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Thursday 19 December 2013
Former St. Louis Parks Division Deputy Commissioner Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO - JOSEPH VACCA, Former Deputy Commissioner of the St. Louis Parks Division, was sentenced to 36 months in prison on charges that he and Thomas Stritzel, Former Chief of the St. Louis Park Rangers, defrauded the City of St. Louis of approximately one-half million dollars by submitting false invoices purportedly for materials and services supplied to the Parks Division. He appeared before United States District Judge Jackson in St. Louis.
According to court documents at the time of their guilty pleas, from January 1, 2005, to December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices, which included false charges of approximately $472,722. They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.
Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management's bank account. They then used those fraudulently obtained funds for their own personal use, including leasing personal vehicles, payment of fuel costs and the payment of personal credit card charges.
Vacca was also ordered to pay restitution to the City of St. Louis in the amount of $472,722.26
Co-defendant Thomas Stritzel is scheduled for sentencing January 27, 2014.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Former Socorro I.S.D. Trustee Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
In El Paso today, former Socorro Independent School District Trustee Guillermo “Willie” Gandara, Sr., was sentenced to 42 months in federal prison followed by three years of supervised release for using his influence with the school board to secure and retain lucrative health services contracts for ACCESS Health Source announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that Gandara pay a $25,000 fine as well as $5,575.67 restitution to Socorro ISD. Furthermore, Judge Montalvo ordered that Gandara self–surrender to a U.S. Bureau of Prisons designated facility on or before February 4, 2014, to begin serving his prison term.
“The sentence handed down today should reassure the public that we will be relentless in pursuing those public officials who violate their public trust for personal gain,” stated U.S. Attorney Robert Pitman.
ACCESS, among other things, was a third party administrator of healthcare benefits for self-insured entities. Between 1998 and 2007, ACCESS contracted with self-insured local (El Paso) government entities, including Socorro ISD, to provide administrative services for health insurance programs provided by their employer.
On July 22, 2013, Gandara pleaded guilty to one count of conspiracy to commit mail fraud. By pleading guilty, Gandara admitted that from 1998 until July 2007, he schemed to defraud the school district and deny the citizens of El Paso the right to honest services by their elected officials. Furthermore, that Gandara knowingly aided and abetted former ACCESS CEO and President Frank Apodaca and others by performing acts in his official capacity which benefited ACCESS.
“Today’s sentencing of former SISD Trustee Guillermo Gandara, Sr., marks the final sentencing of eleven individuals who were entrusted to serve the citizens of Socorro and El Paso but instead used their positions and influence to promote their own personal interests. This sentencing is yet another reminder of the FBI’s continued commitment to pursue individuals who have violated the public’s confidence and hold them accountable, irrespective of status,” stated FBI Special Agent In Charge Douglas E. Lindquist.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorneys Debra Kanof and Jose Luis Gonzalez are prosecuting this case on behalf of the Government.Former President of Southbury Synagogue Sentenced to 30 Months in Prison for Embezzling More Than $600,000Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JODI CHURCHILL, 45, of Orange, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 30 months of imprisonment, followed by three years of supervised release, for embezzling more than $600,000 from a Southbury synagogue. CHURCHILL was also ordered to serve six months of home confinement and perform 120 hours of community service while on supervised release.
According to court documents and statements made in court, beginning in November 2010, while serving as the vice president of the Beth El Synagogue in Southbury, CHURCHILL began embezzling funds from the synagogue. In June 2011, CHURCHILL became president of the synagogue and used her new position to open a checking account and a money market account in the name of the synagogue. CHURCHILL was the only signatory on the accounts. Initially, CHURCHILL opened the accounts using the synagogue’s business address in Southbury, but in 2011, she directed the bank to change the mailing address on the accounts to her residence in Orange. Thereafter, all bank statements for accounts were mailed to CHURCHILL’s home address.
Between June 2011 and December 2011, CHURCHILL deposited bank checks totaling more than $300,000 into the accounts. The checks reflected the proceeds of certificates of deposit held by the synagogue that had matured at other financial institutions.
The investigation has revealed that CHURCHILL made more than 60 unauthorized ATM and over-the-counter withdrawals of synagogue funds in amounts ranging from $200 to $5,000. CHURCHILL used embezzled funds to pay school-related expenses for her children, expenses for leasing a horse used by one of her children, vehicle expenses, airline tickets and hotel expenses for personal travel. She also provided stolen funds to a relative.
During the course of this scheme, CHURCHILL embezzled more than $661,000 in synagogue funds.
After the embezzlement scheme was uncovered, the government seized approximately $104,000 from CHURCHILL’s bank accounts, and seized and sold, for approximately $22,000, an automobile she had purchased with synagogue funds. The funds have been returned to the synagogue.
Judge Chatigny ordered CHURCHILL to pay restitution in the amount of $531,985.25 to the synagogue and its insurer.
On May 31, 2013, CHURCHILL waived her right to indictment and pleaded guilty to one count of mail fraud.
This matter was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorney Christopher W. Schmeisser.
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[email protected]Former Partner in International Law Firm Sentenced to More Than 17 Years in Prison for Sex Trafficking of A Minor, Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., man admitted today to engaging in the sex trafficking of a young boy and distributing child pornography over the Internet and was sentenced during the same proceeding to 210 monthsin prison. He was also ordered to pay $1.2 million in restitution to his victims, New Jersey U.S. Attorney Paul J. Fishman announced.
Edward M. De Sear, 67, of Saddle River, N.J., pleaded guilty before U.S. District Judge William J. Martini to a superseding information charging him with one count of sex trafficking of a child and four counts of distributing child pornography. Judge Martini imposed the sentence today in Newark federal court.
At the time of his initial arrest in July 2011 on a federal complaint charging him with distribution of child pornography, De Sear was a partner at the New York office of a prominent international law firm. He was released on bail and taken into custody again in August 2012, when he was charged in an indictment with multiple offenses related to images of children being sexually abused.
According to documents filed in this case and statements made in court:
De Sear admitted that in June 2011, he arranged for a young boy to travel from Paris to Brussels, Belgium, and sexually abused the child. De Sear facilitated the boy’s international travel by, among other means, paying cash to the boy’s father.
On several occasions between May 2010 and February 2011, De Sear also distributed hundreds of video and image files depicting young children being sexually abused, sometimes violently, via a peer-to-peer file-sharing program.
In addition to the prison term and restitution, Judge Martini ordered De Sear to pay a $25,000 fine and sentenced him to a lifetime of supervised release He is also required to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea and sentencing.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu and Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: John Vazquez and Michael Critchley Sr., Esqs., Roseland, N.J.
De Sear, Edward Superseding Information
Former Parker Man Sentenced to Serve 51 Months in Federal Prison for $1.7 Million Fraudulent Ponzi SchemeRead the Press Release
DENVER – Shawon McClung, age 27, formerly of Parker, Colorado, was sentenced earlier this week by U.S. District Court Judge R. Brooke Jackson to serve 51 months in federal prison for wire fraud, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Following his prison sentence, Judge Jackson ordered McClung to serve 3 years on supervised release. The defendant was also ordered to pay $1,756,750 in restitution to the 15 victims of his fraud. McClung was ordered to voluntarily surrender to the institution designated by the U.S. Bureau of Prisons within 15 days from the date of designation.
McClung was first charged by Information on June 12, 2013. He pled guilty before Judge Jackson on July 30, 2013. The defendant was sentenced on December 16, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, in 2009, McClung began Flint‑McClung Capital, LLC ("FMC") in Indiana. In November 2010, McClung moved FMC from Indiana to Denver, Colorado. In early 2009, McClung entered into financing discussions with a software programmer for the development of proprietary software to make automated trades on the foreign currency ("FOREX") market. The goal was to develop a software program that would perform numerous automated trades during a short time based on an algorithm designed to predict and exploit differences in foreign exchange rates. On December 15, 2010, an agreement was reached by McClung and the software programmer to provide funding for the software program. However, McClung only provided approximately $213,000 of the promised $614,790, and the software program was never developed and was never available for FMC’s use.
Despite the fact that the software program had not been developed, from approximately March 2009 to approximately April 2011, McClung solicited investor money by falsely representing that FMC owned and used a proprietary "massively parallel automated trading system" to trade currencies on the FOREX market. McClung falsely told investors that this proprietary software was already being used at FMC and had a history of success. Both verbally and in writing, McClung falsely represented to investors, potential investors and others that investors in the investment programs he was offering "historically" received returns of 15% to 100% approximately every 14 to 30 days. In reality, as McClung well knew, the software program did not exist and had no history of success.
Both verbally and in written "Investment Contracts" and "Joint Venture Agreements," McClung falsely represented to investors, potential investors and others that FMC guaranteed from loss the principal of the investment placed with FMC. McClung also falsely represented to investors, potential investors and others that FMC would use their entire investment to trade in currencies using FMC’s proprietary system, which McClung knew did not exist. In fact, McClung did not place any of the investors’ money in trades.
McClung did make some promised payouts to early investors using money he received from other investors. Some of those early investors told other potential investors about their successful "investments" with FMC, which reassured others about investing their money with McClung and FMC.
After McClung and FMC failed to make promised payments to investors via email and other forms of communication, McClung made a number of false excuses to investors and others regarding why the payments had not been made. He also made a number of false promises about future payments. In March 2011, McClung sent to several investors via email a document entitled "Cancellation of Contract and Account Settlement" in which he falsely represented that FMC would return an amount of money specified in the document if the investor signed and released McClung and others of any liability. After receiving signed "Cancellation of Contract and Account Settlement" from many investors, McClung failed to make the promised payouts and failed to return the investors’ principal.
“All too often we see con men like the defendant in this tragic case, who claim to have a super-secret method that enables them to make instant millions by manipulating or outwitting the financial markets,” said U.S. Attorney John Walsh. “That sort of claim always deserves the highest level of skepticism – if a deal promises sky-high returns with no risk, it’s too good to be true, and investors should run away.”
“In order to ensure our financial markets operate fairly, the FBI is committed to aggressively pursuing those who commit investment fraud,” said FBI Denver Division Special Agent in Charge Thomas P. Ravenelle. “We are confident the results of this investigation will deter others who engage in these types of fraudulent schemes.”
This case was investigated by the Federal Bureau of Investigation (FBI).
McClung was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
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Former Loan Officer Sentenced to 11 Years in Prison for Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Billings, Mont. man who worked as a loan officer in Las Vegas during 2006 and 2007 was sentenced today to 11 years in prison, five years of supervised release and ordered to pay over $2.2 million in restitution for his fraud and identity theft convictions related to a mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada and Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division.
