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12 February 2014
Greece Man Sentenced for Sexually Exploiting A ChildRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Terrance Junot, III, 37, of Greece, N.Y., who was convicted of online enticement of a minor, was sentenced to 12 years in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also placed on supervised release for 10 years upon his release. He will also have to register as a sex offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant engaged in a series of sexually explicit online communications with a 13 year old child who was a family friend. During those communications, Junot repeatedly talked about having sex with the child, and persuaded her to produce sexually explicit photographs of herself which he then made her send to him over the internet. The defendant also sent sexually explicit photos of himself to the child during these chats in order to groom and manipulate her into sending her photos to him. The government noted at sentencing that the defendant would spend time with the victim’s parents during the day bowling, while at the same time sexually exploiting their 13 year old daughter at night without their knowledge.
The case came to the attention of law enforcement after the child's mother found naked photos of the defendant on her child's phone. The parent recognized Junot and took the phone to the Greece Police who began an investigation. When the defendant learned that law enforcement would be investigating, he erased all the photos, chats, and even the chat program he used to solicit and entice the child from his cell phone. This conduct resulted in a sentencing enhancement for obstruction of justice.
In the course of their investigation, Greece Police executed several search warrants and searched the victim's cell phone. Following their discovery of sexually explicit pictures of the victim, Greece Police contacted the FBI Child Exploitation Task Force for assistance. This team, made up of agents from the Federal Bureau of Investigations and Homeland Security Investigations, as well as officers from the Rochester Police Department and deputies from the Monroe County Sheriff’s Office, continued the investigation, conducted forensic searches of the digital equipment in the case and ultimately arrested the defendant on federal charges.
“It’s a message that I share with parents and guardians every chance I get, please keep a very close eye on what your children do online and on their cell phones,” said U.S. Attorney Hochul. “The mother of the victim in this case did just that and now the predator that victimized her child will be spending many years behind bars. Let this case serve as an example to other parents to be on alert and if you suspect a problem, please contact police.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Todd Baxter, Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, Special Agents of Homeland Security Investigations under the direction of Special Agent in Charge James Spero, Officers of the Rochester Police Department, under the direction of Acting Police Chief Michael Ciminelli, and Deputies from the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
Gang Member from Hollygrove Area, Norman Ratcliff, Sentenced to 33 Years in Prison on Federal Rico, Drug, and Murder ChargesRead the Press Release
NORMAN RATCLIFF, a/k/a “Turk”, 21, a resident of New Orleans, was sentenced today by U.S. District Judge Stanwood R. Duval, Jr. to serve 396 months in prison for violating federal RICO, drug conspiracy, firearms conspiracy, and murder charges, announced U.S. Attorney Kenneth Allen Polite, Jr. RATCLIFF was a member of a gang from the Hollygrove area of the city that was involved in several shootings and murders in recent years. To date, all but one of the indicted members of this gang have pled guilty and have been sentenced. The last remaining co-defendant, Walter Conley, is scheduled to be sentenced on February 26, 2014.
RATCLIFF had previously pled guilty to RICO conspiracy, drug conspiracy, and participating in the drive-by shooting that resulted in the murder of Ms. Eula Mae Ivey on June 14, 2010.
A thirty-four count second superseding indictment was returned on November 16, 2012, charging Walter Conley, a/k/a “Ike Neezy”; Tyronne Stevenson, a/k/a “Duke”; Theron Golston, a/k/a “Thema”; Bernell Williams a/k/a “Bussy”, a/k/a “A-Boogie”; Carey Jones, a/k/a “Bean”; and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Ryan Carroll pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. On October 16, 2013, he was sentenced to serve 210 months in federal prison.
Co-defendant Theron Golston was sentenced to life in prison on November 20, 2013 for his participation in the RICO conspiracy, the murder of Aaron Allen, and the drive-by murder of Ms. Eula Mae Ivey.
Co-defendants Tyronne Stevenson and Mark Glenn also pled guilty to various charges in the indictment, which included non-fatal shootings and were sentence back on December 11, 2013. Stevenson and Glenn were sentenced to serve 360 and 300 months, respectively.
Co-defendant Carey Jones was sentenced to life in prison on January 22, 2014.
“Ratcliff and his co-defendants were responsible for terrorizing the streets of New Orleans,” stated United States Attorney Polite. “Today’s lengthy sentence underscores that our community is fed up with violence in our neighborhoods. Those who perpetrate such violence are on notice: you will be held accountable for your actions.”
Mr. Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG UNIT who worked on this case and renewed the USAO’s commitment to assist the MAG UNIT in targeting these types of violent offenders.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from A.T.F., the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Four Individuals Charged in Manhattan Federal Court with Participating in A Multi-State Robbery Crew That Stole More Than $1 Million in Luxury Watches and Other GoodsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William Bratton, the Police Commissioner of the City of New York (“NYPD”), announced the unsealing of a five-count Complaint yesterday charging four members of a robbery crew operating across New York, New Jersey, and Virginia with robbery conspiracy and robberies of high-end jewelry and watch stores, resulting in the theft of more than a million dollars in watches. Specifically, ALLEN WILLIAMS, 35, ROBERTO GRANT, 33, TERRELL RATLIFF, 22, and TYRONE DEHOYOS, 35, have each been charged with robbery conspiracy and one or more substantive robberies. DEHOYOS was arrested yesterday in Brooklyn, New York, and was presented before U.S. Magistrate Judge Andrew J. Peck. DEHOYOS was ordered detained pending trial. WILLIAMS, GRANT, and RATLIFF were all previously arrested by the NYPD and are expected to be transferred into federal custody to be presented on the charges contained in the Complaint.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants engaged in violent robberies of luxury jewelry stores in New York, New Jersey, and Virginia. They allegedly combined forethought with force, scouting out their targets and then terrorizing customers and employees by smashing display cases with hammers and stealing high-end timepieces. They will now face the consequences of their violent shopping spree.”
FBI Assistant Director-in-Charge George Venizelos said: “From Cartier on Manhattan’s Fifth Avenue to the Borgata Casino in Atlantic City, the defendants left no rock unturned, carrying out a series of brazen midday smash-and-grab robberies of high-end jewelers up and down the East Coast. It took sophisticated, modern crime fighting techniques to tie the heists together. Today, we see the result of diligent work by law enforcement from Virginia to New York to stop this violent, skilled crime syndicate.”
Police Commissioner William J. Bratton said: “Thanks to the collaborative efforts of investigators and prosecutors assigned to this case, four members of this smash and grab crew, which targeted businesses throughout New York City and in other states, have been shut down. Two of these criminals, Allen Williams and Roberto Grant, were quickly apprehended by members of the NYPD after they brazenly walked into a Manhattan Cartier store and stole more than $700,000 worth of watches.”
According to the allegations contained in the Complaint and statements made in court today:
Between approximately July 1, 2013, and January 30, 2014, a highly organized crew engaged in a series of violent robberies of high-end jewelry and watch stores located in three states, while customers and employees were in the stores, and stole more than a million dollars in luxury watches.
The robberies followed a simple but brazen pattern: On each occasion, three to five members of the crew entered a jewelry or watch store, began smashing glass display cases with hammers, grabbed luxury watches from those display cases, and then fled within minutes of entering the store into waiting getaway cars driven by members of the robbery crew. Each robbery occurred during business hours while store employees and customers were present. The crew used violence as necessary to carry out the scheme. For example, during one robbery in August 2013 in Richmond, Virginia, the robbers used a handheld stun gun to subdue a female store employee before fleeing with more than $100,000 in watches.
Among the stores robbed by the crew are: Cartier in Manhattan, New York; the Borgata Hotel and Casino in Atlantic City, New Jersey; Schwarzschild’s Jewelers in Richmond, Virginia; and Martin Jewelers in Cranford, New Jersey.
All four of the defendants are charged in Count One of the Complaint, conspiracy to commit robbery in interstate commerce, which carries a maximum sentence of 20 years in prison. WILLIAMS and GRANT are also charged with each of the robberies in interstate commerce in Counts Two through Five in the Complaint; RATLIFF is charged with the robbery in interstate commerce in Count Two of the Complaint; and DEHOYOS is charged with the robbery in interstate commerce in Count Four of the Complaint. Each of the substantive interstate robbery counts carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI and the NYPD. Mr. Bharara also thanked the Manhattan District Attorney’s Office, which brought charges against WILLIAMS and GRANT in connection with their participation in the January 30, 2014, robbery of Cartier. He also thanked the Richmond FBI Office and the Atlantic City Resident Agency of the Newark FBI Office, as well as the police departments of Cranford, New Jersey, Atlantic City, New Jersey, and Richmond, Virginia.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Andrea Griswold and Richard Cooper are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Allen Williams, et al. Complaint
Former Youth Pastor at Church in Garland, Texas, Sentenced to 144 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Joshua Earls, 30, of Garland, Texas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 144 months (12 years) in federal prison and a lifetime of supervised release, following his guilty plea in October 2013 to one count of receipt of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Earls admitted that while he was a youth pastor, he established a relationship with female minor at his church, “Jane Doe,” who at the time was 16-years-old.
In April 2013, Jane Doe disclosed the nature of her relationship with Earls to the Garland Police Department, and on April 9, 2013, law enforcement executed a search of Earl’s residence and seized several computers. An examination of those computers resulted in the identification of well over 600 images of child pornography, including images of Jane Doe.
Earls admitted that he exchanged nude pictures and videos with Jane Doe and possessed videos of her engaging in sexually explicit conduct, at his request. A forensic examination of Earls’ cell phone revealed text messaging between he and Jane Doe, in which he solicits, encourages and persuades her to produce pornographic images of herself and send them to him.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Garland Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Former St. Tammany Coroner, Peter Galvan, Sentenced for Conspiracy to Steal Funds from Coroner's OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the former St. Tammany Parish Coroner, was sentenced today to serve 24 months in federal custody followed by one year of supervised release, fined $5,000, and ordered to pay restitution of at least $193,388. GALVAN pled guilty to conspiring to steal government funds from the St. Tammany Parish Coroner’s Office on October 23, 2013, announced U. S. Attorney Kenneth Allen Polite, Jr.
According to the Factual Basis, the Bill of Information to which GALVAN pled guilty, and other court documents filed in federal court:
GALVAN earned annual or sick leave to which he was not entitled. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with an employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite Receiver for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
The investigation of the St. Tammany Coroner’s Office is continuing.
“Members of this community, and indeed residents of this entire state, are tired of corruption and the negative effect it has on our reputation, economic development, and quality of life,” stated United States Attorney Polite. “Our residents expect that elected officials will provide honest services to the public, not use their offices or titles to enrich themselves. We expect, and will no longer tolerate, anything less.”
Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Field Office, Michael Anderson stated: “This conviction clearly highlights the significant importance of the continuous engagement of the local citizenry to support law enforcement’s priority mission to address fraud, corruption and betrayals of public trust.”
“Today's sentencing of Dr. Peter Galvan again emphasizes the Internal Revenue Service, the U.S. Attorney’s Office and federal law enforcement partners will continue their aggressive pursuit of those who defraud the public and divert public money for personal use." said Gabriel L. Grchan, IRS Criminal Investigation Special Agent in Charge, New Orleans Field Office. "Honest taxpayers have been reassured today that no one is above the law."
Mr. Polite praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor.
The case is being handled by the Office’s Fraud Unit, Assistant United States Attorneys Carter K. D. Guice, Jr. and Chandra Menon.
