleged stock holdings in these companies were supposed to serve as collateral for the loans. In truth, however, the bank account statement was fake. In addition, DARDEN created, and sent to a lender, a phony email that purported to be from an employee of a bank verifying his father’s stock holdings.
Further, after one of the lenders put approximately $5.5 million in escrow pending the transfer of collateral, DARDEN paid a Russia-based email “spoofing” service to send an unauthorized and fraudulent email to the escrow agent to secure the release of the funds. Specifically, DARDEN had the spoofing service send an email that appeared to come from the lender’s email account and that authorized the escrow agent to release the escrow money. As DARDEN well knew, however, the lender did not send the email and did not authorize the release of the funds. Based on its receipt of the email, the escrow agent released approximately $4.9 million of the lender’s money towards the Media Company’s purchase of Maxim.
DARDEN also provided certain lenders with bogus emails purporting to be from senior executives of certain companies, including at least one publicly held corporation for which DARDEN’s father is a member of the Board of Directors. In one bogus email, the senior executive purportedly verified the stock holdings of DARDEN’s father that were supposed to be provided as collateral for the loan. Separately, when another lender conditioned its $20,000,000 loan on the creation of a cable channel based in part on Maxim, DARDEN provided the lender with a bogus email purporting to be from a senior executive of a cable television company confirming that the company was interested in creating a cable channel in connection with the Media Company’s purchase of Maxim. In fact, both emails were completely fabricated, and had not been authored or authorized by either of the executives who purportedly wrote them.
Additionally, as a part of the scheme, DARDEN repeatedly impersonated his father during phone calls and in emails, and forged his father’s signature on documents related to the potential purchase of Maxim.
The NBA Fraud Scheme
In a separate scheme, DARDEN tricked a particular company located in Taiwan into paying him $500,000 by falsely and fraudulently representing that, through a particular company purportedly operated in part by his father, he would arrange an NBA exhibition game in Asia involving the New York Knicks.
As part of that scheme, DARDEN falsely represented to the victim company that he and his father had meetings and discussions with, among others, the owners of the New York Knicks and NBA officials about an exhibition game in Asia. As he did in the Maxim fraud scheme, DARDEN also impersonated his father in multiple email communications with the victim company and forged his father’s signature on documents.
DARDEN, 39, of Staten Island, New York, is charged with two counts of wire fraud, each of which carries a maximum term of 20 years in prison.
Mr. Bharara praised the outstanding investigative work of the Secret Service and FBI.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney James Pastore, Jr., is in charge of the prosecution. Assistant U.S. Attorney Andrew Adams is handling the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Calvin Darden Complaint
Sex Trafficker in Saipan, Northern Mariana Islands, Sentenced to over 19 Years in PrisonRead the Press Release
SAIPAN, CNMI – On Monday, February 10, 2014, in the U.S. District Court of the Commonwealth of the Northern Mariana Islands, Chief Judge Ramona V. Manglona sentenced Chang Ru Meng Backman, age 41, of the People’s Republic of China, to 235 months in prison followed by three years of supervised release for sex trafficking. Chief Judge Manglona also ordered Backman to pay $9,750 in restitution to the victim.
Following the sentencing, U. S. Attorney for the Districts of Guam and the Northern Mariana Islands, Alicia A.G. Limtiaco, stated, “The heinous crime of sex trafficking dehumanizes its victims and involves the exploitation of the vulnerable by those motivated by power and greed. This prosecution, brought through the hard work of the FBI in collaboration with local law enforcement and the CNMI Attorney General’s Office, represents law enforcement’s tireless pursuit of those responsible for the sexual exploitation of women and the commitment to attaining justice for the victims of these horrible crimes,” said U.S. Attorney Limtiaco. “The sentence imposed by the Court sends the message that sex trafficking schemes will not be tolerated. We will continue to find traffickers and hold them accountable for their crimes."
Backman was convicted of one count of sex trafficking in June 2013, following a jury trial. Backman, who was the “boss-lady” of a bar known as the Holiday Karaoke Club, coerced a vulnerable Chinese woman into having sex with customers of the club for her own financial gain. Backman preyed upon the woman who had been enticed to come to Saipan from China with promises of work as a farm laborer, cleaning person in a hotel, or wait staff in a restaurant. Once the woman arrived, Backman used her debt, lack of legal immigration status, and inability to speak English to compel her to engage in commercial sex acts at Backman’s bar. Backman drove the woman to and from the bar so that the woman could have sex with men at Backman’s direction.
The case was investigated by FBI Special Agent Jaime Prida, and the United States was represented at trial by Assistant U.S. Attorneys Rami S. Badawy and Ross K. Naughton, and U.S. Attorney Limtiaco.Sentencing for February 7 - 12, 2014Read the Press Release
Matthew Scott Smith, 36, of Brighton, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 12, 2014, for false statement on a loan application. Smith appeared pursuant to a summons. He received five years of supervised probation and was ordered to pay a $100.00 special assessment. Restitution will be determined within 30 days. This case was investigated by the Federal Bureau of Investigation.
Brandon Arguello Lopez, 20, of Evansville, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 12, 2014, for conspiracy to possess stolen firearms. Lopez was arrested in Casper, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $11,642.81, joint and several with other defendants, and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Juan Manuel Nava-Sanchez, aka Ernesto Rodriguez-Estrada, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 10, 2014, for illegal re-entry of a previously deported alien into the United States. Nava-Sanchez was arrested in Jackson, Wyoming. He received eight months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Christopher Camplin, 39, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 7, 2014, for possession of child pornography. Camplin was arrested in Sheridan, Wyoming. He received 120 months imprisonment, to be followed by a lifetime-term of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Clifford R. Bennett, 39, of Douglas, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 7, 2014, for arson of building receiving federal funds. Bennett was arrested in Douglas, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $33,164.25 and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Rusk County Woman Guilty of Embezzling Postal FundsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 43-year-old Henderson, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Tracy A. Bojorquez, former Postmaster Relief at the Joinerville Post Office, has pleaded guilty to misappropriation of United State postal funds today before U.S. Magistrate Judge John D. Love.According to information presented in court, from July 2012 to May 2013, Bojorquez was the relief postmaster at the Joinerville Post Office in Rusk County, Texas. During that time, she embezzled payments she received at the Post Office for postal money orders, post office box rental fees, and the sale of U.S. postage stamps. The unreimbursed losses to the U.S. Postal Service amounted to $5,132.23. Bojorquez was indicted by a federal grand jury on Nov. 20, 2013.
Bojorquez faces up to 10 years in federal prison. A sentencing date has not been set.
This case is being investigated by the U.S. Postal Service, Office of Inspector General and prosecuted by Assistant U.S. Attorney Allen Hurst.
River Ridge Man, Rainer Wittich, and His Company Charged with Conspiring to Manufacture and Sell Counterfeit Mercedes-benz Diagnostic Equipment Worth over $15,000,000Read the Press Release
RAINER WITTICH, age 64, of River Ridge, Louisiana, and the company he owns, THE BRINSON COMPANY, of Harahan, Louisiana, were charged today in a four-count indictment by a federal grand jury for their role in creating and selling fake Mercedes-Benz diagnostic equipment containing proprietary software without authorization, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the Indictment, WITTICH owned THE BRINSON COMPANY, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. Beginning in about 2001, WITTICH and THE BRINSON COMPANY began developing, manufacturing, and selling fake versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software, with the assistance of a Durham, North Carolina-based company. They did so by obtaining Mercedes-Benz software without authorization, applying “cracks and fixes” to make the software work on everyday laptop computers, and making hundreds of copies of the software product. WITTICH and others then worked to override Mercedes-Benz security systems by purchasing false license keys from a United Kingdom-based individual that, combined with other modifications, would “unlock” the SDS software and make it operable on the counterfeit devices. When Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, WITTICH and others discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of fake SDS.
Beginning in about 2005, WITTICH entered into a conspiracy with a California-based company to manufacture and sell the SDS. On some occasions, when one of the fake SDS units sold by the North Carolina or California companies would break, WITTICH and BRINSON would repair them and return them to the customers.
Genuine SDS diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems; the fraudulent or unauthorized sale of such units increases the risk of Mercedes-Benz automobiles being stolen or suffering from misdiagnosed or undiagnosed problems. Genuine SDS sold for up to $22,000 each, while WITTICH’S fake SDS sold for between $5,000 and $11,000. In total, WITTICH and BRINSON sold not fewer than 700 counterfeit SDS, and the California-based company sold at least 95 devices.
If convicted, WITTICH faces a maximum term of imprisonment of twenty (20) years, followed by up to three (3) years of supervised release, and a $250,000 fine. THE BRINSON COMPANY faces up to a $500,000 fine.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Indictment )
Procurador Federal Del Distrito Oriental De California, La Atf, El Departamento De Policia De Fresno Anuncian Los Resultados De La Colaboracion En Los Casos Federales De Armas De Fuego Procesados En El 2013 Para El Area De FresnoRead the Press Release
40 acusados de delitos federales por armas de fuego en los condados de Fresno, Tulare y Madera en el 2013; sentenciados a prisión federal en el 2013
FRESNO, Calif.: El procurador federal del distrito oriental de California, Benjamin B. Wagner, anunció hoy los resultados del año pasado del trabajo continuo de las agencias del orden público locales, estatales y federales para procesar casos de violencia con armas en el àrea de Fresno. Los casos federales por armas de fuego son producto del Project Safe Neighborhoods (PSN, Proyecto de Vecindarios Seguros), que es una iniciativa del Departamento de Justicia de los EE.UU. para unir a las agencias del orden público para luchar contra la violencia armada. Bajo la iniciativa Smart on Crime (Listos ante el Crimen) que anunció el procurador general de los EE.UU., Eric Holder, en agosto del año pasado, combatir la violencia armada es una alta prioridad del Departamento de Justicia de los EE.UU.