Nicholas Lindsey, 40, was sentenced by Senior U.S. District Judge Lloyd D. George. Lindsay was convicted by a federal jury in April of nine counts of wire fraud and one count of aggravated identity theft.
“Many innocent homeowners in Nevada have suffered because of this type of crime involving fraudulent residential mortgage transactions,” said U.S. Attorney Bogden. “Unfortunately, these crimes are not victimless and the damage to the community is lasting. Since 2008, when the FBI and our office made mortgage fraud prosecutions a priority, we have investigated, charged and convicted hundreds of persons for federal mortgage fraud crimes and most of them are now serving time in federal prison.”
According to the indictment and evidence presented to the jury during the trial, from about May to September 2006, Lindsey, who worked as a loan officer for Clear Mortgage and Signature Mortgage, recruited straw buyers to participate in what he described as a lucrative real estate investment opportunity by purchasing five homes in the Las Vegas area. Evidence at trial demonstrated that Lindsey secured over $3 million in mortgage loans by knowingly causing to be placed in the straw buyers’ mortgage loan applications false information concerning the buyers’ income, assets and intent to occupy the homes. Once the mortgages were approved, Lindsey fraudulently diverted to his bank account a portion of the proceeds disbursed from escrow and used these funds for his own benefit. Lindsey realized additional profits by living in or renting out properties in the buyers’ names.
In addition to the five homes of which the buyers were aware, Lindsey stole two buyers’ identities and used their personal information to purchase three additional properties in their names. The evidence established that Lindsey leased two of these properties and collected rental income and used the third as his own personal residence. After collecting profits, Lindsey stopped making the mortgage payments on the properties and allowed all eight homes to default in the borrowers’ names, causing an estimated loss to lenders of $1.6 million. At sentencing, the court also found that Lindsey used his position as a loan officer to commit fraud in relation to five additional properties, causing additional losses of $703,005 for a total loss of approximately $2.3 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christina Brown and Trial Attorney Brian Young of the Criminal Division’s Fraud Section.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Former Huntington Bank Manager Sentenced for Embezzling from the ElderlyRead the Press Release
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ELKINS, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that a former branch manager from Huntington National Bank was sentenced to 37 months in prison for stealing nearly $250,000 from accounts belonging to elderly customers.
DEBORAH D. RADCLIFF, age 51, of Weston, West Virginia, was sentenced to over three years in prison by Chief Judge John Preston Bailey and was also ordered to repay the victims of her crime. Judge Bailey made a specific finding that RADCLIFF had methodically selected her victims due to their age. RADCLIFF had previously entered guilty pleas to the felony offenses of “Embezzlement by a Bank Employee” and one count of “Structuring.”
“Ms. Radcliff preyed upon her most vulnerable customers at the bank in order to line her own pockets,” said Ihlenfeld. “Anyone who targets the elderly in a scheme like this deserves a significant punishment like the one imposed by the Court.”
During the period July 1, 2011, to November 5, 2012, while serving as the branch manager of Huntington Bank in Weston, RADCLIFF embezzled and misapplied $247,249.88 from customers’ accounts and engaged in acts of structuring to cause the bank to fail to file a Currency Transaction Report for currency transactions of $10,000 or more. To execute the scheme, RADCLIFF utilized her position as branch manager to issue or direct to be issued cashier’s checks from funds withdrawn from customer accounts issued in the name of the customer. RADCLIFF would then take possession of the cashier’s check, forge the name of the depositor and cash the checks for her own personal benefit. The ages of the alleged victims ranged from 56 to 90 years, with all but one alleged victim 64 years or older.
RADCLIFF, who is free on bond, will report to federal prison in February.The case was prosecuted by Assistant United States Attorney John C. Parr and investigated by the Federal Bureau of Investigation and Internal Revenue Service, with cooperation from the Huntington National Bank’s Corporate Security office.
Former Dickinson Resident and Leader of Meth Trafficking Organization Gets 30 YearsRead the Press Release
HOUSTON - Huey Joseph Hebert, 35, formerly of Dickinson, has been sentenced to 360 months in federal prison for his role as a leader in a methamphetamine trafficking organization, announced United States Attorney Kenneth Magidson. Hebert pleaded guilty May 9, 2013.
Today, U.S. District Judge Sim Lake handed Hebert 120 months for methamphetamine trafficking along with two additional 120-month-terms for engaging in monetary transactions in property greater than $10,000 with narcotics proceeds. All sentences were ordered to be served consecutively for a combined 30-year sentence. Hebert must also pay a $2000 fine and will serve five years of supervised release following completion of his prison term. Judge Lake further ordered the forfeiture of two Harris County properties.
At the time of the plea, Hebert admitted he conspired with 14 other individuals to distribute methamphetamine with a purity just shy of 100% (referred to as “ice”) from Dickinson to Louisiana and elsewhere from mid-2008 until February of 2012. In addition to distributing methamphetamine, the organization also distributed more than 1000 kilograms of marijuana during this timeframe.Nash Pitre, 46, of Houma, La., a narcotics and currency courier for Hebert, was also sentenced today. Judge Lake ordered he serve a term of 112 months followed by five years supervised release for transporting 100 kilograms or more of methamphetamine and marijuana from Houston to Houma.
This investigation was conducted by a Drug Enforcement Administration lead Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Country Roads.” Officials with the Internal Revenue Service - Criminal Investigation lead the financial aspect of this case. These officials were invaluably assisted by a wide variety of law enforcement agencies including police departments in Dickinson, League City and Pasadena; sheriff's offices in Galveston, Harris, Jefferson, Fort Bend and Brazoria Counties; as well as Texas Department of Public Safety and the U.S. Marshals Service.Assistant United States Attorney Shelley Hicks is prosecuting.
Former Des Moines, Iowa, Police Officer Indicted for Civil Rights ViolationRead the Press Release
DES MOINES, IA – Colin Boone, previously employed as an officer of the Des Moines, Iowa, Police Department, was indicted on Tuesday, December 17, 2013, on the charge of deprivation of rights under color of law for assaulting a civilian during the course of an arrest on February 19, 2013, announced United States Attorney Nicholas A. Klinefeldt. Boone was arrested in South Dakota this morning, and is scheduled to have an initial appearance before a U.S. Magistrate Judge in Sioux Falls, South Dakota at 3:15 p.m. this afternoon.
The charge of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, carries a maximum penalty of ten years in prison and a maximum fine of $250,000. The indictment specifically charges that Boone physically assaulted the victim by kicking him, resulting in bodily injury.
Today’s indictment is the result of an investigation conducted by the Des Moines Resident Office of the Federal Bureau of Investigation. Prosecution of this matter is being handled by the U.S. Attorney’s Office for the Southern District of Iowa and the Civil Rights Division of the U.S. Department of Justice.
The public is reminded that an indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty.
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Former Belgrade State Bank Branch Manager Indicted on Fraud and Embezzlement ChargesRead the Press Release
St. Louis, MO --A federal indictment was returned today naming Sheila Aubuchon as the defendant in an alleged scheme to misdirect funds held at Belgrade State Bank to her personal use. The indictment alleges that Aubuchon forged signatures, altered account numbers and evaded bank procedures in order to conceal her misappropriation of more than $120,000 in funds owned by Belgrade State Bank and its customers. The indictment also alleges that Aubuchon failed to file currency transaction reports (CTRs) relating to these transactions as required by federal law.
SHEILA AUBUCHON was indicted by a federal grand jury on three felony counts of bank fraud, three felony counts of theft or embezzlement by a bank employee and two felony counts of causing Belgrade Bank to fail to file CTRs. If convicted, each count of bank fraud and embezzlement carries a maximum penalty of 30 years in prison. Failure to file a CTR carries a maximum penalty of 10 years in prison. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney Richard E. Finneran 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.
Florida Man Sentenced to 12 Years in Federal Prison for Operating Investment Fraud SchemesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBERT RIVERNIDER, 48, of Wellington, Fla., was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 144 months of imprisonment, followed by five years of supervised release, for operating two investment schemes that caused a loss of more than $25 million to individuals and lending institutions.
According to court documents and statements made in court, between approximately June 2005 and April 2008, RIVERNIDER and Robert Ponte of Stonington, Conn., conspired to defraud several victim investors by misrepresenting that the investors’ monies would be invested in legitimate, high-return investments. As part of the conspiracy, RIVERNIDER and Ponte used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that Ponte established. With the “No More Bills” program, RIVERNIDER and Ponte sought victim investors to invest monies with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.
RIVERNIDER and Ponte misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, RIVERNIDER and Ponte used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.
Through this first scheme, investors lost approximately $2.2 million.
In a second scheme, between approximately November 2006 and December 2007, RIVERNIDER, Ponte, and Loretta Seneca of Boynton Beach, Fla., engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. Seneca is RIVERNIDER’s sister. As part of the scheme, RIVERNIDER, Ponte and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. RIVERNIDER and Ponte typically represented to borrowers that these properties would be passive investments and that RIVERNIDER and Ponte would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that RIVERNIDER and Ponte would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, RIVERNIDER and Ponte frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. RIVERNIDER, Ponte and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
RIVERNIDER, Ponte, Seneca and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. Seneca, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by RIVERNIDER to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions suffered more than $23 million in losses.
Judge Chatigny will issue an order within 90 days requiring RIVERNIDER to pay full restitution to the victims of both schemes.
On February 25, 2013, RIVERNIDER pleaded guilty to two counts of conspiracy and 16 counts of wire fraud, and Seneca pleaded guilty to one count of conspiracy and one count of wire fraud. On March 1, 2013, Ponte pleaded guilty to two counts of conspiracy, 14 counts of wire fraud and two counts of tax evasion. All three guilty pleas occurred during the middle of a trial, and RIVERNIDER pleaded guilty to all counts of the indictment in which he was charged.
Ponte and Seneca await sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Christopher W. Schmeisser.
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[email protected]Federal Jury Convicts Fort Worth Financial Planner on Wire Fraud and Money Laundering ChargesRead the Press Release
Defendant Remanded into Federal Custody Following Verdict
FORT WORTH, Texas — Following a two-day trial, before U.S. District Judge John McBryde, a federal jury convicted Caleb Deason, a 34 year old Fort Worth resident, late yesterday on an indictment charging one count each of wire fraud and money laundering. Following the verdict, Judge McBryde remanded Deason into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Deason owned and operated CD Financial, a financial services business in Fort Worth, Texas. Deason was an agent of Transamerica Life Insurance Company from November 206 through May 2012. In October 2011, Deason sold an individual a Transamerica policy with a death benefit of approximately $1 million.