Former Nightclub Owners Sentenced for Tax ViolationsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Vincent Giamo and his wife Mary Giamo, both of Orchard Park, N.Y., who were convicted of tax violations, were sentenced by Chief U.S District Judge William M. Skretny. Vincent Giamo, who was convicted of tax evasion, was sentenced to 12 months in prison. Mary Giamo, who was convicted of aiding or assisting in the preparation of a false tax return, was sentenced to three years probation. The couple was also ordered to pay restitution in the amount of $671,840. The defendants have already paid $550,000 to the Internal Revenue Service.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendants owned and operated a bar business, known as "Utopia" located at 228 Franklin Street. Between 2002 and 2005, Vincent Giamo maintained two sets of books for "Utopia." One set of books was used for the preparing and filing of the corporate tax returns and the other set of books reflected the true receipts and expenses for the business. The total amount of tax loss associated with the evasion is approximately $1,225,651. Mary Giamo, as an officer of the corporation, aided her husband Vincent Giamo in filing a false return for the taxable years 2004 and 2005. As a result the tax loss for those years was approximately $123,454.
The defendants also face civil penalties associated with the charges.
The sentencings are the culmination of an investigation on the part of the Criminal Special Agents of the Internal Revenue Service, under the direction of Acting Special Agent in Charge Toni Weirauch.
Former Erie Man Sentenced to 7+ Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 80 months in prison on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Jerod Manning, 23.
According to information presented to the court, Manning possessed a firearm while being a convicted felon.
Assistant United States Attorney Christine A. Sanner prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department for the investigation leading to the successful prosecution of Manning.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Former Employee of Forty Fort GM Foodmart Store Pleads Guilty to Synthetic Marijuana ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old New Jersey resident who worked at a GM Foodmart store in Kingston, Pennsylvania, pleaded guilty today to conspiracy to distribute synthetic marijuana before Senior U.S. District Court Judge Edwin M. Kosik.
According to United States Attorney Peter J. Smith, the defendant, Manjinder Singh, also known as “Mintu,” admitted that he conspired with others to distribute synthetic marijuana from the store during January 2012 through July 2012.
The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police.
Singh faces up to 20 years in prison and a $1 million fine. No date for sentencing was scheduled.
The owner of the GM Foodmart store, Mastan Mathan, previously pleaded guilty to participating in a money laundering conspiracy connected to the sale of synthetic marijuana. He is waiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Former East Haven Police Sergeant Sentenced to Four Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Sergeant JOHN MILLER, 44, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to four months of imprisonment, followed by two years of supervised release, for violating an individual’s civil rights by using unreasonable force during the course of an arrest. MILLER was also ordered to pay a $3000 fine.
This matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, MILLER and Officers Dennis Spaulding, Jason Zullo and David Cari were convicted of various civil rights offenses.
According to court documents and statements made in court, on January 3, 2010, in the course of making an arrest, MILLER struck a handcuffed individual while the victim was in the secure custody of two other East Haven Police officers.
On September 21, 2012, MILLER pleaded guilty to one count of depriving an individual of his right to be free from the use of excessive force by a law enforcement officer.
Judge Thompson credited MILLER for his cooperation in the investigation and prosecution of this matter and imposed a sentence below the recommended sentencing guidelines range of 12 to 18 months of imprisonment.
MILLER, who has retired from the East Haven Police Department, was ordered to report to prison on March 13.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On October 21, 2013, David Cari was found guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report. On January 21, 2014, he was sentenced to 30 months of imprisonment.
On October 21, 2013, Dennis Spaulding was found guilty of one count of conspiracy against rights, one count of use of unreasonable force by a law enforcement officer, two counts of deprivation of rights for making arrests without probable cause, and two counts of obstruction of a federal investigation for preparing false reports to justify the false arrests. On January 23, he was sentenced to 60 months of imprisonment.
This matter was investigated by the Civil Rights Squad of the FBI’s New York Field Office, and was prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Doctor Enters Guilty Plea to Child Pornography Distribution ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David H. Scanlan III, a former physician-in-training in pediatric oncology at Penn State Hershey Medical Center, pleaded guilty to child pornography distribution charges today in U.S. District Court in Harrisburg. Scanlan was charged last week in a one-count criminal Information.
The plea was entered in open court before U.S. District Judge John E. Jones III in Harrisburg. Judge Jones accepted the plea, adjudicated Scanlan guilty of the charge, and ordered a Presentence Report.
Judge Jones told Scanlan that the plea agreement made between him and the Government is not binding on the court, and that he can sentence Scanlan up to the maximum of 20 years in federal prison.
Scanlan was released pending sentencing, but was ordered that he be confined to his residence in Virginia under electronic monitoring by the U.S. Probation Office, except for approved absences such as employment and medical appointments.
Judge Jones warned Scanlan that any deviation from the conditions of release would be reported to him immediately and subject Scanlan to severe consequences. Sentencing likely will take place this summer.
The case was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Former Columbus Police Officer Pleads Guilty to Embezzling from Defense Department Surplus ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Former Columbus Police Officer Steven Edward Dean, 49, of Columbus, pleaded guilty in U.S. District Court to misappropriating and selling heavy equipment and other property the Columbus Division of Police received through a Department of Defense surplus program.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Brian Reihms, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Columbus Police Chief Kim Jacobs announced the pleas entered today before U.S. District Judge Michael H. Watson.
According to court documents, an investigation by the Columbus Division of Police, the FBI and DCIS concluded that between October 1, 2005 and June 1, 2012, Dean diverted property with a fair market value of $251,570.94 the police department had received from the Defense Reutilization Marketing Office (DRMO) program.
The embezzled items included $133,554.59 of heavy equipment, construction equipment and vehicles, restaurant equipment, $94,163.25 of materials sold for scrap, and $16,353.15 worth of items sold to private persons including diesel generators. This conclusion was based on records obtained from the U.S. Department of Defense DRMO program, the State of Ohio offices involved with the DRMO program, scrapyard receipts, Craigslist online point-of-sale website records, restaurant supply records of sold equipment, and by viewing the items of property themselves.
Dean pleaded guilty to one count of embezzlement from a program receiving federal funds and one count of theft of public property. Each crime carries a maximum sentence of ten years imprisonment, but the plea agreement specifies that the sentences should be groups and not imposed consecutively. Under terms of the plea agreement, Dean will forfeit $251,570.94 less the value of the recovered equipment.
Judge Watson will schedule a sentencing hearing following a pre-sentence investigation by the court.
U.S. Attorney Stewart commended the investigation by DCIS, the FBI and CPD, as well as Assistant U.S. Attorneys Doug Squires and Deborah Solove, who are representing the United States in this case.
Former Attorney Indicted for Lying to Federal Investigators About His Role in A Million-Dollar Fraud SchemeRead the Press Release
Earlier today, an indictment was unsealed charging disbarred New York attorney Barry Stephen Zornberg with lying to federal investigators about his role in a foreclosure rescue fraud scheme.1 The scheme ensnared at least ten families, defrauding them of approximately $1.3 million in home equity and causing some of them to lose their homes. If convicted, Zornberg faces up to five years’ of imprisonment.
The charges, arrests and seizures were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (USPIS).
“As set forth in the indictment, the defendant, a disbarred attorney, lied to federal investigators about the role that he played in this fraud scheme, which took advantage of people who were looking to save their homes from foreclosure. A law license is not a license to steal or lie,” stated United States Attorney Lynch. “We are committed to protecting our communities from the abuses of fraud.”
FBI Assistant Director-in-Charge Venizelos stated, “All too often, desperate homeowners fall prey to dishonest foreclosure specialists, many of whom use their experience in mortgage-related industries to carry out their fraudulent schemes. Just as legitimate programs exist to assist distressed homeowners facing this dilemma, so too do con artists who make it their goal to capitalize on the misfortune of others. As alleged, the defendant knowingly exploited vulnerabilities in the foreclosure process, caused serious damage to a number of families, and lied to investigators about his role in the scheme. The FBI continues to support partnerships within the mortgage industry and law enforcement as we work together to combat this serious crime.”
USPIS Inspector-in-Charge Bartlett stated, “The defendant used the dream of home ownership and a fragile economy to lie and steal from trusting individuals. Postal Inspectors and their law enforcement partners used their investigative power and the justice system to ensure he is held accountable for his involvement in this illegal scheme.”
As alleged, the foreclosure rescue fraud was carried out from Empire Property Solutions, LLC ("Empire") in Bethpage, New York. Zornberg and two principals of Empire encouraged distressed homeowners to “refinance” their residences with Empire, when, in reality, the victims were tricked into transferring title to their homes to straw buyers and paying large fees to Empire. As part of this scheme, the victims lost title to their homes, valued in the aggregate at $4.3 million. Zornberg and his partners in the scheme extracted more than $1.3 million in equity from the victim families’ homes, leaving the victim families significantly worse off than when they asked for help. The straw buyers made no payments on the homes, causing the victims’ homes to go into default. Almost all of the victim homeowners face foreclosure due to the scheme and a number have been dispossessed.
As detailed in the indictment, when interviewed by federal investigators, Zornberg, the alleged architect of the scheme, falsely stated that he advised the victims to not continue with the scheme. In fact, he advised the opposite, thereby generating large fees for himself.
The defendant is scheduled to be arraigned on Wednesday, February 12, 2014, at 3:00 p.m., before United States Magistrate Judge A. Kathleen Tomlinson, at the federal courthouse in Central Islip, New York.
The government’s case is being prosecuted by Assistant United States Attorney Christopher A. Ott.
The Defendant:
BARRY STEPHEN ZORNBERG
Age: 54
Hauppauge, New York
_________________________________________________________________________
1 The charge in the indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
Former Arlington, Texas, Police Officer Sentenced to One Year and One Day in Federal PrisonRead the Press Release
Unlawfully Accessed and Provided Law Enforcement Sensitive Information to a Known Drug Dealer
DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, a former officer with the Arlington Police Department (APD), was sentenced this afternoon, by U.S. District Judge Barbara M. G. Lynn, to 12 months and one day in federal prison, following his guilty plea in October 2013 to an Indictment charging exceeding access to a protected computer. He was ordered to surrender to the Bureau of Prisons on April 1, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
As an officer with the APD, Kantzos was authorized to access law enforcement information obtained through the Texas Crime Information Center (TCIC), the National Crime Information Center (NCIC) and the Texas Law Enforcement Telecommunication System (TLETS), and he received specialized training on the authorized uses of the information, as well as the potential penalties for the misuse of such information. Personal use of such information, including releasing information to members of the general public, is not authorized and violates APD policy.
Prior to December 2011, Kantzos knew that “Person A” was an individual who trafficked in anabolic steroids. In fact, Kantzos had purchased anabolic steroids from Person A for both his own use and for the use of other APD officers. In November or December 2011, Person A suspected that he was under police surveillance.
On December 29, 2011, Person A saw a motor vehicle parked near his house and asked Kantzos to “run” the license plate because he was concerned that law enforcement was watching him and he didn’t want to get arrested for trafficking anabolic steroids. Kantzos, without a legitimate law enforcement purpose, used the computer in his patrol car, while he was on duty, to access the Texas Department of Public Safety’s (DPS) protected computer through TLETS, under the guise of conducting a stolen vehicle investigative inquiry. His computer inquiry automatically searched for information about that motor vehicle contained in law enforcement computers located in Texas and in other states, such as the NCIC computer.
Kantzos admitted he knew the use of this computer for this purpose exceeded authorized use. After Kantzos obtained the information about the vehicle, he relayed the information to Person A to help Person A avoid arrest, apprehension or disruption while Person A unlawfully trafficked in anabolic steroids. Person A recognized the name of the registered vehicle owner as a law enforcement officer. Thereafter, Person A decided to “lay low” to avoid arrest by law enforcement.
The case was investigated by the FBI and the Texas Ranger Division of the Texas DPS. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Mark Penley prosecuted.
First MS-13 Member Extradited from El Salvador to United States Convicted for Role in Attempted Murder of Two IndividualsRead the Press Release
One of the Seriously Wounded Victims Was Pregnant
ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 25, of the District of San Miguel, El Salvador, pleaded guilty today to two counts of using and discharging a firearm during or in relation to attempted murder in aid of racketeering. Benitez Hernandez was extradited from El Salvador to the United States on Dec. 18, 2013, and had been indicted previously by an Eastern District of Virginia grand jury on June 13, 2010, on multiple racketeering charges, including attempted murder.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Michael L. Chapman, Loudoun County Sheriff; and Maggie DeBoard, Town of Herndon Chief of Police, made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Acting U.S. Attorney Boente stated, “The apprehension, extradition, and now conviction of this extremely violent gang member is indicative of both the cooperation and commitment of U.S. and Salvadoran law enforcement and prosecutors to bring to justice those criminals who commit violent acts on U.S. soil, even when the perpetrators flee the United States to the perceived safety of the Central American hills.”
