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Tuesday 17 December 2013
Hogsett Announces Indictment of Local Investment Manager for Mail Fraud, Id TheftRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Ronald W. Nichter, age 58, of Pendleton, has been charged by federal indictment with eight counts of mail fraud and eight counts of aggravated identity theft. The local investment manager allegedly engaged in a scheme to defraud his clients of their funds by fraudulently withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Hogsett said. “Instead, this alleged scheme violated their trust and resulted in tens of thousands of dollars in losses to their investment accounts.”
The indictment alleges that Nichter purchased and managed securities on behalf of clients in and around central Indiana, with clients in Anderson, Pendleton, and Greenfield, along with other locations. As part of his duties, the defendant would meet with the clients and create an investment profile that included personal information such as the person’s name, date of birth, Social Security number, and investment goals.
Beginning in October 2009, it is alleged that Nichter created false documents with forged client signatures that requested funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forward to one of two addresses – a P.O. Box in Pendleton rented by the defendant, and the home of the defendant’s former assistant. Nichter allegedly took custody of these checks, depositing them into his bank account and spending the money for his own benefit.
According to Assistant U.S. Attorney Bradley P. Shephard who is prosecuting the case for the government, this case was the result of investigative work by the United States Secret Service. Nichter could face up to 20 years in federal prison on each count of mail fraud, and at least 2 years in federal prison on each count of identity theft. He also faces significant fines and years of federally-supervised release if convicted.
A criminal complaint or indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Harvard Student Charged with Bomb HoaxRead the Press Release
BOSTON - A Harvard student was named today in a criminal complaint alleging that he was responsible for yesterday’s bomb threats at Harvard University.
It is alleged that Eldo Kim, 20, of Cambridge, emailed several bomb threats to offices associated with Harvard University, including the Harvard University Police Department and the Harvard Crimson, the student-run daily newspaper. Kim will have an initial appearance in US District Court before United States Magistrate Judge Judith G. Dein on December 18.According to the complaint, on Dec. 16, 2013, at approximately 8:30 a.m., the Harvard University Police Department, two officials of Harvard University, and the president of the Harvard Crimson, received identical email messages bearing a “subject” line that read “bombs placed around campus.” The complaint alleges that the bomb threats specified four buildings on the Harvard campus – the Science Center, Sever Hall, Emerson Hall, and Thayer Hall. The complaint quotes the email messages as stating the following: “shrapnel bombs placed in science center, sever hall, emerson hall, thayer hall, 2/4. guess correctly. be quick for they will go off soon.”
According to the complaint, the FBI responded immediately to the threats, in coordination with the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Secret Service; the Harvard University Police Department; the Cambridge Police Department; the Boston Police Department; and the Massachusetts State Police. Dozens of law enforcement officers, along with numerous other first responders, such as firefighters of the Cambridge Fire Department, immediately went to the vicinity of the buildings specified in the emails. The complaint further states that each of the Harvard buildings named in the threatening emails was immediately evacuated. Over the course of the next several hours, bomb technicians and hazmat officers conducted thorough sweeps of each of the four buildings. Law enforcement personnel ultimately concluded that no explosive devices had been placed in any of the four buildings
The maximum penalties under the bomb hoax statute, are five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being handled by Assistant U.S. Attorney John A. Capin.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grocery Owners Sentenced for $151,000 Food Stamp FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., grocery store owners have been sentenced in federal court for their roles in a $151,000 food stamp fraud conspiracy.
Ibrahim Alanabuki, 45, and his wife, Mona Jwad, 33, who are both naturalized U.S. citizens from Iraq, were sentenced in separate hearings before U.S. District Judge Greg Kays on Monday, Dec. 16, 2013. Alanabuki was sentenced to 15 months in federal prison without parole. The court also ordered him to forfeit to the government $50,000, which represents the proceeds he received from the conspiracy. Jwad was sentenced to five years of probation.
Alanabuki and Jwad are the owners of Al-Forat Bakery and Store at 4436 St. John Ave., Kansas City, Mo. Both Alanabuki and Jwad, as well as co-defendant Hani Al-Zaidi, 47, an Iraqi national, have pleaded guilty to participating in a 15-month-long conspiracy to commit food stamp fraud and wire fraud. They admitted that they defrauded the Supplemental Nutrition Assistance Program (SNAP), better known as food stamps, which helps lower-income individuals and families buy food.
Al-Zaidi recruited homeless people to give him their SNAP electronic benefit cards and their PINs in exchange for a percentage of the benefits in cash. Al-Zaidi would then take the benefit cards to Al-Forat, where Alanbuki completed a fraudulent transaction to make it appear as though he sold food items to the recipients in amounts ranging from $25 to $250. Alanbuki split the proceeds of the fraudulent transactions, kicking back about 50 percent in cash to the food stamp recipients, about 20 percent to Al-Zaidi and keeping the remainder.
Alanabuki also accepted SNAP benefits to pay the beneficiary’s utility bills, or sell the beneficiary ineligible items such as cigarettes or calling cards. Alanbuki and Jwad also used benefit cards and PINs belonging to others to buy their own food.
Al-Zaidi was sentenced on Oct. 8, 2013, to time already served in custody (approximately 15 months) and ordered to pay restitution.
This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the U.S. Department of Agriculture.Fort Pierce Man Sentenced for Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Ventrell Bouie, 46, of Fort Pierce, was sentenced today on charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Bouie was sentenced by U.S. District Judge Jose E. Martinez in Fort Pierce to 24 months in prison, followed by one year of supervised release and a special assessment of $100. In addition, the Court ordered Bouie to pay restitution to the Government for tax losses of $288,478. The Court also noted that Bouie has agreed to be permanently enjoined by a Consent Judgment and Order filed in a parallel civil case, barring him in the future from ever preparing federal income tax returns for other persons.
According to statements made in open court and documents filed in the case, Bouie prepared multiple fraudulent tax returns for customers from January 2008 through December 2012. He prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Police Officer Pleads Guilty to Unlawfully Disclosing Information in Federal Narcotics Investigation-Admits Alerting Two People to Wiretaps-Read the Press Release
WASHINGTON – Vanessa Edwards-Hamm, a former officer with the Prince George’s County Police Department, pled guilty today to a federal charge that she unlawfully disclosed information about a wiretap being used on a target of a law enforcement investigation.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Edwards- Hamm, 38, pled guilty in the U.S. District Court for the District of Columbia to a charge of making an unlawful disclosure of wire, oral, or electronic communications. The Honorable Chief Judge Richard W. Roberts scheduled sentencing for March 7, 2014. The charge carries a statutory maximum of five years in prison and financial penalties.
As a condition of the plea, Edwards-Hamm agreed to resign from the Prince George’s County Police Department.
Edwards-Hamm was among 17 people indicted in July 2013 on federal charges in connection with an investigation into a network that allegedly distributed heroin, cocaine, marijuana, and prescription pills in the Washington, D.C. area. She was indicted on one count each of tampering with documents or proceedings and unlawful notice of electronic surveillance. The other 16 defendants were charged with taking part in a drug conspiracy.
According to the government’s evidence, Edwards-Hamm received information on Feb. 22, 2013, that Aaron Vaughn, the brother of one of her close friends, was under investigation for illegal drug trafficking. She also learned that federal agents had a wiretap on Vaughn’s telephone number and that they previously had wiretaps on other numbers associated with him. Finally, she learned that agents felt they had collected enough evidence for an indictment against Vaughn.