In January 2012, the insured died unexpectedly. Transamerica conducted extensive due diligence before agreeing to pay the policy’s death benefit to the insured’s wife. However, Deason fraudulently changed the bank account and routing information and forged the beneficiary’s signature on a Transamerica wire request form in order to divert the proceeds from the life insurance policy to his own personal use, which included purchasing a 2010 Range Rover.
Deason faces a maximum statutory penalty of 20 years in federal prison on the wire fraud conviction and 10 years on the money laundering conviction. Each count of conviction also carries a fine of up to $250,000. The 2010 Range Rover has already been administratively forfeited by the U.S. Secret Service. Sentencing has been set for April 4, 2014.
The case was investigated by the U.S. Secret Service and the Texas Department of Insurance. Assistant U.S. Attorneys Brian Poe and John de la Garza were in charge of the prosecution.
Federal Jury Convicts Dallas Man for Role in Conspiracies to Distribute Cocaine and MethamphetamineRead the Press Release
Defendant Also Convicted on Obstruction and Perjury Charges
DALLAS — A Dallas man arrested this summer as part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation was convicted late yesterday, following a three-day trial before U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldana.
The jury found Reynaldo Macedo-Flores, 35, guilty as charged on all five counts of the indictment, including one count of conspiracy to possess with intent to distribute cocaine; one count of conspiracy to possess with intent to distribute methamphetamine, one count of obstruction of justice and two counts of perjury. The obstruction and perjury convictions stem from Macedo-Flores’s false testimony at the trial of Austreberta Macedo-Flores, his mother, in September 2013, also before U.S. District Judge Reed O’Connor. (Austreberta Macedo-Flores was also convicted of conspiring to distribute methamphetamine; her sentencing hearing is pending.)
The government presented evidence at trial that Reynald Macedo-Flores repeatedly sold narcotics to an undercover officer, bragged about taking the risk of distributing narcotics on a wiretap, and plotted to present false testimony – and then did so – at his mother’s trial.
Macedo-Flores faces a statutory penalty of five to 40 years in federal prison on the cocaine conviction, 10 years to life in prison on the methamphetamine conviction, up to 20 years in prison on the obstruction conviction and up to five years in prison on each of the perjury convictions. He could also be ordered to pay millions of dollars in fines. Sentencing is set for March 20, 2014, before Judge O’Connor.
All 10 defendants in the case have now been convicted and are awaiting sentencing. Eight defendants entered guilty pleas.
The case involved undercover purchases, wiretaps and search warrants, and was investigated by the FBI in conjunction with the Dallas Police Department. In total, over 15 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash – much of it, as trial testimony showed, packaged for shipment to Mexico – have been seized in the operation.
The case is being prosecuted by Assistant U.S. Attorney Jason Schall.
Englishtown, N.J., Pharmacy Burglar Sentenced to Four Years in Prison for Conspiracy to Distribute Stolen OxycodoneRead the Press Release
TRENTON, N.J. - A Brooklyn, N.Y., man was sentenced today to 48 months in prison for his involvement in a plot to burglarize a pharmacy in Englishtown, N.J., and distribute stolen narcotics, U.S. Attorney Paul J. Fishman announced.
Dzheykhun Avshalumov, 24, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Englishtown was burglarized shortly after 4:00 a.m. on June 17, 2012. Avshalumov and his conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including approximately 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances.
The stock lost by the pharmacy was valued at approximately $350,000. Avshalumov admitted that he stole the drugs, and that he did so knowing they would be distributed.
In addition to the prison term, Judge Wolfson sentenced Avshalumov to three years of supervised release and ordered him to pay $334,722.12 in restitution.
Two of Avshalumov’s conspirators have previously pleaded guilty to this criminal conduct. James Zarbailov pleaded guilty before Judge Wolfson to conspiracy to distribute and possess with intent to distribute oxycodone. Zarbailov was sentenced to 63 months in prison on Nov. 18, 2013. David Mordukhaev pleaded guilty before Judge Wolfson to the same offense, and was sentenced to 65 months in prison on Dec. 11, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-477
Defense counsel: Michael A. Armstrong Esq., Willingboro, N.J.
Energy Company to Pay $3.2 Million Penalty to Resolve Clean Water Violations in West VirginiaRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Chesapeake Appalachia LLC, a subsidiary of Chesapeake Energy, the nation’s second largest natural gas producer, will spend an EPA-estimated $6.5 million to restore 27 sites damaged by unauthorized discharges of fill material into streams and wetlands and to implement a comprehensive plan to comply with federal and state water protection laws at the company’s natural gas extraction sites in West Virginia, many of which involve hydraulic fracturing operations.
The company will also pay a civil penalty of $3.2 million, one of the largest ever levied by the federal government for violations of Section 404 of the Clean Water Act (CWA), which prohibits the filling or damming of wetlands, rivers, streams, and other waters of the United States without a federal permit.
“With this agreement, Chesapeake is taking important steps to comply with state and federal laws that are essential to protecting the integrity of the nation’s waters, wetlands and streams,” said Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “We will continue to ensure that oil and gas development, including development through the use of hydraulic-fracturing techniques, complies with the Clean Water Act and other applicable federal laws.”
“Ensuring environmentally-sound and legal natural gas production is critical to protecting wetlands and local water supplies that communities depend on,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “By enforcing the law with a large producer like Chesapeake Appalachia, we’re also helping to level the playing field for businesses in this industry.”
The federal government and the West Virginia Department of Environmental Protection (WVDEP) allege that the company impounded streams and discharged sand, dirt, rocks and other fill material into streams and wetlands without a federal permit in order to construct well pads, impoundments, road crossings and other facilities related to natural gas extraction. The alleged violations being resolved by today’s settlement occurred at 27 sites located in the West Virginia Counties of Boone, Kanawha, Lewis, Marshall, Mingo, Preston, Upshur and Wetzel, including 16 sites involving hydraulic fracturing operations. The government alleges that the violations impacted approximately 12,000 linear feet of stream, or approximately 2.2 miles, and more than three acres of wetlands.
The settlement requires that the company fully restore the wetlands and streams wherever feasible, monitor the restored sites for up to 10 years to assure the success of the restoration, and implement a comprehensive compliance program to ensure future compliance with the CWA and applicable state law. To offset the impacts to sites that cannot be restored, the company will perform compensatory mitigation, which will likely involve purchasing credits from a wetland mitigation bank located in a local watershed.
EPA discovered some of the violations through information provided by the public and routine inspections. In addition, the company voluntarily disclosed potential violations at 19 of the sites following an internal audit. In 2010 and 2011, EPA issued administrative compliance orders for violations at 11 sites. Since that time, the company has been correcting the violations and restoring those sites in full compliance with EPA’s orders.
The settlement also resolves alleged violations of state law brought by WVDEP. The state of West Virginia is a co-plaintiff in the settlement and will receive half of the civil penalty.
In a related case, in December 2012, the company pleaded guilty to three violations of the CWA related to natural gas extraction activity in Wetzel County, at one of the sites subject to today’s settlement. The company was sentenced to pay a $600,000 penalty to the federal government for discharging crushed stone and gravel into Blake Fork, a local stream, to create a roadway to improve access to a drilling site. The company has already fully restored the damage done to the site.
Filling wetlands illegally and damming streams can result in serious environmental consequences. Streams, rivers, and wetlands benefit the environment by reducing flood risks, filtering pollutants, recharging groundwater and drinking water supplies, and providing food and habitat for aquatic species.
Chesapeake Appalachia engages in the exploration and production of natural gas in the Appalachian Basin. The company has oil and natural gas properties in West Virginia, Pennsylvania, and Ohio.
The consent decree, lodged today in the Northern District of West Virginia, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html.
More information about the settlement: www2.epa.gov/enforcement/chesapeake-appalachia-llc-clean-water-settlement.El Departamento de Justicia Realiza Acuerdo Conciliatorio con Fort Davis State Bank en Resolución de Alegatos de Discriminación en el Otorgamiento de PréstamosRead the Press Release
El Departamento de Justicia anunció hoy que Fort Davis State Bank, con sede en Fort Davis, Texas, implementará políticas de precios uniformes, brindará capacitación a empleados y pagará 159,000 dólares como parte de un acuerdo conciliatorio en resolución de alegatos que había mantenido un patrón o práctica de discriminación basado en origen nacional.
El acuerdo conciliatorio, que está sujeto a aprobación del tribunal, fue presentado junto con la demanda del departamento en el Tribunal Federal de Distrito del Distrito Oeste de Texas. La demanda alega que Fort Davis State Bank violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act [ECOA]) al cobrar precios más altos a prestatarios hispanos por préstamos de consumidor sin garantía, que a prestatarios no hispanos con cualificaciones similares.
Fort Davis State Bank es un banco comunitario con tres sucursales con presencia significativa en la comunidad hispana local hace muchos años.
"Este acuerdo conciliatorio asegura que los prestatarios hispanos que pagaron más por sus préstamos serán debidamente indemnizados", señaló la Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles del departamento Jocelyn Samuels. "Consideramos encomiable el compromiso de Fort Davis State Bank de satisfacer las necesidades especiales de préstamo de consumidor de esta comunidad de manera igualitaria y trabajar en conjunto con el Departamento de Justicia para lograr una resolución adecuada para este caso".
La demanda surgió de una remisión al departamento realizada en 2011 por la Federal Deposit Insurance Corporation (FDIC). Fort Davis State Bank está regulada por la FDIC.
Los fondos del acuerdo conciliatorio se utilizarán para indemnizar a víctimas hispanas de la presunta discriminación llevada a cabo por Fort Davis State Bank. Según el acuerdo conciliatorio propuesto, los Estados Unidos identificarán una lista de víctimas, quienes recibirán un aviso de elegibilidad del banco, y el departamento controlará el proceso de indemnización.
Con anterioridad al acuerdo conciliatorio, Fort Davis State Bank implementó políticas de precios uniformes que redujeron significativamente la libertad de sus agentes de crédito de variar la tasa de interés de un préstamo respecto del precio establecido con base en factores crediticios objetivos del prestatario. El acuerdo conciliatorio de hoy exige que Fort Davis State Bank mantenga sus políticas optimizadas como mínimo durante los próximos tres años, siga controlando su otorgamiento de préstamos de modo a evitar la discriminación y provea informes de sus controles a los Estados Unidos.
La Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles es responsable, en el departamento, de hacer valer las leyes de otorgamiento justo de préstamos. Desde su fundación en febrero de 2010, la Unidad de Préstamos Justos ha iniciado o resuelto 29 casos asociados a préstamos bajo la Ley de Vivienda Justa [Fair Housing Act], ECOA y la Ley de Amparo Civil para Militares [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios logrados en estos casos consistieron en casi 700 millones de dólares en indemnizaciones a comunidades y prestatarios individuales afectados. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso bajo ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications.