“This case is an example of the hard work and partnership between FBI agents and police detectives who serve on the Northern Virginia Gang Task Force,” said Assistant Director Parlave. “Together with prosecutors, their efforts are essential to investigating violent gang members who attempt to instill fear in our communities and bringing those individuals to justice, wherever they may be.”
“The arrest and extradition of Benitez Hernandez is testimony to the importance of integrating local, federal and international law enforcement partners. It demonstrates a unified, international commitment to justice and in apprehending our most violent criminal suspects,” said Mike Chapman, Sheriff of Loudoun County.
Chief of Police DeBoard stated, “The passage of time does not deter nor diminish the efforts of local and federal law enforcement partners to seek out and prosecute those responsible for committing violence in our communities. This case serves as an example of law enforcement’s dedication in ensuring those responsible for violent crimes are brought to justice. It also highlights the invaluable partnership between the Northern Virginia Gang Task Force and local and federal agencies in this region.”
Benitez Hernandez, who now stands convicted of two counts of using and discharging a firearm during or in relation to attempted murder in aid of racketeering, faces a maximum penalty of life in prison and a mandatory minimum period of 35 years in prison when he is sentenced on May 23, 2014.
According to the statement of facts filed with the plea agreement, Benitez Hernandez, a soldier in the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on Sept. 13, 2008, in Loudoun County, Va. On that date, Benitez Hernandez concealed himself behind some shrubs and when the male and pregnant female victims were within range, he fired multiple shots while yelling “Mara Salvatrucha Cabrones.” Both of the victims were critically injured and likely would have died were it not for immediate surgical intervention. The unborn baby also survived the wounding. Benitez Hernandez committed the double shooting to increase his position within MS-13’s criminal enterprise.
On May 22, 2013, Benitez Hernandez was apprehended in El Salvador by an elite Salvadoran investigative unit known as the Transnational Anti-Gang (TAG) Task Force. This extradition marks the first time in recent history that a Salvadoran citizen has been extradited to the United States to be held accountable for gang-related crimes committed in the United States.
This case was investigated by the Federal Bureau of Investigation, Loudoun County Sheriff’s Office and the Northern Virginia Gang Task Force, with assistance from the Town of Herndon Police Department. The United States law enforcement partners involved in the investigation and prosecution of Benitez Hernandez would like to thank the Salvadoran National Police for their outstanding assistance in bringing this fugitive to justice. Acting U.S. Attorney Dana J. Boente also thanked the FBI’s Legal Attaché Office in El Salvador, the Government of El Salvador, and the U.S. Department of Justice’s Office of International Affairs, each of which were critical in securing the custody and extradition of Benitez Hernandez. Assistant United States Attorneys Patricia Haynes and Zach Terwilliger are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.District Man Sentenced to 70 Months in Prison for Distributing Large Quantities of PCP-Arrest Followed Investigation by MPD, ATF-Read the Press Release
WASHINGTON - Donnell Brown, 23, of Washington, D.C., was sentenced today to a 70-month prison term for distributing large quantities of Phencyclidine (PCP) in the District of Columbia, announced U.S. Attorney Ronald C. Machen Jr.
Brown pled guilty in October 2013 in the U.S. District Court for the District of Columbia to a charge of unlawful distribution of 100 grams or more of a mixture or substance of PCP. He was sentenced by the Honorable Rosemary M. Collyer. Upon completion of his prison term, Brown will be placed on five years of supervised release.
According to the government’s evidence, in the fall of 2011, investigators from the Metropolitan Police Department (MPD) and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into sales of PCP in the Montana Terrace housing area in Northeast Washington. Law enforcement officers were able to purchase large quantities of liquid PCP from several targets. The investigation showed that Brown sold PCP on eight different occasions, in various amounts, from November 2011 to July 2012.
In announcing the sentence, U.S. Attorney Machen commended the actions of all the MPD officers and ATF agents who participated in this arrest and the removal of drugs from the streets of Washington, D.C. He also acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle and Legal Assistant Tammy Scott. Finally, he praised the efforts of Assistant U.S. Attorney Emory V. Cole who investigated and prosecuted the case.
14-038Disbarred Attorney Sentenced to 64 Months in Federal Prison for Defrauding Elderly Woman's EstateRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former California lawyer, now disbarred, was sentenced in federal court in Anchorage yesterday for fraud.
Philip Eric Myers, 61, of Santa Barbara, California, was sentenced to 64 months in prison by Chief United States District Court Judge Ralph R. Beistline for stealing over one million dollars from an elderly woman’s estate. Meyers pled guilty on September 20, 2013, to one count of mail fraud and two counts of wire fraud.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, Myers, an estate and trust attorney from California, along with co-defendant Brian Ben-Israel, a registered nurse residing in Anchorage and working at Meridian Psychiatric Consulting Group, met and befriended Mrs. Juanita Gielarowski. During the period of 2005 through 2008, Ben-Israel became a health care provider and “financial advisor” to Mrs. Gielarowksi and her daughter, Linda Stowers. Myers enabled Ben-Israel to gain control over assets of the Juanita V. Gielarowski Revocable Trust by creating a new trust where Ben-Israel was appointed a co-trustee. Ben-Israel and Myers, using their professional relationship with and influence over Mrs. Gielarowski, then diverted for their own personal benefit over two million dollars from the Gielarowski Trust, monies intended for her long-term care. Ultimately Myers and Ben-Israel depleted the Gielarowski Estate and properties owned by the Estate were lost due to foreclosure, causing Mrs. Gielarowski to be moved from her long established home to a state funded elder care facility where she died in July 2010.
At the time of sentencing in the federal case, Myers had been convicted in three separate cases of Theft from Elder or Dependent Adult in the State of California. In each of those cases he had embezzled money from Trusts he had established for his elderly clients. Myers was disbarred from the practice of law by the State of California on February 11, 2013.
In sentencing the defendant, Judge Beistline noted that Myers had a history of exploiting others and that his exploitation of the attorney/client relationship with a vulnerable victim, especially when a fiduciary duty was involved, was extremely serious. The goal of society is “to protect our elderly and our vulnerable,” and Myers has seriously “impacted” society’s view of the legal profession.
Myers was also ordered to pay restitution in the amount of $1,081,000.
Deirdre L. Fike, Special Agent in Charge of the FBI in Alaska, said, “The sentencing of Philip Eric Myers is the culmination of a cooperative effort involving the FBI, the IRS, Anchorage Police, the State of Alaska’s Elder Fraud Unit, and the U.S. Attorney’s Office. This investigation demonstrates the FBI’s ongoing commitment to protecting Americans, particularly the elderly, from the type of fraud committed by Myers and his co-defendant Brian Amiel Ben Israel.”
Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Anchorage Police Department for the investigation of this case. Ms. Loeffler also commends the State of Alaska Office of Elder Fraud & Assistance who provided assistance in this investigation.Department of Justice Proposes Remedy to Address Bazaarvoice’s Unlawful Acquisition of PowerReviewsRead the Press Release
The Department of Justice today submitted to the court a proposed remedy to address Bazaarvoice Inc.’s unlawful acquisition of PowerReviews Inc., following the Jan. 8, 2014, U.S. District Court for the Northern District of California finding that Bazaarvoice violated Section 7 of the Clayton Act when it acquired PowerReviews, its closest and only serious competitor. The proposed remedy is intended to restore competition in the provision of online ratings and reviews.“Bazaarvoice’s unlawful acquisition of PowerReviews has deprived customers of the benefits of competition for 20 months,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “The department’s proposed remedy will restore the competitive landscape by enabling another company to replicate the critical competitive role that PowerReviews would be playing today had it not been illegally acquired by Bazaarvoice.”
Since the merger closed, Bazaarvoice has not invested in research and development for the PowerReviews platform, and it has migrated customers away from the PowerReviews platform to its own product, the department said. The department’s proposed remedy, if approved by the court, requires Bazaarvoice to sell all of PowerReviews assets and contains other provisions to compensate for the deterioration of PowerReviews’ business. Under the department’s proposal, Bazaarvoice would be required to provide syndication services to the divestiture buyer, allowing the buyer to build its customer base and develop its own syndication network. Bazaarvoice would also be required to waive trade-secret restrictions for any of its employees who are hired by the divestiture buyer, enabling the buyer to leverage Bazaarvoice’s post-merger research and development efforts.
If the PowerReviews assets have diminished so significantly that the asset sale would not transfer a large number of customers to the divestiture buyer, Bazaarvoice would also be required to license a copy of its latest ratings and reviews platform to the divestiture buyer, under the proposed remedy. Additionally, the department is asking the court to appoint a special master to oversee the divestiture process and monitor Bazaarvoice’s compliance with its other obligations under the proposed remedy.On Jan. 10, 2013, the department filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of California against Bazaarvoice. The department alleged that Bazaarvoice’s June 2012 acquisition of PowerReviews eliminated the company’s only significant rival, in violation of the antitrust laws.
Bazaarvoice’s acquisition of PowerReviews was not required to be reported under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which requires companies to notify and provide information to the department and the Federal Trade Commission before consummating certain acquisitions. The department began its investigation shortly after the transaction closed.
The department’s trial against Bazaarvoice, which was overseen by Judge William Orrick, began on Sept. 23, 2013. The trial lasted three weeks, with closing arguments taking place on Oct. 15, 2013. On Jan. 8, 2014, the court found that Bazaarvoice violated Section 7 of the Clayton Act by acquiring its primary rival, PowerReviews.
Bazaarvoice’s opposition to the department’s proposed remedy must be filed with the court by March 5, 2014. If the court determines that a hearing is necessary, it will be held on April 2, 2014.
Denver Business Owner Pleads Guilty to Tax Evasion, Admits to Making False Statements to the IRSRead the Press Release
Abdelhamid M. Horany, 58, of Denver, pleaded guilty today before U.S. District Judge R. Brooke Jackson in federal court in Denver to one count of tax evasion related to his 2007 individual income taxes, announced the Justice Department and the Internal Revenue Service (IRS).
As part of his plea, Horany admitted that he owned and operated Euphrates Pizza, doing business as Famous Pizza, in Denver from at least 2003 through 2007. He further admitted to willfully underreporting the income he received from his business by approximately $175,000 on his 2007 income tax return, which resulted in Horany underreporting his tax due and owing by over $60,000 for 2007. In total, for tax years 2005 through 2007, Horany admitted that he underreported his tax due and owing by more than $145,000. Horany further admitted to making false statements to an IRS Revenue Agent regarding his tax liabilities.
According to court documents, Horany was indicted in July 2012 after he had fled the United States to his native country of Jordan, and was arrested in October 2013 when he returned on a flight and was ordered detained as a flight risk.
Sentencing was set for May 8, 2014, when Horany faces a statutory maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. In addition, according to the plea agreement, he has agreed to pay restitution to the IRS in the amount of at least $195,280.
The case was investigated by special agents of the IRS - Criminal Investigation, and Trial Attorneys Hayden Brockett and Timothy Stockwell of the Tax Division are prosecuting the case.
Delaware County Mortgage Broker Sentenced for Loan FraudRead the Press Release
Thomas C. Phelan, 35, of Wayne, PA, was sentenced today to 33 months in prison for his leadership of a mortgage fraud conspiracy involving nearly $1 million in fraudulent loan proceeds. Phelan established Phelan Mortgage Associates (PMA), a mortgage brokerage business based in Feasterville, PA. From August 2006 until February 2009, Phelan worked with PMA employees and others to defraud lending institutions out of nearly $1 million. On October 15, 2013, Phelan pleaded guilty to all counts of an indictment charging him with conspiracy to commit loan and wire fraud, three counts of loan fraud and one count of wire fraud.