In her guilty plea, Edwards-Hamm acknowledged that she called Aaron Vaughn’s brother on Feb. 22 or Feb. 23, 2013; at the time, Vaughn’s brother was serving a prison sentence. She acknowledged that she talked to him in a way that informed him that his brother, Aaron Vaughn, was under investigation; that law enforcement had a wiretap on Aaron Vaughn’s telephone, and that it was too late to help Aaron Vaughn avoid arrest. Furthermore, she acknowledged informing her own brother, Mark Edwards, that law enforcement was listening to Aaron Vaughn’s telephone conversations and that he should be careful and stay away from him.
She acknowledged these actions were conducted with the intent to interfere or impede with the FBI investigation. At the time of this conduct, Edwards-Hamm was serving as a task force officer with the Drug Enforcement Administration (DEA) in Maryland.
According to the government’s evidence, Aaron Vaughn got a call from his brother on Feb. 26, 2013 and was told to stop dealing with those he was involved with and to change his telephone number. Aaron Vaughn’s brother also advised him to consider moving out of the area.
Aaron Vaughn, 35, and Mark Edwards, 40, were among the 16 defendants indicted on federal narcotics charges in July 2013. They have pleaded not guilty to charges.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier expressed appreciation for those who pursued the investigation from the FBI/MPD Safe Streets Task Force. They also expressed appreciation for the assistance provided by the Prince George's County, Md., and Culpeper, Va. police departments, as well as the U.S. Marshals Service and the Charlottesville Resident Agency of the FBI’s Richmond Field Office.
In addition, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Teesha Tobias and Starla Stolk; Legal Assistant Niya Attucks; Program Specialist Kim Hall, and Legal Assistants Diane Brashears and Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal, Catherine K. Connelly and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorneys Kenneth F. Whitted and David B. Kent of the Violent Crime and Narcotics Trafficking Section, who are prosecuting the case.
13-424Former Police Officer Pleads Guilty to Receipt of Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Stewart A. Miller, 48, of Sunbury, Ohio pleaded guilty in U.S. District Court today to one count of receipt of child pornography. Miller was a Columbus police officer, prior to his recent resignation.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to testimony provided by the government during the plea hearing, the FBI began investigating Miller in October 2013 after receiving a tip. They obtained and executed search warrants at Miller’s residence at the time and a storage facility he rented, recovering various computers and digital media.
A forensic examination of two external drives located in the crawl space above Miller’s bathroom revealed the presence of several thousand images and more than 1,100 videos of child pornography. The images dated back to 2002. The children in the videos ranged in age from toddler to teenager. The file paths of some of the images indicated that they were originally downloaded via a peer-to-peer file-sharing network. Images and videos of child pornography were also located on a laptop computer seized from the basement of the residence. Additional images of child pornography were recovered from several CDs seized from the storage facility rented by Miller.
The crime is punishable by at least five years and up to 20 years in prison. Judge Marbley will set a date for sentencing. The court placed Miller on home detention with electronic monitoring until sentencing, and also prohibited him from having access to the internet.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Former Police Officer from Oklahoma Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Robert Mullen, 60, a former officer with the Lawton, Okla., Police Department who now resides in Albuquerque, N.M., was arrested this morning by Special Agents of Homeland Security Investigations (HSI) on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. Mullen made his initial appearance in federal court this afternoon and remains in federal custody pending a detention hearing scheduled for tomorrow morning.
According to the criminal complaint, in Aug. 2013, a special agent with the New Mexico Attorney General’s Office (NMAGO) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Mullen at a residential address in west side of Albuquerque.The criminal complaint states that on Dec. 11, 2013, HSI, the Albuquerque Police Department (APD) and other agencies participating in the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a state search warrant at the residence and seized a computer and computer-related media. A preliminary forensic examination of a computer taken from a bedroom allegedly used by Mullen recovered images and videos consistent with child pornography.
If convicted of the charges in the criminal complaint, Mullen faces a federal prison term of not less than five years and not more than 20 years. If convicted, Mullen also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Albuquerque office of HSI, the NMAGO and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Lackawanna County Family Court Guardian Ad Litem Pleads Guilty to Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on Monday, Danielle Ross Pietralczyk, age 37, of Jermyn, Pennsylvania, pleaded guilty before U.S. District Court Judge A. Richard Caputo to tax evasion and filing a false federal income tax return.
According to United States Attorney Peter J. Smith, tax returns verified by Ross under penalty of perjury failed to report any amounts of income she received from private paying clients while acting as the sole guardian ad litem for the Lackawanna County Family Court. The only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.
As the sole guardian ad litem for the Lackawanna County Family Court, Ross was provided with an annual compensation of $38,000. However, pursuant to a contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Ross managed and exercised complete control over her private billings and income. That income was known only to Ross and not Lackawanna County, nor was Lackawanna County required to approve Ross’s private billings.Ross was indicted in February 2013.
The case was investigated by joint investigation by the Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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 particular case, the maximum penalty under the federal statute is five 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.
Former Kinloch Mayor Sentenced for Falsifying Halfway House RecordsRead the Press Release
St. Louis, MO - Former Kinloch Mayor KEITH CONWAY was sentenced to six months in prison on federal charges of submitting false employment records while completing his original sentence at a St. Louis halfway house--the Dismas House.
Conway was originally sentenced to 21 months in federal prison in November 2011 on charges of using Kinloch city funds to pay personal expenses, fund personal travel and purchase a Florida vacation condominium timeshare; and attempting to influence Kinloch city officials to provide false information to federal law enforcement about the criminal charges pending against him.
According to court documents, on May 1, 2013, the United States Bureau of Prisons transferred Conway from its prison facility at Marion, Illinois, to the Dismas House residential reentry center in St. Louis. The Bureau of Prisons contracts with Dismas House for the housing and supervision of inmates, and retains jurisdiction and responsibility over those inmates until their ultimate release from Bureau of Prisons' custody upon completion of their sentence. As a resident of Dismas House, Conway was required to seek and obtain full-time employment and to submit paycheck stubs to verify that employment to the Dismas House Program Director. While a resident at Dismas House awaiting final release from the Bureau of Prisons, Conway obtained and submitted numerous false payroll records, falsely representing that he had obtained full-time employment. Based upon those false records, Conway had been permitted to leave the Dismas House premises every day during his falsely reported work hours.
Conway pled guilty in September to four felony counts of filing false documents. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation Public Corruption Unit, including Officers of the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Former Kindergarten Teacher Heads to Prison for Sexually Exploiting ChildrenRead the Press Release
HOUSTON - Stephen Wayne Sudduth, 38, of Sealy, has been ordered to prison for 30 years following his convictions on two counts of production of child pornography, announced United States Attorney Kenneth Magidson. Sudduth entered a plea of guilty Tuesday, Sept. 3, 2013.
The charges against Sudduth arose as a result of an international investigation conducted by members of the Houston office of Homeland Security Investigations (HSI), the office of the Caribbean Attache for Homeland Security, the Texas Attorney General’s Cybercrime Unit, the Public Prosecutor’s Office in Curacao, a special task force unit in Curacao comprised of Dutch and local law enforcement officers and the equivalent of the juvenile sex crimes unit of the Curacao Police Corps.