La División de Derechos Civiles y la FDIC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama estableció la fuerza de tarea interagencial para llevar a cabo una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando unidos, aportan un poderoso espectro de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar los delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
Para obtener una copia de la demanda y la orden propuesta, así como también información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en www.justice.gov/fairhousing.
Eight People Indicted for $40 Million Mortgage FraudRead the Press Release
Eight people were indicted for their roles in a $40 million mortgage fraud conspiracy involving dozens of properties along Florida’s Gulf Coast, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Named in the 45-count indictment are: Ileana E. Osborne, 44, of Santa Rosa Beach, Fla.; Kyle F. Conrad, 63, and Linda K. Conrad, 62, both of Hartville, Ohio; John J. Dubay, 48, of Delray Beach, Fla.; Jon R. Jacobson, 50, of North Canton, Ohio; Harry S. Kaplan, 50, of Hillsboro Beach, Fla.; David B. Romsey, 67, of Uniontown, Ohio, and Grace M. Wollerman, 49, of Mentor, Ohio.
Also named but not charged in the indictment is Jack R. Coppenger, of Akron. Coppenger is currently serving 10 years in federal prison for his role in the schemes.
The indictment details conduct that took place between 2004 and 2006, when Osborne owned and operated a mortgage brokerage company and a consulting company and Copppenger operated several businesses related to real estate development. The other seven people served as straw buyers, according to the indictment.
The defendants conspired to use straw buyers to make mortgage loan applications, to make false statements, misrepresentations and omissions in the mortgage loan applications and to conceal the scheme to avert detection from lending institutions, according to the indictment.
At Osborne and Coppenger’s request, a real estate agent or property finder located a property for sale. Osborne, Coppenger and others conviced the property owner to allow them and others to assist in the sale and purchase for a price satisfactory to the seller. Coppenger located a straw buyer with good credit and solicited his or her participation in the fraudulent scheme by promising payments of as much as $25,000 in return for using the straw buyer’s name and credit to purchase the property, according to the indictment.
In some instances, Osborne, the straw buyer, Coppenger and others agreed to a sales price of the property in excess of the asking price and divided the excess amount between Osborne and Coppenger, their respective companies and others, according to the indictment.
Coppenger represented to the straw buyer that his or her credit information was needed only to make the purchase, and once purchased the straw buyer would not be responsible for the payments on the mortgage loan. However, he also promised straw buyers a split on future profits from the investment developed in and development of the property, according to the indictment.
Osborne, as a licensed mortgage broker, along with the straw buyer, filled out a loan application for the straw buyer. She and the straw buyer included false information, including inflating income amounts, falsely representing that the property would be used as a second residence, failing to disclose that the straw buyer was not the source of the down payment for the property and other false statements, according to the indictment.
The indictment lists fraudulent transactions for nine properties on Ann Street in Santa Rosa, Fla.
Through their schemes, the defendants obtained numerous home mortgage loans under false and fraudulent pretenses with a total face value of approximately $40 million in order to illicitly enrich themselves and their co-conspirators. Many of these loans are now in default and/or foreclosure, according to the indictment.
Osborne was also indicted for her role in a bank fraud conspiracy involving Jason A. Herceg and Andrew D. Norman in 2006 in which all three used straw buyers to make mortgage loan applications, made false statements and misrepresentation in the mortgage loan applications and concealed the scheme from lending institutions. That scheme involved four properties in Santa Rosa Beach, Florida, and caused an additional loss of approximately $5 million.
Herceg and Norman were sentenced to federal prison after being found guilty of crimes related to their role in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Om Kakani following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offenses and the characteristics of the violation.
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.
Eight Charged Federally for Illegal Distribution of Bath Salts in Bradford CountyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury returned an indictment on December 10, 2013 charging a six Bradford County residents and two New York State residents with illegally importing and distributing bath salts in the Bradford County area.
According to United States Attorney Peter J. Smith, Seth Barnes,38 of Milan, PA; Brad Brown, 45, formerly of Towanda; Corey Dobbins, 39, formerly of Rome, PA; April Fuller,48 of Monroeton, PA; Robert Howe,26 of Elmira, NY; Patrick Russell, 48 of LeRaysville, PA; Kenneth Rider, 55 of Monroeton, PA and Chris Thompson, 41 of Cooper Plains, NY, were charged by the grand jury with importing and distributing Methylone, a Schedule I controlled substance and Alpha-PVP, a Schedule I controlled substance analogue. All eight individuals were arrested Wednesday and appeared before a U.S. Magistrate Karoline Mehalchick for their initial appearance and pled not guilty.
Chad McLinko, 31, of Towanda, who was charged by a Criminal Complaint with distributing methylone and a-pvp, was also arrested yesterday. McLinko is alleged to be associated with those individuals indicted on December 10, 2013.
Methylone and Alpha-PVP are among the group of substances commonly known as “bath salts”. Controlled substance analogues are substances with similar chemical properties and pharmacological effects on the human body. Federal law provides for controlled substances to be treated as Schedule I controlled substances for the purpose of criminal prosecution.This case was the result of a joint investigation between the Drug Enforcement Administration, the Pennsylvania State Police and the Athens Borough Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Drywaller Sentenced in Tax Evasion ScamRead the Press Release
BOSTON - A Waltham man was sentenced today for a tax evasion scam in connection with his drywalling and plastering business.
Paul Landry, 47, was sentenced by U.S. District Court Judge Mark L. Wolf to three months in a halfway house, six months home detention, three years of probation, a $3,000 fine, and nearly $200,000 in restitution to the IRS. In February 2012, Landry pleaded guilty to three counts of tax evasion. At the hearing, Judge Wolf explained that he was not sentencing Landry to jail time because of Landry’s declining health and his record of good works in his community.
Landry, a drywall and plastering company owner from Waltham, who owns and operates P.L. Drywall, Inc., falsified tax returns in 2004-2006, failing to report more than $900,000 of income during that period, and failing to pay nearly $200,000 in federal income taxes. In addition, when Landry was being interviewed by an IRS inspector he lied about his income in an effort to conceal the crime.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by former Assistant U.S. Attorney Paul Levenson and current Assistant U.S. Attorney John T. McNeil of Ortiz’s Criminal Division.
Demolition Company Owner Sentenced to Prison for Improper Handling of Asbestos During Demolition of Piqua Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Lamont P. Pryor, 47, of Lima, Ohio was sentenced to 13 months in prison for violating the Clean Air Act in connection with his company’s handling of asbestos during the demolition of the former Piqua Medical Center in 2008.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine and Scott J. Nally, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the sentence handed down today by U.S. District Judge Timothy S. Black.
Pryor pleaded guilty on August 8, 2013 to three counts of violating the National Environmental Standards for Hazardous Air Pollutants (NESHAP) provisions of the Clean Air Act.
According to court documents, Pryor and his company, Avalon Commonwealth Inc., removed scrap metal from the hospital as part of the demolition process. The scrap metal was removed and sold, but the rest of the demolition debris, including friable asbestos, was piled in areas around the hospital, exposed to the wind and elements. Pryor knew that he was not supposed to leave the friable asbestos outside the hospital, exposed to the elements, but instead was supposed to properly deposit the asbestos that was generated as result of his renovation and demolition activities at the hospital at a licensed asbestos waste disposal facility. Pryor knowingly failed to do so.A representative of the Regional Air Pollution Control Agency (RAPCA), the local air pollution control agency serving Miami County and the city of Piqua, inspected the site in December 2008, saw the damaged asbestos outside the hospital, and asked that demolition be halted while the investigation took place.
“Knowingly cutting corners in handling asbestos is a threat to communities that cannot be tolerated,” Ohio Attorney General Mike DeWine said. “We will work with our task force partners to prosecute those who try to make a quick buck by endangering the health of Ohioans.”
“Asbestos can cause cancer and other serious respiratory diseases and must be handled legally and safely,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “The defendant directed his employees to remove scrap metal from the hospital without regard to the asbestos contained in the building and to pile asbestos contaminated debris outside the hospital where the material was left exposed. Mr. Pryor's actions threatened not only the environment but the safety of his untrained workers and the general public. This case should serve notice that EPA and its partner agencies will not abide by those who do not handle and dispose of asbestos properly.”U.S. Attorney Stewart commended the cooperative investigation conducted by the U.S. EPA's Criminal Investigation Division, Bureau of Criminal Investigation’s Environmental Enforcement Unit in Ohio Attorney General DeWine’s Office, the Ohio EPA Office of Special Investigations and RAPCA. It was prosecuted by Assistant U.S. Attorney Alex Sistla and Special Assistant U.S. Attorney Brad Beeson with the U.S. EPA.
# # #Dearborn Man Sentenced on Extortion Charges Involving Employees of DTE EnergyRead the Press Release
A Dearborn man was sentenced today by United States District Judge Denise Page Hood to 41 months in federal prison after having been convicted by a jury in September of extortion by threatening employees of DTE Energy, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Paul M. Abbate, Special Agent in Charge of the of the Federal Bureau of Investigation in Detroit and Michael Lynch, Chief Security Officer for DTE Energy Corporate Security.
Sentenced was Sami William Mustafa, 28, of Dearborn, Michigan.
Evidence presented at trial established that on January 14, 2013, Mustafa was facing a shut-off from DTE Energy for failure to pay his power bill. Mustafa, who felt that DTE was not handling his bill properly, placed two calls to the customer service department and explained to the operators his intention to come down to their office to kill DTE’s employees. During these telephone conversations, Mustafa threatened “Do you want to get shot in the face over a couple of dollars” and “It’s going to be another Sandy Hook,” referring to the mass shooting that took place at an elementary school in Connecticut in December, 2012. Mustafa also used racially charged language.
In announcing the sentence, McQuade stated, “Mass shootings around the country have taught our society to take these kinds of threats very seriously. The public should be aware that threats of violence will be prosecuted criminally.”
Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan, Division of the FBI, said, “ Violent threats like those made by the defendant in this case toward DTE Energy employees are taken very seriously, particularly when the threats make reference to other tragedies in an attempt to intimidate and instill fear. Those whose conduct violates federal law in this manner will be brought to justice.”
Michael Lynch, Chief Security Officer for DTE Energy, commended the FBI and U.S. Attorney's office, stating, "I'd like to recognize the efforts of the FBI and U.S. Attorney's office for their work to resolve this case and help keep DTE Energy employees safe."
This case was investigated by the Federal Bureau of Investigation and DTE Corporate Security.