At sentencing, U.S. District Court Judge Robert F. Kelly heard testimony from individual victims of Phelan’s loan fraud, calling the scheme “a heartless crime.” In addition to the 33-month prison sentence, the Court ordered that the defendant pay restitution of $850,670 to two lenders, and a mandatory assessment of $500.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Joan E. Burnes.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Commercial Airline Pilot Charged with Travelling to Have Sex with MinorRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A commercial airline pilot has been arrested on a federal charge of travelling across state lines in order to have sex with a minor female.
United States Attorney William J. Ihlenfeld, II announced today that MUSTAFA MOMOUN BAZBAZ, 28 years of age, of Oakdale, Pennsylvania was arrested and charged with “Travel with Intent to Engage in Illicit Sexual Conduct.” BAZBAZ is presently in custody and is being held at the West Virginia Northern Regional Jail pending a detention hearing.
According to Ihlenfeld, BAZBAZ began communicating with a 15-year old female from Jefferson County, Ohio, in December of 2013 via the website known as MeetMe.com. It is alleged that BAZBAZ misrepresented his age and name to the victim, claiming to be 17 years old and to be named “Mike B.” It also alleged that BAZBAZ sent sexually explicit images of himself to the victim before arranging to pick up the victim near her home in Jefferson County in December of 2013. The complaint asserts that BAZBAZ then took the victim to a hotel room in Hancock County where he engaged in sexual intercourse with her.
The matter is being investigated by the Federal Bureau of Investigation and the Hancock County (WV) Sheriff’s Department. This prosecution of the case is being handled by Assistant United States Attorney Robert H. McWilliams, Jr.
BAZBAZ faces up to thirty years in prison if convicted. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The charge is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.Charenton Woman Pleads Guilty to Assault at the Chitimacha Tribal ReservationRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Tammy M. Krol, 42, of Charenton, La., entered a guilty plea Tuesday before U.S. Magistrate Judge C. Michael Hill to assaulting a Chitimacha Tribal Reservation resident.
According to evidence presented at the guilty plea, on September 11, 2013, Krol struck a member of the Chitimacha Tribe at the victim’s residence. After arriving at the scene, police found Krol in a house. The occupant said Krol had entered the home without permission, struck him during a confrontation, and tried to take the victim’s prescription pills.
Krol faces up to a year in prison, a year of supervised release, and a $100,000 fine for assault by striking, beating or wounding in Indian Country. A sentencing date was not set.Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony and misdemeanor cases, arising in Indian Country, that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases, arising in Indian Country, involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Chitimacha Tribal Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
CEO of Local Visiting Nurse Care Provider Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – SUSAN WINEBARGER was indicted for allegedly embezzling approximately $600,000 from company accounts and falsifying documents to conceal the embezzlement.
According to the indictment, Winebarger was Chief Financial Officer, then Chief Executive Officer of VNA-TIP of Bridgeton, Missouri. VNA-TIP provides visiting nurse care, hospice care and related patient care service in Missouri and Illinois. In this capacity, she ran the day-to-day business and financial operations of VNA-TIP, including reconciling bank statements and having full access to bank checks for the company’s operating and payroll accounts. Winebarger also directly coordinated payments to the outside Administrator for VNA-TIP’s employee 401(k) plan. The indictment states that between January 2008 and December 2013, Winebarger embezzled approximately $600,000 from VNA-TIP accounts. Without company authority, Winebarger issued checks to herself from both the operating account and its payroll account and deposited those checks into her personal bank accounts and used the company debit card to purchase personal items. In order to conceal her scheme, she made sure she received all the bank account statements, which she altered for submission to VNA-TIP auditors. She also falsified internal financial reports, including monthly profit and loss statements submitted to the shareholders and board members. Finally, the indictment alleges that Winebarger failed to remit money withheld from VNA-TIP employees’ paychecks for their individual 401 (K) retirement accounts to the plan administrator so that the cash reserves would be falsely inflated in order that VNA-TIP shareholders, board members and auditors would not be aware of the true financial status of the company and potentially discover her theft and embezzlement. She also failed to remit state and federal withholding taxes, social security and Medicare funds.
Winebarger, Highland, IL, was indicted by a federal grand jury on two felony counts of wire fraud.In addition to the wire fraud charges, the indictment contains a forfeiture allegation that, if convicted, requires the forfeiture of money and property derived from the criminal activity.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.C. Ray Nagin, Former New Orleans Mayor, Convicted on Federal Bribery, Honest Services Wire Fraud, Money Laundering, Conspiracy, and Tax ChargesRead the Press Release
C. RAY NAGIN, 57, a resident of Frisco, Texas, and formerly the Mayor of New Orleans, was convicted in federal court today on 20 of 21 charges, announced U.S. Attorney Kenneth Allen Polite, Jr., FBI Special Agent-in-Charge Michael Anderson, and IRS Criminal Investigation Special Agent-in-Charge Gabriel Grchan. NAGIN was found not guilty on Count 7, a bribery charge.
According to evidence adduced at trial, between December 2004 and the present, NAGIN and several others participated in a conspiracy to commit bribery and honest services wire fraud. Evidence produced at trial showed that NAGIN, in his role as chief executive, devised a scheme to defraud the City of New Orleans and its citizens of his honest services through bribery and a kickback scheme, whereby NAGIN used his public office and official capacity to provide favorable treatment, including awarding contracts, that benefitted business and financial interest of individuals providing him with bribes and kickbacks in the form of checks, cash, granite inventory, wire transfers, personal services, and free travel.
According to court documents, in January 2005, NAGIN created Stone Age LLC, a granite company based in New Orleans. Evidence produced at trial showed, among other things, that NAGIN accepted approximately $62,250 in bribes from Rodney Williams and his company, Three Fold Consultants, LLC. Evidence also showed that NAGIN accepted bribes from Frank Fradella, including $50,000, granite inventory, and nine payoffs in the form of wire transfers from Fradella totaling $112,500. In some cases, money was deposited into NAGIN=s Stone Age corporate account, or free granite inventory was provided to Stone Age.
In addition, trial evidence proved that NAGIN participated in a money laundering conspiracy and filed false tax returns for the years 2005 to 2008.
"Our public servants pledge to provide honest services to the people of Southeast Louisiana. We are committed to bringing any politician who violates that obligation to justice," stated United States Attorney Kenneth Allen Polite, Jr.
"The tireless efforts of the investigative and prosecution team, exceeding 5 years, yielded the just and fair result in holding former Mayor Nagin fully accountable for serving his own personal interests well above those of the city at a time when it needed leadership, integrity and honest dealings the most," stated Michael Anderson, Special Agent in Charged for the FBI New Orleans Field Office.
“The investigation and subsequent prosecution of former Mayor, C. Ray Nagin, and his co-conspirators represents the closing of a dark chapter in the history of this great city. While most people were working to rebuild after Hurricane Katrina these individuals were conspiring to benefit themselves at the expense of the citizens that elected them” stated Gabriel L. Grchan, Special Agent in Charge of IRS Criminal Investigation. “Special Agents of IRS Criminal Investigation are elite financial investigators and will continue to lend our expertise to this and other task forces to ensure that those elected to public service do just that—serve the public, not contrive backroom deals to get themselves, and their family, private jet trips around the world or secure their family-owned businesses coveted contracts. It also sends a reminder to everyone that all income, legal and illegal, must be reported to the Internal Revenue Service. Know that we, with our federal law enforcement partners, will continue to ensure that all Americans, including public officials, are held to the same standard. No one is above the law.”
“The New Orleans Office of Inspector General congratulates our federal partners in the successful prosecution of the former mayor. OIG involvement in the case dates to 2009 when an evaluation led to a joint investigation of Greg Meffert. The OIG will continue to protect the City from those who would defraud it,” stated Ed Quatrevaux, Inspector General, City of New Orleans.
"The road to former Mayor Ray Nagin's conviction began with one phone call from a courageous citizen,” stated Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “That citizen told the MCC about shipments of granite from Florida by the truckload to the Nagin family business in New Orleans. It was only one piece of a corrupt puzzle but when placed in the hands of the FBI and the U.S. Attorney's office the pieces grew one by one into a sprawling picture of corruption and betrayal."
NAGIN faces the following terms of imprisonment:
- Count 1 (Conspiracy to commit bribery and honest services wire fraud), statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release;
- Counts 2-6 (Accepting a bribe), statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release on each count;
- Counts 8-16 (Accepting payoffs that caused interstate wire communications to occur between Louisiana and other states), statutory penalties of up to 20 years in prison, a $250,000 fine and three years of supervised release on each count;
- Count 17 (Conspiracy to commit money laundering) statutory penalties of up to 10 years in prison, a $250,000 fine and three years of supervised release; and
- Counts 18-21 (Filing false tax returns for years 2005 through 2008), statutory penalties of up to three years in prison, a $100,000 fine and three years of supervised release on each count.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New Orleans Office of Inspector General. U. S. Attorney Polite would also like to acknowledge the assistance provided by the New Orleans Inspector General=s Office and the Metropolitan Crime Commission. The case is being prosecuted by Assistant U. S. Attorneys Matthew M. Coman, Richard R. Pickens, II and Matthew S. Chester.
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Jerome C. Crosby, 58, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $2,000,000.
Assistant United States Attorneys Mary Clare Kane and George C. Burgasser, who are handling the case, stated that the defendant was intercepted over New York State wiretaps, on numerous occasions, arranging to acquire and purchase cocaine from Wallace Peace and other defendants. Search warrants executed during the investigation resulted in the seizure of 17 firearms, more than five kilograms of cocaine powder and in excess of 200 grams of crack cocaine.
Crosby was arrested along with 30 other defendants in July 2008. To date, 27 have been convicted.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon, Special Agent in Charge; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for June 9, 2014 at 12:30 p.m. before Judge Arcara.
Bonesteel Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bonesteel, South Dakota, woman convicted of Child Abuse was sentenced on February 11, 2014, by U.S. District Judge Roberto A. Lange.
Maria Janis, age 35, was sentenced to 12 months and 1 day in custody, 3 years supervised release, a $100 special assessment to the Federal Crime Victims Fund and $17,123 in restitution.
Janis was indicted for Child Abuse by a federal grand jury on April 12, 2013. She pled guilty on November 19, 2013.
Janis, her husband Robert Prue, and several minor children have lived in several states, including Arizona and Washington State before they moved to South Dakota and the Rosebud Sioux Indian Reservation in the spring of 2011. Over an extended period of time, Janis learned Prue was sexually abusing some of the children. Janis said she believed the children when they told her about the abuse, but would leave the children in Prue’s supervision nonetheless. Janis was also aware Prue had methamphetamine and alcohol problems during the time he was around the children.
Once in South Dakota, Janis learned Prue was persisting in his efforts to sexually abuse some of the children. Janis did not take steps to protect the children, but continued to expose them to harm by leaving them with Prue while she would leave the house. Between June 22, 2011, and September 22, 2011, while in South Dakota, Prue engaged in efforts to accomplish sexual acts with one of the victims, a minor.
This case was investigated by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Benton County Man to Federal Prison for Selling MethRead the Press Release
A man who sold “ice” methamphetamine from his rural Benton County home was sentenced on January 30, 2014 to just under four years in federal prison.
Kenneth Gragg, 54, from Garrison, Iowa, received the prison term after a December 2, 2013 guilty plea to possession of methamphetamine with intent to distribute and possession of a firearm as an unlawful drug user.
In a plea agreement, Gragg admitted he sold methamphetamine to a confidential informant on two occasions in late 2012. A search warrant was executed on Gragg’s home in January 2013. During the search, officers seized additional quantities of methamphetamine, which Gragg admitted he had intended to distribute to others. A shotgun was also seized from Gragg’s residence. Gragg could not legally possess the firearm because he was an unlawful user of both methamphetamine and marijuana.