Today, U.S. District Judge Nancy Atlas handed Sudduth a 360-month sentence for each of the two convictions which will be served concurrently. Sudduth received credit for the more than three years he has been in federal custody. Additional information was also presented today, including copies of some of the images and a written victim impact statement from the mother of one victim. Additionally, the mother of a second victim came to court and provided a statement. Sudduth was further ordered to pay restitution to the two victims and will serve 25 years of supervised release following completion of his prison term, during which time he will have to participate in counseling, have no contact with minors under the age of 18 and very limited access to computers and the Internet. He will also be ordered to register as a sex offender.
The federal sentence will also run concurrently with a 60-year sentence Sudduth received in August 2013 for promotion of child pornography in Austin County.
The investigation began in 2009 when the Texas Attorney General’s Office received a tip concerning Sudduth. A state search warrant for Sudduth’s residence in Sealy was secured and later executed on July 14, 2009. At that time, officers seized a laptop computer and two external hard drives which all were found to contain child pornography.
During the review of the images, officers observed images that contained Sudduth and images that appeared to have been taken in a classroom. They were able to confirm the classroom was at a school in Curacao and that Sudduth taught kindergarten at that school. Houston HSI agents were then contacted to handle the international aspect of the investigation.
Still images of young girls that constituted child pornography were located and found to have been taken with a digital camera.
In December 2009 and May 2010, HSI agents and a forensic child interviewer traveled to Curacao and were able to identify and interview the children depicted in the images.
Sudduth has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Joplin Teacher Pleads Guilty to Sexual Exploitation of a Child, Faces 28 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Joplin, Mo., middle school teacher has pleaded guilty in federal court to sexually exploiting a child victim to produce child pornography.
Charles D. Gastel, 40, of Carterville, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Dec. 13, 2013. Gastel was formerly a science teacher at South Middle School in Joplin.
By pleading guilty today, Gastel admitted that he sexually assaulted a teenage victim, identified in court documents as Jane Doe, over a period of approximately nine years. Gastel also admitted that he video-recorded some of the sexual assaults.
Under the terms of his plea agreement, Gastel will be sentenced to 28 years in federal prison without parole. Following his prison term, Gastel must spend the rest of his life under supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
On July 13, 2013, a Carterville, Mo., police officer interviewed the 19-year-old victim at her home in Lamar, Mo. She reported that she had been sexually victimized by Gastel repeatedly, beginning when she was 10 years old. Jane Doe reported that during some of the assaults, Gastel used a digital video recorder to record them engaging in sexual acts.
On July 17, 2013, Gastel was interviewed at his residence by the investigators. He initially told the investigators that he did not have videos on his computer. When asked for consent to search his computer, Gastel replied that he wanted to talk to a lawyer because he had files on his computer that would end his teaching career. Gastel was then placed under arrest and officers obtained a search warrant for his residence. A forensic preview of the digital media seized by officers yielded the discovery of several video files that depicted Gaston sexually assaulting Jane Doe when she was 16 years old.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Carterville, Mo., Police Department, the Southwest Missouri Cybercrime Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
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."Former Fbi Assistant Director Who Violated Federal Criminal Ethics Law Is FinedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael E. Horowitz, Inspector General for the Department of Justice, announced that former FBI Assistant Director KENNETH W. KAISER was sentenced today by U.S. District Judge F. Dennis Saylor, IV in Boston for violating a federal ethics law that prohibits senior executive branch personnel from making professional contacts with the agency in which they were employed for one year after leaving government service. KAISER, 57, of Hopkinton, Mass., was ordered to pay a fine of $10,000.
According to court documents and statements made in court, KAISER, a 27-year employee of the FBI, served as the Special Agent in Charge of the Boston office of the FBI from April 2003 through December 2006, and then as an Assistant Director of the FBI’s Criminal Investigative Division in Washington, D.C., until July 2009. On July 3, 2009, the same day that he retired from the FBI, KAISER was hired as a consultant by LocatePlus to handle an internal investigation regarding corporate wrongdoing by the company’s former Chief Executive Officer and Chief Financial Officer, and to help generate government sales for the company’s products and services. In March 2010, KAISER became a full-time employee of LocatePlus, holding the title Director of Government Sales.
Within a month of his retirement, KAISER began having prohibited electronic, telephonic and in-person contacts with FBI employees regarding a then-ongoing FBI investigation involving LocatePlus and the actions of its former executives. During the one-year ban period, KAISER also had prohibited contacts with FBI employees in an effort to gauge the FBI’s interest in LocatePlus’ products and services in an attempt to generate sales to the FBI.
Also, in August 2009, KAISER was hired by a corporate executive living in Gloucester, Mass., who had received a threatening letter in the mail. Working on behalf of this individual, KAISER had additional improper contacts with the FBI Boston office.
On October 3, 2013, KAISER pleaded guilty to a misdemeanor charge of making prohibited post-employment contacts.
This matter was investigated by the Department of Justice Office of the Inspector General and was prosecuted by Assistant U.S. Attorneys Diane C. Freniere of the District of Massachusetts and Michael J. Gustafson of the District of Connecticut.
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[email protected]Former Chief Financial Officer of Merrimack Education Center Charged with Pension FraudRead the Press Release
BOSTON - A former senior executive at Merrimack Education Center (MEC) was charged today in federal court in connection with a fraud on the Commonwealth of Massachusetts’ pension system.
Carl A. Nystrom, 52, of Pelham, NH, was indicted on mail and wire fraud charges. The indictment alleges that he engaged in a scheme to defraud the state by allowing ineligible MEC employees to enroll in a state pension plan, making it appear as though those individuals were employees of a state entity when they were not.
MEC was a tax-exempt organization, a so-called not-for-profit company, engaged in the business of providing diversified educational and technological resources to schools, cities, towns and other non-profit organizations. MEC offered a broad range of special education, professional development, facilities management, transportation and technology programs. Merrimack Special Education Collaborative (MSEC) was a public entity engaged in providing educational and vocational services to children and adults with physical, emotional and developmental challenges. Pursuant to an administrative fee agreement, MEC provided fiscal and management services to MSEC, to include payroll services.
According to the indictment, Nystrom served as MEC’s Chief Financial Officer. During the relevant time period he directed and caused other MEC employees to code him and four other ineligible MEC employees in the ADP payroll system as MSEC employees. This fraudulent coding caused periodic paychecks and end-of-year W-2s to be made in the name of MSEC for each of the miscoded individuals. In addition, each of the miscoded individuals fraudulently enrolled in the state pension plan. The indictment alleges that the purpose of the scheme was for Nystrom and the others who were fraudulently enrolled in the pension to obtain pension payments that they were not entitled to receive. The indictment also alleges that in addition to Nystrom, a lobbyist and three other MEC employees were fraudulently enrolled in the state retirement system. The lobbyist and one former MEC employee have already collected nearly $300,000 in pension payments.
If convicted, Nystrom faces up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Glenn A. Cunha, Inspector General of Massachusetts; John Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Diane C. Freniere and Andrew Lelling and Special Assistant U.S. Attorneys Andrew Doherty and Eileen O’Brien of the Massachusetts Attorney General’s Office and the Massachusetts Inspector General’s Office, respectively.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.