Daytona Beach Felon Sentenced to 15 Years in Prison for Possessing A FirearmRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Albert Nedd (41) to 15 years in federal prison for being a felon in possession of a firearm. Nedd pleaded guilty on September 13, 2013.
According to court documents, on December 8, 2012, Daytona Beach Police Department Officers responded to a complaint concerning a weapon and saw Nedd walking away from the scene and concealing what appeared to be a small handgun in his waistband. The officers commanded Nedd to stop, but he kept walking away. Nedd walked up a staircase attached to a building, placed the handgun at the top of the staircase, and then was stopped by officers once he walked down. Officers found a loaded .38 caliber revolver at the top of staircase. Nedd, a previously convicted felon, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney James D. Mandolfo.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Custer Man Sentenced for Tax EvasionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Custer, South Dakota, man convicted of Income Tax Evasion was sentenced on December 13, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dennis Wicks, age 71, was sentenced to 14 months in custody, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $110,015 in restitution to the Internal Revenue Service.
Wicks was charged by an Information on August 15, 2013, and he pled guilty on August 22, 2013.
Wicks was the owner of Wicks International Network and knew that he was required to report all of his business gross receipts on his income tax return. In 2009, Wicks failed to file a tax return and instructed some of his patients to make payments to another entity in order to conceal a portion of his income. Wicks also attempted to evade or defeat taxes for the years 2001, 2002, 2005, 2006, 2007, 2008, and 2010.
The investigation was conducted by the Department of the Treasury, Internal Revenue Service. The case was prosecuted by Assistant U.S. Attorney Eric Kelderman.
Wicks was ordered to self-surrender to the U.S. Marshals Service on January 14, 2014.
Convicted Felon Who Hid Loaded Firearm Under His Minor Child Sentenced to 105 Months in PrisonRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced VINCENT JAROD WILLIAMS, 30, of Spring Lake, to 105 months in prison, followed by 3 years of supervised release upon conviction for Possession of a Firearm by a Convicted Felon in and Affecting Commerce, in violation of Title 18, United States Code, Sections 922(g) and 924.
On December 9, 2010, officers with the Fayetteville Police Department observed WILLIAMS drive through a red light. As officers followed the vehicle they observed WILLIAMS making quick, rapid movements inside the vehicle and a traffic stop was conducted. The defendant’s five-year-old child was strapped in a child safety seat in the rear of the vehicle. When officers observed controlled substances in the passenger compartment they removed WILLIAMS to conduct a search. At that time, officers observed an empty gun holster attached to the defendant’s belt. WILLIAMS told officers that he did not have a gun because he was a felon.
For safety purposes, officers began to remove the defendant’s child from the car to search for the missing firearm and controlled substances. The child, who had been crying during the entire encounter, stated, “My daddy only gave me this gun,” and retrieved a .22 caliber handgun from under his leg. Officers safely took control of the handgun and found that its safety was disengaged with a live round in the chamber, and a further eight rounds in the magazine. Another 54 rounds of ammunition were located in the vehicle.
At the time of these events, WILLIAMS had several prior convictions, including two prior convictions for possessing a firearm while being a convicted felon.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the Fayetteville Police Department. Assistant United States Attorney William M. Gilmore represented the Government.
Cleveland Heights Man Charged with Making Interstate ThreatsRead the Press Release
A federal grand jury sitting in returned an indictment charging Justin Michael Krueger, age 23, whose last known address was Cleveland Heights, Ohio, with two counts of threats to another by interstate communication, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
While in Kansas and California, Krueger made interstate threats against relatives in Ohio, threatening to injure and kill them, according to the indictment.
Krueger was arrested on December 6, 2013, by the FBI and Safe Streets Task Force on a federal arrest warrant. Assisting the FBI with the arrest was the Cleveland Heights Police Department.
If convicted, Krueger’s sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. 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 Teresa Dirksen.
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.
Chinese National Sentenced to Federal Prison for Illegally Exporting to China Radiation-Hardened Computer Circuits Used in Satellite CommunicationsRead the Press Release
DENVER – Philip Chaohui HE, aka Philip Hope, who was residing in Oakland, California, at the time of his arrest, was sentenced yesterday, by Senior U.S. District Court Judge Wiley Y. Daniel to serve 36 months in federal prison for conspiracy to violate the Arms Export Control Act and to Smuggle Goods from the United States, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar C. Kibble announced. Following his prison sentence, HE was ordered to serve 3 years on supervised release. HE was already in custody prior to the sentencing hearing, and was remanded at the hearing’s conclusion.
HE was indicted by a federal grand jury in Denver on December 15, 2011. He pled guilty before Senior Judge Daniel on September 3, 2013. He was sentenced yesterday, December 18, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, HE attempted to illegally export to China radiation‑hardened computer memory circuits used in satellite communications with a value of almost $550,000. HE, the only employee of Oakland, California‑based Sierra Electronic Instruments (SEI), purchased 312 radiation‑hardened circuits from a Colorado manufacturer. The circuits purchased by HE are categorized as defense articles within the International Trafficking in Arms Regulations (ITAR). Lawfully exporting defense articles requires licensing from the U.S. State Department’s Directorate of Defense Trade Controls.
On April 28, 2011, an unindicted co‑conspirator caused two wire transfers totaling about $489,720 to be sent to HE’s bank account in California. On or about May 9, 2011, HE provided payment in full, $549,654, at the time HE placed the order with the Colorado manufacturer. According to the indictment, on or about May 17, 2011, HE provided false certification to the Colorado manufacturer that his company was purchasing the integrated circuits for end‑use in the United States only, and HE further acknowledged that the items were controlled by U.S. Export Laws and could not be transferred, transshipped or otherwise disposed of in any other country, without the prior written approval of the U.S. Department of State.
On December 11, 2011, HE drove to the Port of Long Beach, California, and met with two men in front of a docked ship bearing a Chinese flag. The Chinese‑flagged ship was registered to Zhenhua Port Machinery Company LTD, a subsidiary of the China state‑owned corporation China Communications Construction. The ship had recently arrived from Shanghai, China, and was scheduled to return on December 15, 2011.
HE concealed 200 integrated circuits in several plastic infant formula containers placed inside five boxes which were sealed and labeled as "milk powder" written in Chinese. HE transported the boxes in the trunk compartment of his vehicle. Neither HE, nor his company SEI had a license to export defense articles of any description.
“Exporting sensitive technology to foreign powers in violation of laws and regulations designed to protect our national security is a serious federal crime,” said U.S. Attorney John Walsh. “As in this aggravated case, illegal export of restricted technology can and will result in prison sentences.”
“This sentence represents the results of an extensive two-year HSI Investigation, following the solid lead we received from a responsible Colorado company,” said Kumar C. Kibble, special agent in charge of HSI Denver. “U.S. national security depends on every American’s diligence. If you see something, say something.”
The Defense Security Service (DSS) and the Defense Criminal Investigative Service (DCIS) provided critical assistance to HSI with this investigation. Assistance was also provided by the U.S. Attorneys Offices located in the Northern and Central Districts of California.
HE was prosecuted by Assistant U.S. Attorney Matthew Kirsch and Special Assistant U.S. Attorney John Canedy.
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Chicopee Man Charged with Failing to Register as Sex OffenderRead the Press Release
BOSTON – David Mullins, 47, of Chicopee was charged today in federal court with failure to register as a sex offender.
The indictment alleges that between Dec. 20, 2008 and Aug. 2, 2009, Mullins traveled from Vermont to Massachusetts and failed to update his registration with the sex offender registry.
If convicted, Mullins faces up to 10 years in prison, a lifetime of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz's Springfield Branch Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Man Enters Guilty Plea to Federal Heroin Distribution ChargeRead the Press Release
Defendant Brandon “Fresh” Solomon charged as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – A Charleston man faces up to 20 years in prison after pleading guilty today in federal court to distribution of heroin, U.S. Attorney Booth Goodwin announced. Brandon Christopher Solomon, also known as “Fresh,” was charged with three counts contained in an indictment returned in October. Solomon, 19, admitted that he sold heroin to a police informant in exchange for cash.
Solomon is being prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. He is scheduled to be sentenced on March 19, 2014 by United States District Judge John T. Copenhaver, Jr. Solomon was designated a member of the DMI A-list, which comprises the most serious offenders identified in the initiative.
The Charleston Police Department conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced earlier this month in Charleston.
Over the past several months, the Charleston Police Department and other law enforcement agencies have conducted undercover operations and completed investigations culminating in federal charges being filed against thirteen individuals.
Drug Market Intervention, first implemented in High Point, North Carolina, and replicated with success in several other cities, including Huntington, W.Va., is a strategic problem-solving initiative aimed at closing down drug markets that breed crimes of violence and disorder.
The DMI strategy also included a staged community intervention that was held last week at the New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if a strict set of guidelines set by law enforcement are obeyed. The Dec. 12 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was coordinated and attended by federal, state and local law enforcement officials.
Ceo of Debt Collection Agency Sentenced to Four Years for Role in Multi Million Dollar Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER PINTO, 38, of East Quogue, N.Y., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by five years of supervised release, for his role in a multimillion dollar fraud scheme at Oxford Collection Agency, where PINTO served as Chief Executive Officer.
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Businesses and other entities contracted with Oxford to collect debts on their behalf. Oxford’s clients included, among others, an educational institution, a laboratory, a computer company and various banks. Oxford collected debts from consumers under the pretense that it would report all such collections to its clients and remit the appropriate amount to the client. However, PINTO and other Oxford executives routinely caused Oxford to collect debts that were never remitted to its clients. The co-conspirators referred to these unremitted collections as a client’s “backlog.” To hide the backlog, co-conspirators would make periodic fraudulent collection reports to certain clients that under-reported the amount of funds collected. PINTO and others diverted various funds from their client remittances and used them for their own ends.
Certain co-conspirators also transferred money from one client trust account to another client account, from Oxford’s operating account to a client account, or from a client account to Oxford’s operating account to cover various shortfalls and backlogs or to improperly use collections to directly fund Oxford’s operations.
Starting in April 2007, Oxford secured a line from credit from Connecticut-based Webster Bank, a bank that received funds through the Troubled Asset Relief Program (TARP), without informing Webster Bank about its significant client backlogs or outstanding payroll taxes. PINTO and others sent falsified financial statements to Webster Bank, eventually increasing the credit line to $6 million, and laundered funds from the credit line to promote the ongoing fraud scheme against their clients. During that same period, PINTO and others also solicited millions of dollars in investments from various investors, without ever disclosing to their investors the existence of their backlogs. Some of the investor funds into PINTO’s personal bank account without investor knowledge.