Gragg was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Gragg was sentenced to 46 months’ imprisonment and fined $5,000. A special assessment of $200 was imposed. Gragg must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gragg 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 Justin Lightfoot and investigated by the Rural Area Interdiction Detail (“RAID”) Task Force with assistance from the Tama County Sheriff’s Office. The RAID Task Force is comprised of officers from the Benton County Sheriff’s Office and Buchanan County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file number is 13-CR-59.
Bedford Heights Woman Charged with Stealing More Than $210,000 in Social Security PaymentsRead the Press Release
A Bedford Heights woman was charged with stealing and converting to her own use approximately $210,510 in Social Security payments made to her father after his death, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Gloria F. Vaughn, 71, was charged in a criminal information with one count of theft of government property.
Vaughn’s father received monthly Social Security Administration retirement benefits, which were deposited electronically into a KeyBank savings account. Upon Vaughn’s father’s death in September 1983, Vaughn continued to receive the benefits, which she knew were intended for her father and should have ceased upon his death, according to the indictment.
She received approximately $210,510 in Social Security payments between October 1983 and September 2012, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s 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.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Social Security Administration Office of Inspector General.
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.
Bank Robber Pleads Guilty to Five RobberiesRead the Press Release
Admitted Committing Two Additional Bank Robberies
Baltimore, Maryland – Rodney Scott Bush, age 49, of Fort Washington, Maryland pleaded guilty today to conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Chief Mark A. Magaw of the Prince George’s County Police Department.“This case highlights the importance of the initial response of patrol officers,” said Anne Arundel County Police Chief Kevin Davis. “This repeat offender is in jail because an alert patrol officer observed suspicious activity while responding to a call.”
According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.
The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.
Bush faces a maximum sentence of 20 years in prison on each of the five bank robbery counts; and a maximum of five years in prison for the conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for July 9, 2014 at 10:00 a.m.
Jacqueline Isaccs, age 55, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and is scheduled to be sentenced on April 18, 2014 15 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Julie D. Podlesni, who are prosecuting the case.
Baltimore Men Face Heroin Distribution Charges in West VirginiaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Four Maryland residents were arrested this week pursuant to an Indictment returned by a grand jury in West Virginia.
United States Attorney William J. Ihlenfeld, II, announced that KEYYONN ROBERT CORNISH JOHNSON a/k/a “STARLITO,” age 24; SEAN TAVON STOGDON a/k/a “FATS,” age 23; MARCEL EDMONDS, age 23; and, MARQUESE TAVON WARD, age 23, were each charged with “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin and Crack Cocaine.” The defendants reside in Baltimore but are alleged to have traveled to Berkeley County, West Virginia, to engage in drug trafficking.
In addition to the conspiracy charge, other charges include “Distribution of Heroin,” “Possession with Intent to Distribute Crack Cocaine,” and “Possession with Intent to Distribute Heroin.” JOHNSON faces a total of four counts, while STOGDON faces five counts, and EDMONDS and WARD face three counts each.
Each defendant each face up to twenty years in prison, and under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.This case will be prosecuted by Assistant United States Attorney Jarod J. Douglas and was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department, as well as uniformed officers of the West Virginia State Police.
Army National Guard Soldier Pleads Guilty to Role in Scheme to Defraud U.S. Army National Guard BureauRead the Press Release
A U.S. Army National Guard soldier pleaded guilty for her role in a bribery and fraud scheme that caused $30,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Specialist Danielle Applin, 27, of Harker Heights, Texas, pleaded guilty to one count of conspiracy and one count of bribery. The case against Applin arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 27 individuals, 20 of whom have pleaded guilty.
According to court documents filed in the case, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Applin admitted that she paid an Army National Guard recruiter for the names and Social Security numbers of potential Army National Guard soldiers. Applin further admitted that she used the personal identifying information for these potential soldiers to claim that she was responsible for referring these potential soldiers to join the Army National Guard, when in fact she had not referred them. As a result of these fraudulent representations, Applin collected approximately $13,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Applin is scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on June 11, 2014.
This case is being investigated by the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
Armenian Power Gang Associate Convicted for His Role in Racketeering ConspiracyRead the Press Release
Andranik Aloyan, an associate of the Armenian Power gang, has been convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers who held accounts that were valued at more than $25 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Andre Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Aloyan, 40, of Los Angeles, was convicted by a federal jury on Feb.11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft, and possession of a firearm by a convicted felon. According to evidence at trial, Aloyan possessed personal and financial information of more than 75 mostly elderly customers of banks throughout the country. The combined value of the accounts for which Aloyan possessed account information exceeded $25 million.
Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated fraudulent schemes of bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and laundering criminal proceeds. In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
Aloyan was convicted after a five-day jury trial before U.S. District Judge Philip S. Gutierrez in the Central District of California. He is scheduled to be sentenced on June 2, 2014.
Five defendants remain pending trial in March 2014. Seventy-seven defendants have previously been convicted or pleaded guilty to the indictments.
The case is being investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, U.S. Secret Service, Los Angeles Police Department, Los Angeles Sheriff's Department, Glendale Police Department, Burbank Police Department, Internal Revenue Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.Armed Career Offender from Albuquerque Sentenced to Fifteen Years for Illegal Possession of AmmunitionRead the Press Release
ALBUQUERQUE – Jonathan Sandoval, 27, of Albuquerque, N.M., was sentenced today to 15 years in federal prison followed by three years of supervised release for being a felon in possession of ammunition. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Acting U.S. Attorney Steven C. Yarbrough said that Sandoval was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Today’s lengthy sentence sends a strong message to career criminals. We will continue to work aggressively with our state and local partners to hold the worst of the worst accountable for their criminal actions,” stated Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sandoval was arrested in December 2011, on an indictment charging him with being a felon in possession of ammunition. The indictment alleged that Sandoval unlawfully possessed ammunition in Bernalillo County on Aug. 24, 2011. At the time, Sandoval was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 2nd Judicial District Court for the State of New Mexico: possession of a controlled substance, escape from a community custody release program, and four residential burglaries. Sandoval also had been convicted of larceny and residential burglary in the 13th Judicial District Court.
On May 20, 2013, Sandoval pleaded guilty to unlawfully possessing 30 cartridges of ammunition which were retrieved by law enforcement officers from his vehicle on Aug. 24, 2011. In entering his plea, Sandoval admitted telling the officers that the ammunition belonged to him and that he purchased the ammunition when he was at a shooting range.
Sandoval received an enhanced penalty of a mandatory minimum 15 year prison sentence because of his status as an armed career criminal. According to court filings, despite his lengthy criminal record, Sandoval was never sent to state prison for any of his prior felony convictions.
These cases were investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.
Armed Bank Robber Sentenced to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Loushawn Adaryl Robinson, a/k/a “Cadillac,” age 36, of Baltimore, Maryland, today to 151 months in prison followed by five years of supervised release for armed bank robbery. Judge Blake ordered Robinson to pay restitution of $23,639 and found that Robinson was a career offender, based on two previous convictions for robbery with a deadly weapon and armed robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Carroll County Sheriff Kenneth Tregoning.
According to Robinson’s plea agreement, on September 29, 2012, Robinson and two other men, one of them armed with a gun, robbed the Carroll Community Bank in Sykesville, Maryland. During the robbery, Robinson forced one of the tellers to take him to the vault, but the teller was unable to open the vault. Robinson subsequently zip tied the teller’s hands while she was on her knees in the vault, and closed the door. The robbers fled the bank with $28,411, but dropped $4,772 in the parking lot, which was recovered by law enforcement. Law enforcement followed the robbers and during the course of the pursuit, Robinson crashed his car into a tree near an elementary school and was arrested. Law enforcement recovered the wig Robinson had worn during the robbery, zip ties, and a key to the vault which had been taken from the bank.United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, Maryland State Police and Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who prosecuted the case.
Appraisal Company Owner Sentenced to 8 Years in Prison for Participating in Two Mortgage Fraud SchemesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 96 months imprisonment, to be followed by three years of supervised release, on his conviction of wire fraud and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Jason Moreno, 30, of Pittsburgh, Pa.
According to information presented to the court, Moreno committed and conspired to commit wire fraud from November 2005 to November 2007. Moreno owned and operated a company called Platinum Appraisal Services that regularly prepared fraudulent appraisals that overstated the values of the properties serving as collateral for the loans. He was convicted in connection with two complex mortgage fraud schemes. The primary actor in the first scheme was Robert Arakelian, who operated Pittsburgh Home Loans. The primary action in the second scheme was James Platts, who operated Easy Realty Solutions. Both schemes involved overstating the sales prices of the properties, falsely representing that the borrowers had the financial wherewithal to make a significant down payment associated with the purchase of the properties and to make the mortgage payments. In fact, the borrowers, many of whom were unsophisticated and had poor financial conditions, did not make down payments associated with the purchase of the properties and could not make the mortgage payments.
Moreno’s role was to provide fraudulent appraisals that overstated the values of the properties serving as collateral for the loans. The appraisals often reported that the conditions of the properties were vastly superior to their actual conditions. Many of the properties were, in fact, in deplorable condition. Moreno, who was not even licensed to prepare appraisals, also falsely represented that a licensed appraiser prepared the appraisals.
Moreno also participated in the schemes as an investor in some of the properties. In that role, not only did Moreno prepare fraudulent appraisals, but he also misled the borrowers and the lenders on numerous other aspects related to the transactions. Some of those transactions involved his own family members, including his mother, his aunt, and his uncle.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Moreno.
The Mortgage Fraud Task Force conducted the investigation leading to the indictment in this case. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Anderson Aircraft Mechanic Charged with Aircraft Part FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Randy L. Thompson, 65, of Anderson, charging him with fraud involving aircraft parts, United States Attorney Benjamin B. Wagner announced.
According to court documents and documents obtained by the U.S. Department of Transportation, in 2010, Thompson, an aircraft mechanic who operated under the business name “Thompson’s Air,” was hired to overhaul an aircraft engine for a customer in Pennsylvania. As part of the overhaul, Thompson installed an engine crankshaft on the customer’s private airplane. Prior to the installation, Thompson had twice sent the same crankshaft to FAA‑certified repair stations, and in both instances the repair stations had returned the part to Thompson with a tag documenting that the crankshaft was cracked and no longer suitable for use on an aircraft. Nevertheless, Thompson installed the crankshaft and falsely certified that he had performed the engine overhaul in compliance with the FAA regulations and the engine manufacturer’s specifications. After approximately 90 hours of operation, the crankshaft failed in flight, and the aircraft was forced to make an emergency landing in a field. No one was injured.
This case was the product of an investigation by the Department of Transportation and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Thompson faces a maximum statutory penalty of 15 years in prison and a $500,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Alexandria Man Pleads Guilty to Coordinated Campaign Contributions and False StatementsRead the Press Release
ALEXANDRIA, Va. – Tyler Eugene Harber, 34, of Alexandria, a former campaign finance manager and political consultant, pleaded guilty today to coordinating $325,000 in federal election campaign contributions by a political action committee (PAC) to a Congressional campaign committee. This is the first criminal prosecution in the United States based upon the coordination of campaign contributions between political committees.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
“Campaign finance laws exist to guard against illegal activity such as coordinated campaign contributions,” U.S. Attorney Boente said. “The citizens of the Commonwealth of Virginia can rely this office enforce federal campaign finance law.”
“The Department of Justice is fully committed to addressing the threat posed to the integrity of federal primary and general elections by coordinated campaign contributions, and will aggressively pursue coordination offenses at every appropriate opportunity,” said Assistant Attorney General Caldwell.
“Today, Mr. Harber took responsibility for violating federal election campaign laws by illegally coordinating payments between a super pac and a candidate’s campaign committee,” said Assistant Director in Charge McCabe. “The FBI will continue to investigate allegations of campaign finance abuse which are in place to ensure openness and fairness in our elections so the people’s interests are protected.”