En el 2013 la Oficina del Procurador Federal del Distrito Oriental de California enjuició a por lo menos 100 acusados por delitos relacionados con armas de fuego. Sin embargo, el àrea de Fresno y sus alrededores ha sido objeto específicamente de casos por armas de fuego, y la Oficina del Procurador Federal del Distrito Oriental de California trabaja de cerca con el Departamento de la Policía de Fresno, la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos de los EE.UU., el FBI y otros socios del orden público para detener a los criminales armados y peligrosos de esa región.
En el 2013, treinta y cuatro acusados en la ciudad de Fresno y el àrea aledaña del condado de Fresno enfrentaron cargos por delitos federales de armas de fuego. Dos personas màs del condado de Tulare y cuatro màs del condado de Madera fueron acusados por delitos federales de armas de fuego para un total de 40 acusados en el àrea que comprende los tres condados.
Diez de los acusados que enfrentaron cargos en el 2013 ya se han declarado culpables y han sido sentenciados a prisión y cinco màs se han declarado culpables y estàn esperando sentencia. Ademàs, por lo menos 30 acusados màs de la ciudad de Fresno y el àrea aledaña del condado de Fresno que enfrentaron cargos de delitos federales por armas de fuego en años anteriores fueron sentenciados a partir del inicio del 2013. Otros dos acusados del condado de Madera que fueron acusados en años anteriores por delitos de armas de fuego fueron sentenciados en el 2013. Por lo tanto, durante el año 2013 un total de 42 personas culpables de delitos de armas de fuego en los condados de Fresno, Tulare y Madera ingresaron a prisión federal.
Los delitos federales de armas de fuego en estos casos son delitos graves cuya culpabilidad a menudo resulta en sentencias largas de muchos años. Todos los 42 acusados de esta àrea que fueron sentenciados por casos federales de armas de fuego desde principios del 2013 fueron sentenciados a prisión, y màs de la mitad està ahora cumpliendo sentencias de màs de cinco años en prisión. En el sistema federal se ha abolido la libertad condicional, y los acusados tienen que cumplir por lo menos el 85 por ciento del tiempo de prisión que se les ha impuesto. Muchos acusados condenados cumplen sus sentencias en prisiones federales lejos del àrea de Fresno. Los delitos de armas de fuego incluyen el uso de un arma de fuego en el transcurso de un delito de tràfico de drogas o crimen violento, la posesión de un arma de fuego por una persona condenada por un delito grave, la posesión de un arma de fuego sin inscribir, tal como un rifle de asalto totalmente automàtico, una escopeta recortada o un dispositivo explosivo, o la posesión de un arma de fuego por un extranjero indocumentado. Algunos acusados también fueron condenados por ofensas relacionadas con narcóticos y otros delitos federales.
“En nuestro esfuerzo por combatir el crimen armado, hemos trabajado de cerca con nuestros socios de las agencias del orden público para enfocarnos en los criminales peligrosos y armados”, dijo el procurador federal del distrito oriental de California, Wagner. “Gracias a la relación excepcional de trabajo que existe entre las agencias del orden público federales y locales en el àrea de Fresno, esta iniciativa ha logrado sacar de la calle a un gran número de estos criminales por períodos de tiempo extensos.”
“A través del proyecto PSN, la ATF, junto con nuestros socios, pueden enfrentarse a aquellos criminales que comenten delitos violentos y que poseen ilegalmente las armas que tienen bajo asedio a las comunidades”, dijo el agente especial encargado de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos, Joseph M. Riehl.
“La prioridad principal del Departamento de Policía de Fresno continuarà siendo el concentrarse en las gangas e incautarles armas de fuego a los criminales violentos. Nuestra colaboración con la Oficina del Procurador Federal del Distrito Oriental de California a través de la iniciativa Project Safe Neighborhoods ha enviado un mensaje contundente a los miembros de las gangas en nuestras comunidades de que no toleraremos la violencia armada.”
Algunos ejemplos de las condenas federales por armas de fuego en el 2013 producto de este esfuerzo conjunto incluyen los siguientes:
- El 12 de noviembre de 2013, Fernando Casas, de 35 años de edad, un miembro de la ganga Bond Street Bulldog, fue sentenciado a siete años y ocho meses en prisión al haber sido condenado por el delito de poseer un arma de fuego habiendo sido condenado por un delito grave. Bond tiene nueve condenas por delitos graves entre el 1998 y 2011, incluyendo por armas de fuego, sustancias controladas y delitos a la propiedad.
- El 12 de noviembre de 2013, Robert Cervantes, de 35 años, miembro de una ganga en Fresno/Clovis, fue sentenciado a 15 años en prisión por venderle metanfetamina a un informante confidencial en abril de 2011 y luego por haber sido arrestado en mayo de 2011 por poseer un revólver y una onza de metanfetamina que pretendía vender. Cervantes había sido condenado en cinco casos de tràfico de drogas entre el 1997 y 2008.
- El 18 de noviembre de 2013, Luis Montoy, de 35 años de edad, fue sentenciado a seis y cinco meses en prisión al haber sido condenado por el delito de poseer municiones habiendo sido condenado por un delito grave. Los miembros del Grupo de Trabajo con Fugitivos del Servicio del Alguacil Federal de los EE.UU. arrestó a Montoy por haber escapado mientras estaba bajo libertad condicional. Él tenía en su poder pólvora negra para armas y municiones. Él había sido condenado en tres casos de delitos graves entre el 2001 y el 2009 por armas de fuego, violencia doméstica y sustancias controladas.
- El 6 de mayo de 2013, Nicholas Andronicous, de 31 años de edad, fue sentenciado a siete años y ocho meses en prisión al haber sido arrestado por el delito de poseer municiones y un rifle de cañón corto sin inscribir. Según los documentos judiciales, el encuentro con Andronicous ocurrió en mayo de 2012 en respuesta a una llamada por violencia doméstica, y se descubrió que poseía metanfetamina, múltiples armas de fuego y municiones. En junio de 2012 él fue objeto de una investigación por infracción de tràfico y le encontraron otra arma de fuego y municiones. Andronicous había sido condenado en tres casos de delitos graves entre el 2004 y el 2006 por sustancias controladas y otros delitos.
- El 12 de agosto de 2013, Eric Moore, de 36 años, de Fresno, fue sentenciado a 10 años en prisión por poseer múltiples armas de fuego habiendo sido condenado por un delito grave. Según lo indican los documentos judiciales, Moore y otros acusados participaron en allanamientos a concesionarios de armas de fuego en Torrance y Corona, California, y de traer 54 rifles y revólveres robados a Fresno para vendérselos a miembros de gangas y a otras personas.
- El 3 de septiembre de 2013, Ralph Haros, de 49 años, de Fresno, fue sentenciado a seis y medio años en prisión por poseer un arma de fuego habiendo sido condenado por un delito grave. A Haros lo arrestaron los miembros del Grupo de Trabajo con Fugitivos del Servicio del Alguacil Federal de los EE.UU. por una orden de arresto por violar los términos de su libertad condicional. Él había sido condenado en cinco casos de delitos graves entre el 1986 y el 2003 por delitos de allanamiento, armas de fuego, violencia doméstica, sustancias controladas y armas de fuego.
- El 23 de septiembre de 2013 Edward Mitchell, de 33 años, de Fresno, fue sentenciado a ocho años en prisión por poseer un arma de fuego habiendo sido condenado por un delito grave y por la posesión con intención de distribuir cocaína. Según los documentos judiciales, Mitchell tenía dos pistolas en su poder, de las cuales una había usado para matar a un cliente de cocaína que le había disparado a Mitchell y a varios otros en el apartamento de Mitchell. Otras dos personas en el apartamento fueron heridas de bala, de las cuales una sucumbió ante sus heridas y murió.
Estos casos son producto de las investigaciones por múltiples agencias, incluyendo el Departamento de la Policía de Fresno, la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos, el FBI, la DEA, departamento de Cumplimiento de Inmigración y Aduana (ICE, por sus siglas en inglés), Investigaciones de Seguridad Nacional (HSI) y varias otras oficinas y departamentos de policía en los condados de Fresno, Tulare y Madera. El grupo de trabajo MAGEC y la oficina del Fiscal de Distrito del Condado de Fresno también tuvieron una función crucial en muchos de los casos. Los ayudantes del procurador federal del distrito oriental de California, Kim Sanchez, Laurel Montoya, Kathleen Servatius, Karen Escobar, Michael Frye, Melanie Alsworth, Grant Rabenn y Kevin Rooney estàn procesando los casos.
Los cargos en contra de los acusados que no han sido condenados solamente son alegados pues se presume que todo acusado es inocente a menos que se le pruebe culpable màs allà de duda razonable.
Poplar Bluff Man Sentenced to 50 Years on Child Pornography ChargesRead the Press Release
St. Louis, MO – SAMUEL GONZALES, Poplar, Bluff, MO, was sentenced to 600 months in prison Thursday afternoon by United States District Judge Carol E. Jackson, in St. Louis.
According to court documents, between January 2011 and January 2013, Gonzales video recorded himself performing sexual acts on a 9-year-old girl. Also, between January 2011 and January 2013, Gonzales attempted to receive child pornography over his telephone by requesting a 13-year-old girl to send him naked images of herself.
Gonzales pled guilty in November to one felony count each of production and attempted receipt of child pornography.
The case was investigated by Donya Jackson of the U.S. Attorney’s Office, FBI, Poplar Bluff Police Department and Jefferson County Sheriff’s Department. Assistant United States Attorney Erin Granger handled the case for the U.S. Attorney’s Office.Pleasant Hill Woman Charged in Tax Refund Theft SchemeRead the Press Release
OAKLAND – Sherry L Hender made her initial appearance today in federal court on charges of theft of government property and aggravated identity theft, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the indictment filed on May 21, 2013, and unsealed today, from about January 18, 2012 to February 21, 2012, Hender, of Pleasant Hill, knowingly and willfully stole federal tax refunds to which she was not entitled. For the 2011 tax year, Hender received 13 tax refunds totaling $42,989. Hender also unlawfully used the name and Social Security number of another individual to obtain that tax refund.