Oxford’s victims lost more than $10 million as a result of this scheme.
The investigation also has revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials.
On May 11, 2012, PINTO pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud and money laundering, and one count of wire fraud.
Five other Oxford executives have pleaded guilty, including PINTO’s father and Chairman of the Board, Richard Pinto, PINTO’s brother and Oxford Vice-President, Patrick Pinto, Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli. Former Assistant Vice President at U.S. Bank, Wilbur Tate III, also pleaded guilty in relation to a conspiracy to accept bribes from executives at Oxford Collection Agency.
Richard Pinto was sentenced to five years of imprisonment. The other defendants await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.
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[email protected]Canton Man Faces Cocaine ChargesRead the Press Release
A federal grand jury returned a three-count indictment charging Thomas Joseph Brown, age 42, of Canton, Ohio, with possession with intent to distribute approximately 446 grams of cocaine, possession of cocaine and attempted possession of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Brown was arrested on a complaint on November 14, 2013 when Postal Inspectors in Cleveland were alerted to two suspicious packages. After further investigation and surveillance Brown was arrested by U.S. Postal Inspectors and members of the Ohio State Highway Patrol and Medway Drug Enforcement Agency.
If convicted, Brown’s sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. 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 Kevin Culum, Trial Attorney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Canadian Citizen Arrested for Money Laundering in Connection with Illegal Importation and Trafficking of Narwhal TusksRead the Press Release
A Canadian man was arrested today in St. John, New Brunswick, Canada, on an extradition warrant requested by the United States for money laundering crimes related to the illegal importation and illegal trafficking of narwhal tusks, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division .
On Nov. 14, 2012, a federal grand jury sitting in Bangor, Maine, returned an indictment that was partially unsealed today upon the arrest of Gregory R. Logan of Grand Prairie, Alberta, Canada. The indictment also names Jay G. Conrad of Lakeland, Tenn., and Andrew L. Zarauskas of Union, N.J. Logan was arrested on charges in the indictment for money laundering conspiracy and substantive money laundering violations. The indictment also charges Conrad and Zarauskas with conspiracy to smuggle narwhal tusks, money laundering conspiracy, smuggling narwhal tusks and money laundering violations. According to the indictment, Logan illegally laundered the money earned from his illegal imports and sales of narwhal tusks in the United States. It further charges that Conrad and Zarauskas bought the narwhal tusks from Logan, knowing the tusks had been illegally imported into the United States, and sold or attempted to sell the tusks after their illegal importation.
The arrest of Logan on an extradition warrant in Canada begins the extradition process to the U.S. The extradition process is governed by a 1971 extradition treaty between the U.S. and Canada.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law. If convicted of these charges, the defendants each face up to twenty years in prison on each of the most serious charges, as well as fines up to $250,000.
The case was investigated by agents from National Oceanic and Atmospheric Administration Office of Law Enforcement and the U.S. Fish and Wildlife Service Office of Law Enforcement. The case is being prosecuted by Trial Attorney Todd S. Mikolop of the Justice Department’s Environmental Crimes Section, with assistance from the Justice Department's Office of International Affairs.Cambria County Man Sentenced to Probation for Conspiring to Assist Drug Distribution OrganizationRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to two years probation on his conviction of conspiracy to distribute controlled substances, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Matthew C. Bopp, 52.
According to information presented to the court, from July 2008 to May 9, 2011, Bopp conspired to distribute and possess with the intent to distribute quantities of oxycodone and methadone. Evidence presented to the court at the time of Bopp's sentencing reflected that Bopp conspired with George M. Lowmaster and others in order to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bopp. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
California Women and Florida Man Sentenced for Conspiracy to Body-Smuggling Drugs to TampaRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge James D. Whittemore this week sentenced Vanessa Cooper (39, El Cajon, California), Canetha Johnson (43, El Cajon, California), and Raul Carbajal (23, Plant City, Florida) to 17, 14 and 15 years in federal prison, respectively, for conspiracy to possess with the intent to distribute and possession with intent to distribute more than 500 grams of methamphetamine.
Cooper and Johnson were found guilty by a federal jury on September 23, 2013. Carbajal pleaded guilty on September 13, 2013.
According to the evidence and testimony presented at trial, on or about April 1, 2013, Cooper and Johnson, along with co-defendant Selena Blanchard, departed from an airport in San Diego, California, ultimately destined for Tampa, Florida. The purpose of the trip was to deliver approximately two pounds of high-purity methamphetamine to Carbajal. In order to get the drugs through airport security, without detection, each individual smuggled a package inside of her body. The three women arrived in Tampa on April 2, 2013, where they were met by Carbajal. All three women then delivered the packages of methamphetamine to Carbajal. In the same manner, Cooper and Blanchard had delivered methamphetamine from California to Carbajal, in Tampa, on several prior occasions.
Blanchard was found guilty, following a jury trial, on September 23, 2013. A sentencing date has not yet been set.This case was investigated by special agents and local task force agents with the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
California Woman Pleads Guilty to $5 Million Mortgage Fraud Scheme to Purchase Santa Rosa and Walton County HomesRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced today that Andrea Lorraine Avery, 47, of Los Angeles, California, pleaded guilty this afternoon on federal charges concerning a mortgage fraud and money laundering scheme. Avery is scheduled to be sentenced on March 20, 2014, before Senior United States District Judge Roger Vinson.
According to the Indictment and the facts admitted by Avery during her guilty plea, beginning in 2005 and continuing through 2008, Avery and others entered into contracts to purchase residences located in Florida, Georgia, Louisiana, Texas, and California. Thereafter, loan applications were submitted to financial institutions to fund the purchases. In the loan applications, Avery and other borrowers made false statements to the lenders, which included: providing false names and social security numbers; overstating the borrower’s income and assets; and falsely stating the earnest money deposit was not borrowed. In support of the loans, Avery and other borrowers submitted fraudulent supporting documents to the lenders, which included: false pay-stubs, false W-2s, false verifications of employment, and false documentation concerning the borrower’s credit. Thereafter, Avery and others transferred money, required from the borrower to close on the purchase of the property, to the title agent handling the closing. As a result of Avery’s fraud, lenders loaned over $5,646,250 for just the five homes located in Santa Rosa and Walton counties. As a part of the scheme, Avery and others received kickbacks from the fraudulent loans’ proceeds.
Avery’s Indictment was the seventh indictment obtained as a part of the investigation into this multi-state mortgage fraud and money laundering scheme. Some of the others indicted and sentenced before Avery included: Lonnet Rochell Williams, who received 120 months in prison; Bryan Pool, who received 57 months in prison; Steven Imes, who received 78 months in prison; Annita Hawes, who received 23 months in prison; Raysean Richardson, who received 18 months in prison; and Dorothy Rodriguez who received 18 months in prison.
For Counts One through Six of the Indictment, which charged conspiracy to commit fraud and mail fraud affecting a financial institution, Avery faces up to 30 years in prison on each count, and for Count Seven of the Indictment, which charges conspiracy to commit money laundering, Avery faces an additional 20 years in prison.
The charges are the result of an investigation by the Florida Department of Law Enforcement, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
CBP Officer Arrested on Alien Transporting ChargesRead the Press Release
LAREDO, Texas – Juan Gabriel Bonilla, 27, a Customs and Border Protection (CBP) officer from Laredo, has been arrested for attempting to transport aliens into the United States and conspiracy to do so, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal Dec. 17, 2013, and unsealed today upon his arrest. Bonilla is expected to make an initial appearance tomorrow at 9:00 a.m. before U.S. Magistrate Judge J. Scott Hacker along with co-defendant Martha Maria Escobar, 35. Escobar, a legal permanent resident from Mexico, has been in federal custody since Oct. 11, 2013, the date of her initial arrest.
They are charged with conspiracy and three counts of transportation or attempted transportation of aliens in the United States.
According to the criminal complaint filed upon Escobar’s arrest, she was transporting several relatives in her car, three of whom were undocumented aliens from Mexico. Bonilla conducted an inspection of her vehicle and passengers, but allegedly released them to enable them to enter the United States illegally. Further inspection by another officer led to the discovery that the three of the passengers were illegal aliens and were being transported by Escobar, according to the allegations.
If convicted, each faces up to five years in federal prison on each count and a possible $250,000 fine.
The case is being investigated by CBP, CBP-Office of Internal Affairs, Immigration and Customs Enforcement-Office of Professional Responsibility and Department of Homeland Security-Office of the Inspector General. Assistant United States Attorney Homero Ramirez is prosecuting the case.
Defendants are presumed innocent unless and until convicted through due process of law.Buffalo Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Buffalo, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Intenet.
Emilio R. Haro, 30, of Buffalo, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Oct. 3, 2013, federal indictment.
Law enforcement officers from two separate agencies independently identified Haro’s computer during their investigations into the sharing of child pornography over peer-to-peer file-sharing networks.
Under federal statutes, Haro is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, the Republic, Mo., Police Department and Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Bridgeport Man Sentenced to 70 Months in Federal Prison for Narcotics TraffickingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHESTER CAMERON, 32, of Bridgeport, was sentenced on Tuesday by U.S. District Judge Stefan R. Underhill in Bridgeport to 70 months of imprisonment for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals have been charged in federal court with various offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, between November 2012 and February 2013, CAMERON regularly purchased half-kilogram quantities of cocaine from suppliers in New York and Jamaica, broke it down into smaller quantities and sold it to customers from Bridgeport and Stamford, some of whom converted it to crack cocaine for resale. In total, he purchased and redistributed more than five kilograms cocaine during this time period.
At the time of his arrest, CAMERON was found with nearly one-half kilogram of cocaine, more than $34,000 in cash, a Rolex watch, and other expensive jewelry, all of which he forfeited as part of his guilty plea.
Marvin Wooten, one of CAMERON’s highest volume drug customers, previously pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment. CAMERON’s brother, Cornel Cameron, also has pleaded guilty and is scheduled to be sentenced in January.
CAMERON is a citizen of Jamaica and faces deportation proceedings when he completes his federal sentence.
U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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[email protected]Brazoria County Resident Indicted for Sending False Distress SignalRead the Press Release
HOUSTON – David Matthew Geissen, 21, has been arrested following the return of an indictment alleging he communicated a false distress message to the Coast Guard, announced United States Attorney Kenneth Magidson. Geissen, of Danbury, was arrested today without incident.
The sealed indictment was returned Dec. 12, 2013, and unsealed upon his arrest. He made his initial appearance in Galveston today before U.S. Magistrate Judge John R. Froeschner, at which time he was permitted release on bond pending further criminal proceedings.