Harber pleaded guilty to one count of coordinated federal election contributions and one count of making false statements to the FBI. He faces a maximum penalty of 10 years in prison when he is sentenced on June 5, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the plea documents, Harber was the Campaign Manager and General Political Consultant for a candidate for Congress in the November 2012 general election. At the same time, Harber participated in the creation and operation of a PAC, which was legally allowed to raise and spend money in unlimited amounts from otherwise prohibited sources to influence federal elections so long as it did not coordinate expenditures with a federal campaign.
Harber admitted, among other things, that he made and directed coordinated expenditures by the PAC to influence the election with $325,000 of political advertising opposing a rival candidate. The coordination of expenditures made them illegal campaign contributions to the authorized committee of Harber’s candidate, and Harber admitted that he knew this coordination of expenditures was an unlawful means of contributing money to a campaign committee. He further admitted that he used an alias and other means to conceal his action from inquiries by an official of the same political party as Harber’s candidate.
Harber further admitted that he told multiple lies when interviewed by the FBI concerning his activities.
This case was investigated by the FBI’s Washington Field Office, Northern Virginia Resident Agency. The case is being prosecuted by Assistant U.S. Attorney Mark D. Lytle of the Financial Crimes and Public Corruption Unit of the Eastern District of Virginia, and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-373.Tweet
Albuquerque Felons Sentenced to Federal Prison for Violating Firearms LawsRead the Press Release
ALBUQUERQUE – Two prior felons who reside in Albuquerque were sentenced this morning to lengthy federal prison terms for violating the federal firearms laws. Isaac Aragon, 32, was sentenced to 77 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. In a separate case, Joseph Rael, 40, was sentenced to 88 months in federal prison followed by three years of supervised release for unlawfully possessing a firearm and ammunition.
Acting U.S. Attorney Steven C. Yarbrough said that both men were prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Arresting armed violent criminals is a priority of our office. Taking the “worst of the worst” off our streets sends a message that violent behavior will not be tolerated. I am pleased with the investigative efforts of ATF, the Albuquerque Police Department and the leadership of the U.S. Attorney's Office,” stated Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Aragon was arrested in Jan. 2013 based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. He subsequently was indicted on that same charge. According to the indictment, Aragon committed this offense in Oct. 2012, in Bernalillo County, N.M. At the time, Aragon was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in New Mexico state courts: two convictions of receiving and transferring a stolen motor vehicle; involuntary manslaughter; and aggravated fleeing from a law enforcement officer.
According to court filings, Aragon was arrested on state charges on Oct. 26, 2012, after officers responded to a call reporting drug trafficking activity at an Albuquerque residence. When the officers arrived at the residence, they arrested Aragon on outstanding state arrest warrants. Thereafter the officers executed a search warrant at the residence and seized a backpack that belonged to Aragon. The backpack contained a .22 caliber revolver, 76 rounds of ammunition, several baggies of methamphetamine, and narcotics paraphernalia. The state firearms charges were dismissed after Aragon was arrested on federal charges. Aragon entered a guilty plea to the federal indictment on Sept. 5, 2013, and admitted possessing a revolver and ammunition on Oct. 26, 2012.
Rael was arrested in June 2013 based on an indictment charging him with unlawfully possessing a firearm and ammunition on Nov. 2, 2012, in Bernalillo County, N.M. At the time, Rael was prohibited from possessing firearms or ammunition because he previously had been convicted of seven felony offenses including attempt to commit forgery, larceny, breaking and entering, false imprisonment, conspiracy to unlawfully take of a vehicle, possession of cocaine and burglary.Rael was charged based on an incident arising out of a traffic stop on Nov. 2, 2012 in Albuquerque. Rael fled in his vehicle from the scene of the traffic stop and later struck another vehicle in an intersection. After Rael was extracted from his vehicle, law enforcement officers discovered a loaded firearm on the driver’s side floorboard. In Aug. 2013, Rael pled guilty to the indictment pursuant to a plea agreement and admitted possessing a firearm and ammunition on Nov. 2, 2012.
These cases were investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. The Aragon case was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley and the Rael case was prosecuted by Assistant U.S. Attorney David M. Walsh.
11 February 2014
Wiliam Davis, Jr. Sentenced to 36 Months in Prison for Sexually Abusing A Minor in 2007Read the Press Release
The United States Attorney's Office announced that on February 7, 2014, Chief U.S. District Judge Dana L. Christensen, sentenced WILLIAM DECATURE DAVIS, JR., 47, of Havre, Montana, to a term of 36 months' in prison, followed by five years of supervised release, for the 2007 sexual abuse of a minor.
Davis was convicted of sexually abusing a six-year old girl after a four day jury trial that began on November 12, 2013. At trial, Assistant U.S. Attorney Jessica Betley presented evidence that the victim, now 12, came forward in August of 2012 and was interviewed by the FBI. She alleged that the defendant, William Davis, Jr., who also goes by "Rooster," raped her in the summer of 2007 when she was six. The defendant, a member of the Eastern Band of Cherokee Indians, was at the time a neighbor of the girl and her mother in a trailer park on the Fort Belknap Indian Reservation.
The victim testified that she woke up one night and could not find her mother. She walked next door to her neighbor's trailer to look for her mother. The victim walked into the trailer and saw the defendant sitting on the couch and drinking beer. The defendant called the victim over and he grabbed her by the front of the shirt and sexually assaulted the girl. When the assault was over, the victim put her clothes on and ran out of the door.
The FBI interviewed Davis two days after the disclosure and he admitted he had sexually abused the victim approximately five and a half years ago in the summer of 2007. In his statement, while denying the more serious assault described by the victim, conceded that he had sexually molested the child and expressed regret for his conduct.
Waterloo Man Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William, J. Hochul, Jr. announced today that Ronald Beaton, 68, of Waterloo, N.Y., who was convicted of possession of child pornography, was sentenced to 30 months in prison and 10 years supervised release, by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Special Agents with Homeland Security Investigations conducted an undercover investigation and discovered that a user of an Internet Protocol address was sharing child pornography files using file-sharing software. The Internet Protocol address was assigned to the defendant and his residence on West Main Street in Waterloo. A search warrant was executed and agents found video files depicting child pornography on the defendant=s computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part Special Agents from Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero.
Waterford Man Possessed Sexually Explicit Pictures and Movies of ChildrenRead the Press Release
ERIE, Pa. - A resident of Waterford, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Joshua Michael Falk, 22, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Falk possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for June 9, 2014 at 1:45 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Falk on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Falk.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Venango County Man Charged with Falsifying Documents on Well PluggingRead the Press Release
ERIE, Pa. - A resident of Pleasantville, Pennsylvania has been indicted by a federal grand jury in Erie on charges of making false statements in matters relevant to permits issued under the Safe Drinking Water Act, United States Attorney David J. Hickton announced today.
The three-count indictment named Ronald A. Wright, 44, as the sole defendant.
According to the indictment presented to the court, between in and around September 2009, to in and around April 2011, Wright falsified Certificates of Well Plugging, falsely claiming that he had properly plugged abandoned oil wells, when he had not properly done so. These forms were relied upon by the EPA in regard to permits issued for Class II injection wells. The approval process for these injection wells required all abandoned wells within a quarter mile of the injection well site to have first been properly plugged.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
“When individuals knowingly submit false reports or data to the government as alleged in this case, our ability to protect public health and the environment is undermined,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Mid Atlantic States. “Anyone thinking about submitting false information should seriously consider today’s indictment. EPA and its partner agencies will not hesitate to seek prosecution of those who violate our nation’s environmental laws.”
The Environmental Protection Agency - Criminal Investigation Division, the Pennsylvania Office of Attorney General – Environmental Crimes Section, and the U.S. Forest Service – Law Enforcement and Investigations, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Reaches Settlement with Natural Supplement Stores for Violations of the Controlled Substances ActRead the Press Release
DENVER -- John Walsh, U.S. Attorney for the District of Colorado, today announced that two natural supplement stores in Colorado Springs have entered into a civil settlement with the United States and will pay $20,000 in civil penalties to resolve allegations that they violated certain provisions of the Controlled Substances Act (“the CSA”) related to the sale of ephedrine, a List 1 chemical. List 1 chemicals have legitimate purposes, but can also be used in the manufacture of controlled substances.
Ephedrine is a decongestant and bronchodilator. It works by reducing swelling and constricting blood vessels in the nasal passages and widening in the lung airways, allowing the user to breathe more easily. It can also be used to manufacture methamphetamine.
The United States alleged that between 2009 and the present, Andrew S. Holmes, as the owner and operator of Crazy Horse Nutrition, Inc. (“Crazy Horse”) and Holmestyle Nutrition LLC d.b.a. Complete Nutrition Center (“Holmestyle”), violated various provisions of the Controlled Substances Act related to the sale of ephedrine. The United States contends, among other allegations, that Holmes, Crazy Horse, and Holmestyle: sold ephedrine to customers after failing to complete periodic training and self-certifying to the DEA that the manager and all employees were following the applicable rules to sell the substance; failed to comply with the CSA’s packaging requirements for the sale of ephedrine; failed to maintain complete and accurate logbook records regarding ephedrine sales; sold ephedrine on at least one occasion to a customer without proper identification; and imported ephedrine from Canada without a registration.
“Although Ephedrine has legitimate uses, its sale is closely regulated because it can also be used to create illegal dangerous drugs – drugs that can seriously damage people’s lives,” said U.S. Attorney John Walsh.
“This action is unique in the District of Colorado and is important in that it shows the retailers will be held accountable in combating the methamphetamine epidemic in our communities,” said Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge Barbra Roach.
In entering into a civil settlement, Holmes, Crazy Horse and Complete Nutrition did not admit to liability, and the agreement indicates that the parties entered into the settlement to avoid the uncertainty and expense of further litigation.
The investigation was conducted by the Drug Enforcement Administration. The United States was represented in this matter by Assistant United States Attorney Amanda Rocque and Special Assistant United States Attorney Matthew Mussetter of the U.S. Attorney’s Office in Denver, Colorado.
U.S. Attorney’s Office for the Southern District of New York Recovers Nearly $4 Billion from Criminal and Civil Cases Since January 2013Read the Press Release
U.S. Attorney Also Announces Creation of Money Laundering and Asset Forfeiture Unit
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the Office obtained recoveries of more than $2.7 billion in forfeiture actions since January 2013. The Office also has collected or has entered into agreements to recover $1.06 billion in restitution, criminal fines, and special assessments, and has recovered $149.8 million from civil actions, since January 2013.
Manhattan U.S. Attorney Preet Bharara said: “Our Office’s nearly $4 billion in forfeitures, penalties, and fines since the beginning of 2013 stands for the principle that those who break the law or commit civil offenses, whether institutions or individuals, must not be allowed to profit from their misconduct. This is not only a matter of deterring bad conduct. A significant portion of the money recovered will go toward compensating victims of crime or other misconduct who suffered real financial loss. And collected assets help fund important state and local law enforcement programs. It is fair to say the taxpayers have gotten a great return on their investment – almost 8,000% – as this $4 billion represents nearly 80 times the Office’s annual budget.”
Forfeited funds are generally deposited into the Department of Justice Assets Forfeiture Fund (the “Assets Forfeiture Fund”) and the Department of Treasury Forfeiture Fund. The forfeited funds are used to restore money to crime victims and for a variety of law enforcement purposes. In 2013, the U.S. Attorney’s Office for the Southern District of New York returned more than $66 million to crime victims. Of the $2.7 billion forfeited since January 2013, in excess of $1.8 billion is expected to be restored to victims.
In recognition of the success that the Office’s Asset Forfeiture Unit has had in spearheading such record forfeitures, often by bringing some of the country’s most significant and innovative money-laundering prosecutions, the Office has renamed the unit the Money Laundering and Asset Forfeiture Unit. The change also reflects and coincides with the Office’s ongoing efforts in this area, including, among other things, the addition of a number of Special Assistant U.S. Attorneys from partner agencies to focus on anti-money laundering and asset forfeiture; the creation of a team of intelligence analysts and other professionals tasked with reviewing and analyzing Suspicious Activity Reports filed by financial institutions; and the use of more technologically sophisticated tools and software to analyze large volumes of relevant data.