Hender’s next court appearance is on March 7, 2014, before the Honorable Jeffrey S. White, United State District Court Judge in San Francisco.
The maximum statutory penalty for each count of theft of government property, in violation of Title 18, U.S.C § 641, is 10 years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Hender indictment )
Patrick Jude Brennan, Jr. Sentenced for Distribution of Methamphetamine HydrochlorideRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant PATRICK JUDE BRENNAN, JR., age 48, was sentenced by Chief Judge Frances Tydingco-Gatewood, in the District Court of Guam, to eight months home confinement for the offense of Distribution of Methamphetamine Hydrochloride. Defendant BRENNAN also received a sentence of two years probation, and will be required to perform 50 hours of community service to include public speaking, pay a $2,000 fine and forfeit his 2008 Toyota FJ Cruiser. Defendant BRENNAN drove his brother to pick up drugs and as a result, he forfeited his 2008 Toyota FJ Cruiser.
Defendant BRENNAN was involved in a scheme to distribute 1.6 grams of methamphetamine hydrochloride to other persons from his apartment residence. The methamphetamine hydrochloride sold by BRENNAN had a purity level that was 85% purity.
The case was prosecuted by Assistant U.S. Attorney Rosetta San Nicolas. U.S. Attorney Limtiaco commends the hard work and investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
U.S. Attorney Limtiaco states, “Methamphetamine has been linked to an increase in violent crimes and results in devastating effects to individuals and to the community. Methamphetamine presents a public safety and a public health threat to our community warranting aggressive law enforcement action. Those who engage in the criminal importation, receipt and sale of this illegal drug will be prosecuted and face severe penalties. Persons who aid others in the distribution of drugs will also face the loss of their personal property. ”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.New Orleans Woman, Renata R. Foreman, Sentenced for Financial Aid FraudRead the Press Release
RENATA R. FOREMAN, age 34, a resident of New Orleans, was sentenced yesterday by U.S. District Court Judge Susie Morgan, to 33 months imprisonment, followed by 3 years of supervised release and a $300 special assessment, announced U.S. Attorney Kenneth Allen Polite, Jr. FOREMAN pleaded guilty in October 2013 to a three-count bill of information charging her with theft of government funds, mail fraud and identity theft related to her scheme to defraud the U.S. Department of Education. Judge Morgan also ordered FOREMAN to pay restitution in the amount of $191,617 to the U.S. Department of Education.
According to court records, from September 2008 through January 2012, FOREMAN fraudulently obtained financial aid funds in the amount of $191,617 from several Louisiana and online universities. As part of her scheme to defraud, FOREMAN applied for admission and financial aid in her name and in the name of nine individuals without their knowledge or consent. By falsifying high school graduation information and supplying forged transcripts, FOREMAN induced universities to admit her and others based on false information. FOREMAN also misrepresented her income and other applicant’s income in order to maximize the federal financial aid she illegally received.
The case was investigated by the U.S. Department of Education-Office of Inspector General, and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Julia K. Evans.
Mooringsport Man Sentenced to 240 Months in Prison for Distributing Child PornographyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Steven Deem, 52, of Mooringsport, La., was sentenced by U.S. District Judge S. Maurice Hicks, to 240 months in prison and a lifetime of supervised release for distribution of child pornography. He is also required to register as a sex offender.
According to evidence presented at the guilty plea on October 10, 2013, authorities discovered Deem had transmitted images of child pornography online in September 2012. Upon further investigation, they found that he had previously uploaded a video to YouTube discussing his views on children and sex. The YouTube video also contained images of nude and semi-nude children. Deem’s home was searched on November 1, 2012, and authorities discovered more than 43 images of child pornography.The Louisiana Attorney General’s High Technology Crime Unit, Caddo Parish Sheriff’s Office, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Michigan Man Indicted for Embezzling More Than $2.3 Million from Vineyards Development Corp. in NaplesRead the Press Release
Fort Myers, Florida –United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Alfred W. Lenz (68, Montague, Michigan) with three counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Lenz that the United States intends to forfeit a house in Montague, Michigan, and the contents of a Charles Schwab Retirement Account, which are alleged to be traceable to proceeds of the offenses. In addition, the United States is seeking a money judgment in the amount of $2,380,465.11, the proceeds of the wire fraud scheme.
According to the indictment, Lenz was the Controller for the Vineyards Development Corporation (VDC) in Naples, Florida, from March 31, 2005 until April 27, 2012. Between January 11, 2007 and December 9, 2010, while employed as VDC Controller, Lenz allegedly embezzled $2,380,465.11 from VDC. He used the money to buy real estate and for other personal expenses. Lenz used his position to hide eighty-seven $24,000 check payments, totaling $2,088,000, to an account which he controlled. Lenz made false entries in the VDC books and concealed the true nature of these check payments. He also caused seven wire transfers, totaling $292,465.11, to be sent from VDC’s bank account, into a bank account that he controlled.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service and the Collier County Sheriff’s Office, Economic Crimes Unit, with assistance from the Office of the State Attorney, Twentieth Judicial Circuit. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
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Media AdvisoryRead the Press Release
Montgomery, Alabama - The Humane Society of the United States will present five of its 2013 Humane Law Enforcement Awards to several Alabama officials for their participation in the second largest dog fighting case in history.
WHO:
- Clark Morris Jr., Assistant U.S. Attorney, Middle District of Alabama
- George L. Beck Jr., U.S Attorney, Middle District of Alabama
- 2 Special Agents with the FBI, Montgomery Office
- 1 Auburn Police Department Detective who is assigned to the FBI Safe Street Task
- Keith Baker, Investigator for the State of Alabama Attorney General’s Office
WHEN: Tuesday, Feb. 18, 2014; 1:30pm
WHERE: U.S Attorney’s Office
131 Clayton Street
Montgomery, Alabama 36104PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Loup City Man Sentenced for Filing False Tax ReturnsRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 13, 2014, Senior United States District Judge Richard G. Kopf sentenced Rodney R. Moraczewski, age 53 of Loup City, Nebraska, to 41 months in federal prison, followed by 3 years of supervised release. Moraczewski was also ordered to pay restitution in the amount of $299,206.60 to the Internal Revenue Service.
In 2009 and 2010, Rodney Moraczewski filed ten false tax returns in his name and the names of other people resulting in payments from the IRS to Moraczewski totaling $299,206.60. Moraczewski pled guilty on November 20, 2013, to felony charges of filing a false federal tax return and identity theft.
“Investigating refund fraud and identity theft is a top priority,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Stealing identities and filing false tax returns hurts innocent taxpayers and causes a monetary loss against the U.S. Treasury.”
This case was investigated by Internal Revenue Service, the Nebraska Department of Revenue, and the Sherman County Sheriff’s Department.
Iowa Man Sentenced in Federal Court for Cyber-Attack on Koch Industries SubsidiaryRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on February 12, 2014, Jacob Allen Wilkens (age: 24) of Postville, Iowa, was sentenced by Magistrate Judge James R. Sickel to 24 months’ probation and ordered to pay $110,932.71 in restitution.
Wilkens had previously pled guilty for his participation along with members of the on-line hacker group “Anonymous” in a distributed denial of service attack against the Angel Soft bathroom tissue website in February and March of 2011. Angel Soft is a subsidiary of Koch Industries, the intended target of the attack.
Wilkens and others utilized a “low orbit ion cannon” designed to flood the Angel Soft server with traffic with the intention of disrupting the website’s service. The Angel Soft server is located in Green Bay, Wisconsin. Koch Industries suffered several hundred-thousand dollars in loss as a result of the continuous attacks on several of its network servers over a three day span.
The case was investigated by Special Agents from the Federal Bureau of Investigation field offices in Iowa and Wisconsin. It was prosecuted by Assistant United States Attorney Daniel R. Humble of the Eastern District of Wisconsin.
Indictment Unsealed Which Charges Former Secretary of Finance for the Mexican State of Coahuila in Money Laundering ConspiracyRead the Press Release
A federal grand jury indictment unsealed this morning in San Antonio charges Hector Javier Villarreal Hernandez, the former Secretary of Finance for the Mexican State of Coahuila, Mexico, for his alleged role in a money laundering conspiracy announced United States Attorney Robert Pitman; Drug Enforcement Administration Acting Special Agent in Charge Steven Whipple, Houston Division; Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough and Homeland Security Investigations Special Agent in Charge Janice Ayala.
The indictment alleges that since January 2008, Villarreal and others conducted financial transactions involving the proceeds of unlawful activity. According to the indictment, the proceeds in question involve the importation, sale and distribution of controlled substances; bribery of a public official; embezzlement of public funds; and, wire fraud. The indictment further alleges that as part of the scheme, the defendant transferred funds in and out of the United States in order to conceal and disguise the nature, source and ownership of the criminally derived proceeds.
Upon conviction, the defendant faces up to 20 years in federal prison.
Villarreal surrendered to federal authorities in El Paso yesterday. He remains in federal custody following his Initial Appearance this afternoon in San Antonio before United States Magistrate Judge Henry Bemporad. No further court dates are scheduled at this time.
This indictment resulted from an investigation conducted by agents with the Drug Enforcement Administration (DEA) together with Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI) and the DEA’s High Intensity Drug Trafficking Area (HIDTA) Task Force in San Antonio.