Former Beckley Physician’s Office Employee Pleads Guilty to Theft of Prescription PainkillersRead the Press Release
Defendant Tina Richmond stole a doctor’s script pad that was used to illegally obtain oxycodone tablets
BECKLEY, W.Va. – A former Beckley-area physician’s office employee pleaded guilty in federal court today to illegally obtaining the powerful prescription painkiller oxycodone. Tina Marie Richmond, 41, of Beckley, W.Va., committed a federal felony by aiding and abetting the acquiring and obtaining a controlled substance by misrepresentation, fraud, forgery, deception and subterfuge. Richmond pleaded guilty today in front of United States District Court Judge Irene C. Berger in Beckley.
"Prescription drug abuse damages continues to take a toll on communities all over southern West Virginia," said U.S. Attorney Goodwin. "I'm committed to doing everything possible to get this problem under control."
Prior to August 2, 2013, during her employment at a Beckley doctor’s office, Richmond stole a prescription pad belonging to her former employer, a Beckley doctor. The prescription pad contained the Drug Enforcement Administration registration number assigned to the doctor. Richmond told police that on August 2, 2013, she took the script pad without authorization, forged the doctor’s signature on the script pad and then gave it to a known acquaintance in exchange for money.
An investigation determined that the forged script, written for 90 30-milligram oxycodone pills, was filled at a Beckley pharmacy.
Richmond faces up to 20 years in prison and a $1,000,000 fine when she is sentenced on April 17, 2014.
The Beckley Police Department is in charge of the investigation.This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Former Bank Founder and President Pleads Guilty to Bank FraudRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that James A. Ladio, entered a guilty plea before the Honorable Richard G. Andrews to a four-count felony information charging him with bank fraud, in violation of Title 18, United States Code, Section 1344 (Counts 1 and 3); and money laundering, in violation of Title 18, United States Code, Section 1957 (Counts 2 and 4).
According to the criminal Information and plea agreement, Ladio was the founder and former President and Chief Executive Officer of MidCoast Community Bank, Inc. (“MidCoast”). MidCoast, headquartered in Wilmington, has four branch locations across the State of Delaware. The four-count Information describes two occasions in which Ladio convinced existing MidCoast customers to apply for commercial loans, ostensibly for valid business purposes. The true purpose of the loans, however, was to allow those MidCoast customers to loan money to Ladio.
The first bank customer (Bank Customer A) applied in October 2010 to transform an existing commercial mortgage at MidCoast into a $700,000.00 line of credit. Although the loan package indicated that the purpose of the line of credit was to make capital improvements on a particular building project, the actual purpose of the request was for Bank Customer A to obtain funds which could be used to make a short-term loan to Ladio. After MidCoast’s loan committee approved the request, Bank Customer A drew $650,000.00 from the line, which was deposited into Bank Customer A’s account on or about October 28, 2010. That same day, approximately $629,240.00 was wired from the account controlled by Bank Customer A to Ladio’s personal checking account.
Similarly, the second bank customer (Bank Customer B) applied to MidCoast in July 2011 for a working capital line of credit in the amount of $700,000.00. Although the loan package indicated that the purpose of the loan was for “working capital for Bank Customer B’s various business interests,” the actual purpose of the request was for Bank Customer B to obtain funds which could be used to make a short-term loan to Ladio. After MidCoast’s loan committee approved the request, MidCoast wired $650,000.00 into a bank account held by Bank Customer B at another financial institution. That same day, $639,000 was wired from Bank Customer B’s account to Ladio’s personal bank account.
Because on each occasion the proceeds of the loan fraud activity resulted in more than $10,000.00 being deposited into Ladio’s personal bank account, Ladio also faces two counts of money laundering.
Ladio, age 57, is a resident of Wilmington, Delaware. For the bank fraud charges (Counts 1 and 3), Ladio faces a maximum penalty of 30 years imprisonment; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution. For the money laundering charges (Counts 2 and 4), Ladio faces a term of imprisonment of ten years; a fine of $250,000.00; a term of supervised release of three years; and a $100 special assessment. Sentencing has been scheduled for April 17, 2014 at 9:00 a.m.
United States Attorney Oberly said, ?Mr. Ladio’s serious fraudulent conduct betrayed the trust of MidCoast’s shareholders, its employees, and its customers. Our office will continue to vigorously investigate and enforce criminal conduct relating to bank fraud, particularly with respect to Delaware-based financial institutions.”
Ladio’s fraud was uncovered after it was discovered that he had failed to notify his lender, a TARP bank, that he had sold an investment property for which he had taken out a mortgage loan at the bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Ladio’s failure to comply with his loan requirements was an initial step in a continued course of misconduct culminating in bank fraud against MidCoast Community Bank, where he was president and CEO. SIGTARP and our law enforcement partners will hold accountable and bring to justice those responsible for fraud related to TARP.”
The FBI works diligently to protect the integrity of the United States banking industry by identifying and securing evidence to prosecute white collar criminals such as Mr. Ladio. This case should serve as a warning to others that such conduct will not be tolerated by the FBI and our law enforcement partners.
"Professionals, including bankers, who promote fraudulent schemes to abuse our financial systems, will be held accountable," said Special Agent in Charge Akeia Conner, IRS Criminal Investigation. “This joint endeavor continues to demonstrate our efforts to ensure that the financial services industry will not be used for personal financial gain and will be challenged to operate in a fair and honest manner to promote the public interest.”
The case was investigated by the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Internal Revenue Service Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz, Lesley F. Wolf, and Ilana H. Eisenstein.
Former Agape Employees Charged with Massive Ponzi Scheme in Superseding IndictmentRead the Press Release
Earlier today, a 21-count superseding indictment was unsealed charging Bryan Arias, Anthony Ciccone, Diane Kaylor, Jason Keryc and Shamika Luciano, former employees of Hauppauge-based Agape World, Inc. (“Agape”) and Agape Merchant Advance (“AMA”), for their participation in a large-scale Ponzi scheme.1 The superseding indictment adds two new defendants, Arias and Luciano, a securities fraud charge, a mail fraud count and two additional wire fraud counts. The defendants are scheduled to be arraigned on the superseding indictment this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse in Central Islip, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York (USPIS).
“Today’s superseding indictment is but the latest step in this Office’s dismantling of the fraudulent business empire of Nicholas Cosmo,” stated United States Attorney Lynch. “The defendants charged were an integral part of Cosmo’s Ponzi scheme that defrauded thousands of people of hundreds of millions of dollars. The defendants actively promoted the Ponzi scheme, promising safe investments in low risk business ventures. Even when the business ventures began to fail, the defendants continued to peddle lies and deceit to the investors in order to keep money flowing into the scheme.” Ms. Lynch added that the government’s investigation is continuing.
“As alleged in the indictment, the defendants’ foundation for success was built on deception and sham investments using the victims’ money. Over time, as with all Ponzi schemes, the defendants’ lies began to unravel leaving the collective investors millions of dollars out of pocket. Unfortunately, the public should be reminded that sometimes investment opportunities that are too good to be true are merely schemes designed to steal your money. The FBI, along with our law enforcement partners, will continue to aggressively investigate those who prey upon the public with illegal get-rich-quick plans,” stated FBI Assistant Director-in-Charge Venizelos.