The $149.8 million collected in civil actions came from a combination of cases in which the Office collected government money lost due to fraud or other misconduct, collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws, or recovered funds owed to the Internal Revenue Service.
Nationally, in Fiscal Year 2013, approximately $5.9 billion was collected by the Justice Department’s litigating divisions and the 94 U.S. Attorneys’ offices in individually and jointly handled civil actions. The Department’s litigating divisions and U.S. Attorneys’ offices also collected approximately $2.2 billion in restitution, criminal fines, and felony assessments in criminal actions in satisfaction of criminal debts owed to the U.S. and to federal crime victims.
Below are summaries of some of the cases in which the Office obtained substantial forfeitures or other recoveries since January 2013:
JPMorgan Chase
$1.7 billion forfeited
On January 7, 2014, as part of a deferred prosecution agreement, JPMorgan Chase agreed to pay a non-tax deductible penalty of $1.7 billion, in the form of a civil forfeiture for its violations of the Bank Secrecy Act committed in connection with the Bernard Madoff multi-billion dollar Ponzi scheme. These funds will be used to compensate victims of the Madoff Ponzi Scheme.
SAC Capital Advisors, L.P.
$900 million forfeiture order; $284 million to be collected; total agreed-upon penalty of $1.8 billion
In July of 2013, the Government filed a civil money laundering and forfeiture action seeking the forfeiture of all of the assets of the SAC Companies (“SAC”) on the basis that SAC engaged in money laundering by commingling the illegal profits from insider trading with other assets, using the profits to promote additional insider trading, and transferring the profits with the assistance of financial institutions. In November of 2013, the Government entered into an agreement with SAC in which SAC, among other things, agreed to forfeit $900 million to the United States, including the $616 million payment to the Securities & Exchange Commission (“SEC”). The agreement also involved a criminal fine of another $900 million, resulting in a total penalty of approximately $1.2 billion, on top of the $616 million SEC fine.
PokerStars and Related Cases
$181.4 million forfeited
In July 2012, the United States reached an agreement with the two largest online poker companies in the United States, Full Tilt Poker and PokerStars. The United States had brought a civil forfeiture and money laundering action against these companies and their assets. Under the terms of the settlement, Full Tilt forfeited essentially all of its assets to the United States. PokerStars agreed to forfeit $547 Million, to be paid in several installments, and to reimburse the approximately $184 million owed by Full Tilt to foreign players. The settlement further provides that PokerStars will acquire the Forfeited Full Tilt Assets from the Government. In 2013, $181.4 million was forfeited to the United States. To date, in excess of $406.4 million has been forfeited in the PokerStars civil forfeiture action and related cases.
Ernst and Young
$123 Million forfeited
In March 2013, as part of a non-prosecution agreement, Ernst & Young LLP (“E&Y”) forfeited $123 million in connection with the firm’s participation, from 1999 to 2004, in four tax shelters that were used by approximately 200 E&Y clients in an effort to defer, reduce, or eliminate tax liabilities of more than $2 billion.
PartyGaming
$105 million forfeited
In April 2009, PartyGaming, an Internet gambling company entered into a non-prosecution agreement, wherein, among other things, the company agreed to forfeit a total of $105 million, to be paid in several installments. The $105 million represents proceeds of PartyGaming’s United States Internet gambling operations. In 2013, $105 million was forfeited to the United States.
Lebanese Canadian Bank
$102 million forfeited
In December 2011, this Office filed an in rem forfeiture and civil money laundering action alleging that Lebanese financial institutions, including the Lebanese Canadian Bank (“LCB”) and two exchange houses linked to Hizballah, used the U.S. financial system to launder narcotics proceeds through West Africa and back into Lebanon. Part of the scheme involved wiring funds from Lebanon to buy used cars in the U.S. which were then transported to West Africa and sold. Cash from the sale of the cars, along with the proceeds of narcotics trafficking, were then funneled to Lebanon through Hizballah-controlled money laundering channels. On June 25, 2013, the Government entered into a settlement agreement with LCB in which, among other things, LCB forfeited in excess of $102 million.
Insider Trading Cases
$63 million forfeited
In addition to the SAC forfeiture, in 2013 the Office has forfeited and collected in excess of $63 million from insider trading criminal prosecution and civil forfeitures actions, including the forfeiture of $53.8 million from Raj Rajaratnam.
Wegelin & Co.
$15.8 million forfeited; total penalty, including fine and restitution, exceeding $76 million
In March 2013, Wegelin & Co., a Swiss private bank pled guilty to conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and the income generated in these accounts from the Internal Revenue Service. In connection with the guilty plea, Wegelin agreed to the civil forfeiture of $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers. Together with the April 2012 forfeiture of over $16.2 million from Wegelin’s correspondent bank account, this amounts to a total forfeiture of $30 million.
650 Fifth Avenue
36-story Office Tower; appraised value $525 million
In November of 2009, the Office filed an amended civil forfeiture complaint seeking the forfeiture of, among other things, a 36-story office tower located at 650 Fifth Avenue in Manhattan. The Government alleged that 40% of the office tower was owned by Bank Melli Iran, a state-owned bank, through a shell company Assa Corp. The remaining 60% was owned by Alavi Foundation, a New York-based charitable foundation, which the Government alleged provided services to Iran. On September 11, 2013, the court granted summary judgment for the Government, finding that Assa and Alavi provided services to Iran and that the office tower was forfeitable as proceeds of violations of the International Emergency Economic Powers Act and as property involved in money laundering.
10th Century Cambodian Sculpture
The Office filed a civil forfeiture action seeking to forfeit and return to Cambodia a 10th century sandstone sculpture, known as the Duryodhana, that was allegedly stolen from the Prasat Chen Temple at Koh Ker in Cambodia in 1972 by an organized looting network, and ultimately imported into the United States and offered for sale by Sotheby’s Inc. (“Sotheby’s”). In December 2013, the United States entered into a settlement of the civil forfeiture action under which Sotheby’s and the customer selling the Duryodhana, Decia Ruspoli de Poggia Suasa, agreed to return the Duryodhana to Cambodia.
Tyrannosauras bataar and other dinosaur skeletons
In 2012, the Office filed a civil action seeking to forfeit and return to Mongolia a Tyrannosaurus bataar skeleton which was looted from the Gobi desert in Mongolia, imported into the United States in violation of law and put up for auction in Manhattan by a commercial paleontologist, Eric Prokopi (“Prokopi”). Prokopi was arrested for smuggling and interstate transportation of stolen property. Prokopi pled guilty and agreed to forfeit the Tyrannosaurus bataar skeleton, an additional Tyrannosaurus bataar skeleton and several other fossils. The investigation also led to the seizure and forfeiture for the purpose of returning them to Mongolia of additional dinosaur skeletons and fossils, including a Saurolophus skeleton, another Tyrannosaurus bataar skeleton, a Saurolophus Angustirostris skeleton, a Oviraptor matrix containing at least five Oviraptor skeletons and an additional Oviraptor skeleton. In 2013, all the dinosaur skeletons and fossils were forfeited. In May 2013, the United States returned the Tyrannosaurus bataar and other dinosaur skeletons to Mongolia.
Below are summaries of some of the civil actions in which the Office has obtained significant recoveries:
Ambac
$101.9 million paid to the United States
In April 2013, the Office entered into a settlement in bankruptcy court resolving a dispute arising out of the tax accounting methods used by Ambac, a financial guarantee insurance company, to account for the credit default swap contract losses it purportedly sustained in the wake of the 2008 financial crisis. The United States recovered $101.9 million pursuant to the settlement. The settlement also secured a $1 billion reduction of Ambac’s net operating losses attributable to the credit default swaps, thereby preventing the company from potentially reducing its tax burden by several hundred million dollars.
Delphi
$23.1 million paid to the United States
In November 2013, the Office settled environmental claims and liabilities asserted against DPH Holdings Corporation, formerly known as Delphi Corporation (one of the largest auto parts manufacturers in the world), and its corporate affiliates. Pursuant to the settlement agreement, filed in bankruptcy court, Delphi paid approximately $23.1 million in cash for the clean-up of four properties in Michigan and Ohio contaminated with hazardous waste.
Bioscrip
$2.3 million (out of $11 million total) paid to date to the United States
In January 2014, the Office filed, and simultaneously settled, a civil fraud lawsuit for $11 million against Bioscrip, Inc., for accepting kickbacks from Novartis Pharmaceuticals Corp. in connection with the distribution of Exjade, a Novartis prescription drug. The Complaint alleged that Bioscrip accepted kickbacks in the form of patient referrals and rebates in exchange for recommending to Exjade patients that they should order refills. As part of the settlement, Bioscrip made extensive admissions concerning this conduct and agreed to continue to cooperate in the Government’s continuing investigation. $2.3 million of the $11 million total has been paid to date.
US v. NY Institute of Technology and Cardean Learning Group, LLC
$2.5 million paid to the United States
In December 2012, the Office settled civil fraud lawsuits against New York Institute of Technology and against Cardean Learning Group, LLC, for submitting false claims in connection with federal student loans and grants. In the settlement agreements, NYIT and Cardean made admissions concerning certain conduct set forth in the complaint.
US v. SEEDCO et al.
$1.8 million paid to the United States
In December 2012, the Office settled a civil fraud lawsuit for $1.725 million against Structured Employment Economic Development Corporation, or SEEDCO, for fraud in connection with a federally-funded program to provide job placement assistance to unemployed and underemployed New York City residents. SEEDCO, a national not-for-profit corporation, operated two New York City Workforce1 Career Centers, which provided services to prepare and connect job candidates to job opportunities. The Government’s lawsuit, filed May 22, 2012, asserted False Claims Act violations against SEEDCO and seven former managers for fraud for, among other things, routinely falsifying entries in the government job placement reporting database. As part of the settlement SEEDCO made extensive admissions and instituted a compliance program. Subsequently in 2013, the Office obtained Consent Decrees and Orders of Settlement and Dismissal as to five settling defendants, each of whom made certain admissions regarding their conduct and made “ability to pay” payments totaling $86,000.
US v. Test Quest et al.
$1.725 million paid to the United States
In January 2013, the Office filed a lawsuit against TestQuest and Michael Logan (a manager at TestQuest) in connection with a scheme whereby TestQuest obtained federal funds for allegedly providing after-school tutoring services that it did not actually provide. At the same time, Logan was arrested. In June 2013, Logan pled guilty to one count of conspiring to defraud the United States and, pursuant to the plea agreement, agreed to pay the Government approximately $750,000 in restitution. In August 2013, the Office filed settlement agreements with TestQuest and Logan, and simultaneously filed an amended civil complaint naming three public school teachers who also participated in the fraud. Pursuant to the settlement agreements, TestQuest made admissions of wrongdoing and paid $1,725,000, and Logan made admissions of wrongdoing.
The Office’s Money Laundering and Asset Forfeiture Unit is led by Sharon Cohen Levin and handles all criminal and civil forfeiture actions for the U.S. Attorney’s Office for the Southern District of New York. Civil recoveries are handled by the Office’s Civil Division, which is led by Sara L. Shudofsky. Criminal and civil collections are handled by the Office’s Financial Litigation Unit, which is led by Kathleen Zebrowski.
For further information, the United States Attorneys’ Annual Statistical Reports can be found online at http://www.justice.gov/usao/resources/reports/.
Two Men Charged with $983,000 Investment Fraud SchemeRead the Press Release
ROCKFORD — A Rockford man and a California man were indicted today by a federal grand jury in Rockford on fraud charges. TODD C. SMITH, 46, of Rockford, was charged with seven counts of mail fraud and ten counts of wire fraud, and TRAVIS OLIVER, 36, of Tremecula, Cal., was charged with eight counts of mail fraud and fifteen counts of wire fraud, in connection with a scheme to defraud investors by falsely representing to investors that their investments in Electus Asset Holdings were guaranteed, fraudulently obtaining more than $983,000 from the investors.