The United States Government is grateful for the ongoing cooperation of the Government of Mexico with regard to this investigation.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Hogsett Announces Sentencing of Parke County Man on Child Pornography ChargesRead the Press Release
Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the sentencing of Rockville resident Bradley M. Vandivier, age 28, to 10 years in federal prison after his admission of guilt to charges that he possessed child pornography and illegally accessed a protected computer. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”
“The Federal Bureau of Investigation is committed to pursuing on-line child predators through our Innocent Images National Initiative,” said FBI Special Agent in Charge Robert A. Jones. “FBI agents and local and international task force members collaborate with our state and local partners daily in the fight against those who prey on our children.”
On March 15, 2013, detectives from the Indiana State Police were checking for compliance with Indiana’s sex offender registry at the residence of Vandivier on Erie Street in Rockville. Detectives asked the defendant if they could look around his house, and Vandivier invited them inside but informed them he was going to let his dogs out first. Rather than let his dogs out, however, detectives observed the defendant enter a room and close the door.
After calling Vandivier out of the room and conducting further investigation, detectives located a laptop computer inside the room, hidden under a blanket at the foot of a chair. It was later revealed that the defendant had been utilizing a neighbor’s wireless internet network in an effort to obtain child pornography. A forensic investigation has revealed hundreds of videos and images of child pornography on the laptop, including depictions of sexual abuse against children younger than age seven.
According to Assistant U.S. Attorney Zach Myers, who prosecuted the case for the government, Vandivier was also sentenced to lifetime supervised release at the end of his prison term, and must comply with state and federal requirements as a registered sexual offender.
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he launched AOperation Community Watch," which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, those efforts were facilitated by the Federal Bureau of Investigation, the Indiana State Police, the Indiana Internet Crimes Against Children Task Force, and Parke County law enforcement.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last two years, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Greece Man Sentenced for Food Stamp FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mohammad Qadi, 35, of Greece, N.Y., who was convicted of unlawful use and acquisition of food stamp benefits and mail fraud, was sentenced to three years supervised release and ordered to pay restitution of $75,744 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that between November 2008 and July 2010, the defendant fraudulently acquired and possessed more than $120,000 in food stamp benefits issued by the United States Department of Agriculture. Qadi did so while operating Nick’s Super Store, which was then located at 460 Monroe Avenue in Rochester.
Food stamp benefits were issued by the Food and Nutrition Service Agricultural Department through New York State’s social service agencies to eligible beneficiaries. The beneficiaries were required to purchase eligible food items with the benefits. Instead, the defendant purchased the food stamp benefits for less than their full value by swiping the benefits cards through the terminal at Nick’s Super Store and then giving the food stamp card holders cash equal to 50% of the value of the benefits. Qadi also falsely represented to an insurance company that he was injured and unable to work while he was employed and working at Nick’s Super Store.
The sentencing is the culmination of an investigation on the part of Special Agents of the USDA-Office of the Inspector General, under the direction of Special Agent William G. Squires, Jr., and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Little Falls man charged with conspiring to distribute methamphetamine
James Kelly Benson, age 30, of Little Falls, was charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
If convicted, Benson faces a potential maximum penalty of life in prison on the conspiracy count and 20 years on the possession count. This case is the result of an investigation by the Federal Bureau of Investigation and the Central Minnesota Violent Offender Task Force. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.Arkansas man charged with bank robbery
Kenja Omar Deangelo Carmichael, age 35, of West Memphis, Arkansas, was charged with one count of bank robbery.
If convicted, Carmichael faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the FBI and the Duluth Police Department. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.Man charged with identity theft
Keith Michael Novak, age 25, unknown address, was charged by Information with one count of identity theft.
If convicted, Novak faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the FBI. It is being prosecuted by Assistant U.S. Attorneys Charles Kovats and Andrew R. Winter.Getaway Driver in Hobbs Act Robbery and Murder of Woonsocket Gas Station Manager Sentenced to 40 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Jose A. Santiago, 36, of Springfield, Mass., was sentenced today in U.S. District Court in Providence, R.I., to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket gas station manager David D. Main.
United States Attorney Peter F. Neronha, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell, Superintendent 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 Mr. 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 federal 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 5 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.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Georgia Men Sentenced for Orchestrating Bank Fraud SchemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that three Georgia men were sentenced by U.S. District Judge Patricia Minaldi for operating a counterfeit check scheme that bilked thousands of dollars from business bank accounts in South Central and Southwest Louisiana areas. A jury found them guilty on November 8, 2013, after a five-day trial.
Anthown Latarius Swan, 28, of Fairburn, Ga., was sentenced to 50 months in prison, Orlando Brian Washington, 29, of Riverdale, Ga., was sentenced to 24 months in prison, and Lavar Elliot Kittelberger, 33, of Marietta, Ga., was sentenced to 30 months in prison. Kittleberger was also sentenced to an additional 24 months in prison for aggravated identity theft. They were also all sentenced to five years of supervised release. The defendants are also responsible for paying $74,026 in restitution, except for Kittleberger who is responsible for $67,327. All of the defendants were convicted on charges of conspiracy to defraud a financial institution and possession of stolen mail. Swan and Washington were also convicted of eight counts of fictitious obligations, and Kittelberger was convicted of five counts of fictitious obligations and one count of aggravated identity theft.
According to evidence and testimony presented at the trial, the defendants stayed at Lafayette, La., hotels and stole from area businesses’ mailboxes looking for commercial checks sent to those businesses and drawn on local banks. They used account information on the original checks to print the counterfeit checks and recruited individuals off the street and from homeless shelters who had valid identification to cash the fake checks. Counterfeit checks were cashed at banks in Lafayette, Broussard, Crowley, Lake Charles, and Sulphur. After a search of the group’s hotel room on November 27, 2012, authorities found the 43 original stolen checks worth $155,223 in addition to a computer, printer and blank check paper.
The fourth co-defendant of the group, Kwame Raphael Cunningham, 22, of Augusta, Ga., pleaded guilty on August 22, 2013 and was sentenced on December 6, 2013 to 15 months in prison for conspiracy to defraud financial institutions and 24 months in prison for aggravated identity theft. He also received two years of supervised release. Cunningham is responsible, along with the other defendants, for paying $74,026 in restitution.The U.S. Secret Service, the U.S. Postal Inspection Service, and the Lafayette Police Department, with assistance from the Sulphur Police Department, the Calcasieu Parish Sheriff’s Office and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brett L. Grayson and Special Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Former Lubbock Resident Indicted by Federal Grand Jury for Production and Possession of Child PornographyRead the Press Release
LUBBOCK, Texas — Jeremy Daniel Labrec, 23, formerly of Lubbock, Texas, was charged in a federal indictment, returned late yesterday by a grand jury in Lubbock, Texas, with one count each of production and possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Count One of the indictment alleges that in February 2011, Labrec persuaded, induced and used a minor male, under age 18, to engage in sexually explicit conduct so that Labrec could photograph him.
Count Two of the indictment alleges that between February 5, 2011, and March 17, 2011, when the FBI executed a search warrant at his residence in Lubbock, Labrec possessed a hard disk drive containing child pornography.
According to the Bureau of Prisons, Labrec is currently incarcerated at FCI Otisville, New York. It is unknown when he will appear in Lubbock federal court to face these charges.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the possession count, not more than 10 years in prison. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.
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 is being conducted by the FBI. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Former Firefighter in Saipan, Commonwealth of Northern Mariana Islands, Pleads Guilty to Sexual Exploitation of A ChildRead the Press Release
Saipan, CNMI – Richard Sullivan Benavente, age 43, pleaded guilty on February 10, 2014, to sexual exploitation of a child. The guilty plea was announced by Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands. According to the plea agreement, Benavente used his cell phone to produce a video of himself and a 15 year-old female engaging in sexually explicit conduct on or about June 23, 2013.
In July 2013, the CNMI Department of Public Safety received a video file from an anonymous source depicting Benavente and a minor female engaging in sexually explicit conduct. The minor was later identified. The same video file was found on Benavente’s cell phone pursuant to a search warrant. Benavente was arrested on a complaint on August 14, 2013. On August 22, 2013, a federal grand jury returned an indictment against Benavente charging him with two counts of sexual exploitation of a child and one count of attempted sexual exploitation of a child in violation of 18 U.S.C. § 2251(a).
Benavente faces a minimum mandatory sentence of 15 years and a maximum sentence of 30 years in prison. Chief Judge Ramona V. Manglona, U.S. District Court of the CNMI, scheduled sentencing for September 10, 2014, at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney Limtiaco acknowledged and commended the hard work and investigative efforts of the FBI, and the assistance of the CNMI Department of Public Safety. The case was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Ross K. Naughton.
Former Correctional Officer Pleads Guilty to Smuggling Cell PhonesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Curtis Drakes, aged 33, of Mitchell County, Georgia, entered a plea of guilty on February 11, 2014, to conspiracy to provide contraband in prison before the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia.As a part of his plea agreement, Mr. Drakes admitted that from about April 15, 2013 to May 16, 2013, while employed as a Correctional Officer at the Mize Street Detention Facility in Pelham, Georgia, he accepted money from inmates in custody at the facility in exchange for cell phones, which are prohibited objects for the inmates.
The Court scheduled sentencing for May 8, 2014 at 3:00 pm in Albany, Georgia. Mr. Drakes faces a maximum sentence of five (5) years in prison.“When Mr. Drakes smuggled cell phones into a secure detention facility, he not only violated his oath, he put the safety of his fellow guards, law enforcement officers, and potential witnesses in jeopardy. We don’t need people who are locked up using cell phones to conduct illegal business or intimidate witnesses in the community,“ said U.S. Attorney Michael Moore.
The case was investigated by the United States Marshal Service and the Pelham Police Department. Assistant United States Attorney Leah E. McEwen is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Civilian Translator Embedded with Military Units in Afghanistan Pleads Guilty to Federal ChargesRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 39-year-old McKinney, Texas woman has pleaded guilty to federal violations stemming from her employment as a translator embedded with several U.S. military units in Afghanistan, announced U.S. Attorney John M. Bales of the Eastern District of Texas and U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Farida Yusufi, a U.S. citizen of Afghan origin, pleaded guilty to eight counts of a nine-count indictment, unsealed in August 2013, today before U.S. Magistrate Judge Amos Mazzant. Specifically, Yusufi pleaded guilty to five counts of making false statements to a federal agency; two counts of altering a military, naval or official pass; and one count of theft of government records. She has been in federal custody since her arrest in August 2013 by special agents with the FBI’s North Texas Joint Terrorism Task Force (JTTF).