“Today’s arrests should serve notice to criminals that Postal Inspectors will leave no stone unturned to bring to justice all parties involved in any crime that utilizes the U.S. Mail to steal the hard earned money of consumers,” said Inspector-in-Charge Bartlett.
Nicholas Cosmo founded Agape and AMA in August 2000. According to the superseding indictment and court filings, between October 2003 and January 2009, Arias, Ciccone, Kaylor, Keryc and Luciano, who worked as account representatives or brokers for Cosmo, played critical roles in the operation of a Ponzi scheme by soliciting and obtaining hundreds of millions of dollars from investors. To induce investments and discourage withdrawals, the defendants misled the investors by, among other things, (1) assuring investors that their investments would only be used to fund specific, short-term secured bridge loans to commercial borrowers or to make short-term loans to small businesses, (2) promising to pay investors unusually high rates of returns, and (3) representing that investing in Agape and AMA carried little or no risk of loss. The defendants allegedly raised significantly more money than was needed for the loans, and lied to the investors when they assured them that their money would specifically be used to fund only a particular loan. For their efforts, Arias, Ciccone, Kaylor, Keryc and Luciano received approximately $1.7 million, $10.7 million, $4.75 million, $16 million and $275,000, respectively.
As alleged in the superseding indictment, Cosmo and the defendants actually ran a Ponzi scheme, paying returns to Agape and AMA investors not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. In addition, unbeknownst to the investors, approximately $100 million of their money was used to trade high risk futures and commodities. Despite the fact that the defendants knew that Agape and AMA did not produce or earn rates of return that could support the exorbitant returns promised to investors, they allegedly continued to solicit money from investors.
As the fraudulent scheme began to unravel, the defendants allegedly lied to investors about the status of various Agape bridge loans. For example, on November 3, 2008, the defendants learned that all of Agape’s 2007 bridge loans were in default or on extension but allegedly failed to disclose that information to existing or new investors. Instead, the defendants actively continued to solicit money from investors, obtaining an additional $25.6 million.
During the course of the Ponzi scheme, approximately 5,000 individuals invested a total of more than $400 million in Agape and AMA. Although some investors succeeded over the years in making full or partial withdrawals, particularly before the Ponzi scheme began to unravel, approximately 4,100 investors sustained actual losses totaling approximately $179 million.
On October 14, 2011, Cosmo was sentenced to a term of imprisonment of 25 years in United States v. Nicholas Cosmo, 09 CR 255 (DRH), for his role in the scheme.
If convicted, the defendants face a maximum sentence of 20 years’ imprisonment on each count.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher C. Caffarone, Grace M. Cucchissi and Vincent Lipari.
The Defendants
BRYAN ARIAS
Age: 40
Maspeth, New YorkANTHONY CICCONE
Age: 41
Locust Valley, New YorkDIane kaylor
Age: 37
Bethpage, New YorkJASON KERYC
Age: 36
Wantagh, New YorkSHAMIKA luciano
Age: 31
Coram, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-1)(DRH)
_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on December 16, 2013:
Nathan Arnold, 30, of Berne, Indiana, is charged in a two count Indictment with theft or receipt of stolen mail matter from the postal customers of Berne, Indiana on or about July 20,
2013 and August 12, 2013. These charges were filed as a result of an investigation by the United States Postal Inspection Service and the Berne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Federal Grand Jury Charges San Fernando Valley Man with First-Degree Murder in Fatal Shooting of TSA Officer at LAXRead the Press Release
LOS ANGELES – A federal grand jury this afternoon returned an 11-count indictment that charges Paul Anthony Ciancia with first-degree murder in the fatal shooting of a Transportation Security Administration Officer during a shooting spree at Los Angeles International Airport last month.
Ciancia is charged with murdering Gerardo Hernandez, an officer and employee of the United States, while Officer Hernandez was engaged in his official duties on November 1.
The indictment also charges Ciancia with attempted murder for shooting TSA Officers Tony Leroy Grigsby and James Maurice Speer. The indictment alleges that Ciancia used a Smith & Wesson 5.56-millimeter M&P15 semiautomatic rifle to shoot the three TSA Officers.
Ciancia, 23, who at the time of the shooting resided in Sun Valley, also is charged with using the rifle to commit acts of violence against persons at an international airport, including Brian Donovan Ludmer, a civilian who was wounded during the rampage.
The indictment contains one count alleging that Ciancia knowingly used a firearm to murder and cause death, and three counts alleging that he did “knowingly carry, brandish, discharge and use a firearm” when he shot the three surviving victims.
The indictment is a charging document that replaces the criminal complaint filed soon after the shooting incident. The indictment was filed this afternoon in United States District Court after the grand jury determined that there was “probable cause” to find that Ciancia committed the 11 felony offenses. Ciancia is scheduled to be arraigned on the indictment on December 26.
The three charges based on the killing of Officer Hernandez – first-degree murder, violence at an international airport that resulted in death, and using a firearm to murder and cause death – each carry possible sentences of life in federal prison or the death penalty. The indictment contains a series of allegations that would support a possible sentence of death, including premeditation and the murder of a federal law enforcement officer. At this time, the government has not made a decision on seeking the death penalty if Ciancia is convicted of any of these charges.
The two attempted-murder charges and each of the three charges based on violence against the surviving victims all carry a statutory maximum penalty of 20 years in federal prison. The three counts alleging the use of a firearm each carry a mandatory minimum sentence of 10 years that would be served consecutively to any other sentences that are imposed.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.This case is the product of an investigation by members of the Los Angeles Joint Terrorism Task Force (JTTF), which is led by the Federal Bureau of Investigation and includes agents and officers from 45 other local, state and federal agencies.
The following agencies provided considerable assistance during the investigation: the Los Angeles World Airports Police Department; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; the Transportation Security Administration; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the United States Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the United States Marshals Service; the United States Postal Inspection Service; the Ronald Reagan UCLA Medical Center; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 13-147
Father and Son Telemarketers Convicted in Timeshare Resale Fraud Affecting 1000 VictimsRead the Press Release
HOUSTON – Ronald Frank Muise, 51, and his son, Michael Derek Muise, 28, both of Las Vegas, Nev., have been convicted of conspiracy to commit wire and mail fraud in connection with a telemarketing fraud scheme that spanned almost five years and victimized approximately 1000 people, announced United States Attorney Kenneth Magidson. The Muises entered guilty pleas in federal court in Houston late yesterday afternoon.
The Muises and other alleged co-conspirators used various businesses known as The Jariv Companies to conduct a telemarketing timeshare resale scheme targeting timeshare owners throughout the United States and Canada. The Muises and others solicited timeshare owners by telephone to pay advance fees in exchange for The Jariv Companies promising they had willing buyers for the timeshare properties or points. In fact, the defendants did not have buyers and did not market or sell the property. They simply kept the money - almost $6 million in 2011-2012 alone.
The Jariv Companies were registered in various states and conducted business at multiple addresses in Houston; Las Vegas, Nev.; Los Angeles, Calif.; Chicago, Ill.; and Seattle, Wash.
The defendants and their employees falsely represented that they had buyers for timeshare weeks or points and solicited fees, ranging from hundreds of dollars to several thousand dollars from each timeshare owner. They falsely represented that the fees were fully refundable at closing and were used to secure the owners’ place in an acquisition involving corporate buyers, as well as to pay for legal expenses such as title searches, estoppel letters and closing costs.