According to the indictment, Oliver was sole managing member of Electus Asset Holdings, and both Oliver and Smith solicited individuals to invest in Electus Asset Holdings, engaging in a scheme from Feb. 13, 2009, to at least March 2012, to defaud investors. The indictment alleges the defendants falsely represented to the investors that their investments would be returned in one year, yielding a guaranteed rate of interest per month, and that the funds could be withdrawn at any time without penalty. However, it is alleged the defendants knew a large portion of the investors’ funds was used to pay personal and other expenses, such as commissions to the defendants, and to make interest and principal payments to other individuals who had invested money with Oliver prior to the formation of Electus Asset Holdings in January 2009, and that the remainder of the investors’ funds was placed in a non-guaranteed investment.
It is further alleged that in order to conceal their false promises and misrepresentations, and prevent the investors from demanding the return of their principal, defendants used funds from new investors to pay interest and principal owed to prior investors. The indictment also charges that defendants mailed monthly statements and IRS 1099-INT forms to investors that falsely stated that the investors had earned interest on their investments, when defendants knew no interest had been earned on the investments.
The indictment alleges that when investors requested the return of their interest and principal, Oliver and Smith made false statements and promises to conceal the fact the investors’ money had been spent or lost in high risk investments, including that the investors’ checks were going to be issued shortly, that their checks were lost in the mail, and that the investors’ money was invested in company that was under investigation by the Federal Trade Commission and its assets had been frozen.
Each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Antonio Gomez, Postal Inspector-In-Charge of the Chicago Division of the U.S. Postal Inspection Service. The Illinois Secretary of State Securities Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving each defendant’s guilt beyond a reasonable doubt.
Indictment
Two Illinois Men Charged in Federal Court with Conspiracy to use Counterfeit Access Devices and Aggravated Identity TheftRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin announced today that a federal grand jury returned an eleven-count indictment against Raymond V. Scott (age 39) of Joliet, Illinois, and Tarquin C. Saunders (age 42) of Hillside, Illinois, with conspiracy to use counterfeit access devices and use of counterfeit access devices (counterfeit credit cards bearing stolen credit card numbers) in violation of Title 18, United States Code, Sections 1029(a)(1) and (c)(1)(a)(i). If convicted of the use of counterfeit access devices each defendant faces a maximum penalty of up to 10 years’ imprisonment, a $250,000 fine, and 3 years on supervised release. If convicted of the conspiracy each defendant faces an additional 5 years’ imprisonment; a $250,000 fine; and 3 years’ on supervised release.
The primary purpose of the conspiracy was to obtain stolen personal identifying information, including stolen credit card numbers and stolen credit card authorization codes, manufacture counterfeit credit cards bearing the stolen credit card numbers, and then use the counterfeit credit cards to obtain goods from merchants located throughout the state of Wisconsin and elsewhere.
Scott and Saunders are also charged with aggravated identity theft in violation of Title 18, United States Code, Section 1028A, which carries a mandatory prison sentence of two years, to run consecutive to any other sentence that may be imposed in this case. Congress enacted these penalties in 2004, as part of the Identity Theft Penalty Enhancement Act, to address the growing problem of identity theft.
According to United States Attorney James L. Santelle, “Identity theft crimes are a top priority for the Department of Justice because of their devastating impact on individual victims, their high financial cost to society, and the strong connection between identity theft and other serious financial crimes such as bank and mortgage fraud.”
This case was investigated by the United States Secret Service and the Greenfield, Muskego and New Berlin Police Departments. Assistant United States Attorney Laura S. Kwaterski is prosecuting this case.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
Two Garrett County Developers Indicted for A $3.7 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 49, of Accident, Maryland, and Louis W. Strosnider, III, age 47, of Oakland, Maryland, today on charges related to a $3.7 million bank fraud conspiracy.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the six count indictment, Samuel R. VanSickle and Louis W. Strosnider, III owned and developed property in Garrett County, Maryland. VanSickle controlled the mailbox at an address in Accident, Maryland, and rented a post office box, also in Accident. VanSickle used a number of different business names, including Freedom Church, Gospel Church, Equity Exchange, Unity Mortgage, Impartial Lenders, Noble Forest Consultants and used the names Donald Blunt, Allen Helms, Jacob Aiken, Paul Walsh, and William Hall (an attorney). Strosnider operated Stony Brook Development Company, LLC, a Maryland corporation located in McHenry, MD.
The indictment alleges that from December 31, 2001, through June 30, 2004, VanSickle and Strosnider devised a scheme to fraudulently obtain money and property from financial institutions. Specifically, the indictment charges that VanSickle purchased properties, concealed the ownership and control of the properties using false names and identities, inflated the value of the properties through fraudulent loans and mortgages; entered into sales contracts with Strosnider at inflated prices with fictitious down payments; and then Strosnider obtained bank loans with fraudulent collateral to finance sales of the properties. In this way, the indictment alleges that entities controlled by VanSickle sold the properties to Strosnider, with the purchase prices actually being paid to VanSickle in the name of companies he controlled. The indictment alleges that VanSickle and Strosnider purchased two properties using these methods.
The indictment also seeks forfeiture of $3,751,000 and 40 properties held in VanSickle’s name or in the names of nominees in Maryland, West Virginia and Pennsylvania.
The defendants face a maximum sentence of 30 years in prison for the conspiracy and for each of five counts of bank fraud. An initial appearance has been scheduled for February 28, 2014 in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Joyce K. McDonald, who is prosecuting the case.
Two Des Moines Men and One Woman Sentenced in Conspiracy to Distribute Cocaine and Gun ChargesRead the Press Release
DES MOINES, IA - On February 10, 2014, Harry Lincoln Garrison, III, a 26 year-old resident of Des Moines, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 132 months in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute at least 500 grams of cocaine, announced United States Attorney Nicholas A. Klinefeldt, United States Attorney. As part of the same case, Matthew Steven Steward, age 21, of Des Moines, Iowa, was sentenced to 120 months in prison for conspiracy to possess with intent to distribute at least 500 grams of cocaine and for carrying a firearm during and in relation to drug trafficking, and Elizabeth Heather Neilson, age 30, of Des Moines, Iowa, was sentenced to 60 months for conspiracy to possess with intent to distribute at least 500 grams of cocaine. The indictment was filed on March 27, 2013, and all three entered their guilty pleas on October 28, 2013.
This case stems from an undercover investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Des Moines Police Department wherein a confidential informant made several illicit purchases of drugs and firearms from Garrison, Steward and others. In the same case, Allen Fortner Jr., Brien Leroy Watson Jr., and Orlando Paul Valadez have also pleaded guilty, and are scheduled for sentencing at a later date.
The investigation was conducted by the Bureau of Alcohol Tobacco and Firearms and the Des Moines, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Three Johnstown Men Indicted on Gun and Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – Three residents of Johnstown, Pa., were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named as defendants the following individuals: James Andre Hendricks, 38; Logan Tyrell Harris, 32; and Dian Shanell Lassiter, 31.
According to the indictment presented to the court, from Aug. 8, 2013, through Aug. 22, 2013, James Andre Hendricks, Logan Tyrell Harris and Dian Shanell Lassiter conspired to distribute and possess with intent to distribute 100 grams or more of heroin.
In addition, on Aug. 8, Aug. 20 and Aug. 22, 2013, Hendricks distributed less than 100 grams of heroin on each of those occasions, and on Aug. 22, 2013, Hendricks, Harris and Lassiter possessed with the intent to distribute 100 grams or more of heroin.
On Aug. 22, 2013, James Andre Hendricks was found in possession of a Sturm & Ruger, Model P95, 9mm pistol. On Dec. 3, 2007, Hendricks was convicted in Bedford County, Pa., of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. On Aug. 22, 2013, Logan Tyrell Harris was found in possession of a Sturm & Ruger, Model P345, .45 caliber pistol. On May 20, 2004, Harris was convicted in Union County Superior Court of New Jersey of resisting arrest, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum total sentence for James Andre Hendricks of 150 years in prison, a fine of $13,250,000, or both; for Logan Tyrell Harris, 90 years in prison, a fine of $10,250,000, or both; and for Dian Shanell Lassiter, 80 years in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Statements of Associate Attorney General Tony West and Acting Assistant Attorney General of Enrd on the National Strategy for Combatting Wildlife TraffickingRead the Press Release
Today, the White House released the National Strategy for Combatting Wildlife Trafficking. The Department of Justice, along with the Departments of State and the Interior, are co-chairs of the U.S. Task Force established by President Obama to lead the implementation of this strategy. On Thursday, Associate Attorney General Tony West will lead the U.S. Delegation’s participation at the London Conference on the Illegal Wildlife Trade.
"The Department is pleased to be a part of this interagency approach to combating illegal wildlife trafficking,” said Associate Attorney General West. “Record high demand for wildlife products, coupled with inadequate preventative measures and weak institutions, has resulted in an explosion of illicit trade in wildlife in recent years, with the increasing involvement of organized transnational criminal syndicates. This trade undermines security, fuels corruption and contributes to the spread of disease, and it is decimating iconic animal populations. The National Strategy identifies priority areas for interagency coordination, with the objectives of harnessing and strategically applying the full breadth of U.S. government resources. Combating this problem will also require the shared understanding, commitment, and efforts of the world’s governments, intergovernmental organizations, NGOs, corporations, civil society and individuals. At this week’s London Conference on the Illegal Wildlife Trade, we hope other countries will join us in taking ambitious action to combat wildlife trafficking.”
The Department of Justice has long worked to protect threatened and endangered wildlife species through its enforcement of the Lacey Act and Endangered Species Act, as well as related criminal statutes.“The president has called upon DOJ and more than a dozen other federal agencies to combine forces to more effectively battle this pernicious trade, which is growing at an alarming rate and threatens the survival of protected species both at home and abroad,” said Acting Assistant Attorney General Robert Dreher for the Environment and Natural Resources Division. “The release of today’s National Strategy to Combat Wildlife Trafficking is a welcome next step in our longstanding efforts to protect threatened and endangered wildlife species. Strong enforcement is critical to stopping those who kill and traffic in these animals, whether on land or in the oceans. At the same time, the Strategy recognizes that enforcement alone is not enough to stop traffickers. We must also work to reduce demand for illegal wildlife products. This is not a fight that the United States can win alone; under the Strategy, we will build relationships with local and global partners who share our commitment to ending wildlife trafficking.”
The Environmental Crimes Section of the Environment and Natural Resources Division and U.S. Attorneys’ Offices around the country bring criminal prosecutions under these laws against, for example, people who are found smuggling wildlife and plants into the United States. There is a major worldwide black market for some endangered species or products made from them. The main federal agencies that the Division represents in this area are the Fish and Wildlife Service and the National Marine Fisheries Service.
St. Francis Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Abusive Sexual Contact was sentenced on February 10, 2014, by U.S. District Judge Roberto A. Lange.
Joseph Blue Bird, age 26, was sentenced to 36 months of custody, 5 years of supervised release, $43.50 in restitution, and a $100 special assessment to the Federal Crime Victims Fund. Blue Bird was also ordered to register as a sex offender.
Blue Bird was indicted by a federal grand jury on September 19, 2012. He pled guilty on November 19, 2013.
The conviction stems from an incident in May 2012, wherein the victim went to her neighbor's house in Rosebud for a social gathering. Blue Bird was also present at the gathering. The group socialized throughout the evening, and eventually the victim told a resident of the house that she was tired and was going to lie down on the couch. The victim awoke to find that her pants were down and Blue Bird was on top of her, touching her genitalia. Blue Bird then fled the residence without saying anything further to the victim.
This case was investigated by the Rosebud Sioux Tribal Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.