According to documents filed in court, Yusufi received a final Secret security clearance in August 2008, but it was suspended on Oct. 1, 2009, and was never reinstated. Despite those facts, in an interview conducted by FBI and U.S. Army counterintelligence agents in Afghanistan in September 2011, Yusufi falsely told the federal agents that she possessed a Top Secret security clearance “in process,” which she knew was a false and misleading statement. In that interview, to mislead the agents who were trying to determine whether she was gaining access to classified information at a U.S. base in Afghanistan without authorization, she also falsely told them that she had never been fired from a job. In fact, she had previously been fired as a translator while working overseas for the U.S. military.
On Mar. 22, 2012, Yusufi made false statements to FBI agents about whether she had provided false information on her security clearance application form and whether she had actually been employed by a particular U.S. government contractor. She also made those false statements to mislead the FBI agents as to her actual statements to other federal agents and her employment history.
On Feb. 23, 2012, Yusufi again made a false statement to federal agents by stating that she had not applied for a position as a role player for a U.S. government contractor since her return from Afghanistan in September 2011, when, in fact, she had applied for such a position in June 2011 and inquired again about that application upon her return from Afghanistan earlier in September.
On Jan. 18, 2010, Yusufi falsely made, altered and tampered with an official military or government pass, that is a Letter of Authorization issued by or under the authority of the U.S. government, and on Mar. 13, 2013, Yusufi possessed an altered Letter of Authorization. A Letter of Authorization is the equivalent of a set of military orders for a government contractor, such as a contract linguist being deployed overseas, and it enables access to military transportation and military bases. The Letters of Authorization that Yusufi altered and possessed were never issued to her; rather, the original Letter of Authorization was issued to her former spouse.
On Mar. 13, 2013, the FBI executed a search warrant at Yusufi’s home in McKinney. On her computer, the FBI discovered sensitive U.S. military records that she obtained while embedded with the U.S. military and that she had no authority to possess or retain. She admits that she knew she had no right to possess or keep those records, and that she had converted them to her own use.
Statutorily, Yusufi faces a maximum penalty of five years in federal prison and a $250,000 fine for each of the false statement and altering a military, naval or official pass counts, and 10 years in federal prison and a $250,000 fine for the one count of theft of government records. However, according to the plea agreement, if acceptable by the Court, the parties have agreed that a sentencing range of 33 to 41 months in federal prison is an appropriate sentencing range. Yusufi also agreed to pay a $50,000 fine. Yusufi acknowledges that she may not withdraw her plea should the Court choose not to follow these sentencing recommendations. A sentencing date was not set.
This case was investigated by the FBI’s North Texas JTTF.
Assistant U.S. Attorney Andrew Stover, of the Eastern District of Texas, and Assistant U.S. Attorneys Errin Martin and Mark Penley, of the Northern District of Texas, are prosecuting.Former Civilian Translator Embedded with Military Units in Afghanistan Pleads Guilty to Federal ChargesRead the Press Release
SHERMAN, Texas – A 39-year-old McKinney, Texas woman has pleaded guilty to federal violations stemming from her employment as a translator embedded with several U.S. military units in Afghanistan, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and U.S. Attorney John M. Bales of the Eastern District of Texas.
Farida Yusufi, a U.S. citizen of Afghan origin, pleaded guilty to eight counts of a nine-count indictment, unsealed in August 2013, today before U.S. Magistrate Judge Amos Mazzant. Specifically, Yusufi pleaded guilty to five counts of making false statements to a federal agency; two counts of altering a military, naval or official pass; and one count of theft of government records. She has been in federal custody since her arrest in August 2013 by special agents with the FBI’s North Texas Joint Terrorism Task Force (JTTF).
According to documents filed in the case, Yusufi received a final Secret security clearance in August 2008, but it was suspended on October 1, 2009, and it was never reinstated. Despite those facts, in an interview conducted by FBI and U.S. Army counterintelligence agents in Afghanistan in September 2011, Yusufi falsely told the federal agents that she possessed a Top Secret security clearance “in process,” which she knew was a false and misleading statement. In that interview, to mislead the agents who were trying to determine whether she was gaining access to classified information at a U.S. base in Afghanistan without authorization, she also falsely told them that she had never been fired from a job. In fact, she had previously been fired as a translator while working overseas for the U.S. military.
On March 22, 2012, Yusufi made false statements to FBI agents about whether she had provided false information on her security clearance application form and whether she had actually been employed by a particular U.S. government contractor. She also made those false statements to mislead the FBI agents as to her actual statements to other federal agents and her employment history.
On February 23, 2012, Yusufi again made a false statement to federal agents by stating that she had not applied for a position as a role player for a U.S. government contractor since her return from Afghanistan in September 2011, when, in fact, she had applied for such a position in June 2011 and inquired again about that application upon her return from Afghanistan earlier in September.
On January 18, 2010, Yusufi falsely made, altered and tampered with an official military or government pass, that is a Letter of Authorization issued by or under the authority of the U.S. government, and on March 13, 2013, Yusufi possessed an altered Letter of Authorization. A Letter of Authorization is the equivalent of a set of military orders for a government contractor, such as a contract linguist being deployed overseas, and it enables access to military transportation and military bases. The Letters of Authorization that Yusufi altered and possessed were never issued to her; rather, the original Letter of Authorization was issued to her former spouse.
On March 13, 2013, the FBI executed a search warrant at Yusufi’s home in McKinney. On her computer, the FBI discovered sensitive U.S. military records that she obtained while embedded with the U.S. military and that she had no authority to possess or retain. She admits that she knew she had no right to possess or keep those records, and that she had converted them to her own use.
Statutorily, Yusufi faces a maximum penalty of five years in federal prison and a $250,000 fine for each of the false statement and altering a military, naval or official pass counts, and 10 years in federal prison and a $250,000 fine for the one count of theft of government records. However, according to the plea agreement, if acceptable to the Court, the parties have agreed that a sentencing range of 33 to 41 months in federal prison is an appropriate sentencing range. Yusufi also agreed to pay a $50,000 fine. Yusufi acknowledges that she may not withdraw her plea should the Court choose not to follow these sentencing recommendations. A sentencing date was not set.
The case was investigated by the FBI’s North Texas JTTF.
Assistant U.S. Attorneys Errin Martin and Mark Penley, of the U.S. Attorney’s Office in Dallas, and Assistant U.S. Attorney Andrew Stover, of the U.S. Attorney’s Office in Plano, Texas, are prosecuting.
Former Chiropractor, David Lee Killen, Indicted on Health Care Fraud and Aggravated Identity Theft ChargesRead the Press Release
DAVID LEE KILLEN, age 42, a resident of Covington, Louisiana, was charged today in a thirty-count health care fraud and four-count aggravated identity theft indictment by a Federal Grand Jury for his submission of fraudulent claims to Medicare, Medicaid and private insurers, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, KILLEN submitted bills to insurers for chiropractic adjustments, X-rays, and expensive allergy tests and back braces that he never provided. KILLEN is also charged with billing insurers for back braces at a rate of nearly $1,000 each, but actually providing a cheaper substitute to his patients that would not have been reimbursed at the same rate.
The indictment also charges aggravated identity theft for KILLEN’S alleged use of the medical doctor’s insurance provider numbers in conjunction with his health care fraud scheme. If an insurer would not reimburse certain services when provided by a chiropractor or licensed physical therapist, KILLEN allegedly billed the service as though it was provided by a medical doctor.
KILLEN is also alleged to have offered incentives and breaks for patient co-payments to his patients if they would agree to have an expensive allergy blood test for which his cost was $600 but for which he was reimbursed nearly $4,500. The indictment alleges that KILLEN even billed for a two-year-old to have the expensive test, although a cheaper pediatric version of the test was available.
If convicted, KILLEN faces a ten-year term of imprisonment for each of the health care fraud counts, along with two years of imprisonment for each of the aggravated identity theft counts. KILLEN is also subject to a fine of $250,000 and three years of supervised release following any term of imprisonment.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services. The case is being prosecuted by Special Assistant United States Attorney Juliana A. Etland.
(Download Indictment )
Former CFO Arrested for Failure to Pay Employment TaxRead the Press Release
HOUSTON - Lanny C. McCandles has been arrested for failing to pay employment tax and other tax offenses, announced United States Attorney Kenneth Magidson.
A federal grand jury returned the 16-count indictment Tuesday, Feb. 11, 2014. He was arrested today and is expected to make his initial appearance before U.S. Magistrate George C. Hanks tomorrow at 10:00 a.m.
According to the indictment, McCandles was the Chief Financial Officer for Complete Care Medical Inc. In that role, he was responsible for collecting, truthfully accounting for, and paying over the company’s employment taxes, including funds withheld in trust from employee paychecks to pay income tax and Medicare and Social Security taxes. However, instead of paying these taxes, McCandles allegedly embezzled the withheld funds between 2008 and 2010 and used them to pay personal expenses.
The indictment further alleges McCandles made false personal tax returns. He allegedly attached fictitious Forms W-2 claiming withholdings when, in fact, he did not have any withholdings from his wages. He also attached fictitious W-2s to tax returns he prepared on behalf of his girlfriend, according to allegations.
The indictment alleges actual and attempted tax loss to the U.S. Treasury of more than $134,000.
If convicted, McCandles faces a maximum of five years on each of the nine counts of failure to pay employment taxes, as well as three years on each of three counts of making a false tax return and four counts of preparing false tax returns.