The indictment alleges that on or about March 22, 2013, Geissen communicated the false distress message by firing red flares into the sky. The Coast Guard deployed in an attempt to save lives and property when, in fact, no help was needed.
If convicted, Geissen faces up to six years in federal prison as well as a possible $250,000 maximum fine.
The charges are the result of an investigation conducted by the U.S. Coast Guard Investigative Service and Freeport Police Department. Assistant United States Attorney Robert Stabe is prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Bolivar Man Sentenced to A Total of 513 Months in Prison for Production and Possession of Child Pornography and Gun ChargesRead the Press Release
Jackson, TN – John McKinney, 71, of Bolivar, TN was sentenced yesterday to a total of 480 months in federal prison, following his September conviction on four counts of producing child pornography, and one count of possession of child pornography, announced U.S. Attorney Edward L. Stanton III.
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Chief U.S. District Judge J. Daniel Breen sentenced McKinney to 360 months in prison for each production charge, with the sentences set to run concurrently. Judge Breen further sentenced McKinney to 120 months in prison for the possession charge, with the sentence set to run consecutive to the other sentences. There is no parole in the federal prison system.
“Today’s sentence of 480 months reflects this community’s intolerance for the predatory acts committed by John McKinney,” said U.S. Attorney Stanton. “We will continue to work with our law enforcement partners to relentlessly pursue anyone who commits such heinous crimes and ensure that they face the full consequences of the law.
According to facts revealed during the trial, McKinney took sexually explicit pictures of girls as young as nine years old while the girls were visiting at his home. According to the sworn testimony of the mother of one victim, her younger daughter saw sexually explicit photos on McKinney’s computer. Investigators confiscated more than 87 CDs from a building on McKinney’s farm that contained pictures that he had taken depicting child pornography.
On June 25, 2013, McKinney was convicted by a federal jury of four counts of being a felon in possession of a firearm or ammunition. The guns and ammunition were discovered during the search of his home that revealed the pornographic photos. On September 27, 2013, Judge Breen sentenced McKinney to 33 months in prison on those charges. That sentence will run consecutive to his other sentences.
This case was investigated by the Hardeman County Sheriff’s Office, the Jackson Police Department and the FBI in Jackson. Assistant U.S. Attorneys Deb Ireland and James Powell represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."Bismarck Man Sentenced for Felon in Possession ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Dec. 19, 2013, Dylan A. Romero, 34, Bismarck, N.D., was sentenced by U.S. District Judge Daniel Hovland on a charge of possession of firearm by a convicted felon. Romero was found guilty by a federal jury on Sept. 6, 2013.
Judge Hovland sentenced Romero to seven years in federal prison, to be followed by three years of supervised release. Romero was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
In August 2012, law enforcement officials received information that a prohibited person, known as “Twist,” was interested in obtaining a handgun. “Twist,” identified as Dylan Romero, contacted an undercover ATF agent and arrangements were made for Romero to obtain a handgun and $600 for an ounce of cocaine. The undercover ATF agent met with Romero on Sept. 26, 2012, in Bismarck. Romero provided the agent with an ounce of fake cocaine and Romero took the gun, which was locked and disabled. Law enforcement officials immediately arrested Romero.
Romero was prohibited from possessing a firearm due to eight felony convictions, including the following: 1998 burglary, 2001 possession of controlled substance (cocaine), 2009 delivery of imitation controlled substance, and 2009 possession of marijuana with intent to deliver.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Metro Area Narcotics Task Force, the Bismarck Police Department, the Burleigh County Sheriff’s Office, the North Dakota Parole and Probation Office, and the North Dakota Bureau of Criminal Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Beverly Man Sentenced for Child Pornography CrimesRead the Press Release
BOSTON – A Beverly man was sentenced today in U.S. District Court on child pornography charges.
Timothy Bird, 39, was sentenced to five years in prison and five years of supervised release. Bird will be required to register as a sex offender upon his release from prison. In August 2013, Bird pleaded guilty to possession of child pornography and distribution of child pornography.
In November 2011, a federal agent, acting in an undercover capacity on a peer-to-peer file sharing network, downloaded images and videos depicting child pornography from Bird. At the time of his arrest, the defendant admitted that he had been downloading child pornography for approximately 10 years, and that he regularly used the peer-to-peer network to download and trade child pornography. Forensic examination of computer media seized from Bird’s apartment revealed more 32,000 images and videos depicting child pornography.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Chief John G. LeLacheur of the Beverly Police Department; and Chief Michael Begonis of the Wilmington Police Department made the announcement today. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
Bernard SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that MATTHEW SCOTT BERNARD, age 44, of Baton Rouge, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve forty-one (41) months in federal prison for his role in a fraudulent scheme to secure financing for a new fitness facility in Baton Rouge.
The sentence arises from an investigation into fraud in connection with an effort by BERNARD and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, BERNARD and a second individual, Ronald Joseph Olah, Jr., were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, BERNARD and Olah made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that Olah was operating at the time. The indictment alleged that BERNARD and Olah obtained loans from two different banks based on their false statements.
On August 14, 2013, BERNARD pled guilty to bank fraud. On November 5, 2013, BERNARD’S co-defendant, Olah, pled guilty to wire fraud in connection with a related scheme in which Olah took many of the same documents that BERNARD and Olah had used to defraud the banks, and knowingly sent them to an investor in Washington, in another attempt to secure financing for the new gym.
BERNARD appeared before Judge Brady this morning for sentencing, and was sentenced to serve 41 months in federal prison, to pay restitution in the amount of $249,899.82, and to pay a special assessment of $100. Following his release from prison, BERNARD will be required to serve a 3-year term of supervised release. Finally, as part of his sentence, BERNARD will be ordered to forfeit an additional $249,899.82 in proceeds from the fraudulent scheme. BERNARD’S co-defendant, Mr. Olah, is awaiting sentencing.
Acting United States Attorney Walt Green stated, “This prosecution sends a strong message to those who would defraud the businesses in our community. This office remains committed to fighting fraud and white collar crime, regardless of how the defendants intend to spend their criminal proceeds.”
The investigation of this matter was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Attorney and Notary Public Antonio Peluzzo-Perotin Charged and Arrested for Causing More Than 100 Individuals to Obtain False Concealed Firearms’ Carrying Permits in the District of Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On December 18, 2013, a 300-count criminal complaint was authorized by US Magistrate Judge Bruce McGiverin charging attorney and notary public Antonio Peluzzo-Perotin with 100 violations of Title 18, United States Code, Section 505 (forgery of the signature of a judge, register, or officer of any court of the united States, or of any Territory thereof); 100 violations of Title 18, United States Code, Section 1028(a)(1) (causing the making of false identification documents); and 100 violations of Title 18, United States Code, Section 1028A (aggravated identity theft), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Peluzzo-Perotin caused 100 individuals to obtain false permits to carry concealed firearms within the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
According to the criminal complaint and affidavit, in September of 2013, information was brought to the attention of the FBI that Peluzzo-Perotin was creating fraudulent court documents in order to assist individuals to obtain permits to carry concealed weapons. The defendant was introduced to individuals who wanted concealed weapon permits through his association with a gun shop in Bayamón, PR, or through a network of intermediaries or brokers who brought him his clients.
So far, law enforcement has identified over 150 fraudulent petitions originated by Peluzzo-Perotin which have been filed in the Weapons Registry Section of PRPD in the municipalities of Caguas, Humacao, Bayamón, Aibonito and San Juan.
A review of court orders/resolutions authorizing the individuals to receive a concealed weapons permit has shown the following:
- The court filing number listed on the purported court document does not correspond to actual cases docketed within the Puerto Rico courts’ system, or does not match the names and numbers contained therein.
- The documents do not contain the actual name/s of the authorizing judicial officers as customary in all other court documents.
- All documents compared contain identical language, grammar and appearance; location of the Puerto Rico Superior Court’s Seal; location of the clerk’s office certificate of authentication; location of Internal Revenue Stamps (sellos) that partially cover the identifying judicial district.
- All documents contain similar hand written information within the clerk’s office certificate of authentication regardless of having been presumably prepared by different clerks of court.
Law enforcement has reviewed purported court orders/resolutions prepared and provided by the defendant which were then submitted to PRPD in order to cause the production of false PRPD identification cards, under true names. By perpetrating this scheme Antonio Peluzzo-Perotin entirely bypassed the judicial process, which had been legislatively established to properly adjudicate these Concealed Weapons permit applications.
“Today’s announcement exemplifies law enforcement agencies’ intense focus on the rigorous pursuit of criminals who bypass the judicial process using their positions as attorneys to defraud the government and endanger our communities,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “Peluzzo-Perotin perpetuated and financially benefitted from an elaborate scheme which demonstrated a blatant disregard for Puerto Rico’s firearms laws, and the security of all our citizens. The investigation continues.”
“The defendant engaged in forgery and aggravated identity theft for personal financial gain and put the security of Puerto Ricans at risk by providing false firearms carrying permits to more than 100 persons,” said Carlos Cases, Special Agent in Charge of FBI in Puerto Rico. “The FBI is committed to investigating corrupt lawyers who commit fraudulent practices.”
James Tuller-Cintrón, Superintendent of the PRPD stated: “The police officers who serve the Puerto Rico Police Department are committed to enforcing the law and ensuring the welfare of all Puerto Ricans. Those persons, who like Peluzzo-Perotin, wish to use their positions to infiltrate and manipulate the branches of government in favor of their own interests to harm the quality of life in Puerto Rico, should know that they will be arrested and shall face the full burden of the law. We will now investigate whether any crimes have been committed by those who Peluzzo-Perotin assisted. What we can point out is that we have taken him off the streets of Puerto Rico.”
The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass. If convicted, the defendant could face up to 15 years in prison and a mandatory sentence of two consecutive years for the aggravated identity theft charges.
Ashtabula Man Sentenced to 13 Years in Prison for Trafficking Heroin That Led to the Death of WomanRead the Press Release
An Ashtabula man was sentenced today to 13 years in prison for selling heroin that resulted in the death of an Ashtabula woman last year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jamarce Miller, 37, previously pleaded guilty to conspiracy to distribute heroin. The count included a “death specification” that the heroin he sold directly resulted in the death of a person.
“Today there is a young girl being raised without a mother because of the heroin sold by Jamarce Miller,” Dettelbach said. “We hope today’s sentence gives this defendant time to reflect upon the devastation he caused to that girl, that family and our community.”
“Jamarce Miller is the typical drug dealer that routinely does not consider the consequences of his actions,” said Geno Corley, Resident Agent in Charge of the Drug Enforcement Administration’s Cleveland office. “DEA and it’s law enforcement partners will continue to investigate and ultimately stop the reign of terror by the Jamarce Millers of the world. Today, the community is safer because there is one less dope peddler selling poison on our streets.”