The defendants made several false representations to give the appearance of legitimacy. They claimed they were the only legitimate company selling timeshares for owners, were “certified,” had sold hundreds of timeshares and had hundreds of employees. They also posted fake testimonials on websites for The Jariv Companies purporting to be from satisfied customers, but were actually written by employees.
After monies were paid for these “sales contracts,” the telemarketer would advise the owner that either the corporate buyer had pulled out of the acquisition or that other problems were encountered, but they had another buyer for the timeshare. The telemarketer would then conduct another pitch for additional money to ensure the deal closed. At times, veiled threats were made stating the owner could lose whatever money they had previously paid as well as their ?place in line? for inclusion in the sale or the deal.
Closings were not scheduled, sales did not occur and no payments were made to timeshare owners for the sale of their property.
The defendants and employees of The Jariv Companies simply pocketed the advanced fees paid by the timeshare owners.
Between Feb. 1, 2011, and Jan. 31, 2012, The Jariv Companies received approximately $6,925,137.04 in fraudulently obtained timeshare owner funds from approximately 1000 victims living in Canada and throughout the United States. The Muises received significant commissions for fraudulently obtaining victims money - 30-40% in most cases. In 2011-2012, Ronald Muise received nearly $1 million, while Michael Muise received $440,000.
U.S. District Court Judge Lynn N. Hughes, who accepted the guilty pleas yesterday, has set sentencing for March 17, 2013. The conspiracy count carries a maximum imprisonment of 20 years in federal prison, but because the wire/mail fraud involved telemarketing of 10 or more victims over the age of 55, federal law provides for an additional 10-year sentence in addition to what was imposed for the underlying fraud. Both defendants were permitted to remain on bond pending that hearing.
The convictions are the result of an investigation conducted by U.S. Secret Service and Internal Revenue Service – Criminal Investigation with assistance by FBI and Environmental Protection Agency. Assistant U.S. Attorneys Martha Minnis and Katherine Haden are prosecuting the case.
Farmington Man Sentenced to Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Yesterday afternoon, Vincent Thomas Montoya, 30, of Farmington, N.M., was sentenced to a 24-month term of imprisonment to be followed by three years of supervised release for being a felon in possession of a firearm.
Montoya was charged with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number in a two-count indictment filed in July 2012. The indictment alleged that on Jan. 5, 2011, Montoya possessed a revolver with an obliterated serial number in San Juan County, N.M. At the time, Montoya was prohibited from possessing firearms or ammunition because he previously had been convicted of breaking and entering in the 11th Judicial District Court for the State of New Mexico.
Montoya pled guilty in Dec. 2012 to Count 1 of the indictment charging him with being a felon in possession of a firearm. In his plea agreement, Montoya admitted that on Jan. 5, 2011, he possessed a firearm with an obliterated serial number in Farmington, and further admitted selling the firearm to another person on that day.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Farmington Police Department, the San Juan County Sheriff’s Office and the Bloomfield Police Department, and was prosecuted by Assistant U.S. Attorney David Walsh.Eleven Individuals Enter Pleas in Federal CourtRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that eleven individuals entered pleas of guilty in Federal Court.
DANIEL JOSEPH HANST, age 27, BRANDI RENEE SMITH, age 26, LISA NICOLE SMITH, age 24 and ANTHONY WILLIAM OURS, age 32, of Fairmont, West Virginia, entered pleas of guilty before Magistrate Judge John S. Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” and “Attempt to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” HANST and BRANDI SMITH, who are in custody, and LISA SMITH and OURS, who are free on bond, face up to 20 years in prison. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Three Rivers Drug Task Force, consisting of officers from the Fairmont Police Department and the Fairmont State University Police Department.
ERIC SCOTT PENNINGTON, age 30, of Parsons, West Virginia, and, MISTY AUTUMN GRAFTON, age 26, of Hambleton, West Virginia, entered pleas of guilty before Judge Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” PENNINGTON and GRAFTON, who are free on bond pending sentencing, face up to 20 years in prison. This case was investigated by the Monongahela National Forest-Law Enforcement and Investigations and the Tucker County Sheriff’s Department.
RONNIE GERALD BELT, age 52, of Camden on Gauley, West Virginia, entered a plea of guilty before Judge Kaull to “Possession of Material Used in the Manufacture of Methamphetamine.” BELT, who is in custody pending sentencing, faces up to 10 years in prison.
TRACI LYNN WILSON, age 27, of Moorefield, West Virginia, entered a plea of guilty before Judge Kaull to “Distribution of Methamphetamine within 1,000 Feet of a School.” WILSON, who is free on bond pending sentencing, faces up to 40 years in prison.
The BELT and WILSON cases were investigated by the West Virginia State Police.
ROBERT VAUGHN BARNETTE, II, age 28, of Weston, West Virginia, entered a plea of guilty before Judge Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” BARNETTE, who is in custody pending sentencing, faces up to 20 years in prison. This case was investigated by the West Virginia State Police and the Lewis County Sheriff’s Department.
These cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
DONNA STURM, age 32, of Belington, West Virginia, entered a plea of guilty before Magistrate Kaull to “Distribution of Marijuana” and “Felon in Possession of a Firearm.” STURM, who is free on bond pending sentencing, faces up to 15 years in prison. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the West Virginia State Police.
SHANE O. BRANTLEY, age 36, of Sutton, West Virginia, entered a plea of guilty before District Judge Irene M. Keeley to “Felon in Possession of a Firearm” on April 25, 2012, in Braxton County. BRANTLEY, who is free on bond pending sentencing, faces up to 10 years in prison. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the Braxton County Sheriff’s Department; and, the Sutton Police Department.
The STURM and BRANTLEY cases were prosecuted by Assistant United States Attorney Zelda E. Wesley.
Driver in Car Crash Pleads Guilty to Involuntary ManslaughterRead the Press Release
Greenbelt, Maryland – Josue Balbino Ruiz Reyes, age 19, of Hyattsville, Maryland pleaded guilty today to involuntary manslaughter in connection with the death of a passenger resulting from a car collision.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert Maclean of the U.S. Park Police.
According to his plea agreement, on August 22, 2013 at about 5:30 a.m., Ruiz Reyes drove with a passenger in his SUV southbound on the Baltimore-Washington Parkway from the Glen Burnie area. He had been drinking alcohol earlier that morning and the previous night. Near the route 197 exit, he lost control of his SUV and drove onto the shoulder of the highway. His SUV rolled over completely and landed upright, breaking all the windows and ejecting the passenger. Ruiz Reyes drove away.Numerous other motorists called 911. The U.S. Park Police found Ruiz Reyes driving his badly damaged vehicle on the ramp from the Parkway to Powder Mill Road, about four miles south of the location of the crash. Four police cruisers forced the vehicle to a stop. The right side of the SUV was completely smashed. The passenger side door would not open. Ruiz Reyes told the police he had two beers earlier. He was shirtless, and had minor bruises and cuts on his body. Ruiz Reyes was taken to the hospital where a blood test was given. His blood-alcohol level was .10 grams of alcohol per 100 mL of blood.