IRS-Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration investigated the case. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
Feds Wrap up ‘Operation Safe Harbors’ locating Wanted Felons and Sex Offenders in SW WashingtonRead the Press Release
Three Day Enforcement Operation Concludes with Training for Police, Tribal, and School Staff on Child Safety Information
A three-day enforcement operation led by the U.S. Marshal Service concluded today with the apprehension of 89 felons including 10 sex offenders in Southwest Washington, announced U.S. Attorney Jenny A. Durkan. ‘Operation Safe Harbors’ was aimed at locating wanted felons and checking the status of registered sex offenders in Grays Harbor, Pacific, and Mason Counties. The operation concludes with a day-long training for local law enforcement, tribal authorities, victim advocates, and school staff about child safety issues related to sex predators and online communication.
“I commend the leadership of the U.S. Marshal Service working with local law enforcement to remove wanted felons from the community,” said U.S. Attorney Jenny A. Durkan. “Just one offender can have a significant impact on a smaller community. Sex offenders in rural areas, just like those in urban settings, need to know that law enforcement is watching. The training today will ensure that more adults will be attuned to the current threats to the safety of our children.”
Working with local sheriff and police departments, the U.S. Marshal Service identified felons who were the subject of warrants from various jurisdictions. Over three days, six teams of law enforcement officers arrested 89 offenders on fugitive warrants. As part of their sex offender registration responsibilities, the Marshal Service did compliance checks on 101 sex offenders in Grays Harbor County to ensure they are complying with their conditions of release. The compliance checks also included the collection of DNA samples for the sex offenders who had not yet provided a DNA sample to the data base.
The work of the Pacific Northwest Violent Offender Task Force led to arrests outside the state of Washington. Sex offenders with warrants out for their arrest in Grays Harbor County were arrested in Idaho, Oregon, near Reno, Nevada, and in San Diego, California. A defendant wanted for child molestation in Grays Harbor County was arrested by the task force in Montesano, Washington.
In a day-long training for local law enforcement, victim advocates, and service providers, experts provided information on identifying and prosecuting child sex trafficking, child pornography, and sex offender failure to register violations. Speakers discussed internet safety and ways to identify victims of child exploitation.
Those participating in Operation Safe Harbors include Pacific Northwest Violent Offender Task Force, United States Attorney’s Office, Grays Harbor County Sheriff, Mason County Sheriff, Pacific County Sheriff, Hoquiam Police Department, Washington State Department of Corrections, and Squaxin Island Tribal Police.
Federal Grand Jury Indicts Slaton, Texas, Man for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Dale Wray Fulford, 77, of Slaton, Texas, has been charged in a federal indictment with one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Fulford is currently in custody on related state charges. A date has not yet been set for him to make his initial appearance in federal court.
The indictment alleges that between February 2013 and early February 2014, Fulford used, persuaded, induced and enticed a female minor, under age 18, to engage in sexually explicit conduct that he recorded on a digital camera.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty is not less than 15 years or more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release.
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 is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Federal Grand Jury Indicts Seven in Cocaine Distribution ConspiracyRead the Press Release
One Defendant Also Faces Firearms Charges
LUBBOCK, Texas— A federal grand jury returned a four count indictment late yesterday charging seven defendants for their roles in a conspiracy to distribute cocaine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the following defendants is charged with one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine:
Manuel Carrillo Ortiz, 38
Martin Cardona Gutierrez, 46
Refugio Navarrete Gutierrez, 34
Efren Fabela Lopez, 34
Gisselle Lujan, 26
Jerardo Salcedo Garcia, 27
Javier Lopez Lujan, 47
Defendants Manuel Ortiz, Martin Gutierrez, Refugio Gutierrez and Efren Lopez are also each charged with one substantive count of possession with intent to distribute five kilograms or more of cocaine and aiding and abetting.
Defendant Martin Gutierrez is also charged with one count of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime.
All of the defendants, except for Javier Lopez Lujan, are in custody. Javier Lopez Lujan remains at large. A date has not yet been set for them to make their initial appearance in federal court.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalties are: conspiracy - life in prison and a $10 million fine; possession - life in prison and a $10 million fine; felon in possession of a firearm - 10 years in prison and a $250,000 fine; and possession of a firearm in furtherance of a drug trafficking crime - life in prison and a $250,000 fine.
The investigation is being conducted by the Lubbock County Sheriff’s Office, Ector County Sheriff’s Office, Midland Police Department, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Border Patrol.
Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Estherville Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced February 12, 2014, to more than 4 years in federal prison.
Jose Lopez, Jr., 25, from Estherville, Iowa, received the prison term after an October 23, 2013, guilty plea to conspiring to distribute methamphetamine.
At the guilty plea, Lopez, Jr. admitted his involvement in a conspiracy from 2009 through May 2013 that distributed more than 1.5 kilograms of methamphetamine. Lopez, Jr. and a co-defendant traveled to Wisconsin and Minnesota to obtain methamphetamine for later distribution in Iowa. On multiple occasions Lopez, Jr., distributed methamphetamine to undercover officers.
Lopez, Jr. was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Lopez, Jr. was sentenced to 59 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez, Jr. is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Clay County Sheriff’s Office and the Minnesota Bureau of Criminal Apprehension.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4048.
District Man Pleads Guilty to the Murder of A Taxi Driver and Felony Assault of Two Police OfficersDefendant Fired at Officers, Forcibly Entered Apartment in Hopes of Evading CaptureRead the Press Release
WASHINGTON – Ercell D. Overton, 32, of Washington, D.C., has pled guilty to second-degree murder while armed and other charges in the fatal shooting last June of taxicab driver Solomon J. Okoroh and a subsequent shoot-out with police, U.S. Attorney Ronald C. Machen Jr. announced.
In addition to the murder charge, Overton pled guilty on Feb. 12, 2014 in the Superior Court of the District of Columbia to two counts of felony assault on a police officer while armed. The Honorable Russell F. Canan scheduled sentencing for April 25, 2014. The plea agreement, contingent upon the Court’s approval, calls for a prison sentence of 25 years to 28 years.
According to the government’s evidence, at approximately 3 a.m. on June 4, 2013, three officers from the Metropolitan Police Department (MPD) were in a police vehicle and on patrol in the Adams Morgan area of Northwest Washington when they heard the sound of a single gunshot. Moments later, the officers observed a speeding Ford Explorer, “Classic Cab” taxi pass their location. The taxicab headed south in the 2300 block of Ontario Road NW, where it crashed into a parked car. As the taxicab passed by the police vehicle, officers observed a muzzle flash and heard the sound of a second gunshot from inside the passenger compartment of the taxi.
Upon impact, officers observed an unarmed man flee from the rear passenger side of the taxi. Two of the officers exited the police vehicle and apprehended the fleeing man without incident after a brief pursuit by foot.
Overton, on foot, then appeared behind the police vehicle and pointed a pistol toward the third officer, who was at the driver’s wheel. That officer exited the vehicle and took cover. Overton then ran behind the fence line of a house in the 2300 block of Ontario Road NW and discharged his weapon in the direction of two of the three police officers, who returned fire. Overton then forcibly entered a basement apartment on the block in an attempt to evade capture. MPD officers subsequently gained entry into the apartment and apprehended Overton and recovered a semi-automatic pistol in close proximity to Overton.
The taxi driver was later identified as Solomon J. Okoroh, 57, of Glenarden, Md. Mr. Okoroh suffered two fatal gunshot wounds to his back. He was taken to a hospital, where he died about two hours after the shooting. Prior to his death, he provided detectives assigned to the case a physical description of his assailant, which matched that of Overton.
In announcing the guilty plea, U.S. Attorney Machen praised those who investigated the case for the MPD, including members of the Third District and Homicide Branch. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kwasi Fields. Finally, he commended the work of Assistant U.S Attorney George Pace, who is prosecuting the matter.
14-039Denver Man Sentenced to Prison Term for Multi-Million Dollar Real Estate Fraud SchemeRead the Press Release
DENVER – Roger K. Howard, age 51, of Englewood, Colorado, was sentenced on Tuesday by U.S. District Court Judge R. Brooke Jackson to serve 108 months in federal prison for wire fraud and money laundering, the United States Attorney’s Office, IRS Criminal Investigation and the Federal Bureau of Investigation announced. Following his prison sentence, Howard was ordered to serve 3 years on supervised release. He also has to pay $8.9 million in restitution to the victims of his crime. The defendant, who appeared at the sentencing hearing free on bond, was ordered to report to a facility designated by the U.S. Bureau of Prison within 15 days from the date of designation.
Howard, along with a co-defendant, Oai Quang Luong, age 45, were indicted by a federal grand jury in Denver on January 25, 2012. Howard pled guilty on June 21, 2013. He was sentenced on February 11, 2014. Howard’s co-defendant, Oai Quang Luong pled guilty to wire fraud on May 22, 2013 and was sentenced by Judge Jackson on August 15, 2013 to serve 18 months in prison. Luong was ordered to pay restitution totaling $3.2 million joint and several with Howard.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, in 2006 and 2007, Howard devised and participated in three similar but separate mortgage-fraud schemes. The first and larger scheme involved the sales of twenty-six town homes in a development known as Oliveglen Villas on East Princeton Place, Aurora, Colorado. The second scheme involved the sale of a residence in Castle Rock, Colorado, and the third a house in Denver, Colorado. During the relevant times, Howard operated under the business names of Spring Creek Mortgage Real Estate Services and Open Range Development LLC. Howard controlled bank accounts in the names of both companies. Also at the relevant time, Howard’s co-defendant, Oai Luong, worked for a company that processed mortgage loan applications on behalf of potential home buyers. Both Howard and Luong had offices in the same building in Centennial, Colorado.