Miller was part of a conspiracy led by Rayshawn Reed, who arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area from March 2012 to August 15, 2012.
The heroin was then distributed to co-conspirators in Ashtabula, including Miller, who then resold the heroin to other co-conspirators and to heroin users. Heroin from the conspiracy that had been distributed by Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012, according to court documents.
Reed, Miller and the nine other people have been found guilty for their roles in the conspiracy. Reed was sentenced to 14 years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Linda Barr following an investigation by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office, and the Ohio State Highway Patrol.
Arsonist Receives 60 Months in Prison for Burning Lorton, Virginia Sandwich ShopRead the Press Release
ALEXANDRIA, Va. – Horace Sinclair Thompson, Jr., 25, of Lorton, Va., was sentenced today to 60 months in prison, followed by 2 years of supervised release, for the arson of a retail food establishment located in Lorton, Va.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Deputy Chief Michael T. Reilly, Fairfax County Office of the Fire Marshal; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Thompson was found guilty following a multi-day jury trial on October 3, 2013. According to court documents and evidence adduced at trial, on February 6, 2013, Thompson intentionally poured gasoline inside of a Lorton, Virginia sandwich shop and ignited the flammable vapors with a BiC lighter. His ignition of the highly volatile vapors caused a massive explosion and fireball that destroyed the majority of the store. The force of the blast was so strong that it blew out the store’s windows, cracked and melted porcelain fixtures, and blew a door off of its hinges. Thompson was apprehended after he was admitted to the hospital with burns consistent with the arson.
This case was investigated by the Fairfax County Police Department, the Fairfax County Fire Marshal’s Office, and the ATF. Assistant United States Attorneys Mike Rich and Zach Terwilliger prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
Jefferson County Man Pleads Guilty io Being an Armed Career Criminal and Admits to Possessing Firearms Stolen in BurglaryEUGENE, Ore. – Daniel Chase Kennedy, 27, a resident of Jefferson County, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene yesterday and was sentenced to 15 years in prison. On July 10, 2013, Kennedy pled guilty to being an armed career criminal and admitted possessing shotguns and rifles he and two accomplices stole while burglarizing a Jefferson County home.
Chief Judge Aiken sentenced Kennedy as an armed career criminal because he possessed the firearms after being previously convicted in Oregon courts of twelve felonies including robbery, coercion and deliveries of methamphetamine.
According to court documents and statements made in court, Kennedy and two accomplices used methamphetamine before breaking into the unoccupied home and stealing the guns and jewelry. Oregon State Police officers recovered four of the stolen guns, stolen property, and methamphetamine at Kennedy’s Madras residence. Kennedy was on Oregon post-prison supervision for four felonies when arrested by the Oregon State Police and the Jefferson County Sheriff.
Kennedy’s guilty plea, admissions and sentence of 180 months in prison were part of his plea agreement with the U. S. Attorney’s Office for the District of Oregon, Jefferson County District Attorney’s Office, and Deschutes County District Attorney’s Office.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, Oregon State Police and the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Jefferson County Deputy District Attorney Laura Moszer and Deschutes County Deputy District Attorney Brigid Turner, prosecuted the case.
Armed Career Criminal Convicted on Federal Firearm Charge Faces up to Life in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Damien Gouse, 35, who is currently serving a lengthy prison sentence in Massachusetts on felony assault charges, faces 15 years up to life in federal prison after being convicted by a federal court jury on Wednesday of being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
The government filed notice with the court that they will seek to have Gouse sentenced as an armed career criminal. According to court documents, Gouse was convicted on five occasions between 1998 and 2007 of violent felony crimes punishable by terms of imprisonment of more than one year.
The government presented evidence at trial that on November 29, 2007, at approximately 9:50 p.m., two Providence Police officers, on routine patrol in a marked police cruiser, observed a vehicle make a turn without using a turn signal. The vehicle proceeded at a slow speed with the officers behind it, and then turned abruptly into a church parking lot, again without signaling. The officers conducted a traffic stop of the vehicle in the parking lot.
According to the government’s evidence, as the officers approached the vehicle they observed Gouse, who was alone in the vehicle, reach across the middle console of the vehicle toward the passenger side floor attempting to conceal an item. One of the officers illuminated the passenger area floor with a flashlight where he observed and seized a .22 caliber handgun.
Gouse has been detained since his arrest. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on March 11, 2014.
The case was prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan, Richard B. Myrus and Lee H. Vilker.
The matter was investigated by the Providence Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Alleged Ms-13 Member Extradited from El Salvador to Eastern District of Virginia on Charges of Attempted Murder in Aid of RacketeeringRead the Press Release
ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 25, of the District of San Miguel, El Salvador, was extradited from El Salvador to the United States on Wednesday, December 18, 2013. Benitez Hernandez was previously indicted 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.
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. These collaborative efforts are essential to investigating complex gang crimes and bringing gang members to justice.
Benitez Hernandez, who was charged with multiple counts of attempted murder in aid of racketeering as well as the discharge of a firearm during or in relation to a crime of violence, faces a maximum penalty of life imprisonment if convicted. Benitez Hernandez, who made his initial appearance today in front of United States Magistrate Judge Ivan D. Davis, will next appear for arraignment in front of United States District Judge Claude M. Hilton within the next fourteen days.
According to the indictment, Benitez Hernandez, an alleged member of the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on September 13, 2008, in Loudoun County, Virginia. Benitez Hernandez allegedly committed the double shooting to increase his position and stature within MS-13. 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. The TAG is composed of specially trained Salvadoran National Police investigators who work closely with the FBI on transnational investigations. 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 alleged gang activity 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 praised the outstanding efforts of the Salvadoran National Police for their assistance in bringing this fugitive to justice. Acting United States 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. Assistant United States Attorneys Patricia Haynes and Zach Terwilliger are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Additional Defendants Charged in Bank Fraud SchemeRead the Press Release
A superseding indictment was filed today adding four people to a multi-year bank fraud and identity theft scheme, announced United States Attorney Zane David Memeger. Benjamin Easley, 36, of Darby, PA, Jonathan Weeks, 42, of Upper Marlboro, NJ, Roderic Grady, 23, and Martina Grady, 25, both of New Castle, DE, were added to an indictment charging Derrick Floyd, 36, of Philadelphia, and Cynthia Nowicki, 47, of Eagleville, PA. The defendants are charged with conspiracy, bank fraud and aggravated identity theft in a scheme involving numerous individuals, to defraud banks such as PNC Bank, Wells Fargo Bank, TD Bank, Republic Bank and Wachovia Bank.
Using the stolen account information of a PNC Bank customer, the indictment alleges that the defendants made fraudulent withdraws from the victim bank account and transferred the money to a TD Bank account set up by Derrick Floyd. Floyd then visited multiple TD Bank branches between October 4, 2011 and October 7, 2011, making large withdrawals. It is further alleged that these defendants conspired with Shaun Mays, Laddis Taylor, and Norman Ross, all charged elsewhere, in obtaining or attempting to obtain more than $400,000 through fraudulent withdrawals and wire transfers involving at least seven victim bank accounts.
If convicted, Easley faces a maximum possible sentence of 175 years in prison and a fine of up to $7.75 million; Nowicki faces a maximum possible sentence of 67 years in prison and a fine of up to $1.5 million; Weeks, R. Grady and M. Grady each face a maximum possible sentence of 37 years in prison and a fine of up to $1.5 million; and Derrick Floyd faces a maximum possible sentence of 35 years in prison and a fine of up to $1.25 million.
The case was investigated by Federal Bureau of Investigation and United States Secret Service. It is being prosecuted by Assistant United States Attorney K.T. Newton.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
Wednesday 18 December 2013
Woman Sentenced to 137 Months in Prison for Assault on A Federal Officer and for Failure to AppearRead the Press Release
Tequila Marsh, 41, of Nashville, Tenn., was sentenced today to serve 137 months in prison, to be followed by a three year term of supervised release, for assaulting a United States Postal Inspector and for failing to appear for a sentencing hearing, announced David Rivera, United States Attorney for the Middle District of Tennessee.
"Local, state, and federal law enforcement officers place themselves in harm's way every day to protect the rest of us," said U.S. Attorney David Rivera. "When individuals engage in criminal conduct and place our law enforcement officers and the public in danger of physical harm, it is a serious matter that warrants serious consequences. Those individuals should know that they will be held accountable for their crimes."
According to testimony at a guilty plea hearing conducted on April 5, 2012, the United States Postal Inspection Service and the Metropolitan Nashville Police Department were investigating a check fraud scheme that began in August of 2009. On December 2, 2009, a postal inspector received a telephone call from a manager at the Brentwood, Tennessee Post Office, reporting that an individual who previously had presented a fraudulent check at that post office had returned and was attempting to purchase stamps. Postal inspectors immediately responded to that post office and questioned the individual.
That individual provided the postal inspectors a false name and told them that he had arrived at the post office in a a "brown truck" driven by his sister. He said the truck was in a shared retail parking lot immediately west of the post office.
While interviewing the individual, the inspectors observed a champagne-colored Chevrolet Suburban that matched the description of a vehicle reportedly used in previous incidents of check fraud. The postal inspectors approached the Suburban and one of them displayed his badge and identified himself as a police officer to Marsh, who was the driver of the Suburban. Marsh was subsequently ordered to park the vehicle, but instead, rapidly accelerated towards one of the inspectors, causing him to take evasive action to avoid being struck by the vehicle. The vehicle then sped from the parking lot, narrowly avoiding a collision with on-coming traffic.
On December 7, 2009, the United States filed a criminal complaint and obtained an arrest warrant for Marsh, charging her with assaulting a federal officer. That arrest warrant was executed on December 10, 2009. At the time of her arrest, Marsh admitted that she had delivered her cousin to the Brentwood Post Office and that she knew he intended to do something illegal. She acknowledged that she heard and understood the commands of the postal inspectors to park her car, but did not do so.
Marsh entered a plea of guilty on April 5, 2012 to the charge of assaulting a federal officer and her sentencing hearing was scheduled for July 12, 2012. Marsh failed to appear for that sentencing hearing and a bench warrant was issued authorizing her arrest.
During the early morning hours of May 29, 2013, the Nashville Crime Stoppers program received a tip that Marsh was at a hotel in Nashville. Officers from the Metropolitan Nashville Police Department responded to that hotel and arrested Marsh.
This case was investigated by the United States Postal Inspection Service and the Metropolitan Nashville Police Department. The United States is represented by Assistant United States Attorney Byron Jones.