Meanwhile, U.S. Park Police officers at the scene of the roll-over found the passenger’s body lying in the grass, where her body had been ejected from the SUV. She was pronounced dead. Ruiz Reyes told police that the passenger had gotten out of the car on the side of the road voluntarily. His Maryland driving privileges were suspended.
Ruiz Reyes faces a maximum sentence of eight years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge Roger W. Titus scheduled sentencing for April 7, 2014 at 4:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.Dominican Doctor and Assistant Indicted for Conspiring to Alter Fingerprint of Previously Deported AliensRead the Press Release
BOSTON – A Dominican doctor and his assistant were charged today for their roles in altering the fingerprints of illegal aliens through a surgical process.
Danilo Montero Ramirez, 61, and Teresa Araujo Martinez, 40, were indicted for conspiring to harbor illegal aliens by altering their fingerprints through a surgical process, conspiracy to distribute Oxycodone, and possession with intent to distribute Oxycodone.
In November 2013, federal agents became aware that Montero Ramirez, a licensed medical doctor in the Dominican Republic, was coming to the United States to meet with previously deported aliens and perform surgery on their hands to alter their fingerprints. Convicted criminals alter their fingerprints to help conceal their true identities from law enforcement and to disassociate themselves from their prior criminal history.
During the week of Nov. 12, 2013, Montero Ramirez arrived in the United States from the Dominican Republic and arranged to perform surgery on individuals for a fee of $4,000. Montero Ramirez and Araujo Martinez made arrangements to perform the surgery on Nov. 16, 2013, but were arrested before the surgery began. It is alleged that had the surgery taken place, these individuals would have been given controlled substances by Araujo Martinez. At the time of the arrests, agents seized surgical cutting equipment, gauze, bandages, syringes, prescription medication and $4,000 from the defendants. Araujo Martinez, also a Dominican citizen, was found to be in possession of a large quantity of pain medication, including Oxycodone and other substances.
If convicted on the charge of conspiracy to distribute a controlled substance, the defendants face a maximum of 20 years in prison, three years of supervised release and a fine of $1 million. If convicted on the charge of conspiracy to harbor aliens, the defendants face a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Pediatrician Sentenced to 18 Months in Prison for Possession of Child Pornography-Doctor Arrested After Search of His Office in May 2013-Read the Press Release
WASHINGTON – Robert Paul Dickey, 74, a pediatrician from Washington, D.C., was sentenced today to 18 months in prison for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dickey pled guilty in September 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, Dickey will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 15 years following his release from prison. Also, Dickey must forfeit a computer hard-drive that was seized by law enforcement during the investigation. Finally, Judge Wilkins ordered him to pay a $10,000 fine.
According to the government's evidence, on April 10, 2013, law enforcement received a “cyber tip” from the National Center for Missing and Exploited Children. That “cyber-tip” contained information that Dickey uploaded 14 images of child pornography using a Microsoft account.
Based on that “cyber-tip,” on May 8, 2013, law enforcement executed a search warrant on Dickey’s home office in Southeast Washington. Pursuant to that search warrant, law enforcement recovered various electronic devices. After a forensic review of those items, law enforcement recovered approximately 132 images of child pornography. Dickey was arrested on May 8, 2013, and has remained in custody ever since.
“This case is extremely troubling because a beloved pediatrician was downloading child pornography in the same home where he was providing medical treatment to children,” said U.S. Attorney Machen. “He provided care to many children during his career, but also obsessively collected images of children of the same ages being sexually exploited. Dr. Dickey’s prosecution is a concrete demonstration of our commitment to hold accountable anyone who would seek to exploit the innocence of our children.”
“By downloading images of child pornography, Dr. Dickey took advantage of unwitting victims,” said Assistant Director in Charge Parlave. “The FBI is committed to apprehending offenders who sexually exploit children through sharing images of child pornography and we will continue to work together with our partners to identify these predators and their innocent victims.”
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-425DOJ Hails Milestone in Seattle Police Department Reform Efforts with Court’s Approval of New Use of Force PolicyRead the Press Release
SEATTLE -- U.S. District Judge James L. Robart today accepted the Seattle Police Department’s new Use of Force policy as consistent with the terms of the Settlement Agreement between the Justice Department and the City of Seattle. The new policy, which builds on best practices and policies implemented nationwide, was negotiated by the parties and was the product of significant input from the police, policing experts and the Community Police Commission.
Under the new policy, all uses of force by SPD officers above de minimis force must be reported. The policy defines force itself for the first time, and details when force is appropriate and when it is prohibited. It establishes when and how to report force, and provides clear lines of authority and accountability for supervisory review and investigation of uses of force. The review and investigation of force will be more thorough than ever before. The policy further emphasizes de-escalation – including developing and using alternatives to force – and gives officers clear guidance on the use of specific tools, including a new requirement that officers carry at least one less-lethal tool. Separate policies and training on crisis intervention and dealing with people in behavioral crisis will also be completed in the near future.
The new use of force policy will go into effect on January 1, 2014.
“This is a major milestone in the reform process that will help rebuild trust and foster greater accountability. Clear principles and guidance will enhance officer safety and protect the rights of people in Seattle,” said U.S. Attorney Jenny A. Durkan. “I am grateful to the contributions of the Community Police Commission and the members of the community it represents and to the City, SPD officers, and policing experts who contributed to shape a policy that is a national model.”“We are pleased that, together with the City of Seattle and with the important input of the Community Police Commission, we have crafted and agreed upon a use of force policy that will serve as a model for police departments nationwide,” said Acting Assistant Attorney General Jocelyn Samuels, head of the Justice Department’s Civil Rights Division. “This policy will help ensure that the people of Seattle have a police department that respects the Constitution, secures the safety of the public, and earns the confidence of the community.”
The new policies make clear that officers must “use only the force necessary to perform their duties” and “with minimal reliance upon the use of physical force.” New emphasis is placed on de-escalation and interaction with people in behavioral crisis. For the first time, there are policies on every weapon used, like pepper spray and tasers. Supervisors are given enhanced responsibility for use of force by their officers. The most serious uses of force – including police shootings – will be investigated by a special team and reviewed by a multi-disciplinary team.
The following is a summary of the new Use of Force policy provisions. The new policy can be found by clicking here.
Enhances officer safety and protects rights with clear core principles guiding appropriate use of force:
-Officers shall “use only the force necessary to perform their duties” and “with minimal reliance upon the use of physical force.”
-Officers shall de-escalate through the use of “advisements, warnings, verbal persuasion, and other tactics in order to reduce the need to use force” and recognize that a subject’s lack of compliance is not always a deliberate attempt to resist but may be related to an inability to comply because of medical impairment or a language barrier.
-Sometimes force is unavoidable, but officers should not precipitate an unnecessary use of force and should know that their conduct prior to the need to use force may be a factor the Department will consider in assessing the appropriateness of the force.Defines force – when it is appropriate and when it is prohibited – and when and how to report force:
-“Force means any physical coercion by an officer.”
-“All uses of force other than de minimis are reportable. Reportable force includes the “intentional pointing of a firearm at a subject.”
-For reporting purposes, force is broken into four types based upon the nature and severity of the incident: de minimis and Types 1, 2, and 3. [See chart on page one of Section 8.300 (Use of Force Reporting and Investigation) for guidance on distinctions, available here:-Inappropriate to use force: to punish or retaliate; against individuals who only verbally confront them; against handcuffed or restrained individuals.