By the middle of 2006, the developer of Oliveglen Villas had accumulated an inventory of unsold town homes. At that time, two real estate agents attempted to obtain the right to buy some of the town homes, but they were unsuccessful. The agents then were referred to Howard, who told them that he could arrange for individuals, whom he described as investors, to purchase the properties. In August 2006, Howard asked Luong to obtain the $250,000, and Luong did so, using funds loaned by another individual. Howard persuaded seventeen individuals, his so-called investors, to purchase the town homes.
Howard arranged for the individuals to obtain the mortgage loans, and in doing so he knowingly caused the applications for those mortgages to include false or misleading information or omit material information. Many of the applications overstated borrowers’ monthly incomes, often claiming incomes were more than double the actual amounts. Loan applications also contained false information about borrowers’ assets, usually bank account balances. As part of the mortgage application process, a borrower obtained from his or her bank a form known as a Request for Verification of Deposit (VOD), which verified the balance of an account. In this case, VODs were misleading because Howard and others working at his direction arranged for bank account balances to be inflated temporarily; that is, money was deposited into the accounts and, after the balances were verified and the VODs were completed, the money was withdrawn. All of the town-home sales prices were supported by appraisals, most of which were done by an associate of Howard’s which he told the appraiser the amount he wanted.
For each closing, the closing agent prepared a settlement statement, reflecting that the disbursements of loan proceeds included a payment “from Seller’s Funds at Settlement” to Open Range Development. These payments were the “service fees” mentioned in the contract with the developer; they ranged from $85,700 to $117,204. After the closings, Howard used some of that money to make payments to all but one of the buyers, but those payments were not disclosed to the lenders or their underwriters. Howard for a time wrote checks payable to the borrowers to cover the differences between rental incomes and mortgage payments, but he stopped doing so on April 19, 2007. A few borrowers thereafter used their own money to make mortgage payments, but eventually all of the mortgages went into default and the lenders foreclosed. Ultimately there were 20 different victim lenders for the three fraudulent schemes, causing a $8.9 million loss.
“Real estate fraud hurts both individual home buyers, and as the events of 2007 and 2008 so clearly showed, the entire economy as well,” said U.S. Attorney John Walsh. “This lengthy sentence reflects the harm this defendant caused to his 20 victim lenders.”
“The FBI is committed to aggressively pursuing those who commit mortgage fraud. Falsifying information on a loan application and lying to a lender to facilitate approval for a loan is a felony,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “We hope the results of this investigation will deter others who engage in these types of fraud schemes.”
“This sentencing is a strong reminder how serious law enforcement and our courts deal with mortgage fraud,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “IRS Criminal Investigation is committed to identifying and pursuing individuals who commit such callous fraud.”
This case was investigated by agents with Internal Revenue Service Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI).
The case was prosecuted by Assistant United States Attorney Suneeta Hazra.Cuyahoga Falls Man Indicted for Trying to Buy A ChildRead the Press Release
Robert W. Thomas, 37, of Cuyahoga Falls, Ohio, was charged with offering to buy a child, enticement, and receiving and distributing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
“The conduct laid out in the indictment should sound an alarm for all parents,” Dettelbach said. “We will remain vigilant in protecting our children from predators.”
“Mr. Thomas’ behavior and his stated desires for wanting to buy a child are frightening,” Anthony said. “Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children and this is yet another reminder for parents to be aware of their child's Internet activities.”
From on or about January 6, 2014, through on or about January 11, 2014, Thomas offered to purchase or otherwise obtain custody or control of a minor, that is, a 10-year-old girl, with the intent to promote the engaging in of sexually explicit conduct by such minor for the purpose of producing a visual depiction of such conduct; and such offer was communicated and transported using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce by any means including by computer, according to the indictment.
The indictment also charges that from on or about January 6, 2014, through on or about January 11, 2014, Thomas knowingly used a computer connected to the Internet and a cellular phone, to attempt to induce a 10-year-old girl to engage in illegal sexual activity with him.
The indictment also charges that from on or about January 1, 2012, through on or about January 11, 2014, Thomas knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Alliance Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Couple Sentenced for Conduct in Tax Fraud Scheme Involving Ogden Sports Bar and GrillRead the Press Release
SALT LAKE CITY - Robert Watson, 54, and Marie Watson, 53, both of Pleasant View, Utah, were sentenced Wednesday in U.S. District Court in Salt Lake City for their role in a tax fraud scheme arising out of their operation of Teazers Sports Bar & Grill in Ogden, Utah.
Robert Watson, who pleaded guilty in September to two counts of filing false tax returns, including one corporate return and one personal return, was sentenced to six months incarceration, 12 months of supervised release, and 500 hours of community service. He was also ordered to pay restitution to the IRS in the amount of $39,629.
Marie Watson, who pleaded guilty to one count of filing a false personal tax return, was sentenced to 36 months of probation, and 200 hours of community service. She was ordered to pay $14,602 in restitution to the IRS.
U.S. District Judge Clark Waddoups imposed the sentences.
According to the indictment and other publicly filed documents, during the time the Watsons owned and operated Teazers, they failed to report substantial cash income on Teazers’ corporate returns and on their personal tax returns. Teazers generated large amounts of cash income from entrance fees known as “cover charges” charged at the door of the bar and from other items in the bar such as pool tables and video games. The Watsons deliberately hid this cash income from their tax preparer and caused tax returns to be filed with the IRS that understated their true income.
This case was investigated by the IRS-CI Las Vegas Field Office and was prosecuted by Assistant U.S. Attorney Jason R. Burt for the District of Utah.
Convicted Felon Sentenced to 15 Years for Illegal Possession of FirearmsRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that MICHAEL WAYNE DAVIS, JR, age 27, of Baton Rouge, Louisiana, was sentenced today by U.S. District Court Chief Judge Brian A. Jackson to serve 180 months in federal prison and three years of supervised release after imprisonment. The sentence results from DAVIS’S conviction for possession of firearms by a convicted felon, in violation of Title 18, United States Code, Section 922.
On February 9, 2012, Baton Rouge Police Officers found DAVIS and the firearms in a bedroom of the house they had entered to execute an arrest and search warrant.
At sentencing, Judge Jackson noted DAVIS’S extensive criminal history, including his prior convictions for burglary and unauthorized entry of an inhabited dwelling, Judge Jackson found DAVIS to be an armed career criminal and subject to a mandatory sentencing enhancement.
This matter was investigated by the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Chiropractor Arrested for Bribing IRS AuditorRead the Press Release
BOSTON - A chiropractor was arrested today for bribing an IRS auditor.
Stephen Jacobs, 55, of Lowell, was arrested for bribery of a public official. The complaint alleges that Jacobs paid an IRS auditor $5,000 in cash to ignore two deductions he improperly took on this 2011 income tax form. These deductions were in fact payments Jacobs made to two different women because he touched them inappropriately during medical treatments during 2011 and 2012.
A probable cause hearing is scheduled for March 5, 2014 at 2:00 pm.
United States Attorney Carmen M. Ortiz and Robert O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chilton Man Indicted for Felony Fish and Wildlife ViolationRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin announced that on February 11, 2014, a federal grand jury returned a felony indictment against Todd David Doughty (age: 50), owner of the “Thunderbird Game Farm” in Chilton, Wisconsin, charging him with a single violation of the Migratory Bird Act in violation of 16 U.S.C. Sections 703(a), 707(b)(2) and 18 U.S.C. Section 2. If convicted of the offense, the defendant faces up to two years imprisonment, a $250,000 dollar fine, one year on supervised release and a $100 special assessment.
According to the indictment, Doughty engaged in the illegal sale of a migratory bird in violation of federal law. Mr. Doughty is scheduled for arraignment in United States District Court in Green Bay, Wisconsin, on February 27, 2014 at 11:30 a.m.
The case was investigated by the United States Fish and Wildlife Service and the Wisconsin Department of Natural Resources. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Chillicothe Couple Plead Guilty in $4 Million Theft, Money Laundering, False Tax Return CaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chillicothe, Mo., husband and wife pleaded guilty in federal court today to charges involving the wife’s embezzlement of nearly $4 million from her employer and their jointly filing a false income tax return not claiming the income from the wire fraud scheme.
Donna M. Preszler, 60, and her husband, Terrance W. Preszler, 63, both of Chillicothe, pleaded guilty before U.S. Magistrate Judge Robert E. Larsen. Donna Preszler pleaded guilty to wire fraud, money laundering and filing a false income tax return. Terrance Preszler pleaded guilty to filing a false income tax return.
Donna Preszler was employed at Burdg, Dunham & Associates Construction Corp. (BDA) in Hamilton, Mo., from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
Donna Preszler admitted that she embezzled $3,912,000 in a wire fraud scheme that lasted six years, from June 30, 2006 through June 15, 2012. She also admitted that she conducted financial transactions that involved the proceeds of her criminal activity.
Donna and Terrance Preszler each admitted that they failed to report the fraudulently obtained funds on their federal income tax returns for tax years 2007 through 2012. During that time, the Preszlers filed their federal income tax returns jointly and should have paid $1,236,690 in taxes on their unreported fraudulent income from BDA. For example, the Preszlers claimed their income in 2012 was only $46,863. Including the embezzled funds, according to today’s plea agreements, their income was actually $851,863 and they should have paid an additional $253,641 in taxes.
Donna Preszler utilized her role as accounting manager to add false and fictitious non-taxable payments, such as expense reimbursements, to herself. Donna Preszler transferred approximately $3,912,000 in fraudulent payments to herself and her family.
Donna Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll. Donna Preszler received $137,121 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Donna Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
Under the terms of today’s plea agreements, the Preszlers must forfeit to the government any property derived from the proceeds of the criminal violations, including a money judgment of $3,912,000, two residential lots, two 14kt diamond rings, 10 vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2011 Ford F150, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank accounts and funeral trust accounts. Most of those items have been seized by law enforcement agents.
Under federal statutes, Donna Preszler is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $600,000 and an order of restitution. Terrance Preszler is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI and IRS-Criminal Investigation.Child Pornography Charged Filed on Sheffield Lake ManRead the Press Release
William D. Emery, 28, of Sheffield Village, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about August 16, 2012, through on or about August 19, 2012, Emery knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on December 14, 2012, Emery possessed a computer and an external hard drive, each that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canadian Woman with Multiple Identites Sentenced Formaking False StatementsRead the Press Release
BUFFALO N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Elizabeth Reid, a/k/a Elizabeth Rodriguez, a/k/a Elizabeth Ortiz, 31, an alien from Canada, who was convicted of making a false statement, was sentenced to 12 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on July 2, 2013, the defendant was arrested by United States Border Patrol after officers received a tip that Reid was living in the United States illegally. The defendant, at the time of her arrest, falsely represented to officers that she was not Elizabeth Reid but rather Elizabeth Ortiz. Reid presented as proof a fraudulent California birth certificate in the name of Elizabeth Ortiz. Officers entered the defendant’s fingerprints into the Integrated Automated Fingerprint Identification System which revealed the Reid’s true identity. The system also revealed that the defendant used Elizabeth Rodriquez as another identity.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Border Patrol, under the supervision of Patrol Agent in Charge Tom Pocorobba, Jr.
Bridgestone Corp. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
Bridgestone Corp., a Tokyo, Japan-based company, has agreed to plead guilty and to pay a $425 million criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Northern District of Ohio in Toledo, Bridgestone engaged in a conspiracy to allocate sales of, to rig bids for and to fix, raise and maintain the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd., Suzuki Motor Corp., Isuzu Motors Ltd. and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere. In addition to the criminal fine, Bridgestone also has agreed to cooperate with the department’s ongoing auto parts investigations. The plea agreement is subject to court approval.
In October 2011, Bridgestone pleaded guilty and paid a $28 million fine for price-fixing and Foreign Corrupt Practices Act violations in the marine hose industry, but did not disclose at the time of the plea that it had also participated in the anti-vibration rubber parts conspiracy. Bridgestone’s failure to disclose this conspiracy was a factor in determining the $425 million fine.
“The Antitrust Division will take a hard line when repeat offenders fail to disclose additional anticompetitive behavior,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Today’s significant fine reaffirms the division’s commitment to holding companies accountable for conduct that harms U.S. consumers.”
According to the charges, Bridgestone and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids, prices and allocating sales of certain automotive anti-vibration rubber products. After exchanging this information with its co-conspirators, Bridgestone submitted bids and prices in accordance with those agreements and sold and accepted payments for automotive anti-vibration rubber parts at collusive and noncompetitive prices. Bridgestone’s involvement in the conspiracy to fix prices of anti-vibration rubber parts lasted from at least January 2001 until at least December 2008.
“The Cleveland Division of the FBI is committed to aggressively investigating price-fixing and other antitrust violations,” said Special Agent in Charge Stephen D. Anthony. “The illegal activity in this case threatened the basic tenet of free competition. We are pleased with the acceptance of responsibility along with the significant penalty which will be paid by Bridgestone for this conspiracy to fix prices. Together with our partners in the Department of Justice’s Antitrust Division, we will continue to combat illegal practices which threaten consumers across the United States.”
Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile. They are installed in automobiles for the purpose of reducing road and engine vibration.
Including Bridgestone, 26 companies have pleaded guilty or agreed to plead guilty in the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry. The companies have agreed to pay a total of more than $2 billion in criminal fines. Additionally, 28 individuals have been charged.
Bridgestone is charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s prosecution is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information concerning this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.Brecksville Man and His Brother Indicted Scheme Involving Sale of Counterfeit Baseball CardsRead the Press Release
A Brecksville man and his brother were indicted for operating a scheme to defraud people who believed they were bidding on rare and collectable baseball cards on eBay including Babe Ruth and Mickey Mantle cards, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Steven Norris, age 38, of Brecksville, Ohio, and his brother, Scott Norris, age 40, of Milton, Penn., are named in the nine-count indictment. The charges include mail fraud and wire fraud.
“The charges allege that the defendants made tens of thousands of dollars in fraud proceeds using the great legends of baseball as trade bait,” Dettelbach said. “Now it is the defendants who are hooked. The Secret Service did a tremendous job putting this case together.”
Beginning in 2006 through 2012, Steven and Scott Norris advertised various baseball cards for sale on eBay. They utilized numerous email addresses to list the cards for sale. The cards, if genuine, would have been rare and valuable, including 1952 Mickey Mantle cards and 1933 Babe Ruth cards, according to the indictment.
The Norris’ accepted payments from bidders but failed to deliver the cards as required. In some instances, Steven and Scott Norris sent counterfeit or “reprinted” cards to successful bidders rather than the genuine cards advertised for sale, according to the indictment.
In other instances, Steven and Scott Norris contacted individuals who bid on the cards, represented the high bidder was unable to complete the transaction, and asked if the “runner up” bidder was interested in buying the item. They would then negotiate a sales price and direct the buyer to mail a cashier’s check to an address in Brecksville owned by the defendants’ parents. After receiving payment, Steven and Scott Norris would fail to deliver the items in question or sent counterfeit or “reprinted” baseball cards to the buyers, according to the indictment
As a result of the scheme, individual bidders and PayPal suffered losses totaling approximately $60,310, according to the indictment.
The indictment charges that in furtherance of the scheme, the defendants mailed or caused certain items to be mailed via the U.S. Postal Service and transmitted or caused the transmission of certain interstate wire communications.
The case is being prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the United States Secret Service.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Brazilian National Sentenced for Immigration FraudRead the Press Release
A citizen and national of Brazil, Andrea Carla Barbosa, 36, of Orange Beach, was sentenced today to five years of probation and removal from the country after pleading guilty to immigration fraud, United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today.
Barbosa pled guilty in November to attempting to obtain citizenship by fraud. She entered the United States in 2001 and after overstaying her visa, she applied for naturalization based on a fraudulent marriage to a United States citizen. Although Barbosa was sentenced to five years of probation, a requirement of her probation is that she voluntarily leave the United States in March or be deported.
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations, and prosecuted by Assistant United states Attorney Sean P. Costello.
Baton Rouge Woman Sentenced to over Five Years in Prison for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that yesterday, U.S. District Judge Shelly D. Dick sentenced MONA R. HILL, age 32, of Baton Rouge, Louisiana, to 65 months imprisonment for wire fraud and aggravated identity theft. HILL was also sentenced to serve three years of supervised release following her release from imprisonment and ordered to pay the Internal Revenue Service (IRS) $491,268 in restitution.
During her guilty plea hearing last year, HILL admitted that she schemed to defraud the IRS by submitting hundreds of false tax returns in the names of other individuals for the purpose of receiving thousands of dollars in tax refunds. HILL accomplished the scheme by fraudulently obtaining the names and personal identifying information, including social security numbers, of individuals without their knowledge or consent. Using the information, HILL submitted false income tax returns to the IRS electronically via an internet tax program. The applications falsely represented that the individuals had worked for various companies during 2011 and were eligible for income tax refunds. In fact, these individuals had not worked for or earned wages from the companies reflected in the fraudulent tax returns, nor had the victims authorized HILL to submit any such returns on their behalf.
From in or about January 2012 through in or about July 2012, HILL submitted approximately 488 false tax returns, falsely claiming refunds totaling approximately $661,258. As a result of her scheme, HILL actually received nearly $500,000.
United States Attorney Walt Green stated: “This sentence should send a clear message that identity theft will not be tolerated. Our office will continue to aggressively pursue and prosecute those who would steal other individuals’ identities and submit false tax returns in an effort to line their pockets.”
Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, stated, “We are pleased with the sentence the Court imposed on Mona Hill. Identity theft is a growing problem, and can make honest taxpayers face a more difficult time obtaining their lawful refund. The IRS is vigilant in our investigation of these schemes and will continue to work with the United States Attorney’s Office to combat this type of criminal conduct."
This investigation was conducted by IRS - Criminal Investigations Division. The matter is being prosecuted by Assistant United States Attorney Shubhra Shivpuri.
Anchorage Drug Trafficker Receives Ten Year SentenceRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Albert Diaz Gumataotao, III, a resident of Anchorage, has been sentenced in federal court in Anchorage to 120 months in prison for his conviction of the crime of drug trafficking conspiracy.
United States District Court Judge Sharon L. Gleason imposed the sentence on 24 year-old Gumataotao.
According to information presented to the court by Special Assistant United States Attorney Erin White Bradley, who prosecuted the case, Gumataotao and his co-defendant, David Alan Gonzales, accepted delivery of a package containing 52 grams of pure methamphetamine. Co-defendant Gonzales is pending trial in this matter.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, the defendant’s history and the need to protect the public.
Ms. Loeffler commends the United States Postal Inspection Service and the Anchorage Police Department for the investigation leading to the convictions in this case. Special Assistant U.S. Attorney Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
Ammunition Smugglers SentencedRead the Press Release
McALLEN, Texas – Mexican nationals Gregorio Rodriguez-Aranda, 25, and Maria Luisa Sanchez-Lopez, 24, have been sentenced following their convictions relating to the exportation of 707 rounds of 7.62mm ammunition and 98 AK47 magazines, announced United States Attorney Kenneth Magidson. Both pleaded guilty Nov. 25, 2013.
Today, U.S. District Judge Micaela Alvarez sentenced Rodriguez and Sanchez to 57 and 46 months imprisonment, respectively. The court enhanced the sentences because the couple used their five-year-old child to further the offense by traveling as a family unit and thereby concealing the true unlawful purpose of the trip. Additionally, Judge Alvarez noted that Rodriguez and Sanchez, in committing this offense, have contributed to the violence in Mexico that cause so many flee to the United States.
Rodriguez and Sanchez have been in custody since their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorneys Kristen J. Rees is prosecuting.