Defines and enhances responsibilities for supervisors and creates new Force Investigation Team (FIT):
-Supervisors will be responsible for their officers and will review all uses force and further investigate all uses of force categorized as Type 2 and above.
-Supervisors screen all Type 1s at the scene and respond to the scene in all Type 2 and above.
-Creation of the new independent, inter-disciplinary FIT team for the highest level uses of force (Type 3 and above) and for officer-involved-shootings, in-custody deaths, serious assaults on officers.
-Procedures to protect the integrity of a possible future criminal investigation of the officer.Creates four procedural manuals on:
-A first weapon-by-weapon guidance manual on when and how weapons like tasers and peper spray can be used (Section 8.200, available here:
-Procedures on the reporting and investigation of uses of force (Section 8.300, available here:
-A manual for the new Force Investigation Team, which rolls to the highest levels of force, including officer involved shootings (Force Investigations Unit Procedural Manual, available here:
-Procedures of the Use of Force Review Board (Section 8.400, available here:
Institutionalizes the UOF Review Board (created by SPD in 2011) (Section 8.400)
The UOF Review Board reviews all Type 2 and Type 3 UOF to:
-confirm that UOF reporting, investigation and review are thorough and complete;
-determine whether the findings from the chain of command regarding whether the force used is consistent with law and policy are supported by a preponderance of the evidence;
-ensure that all uses of force contrary to law or policy are appropriately addressed; and
-identify trends or patterns of deficiencies regarding policy, training, equipment, or tactics.Citizen of Romania Involved in Atm Skimming Scheme Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that IONUT-IULIAN VLAD, 29, a citizen of Romania, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for his role in an ATM “skimming” scheme.
According to court documents and statements made in court, VLAD and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at Bank of America locations in Connecticut. The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts. The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw more than $100,000 in funds from the customers’ accounts.
In February 2013, surveillance video captured VLAD removing skimming devices and pinhole cameras from Bank of America ATMs in Wallingford and Greenwich.
VLAD has been detained since his arrest by the Stamford Police Department on March 2, 2013. At the time of his arrest, he possessed ATM skimming tools and double-sided tape.
On August 19, 2013, VLAD pleaded guilty to one count of conspiracy to commit bank fraud.
VLAD was ordered to pay restitution in the amount of $105,404.75.This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments. U.S. Attorney Daly specifically recognized the efforts of the Greenwich and Stamford Police Departments for their assistance in the investigation and prosecution of this matter.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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[email protected]California Man Indicted for Conspiring with Local Couple to Produce Child PornographyRead the Press Release
PENSACOLA, FLORIDA — Pamela C. Marsh, the United States Attorney for the Northern District of Florida, announced that Bret A. Nichols, age 29, of Paradise, California, was indicted today on federal charges for engaging in a conspiracy to produce and receive images and videos of child pornography from a couple in Mary Ester, Florida.
The two-count indictment alleges that between October 2010 and December 2012, Nichols conspired with Corine D. Motley, a/k/a Corine Gillreath, a/k/a “Dusty,” a/k/a “Kandi Kane,” and Brandon C. Gillreath, to produce pornographic images and videos of child victims here in the Northern District of Florida. Motley and Gillreath were convicted on related charges in federal court in Pensacola in June 2013 and were sentenced to 29½ years and 35 years imprisonment, respectively, for their personal production of child pornography here in Florida. The images and videos they produced were transmitted over the Internet.
Nichols was arrested in northern California on federal charges stemming from his alleged involvement. He remains in custody at the Sacramento County Jail.
The indictment was a result of a joint investigation by the Department of Homeland Security, the Okaloosa County Sheriff’s Office, the Pensacola Police Department, and other members of the Internet Crimes Against Children Task Force.
The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.
An indictment is merely an allegation that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent until and unless the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.
California Man Charged with Conspiring to Distribute Cocaine and Launder MoneyRead the Press Release
PITTSBURGH – A California man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
The two count superseding indictment named Gustavo Godinez, of Los Angeles, California.
According to the Superseding Indictment, from in and around April 2012, and continuing to in and around January 2013, in the Western District of Pennsylvania and elsewhere, the defendant conspired with other individuals to distribute and possess with the intent to distribute five kilograms or more of cocaine. The Superseding Indictment also alleges that during that same time frame, in the Western District of Pennsylvania and elsewhere, the defendant conspired with other individuals to launder money.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Attorney General's Office, the Internal Revenue Service - Criminal Investigation and the United States Postal Service conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Burns Flat Woman Charged with Producing Child Pornography Involving One-Year-Old ChildRead the Press Release
Oklahoma City, Oklahoma – Today, a federal complaint was filed charging JEANIE SHOULDERS (a/k/a Laura Jean Shoulders), 46, of Burns Flat, Oklahoma, with three counts of producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the complaint affidavit, in the summer of 2012, a male responded to Craigslist personals ad and made contact with Shoulders. It is alleged that the two began corresponding through text messages about sexually explicit themes and exchanged explicit photographs. It is further alleged that the conversations developed into messages concerning child pornography and Shoulders sent three videos of herself performing sexual acts with a one-year-old girl with her iPhone taken in approximately April of this year. It is alleged that the child was in the custody of an acquaintance of Shoulders.
If convicted, Shoulders faces up to 30 years in prison on each of the three counts. The public is reminded that the complaint is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to the court filings for further information.
This case is the result of an investigation by the Oklahoma Internet Crimes Against Children (ICAC) Task Force, Washita County Sheriff’s Office, Burns Flat Police Department, Dewey County Sheriff’s Office, and the United States Secret Service. The Oklahoma ICAC Task Force is part of the National ICAC Task Force, with the Oklahoma State Bureau of Investigation as the lead agency that manages a grant approved by the U.S. Department of Justice for use to specifically investigate and prosecute child exploitation cases. Oklahoma currently has 51 affiliate partner agencies throughout the State who are Oklahoma ICAC Task Force members. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Bulgarian Citizen Sentenced to over 3 Years in Prison for Using ATM Skimmers to Obtain over $54,000 from Victims’ AccountsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bozhidar Lazarov, age 40, a Bulgarian national residing in Chicago, Illinois, today to 39 months in prison, followed by three years of supervised release, for conspiring to commit bank fraud and aggravated identity theft in connection with an ATM skimming scheme. Judge Blake also ordered Lazarov to pay restitution of $54,883.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his guilty plea, from at least May through November 2010, Lazarov and others illegally obtained debit and credit card account numbers by placing ATM skimmers over the slot where customers inserted their debit or credit cards, thereby capturing the account information as the card passed through the skimmer. The conspirators used a miniature camera to capture personal identification numbers (PINs) as the customers entered them on the keypad. Lazarov and others then encoded the magnetic strips of plastic cards, such as gift cards, with the compromised account numbers and information which they used, along with the corresponding PIN numbers, to make unauthorized cash withdrawals directly from the victims’ bank accounts.
For example, on May 29 and 30, 2010, co-conspirator Stoycho Lazarov, who is Bozhidar’s brother, installed an ATM skimmer on bank ATMs in Westminster and Finksburg, Maryland, which Bozhidar Lazarov removed a few hours later. Bozhidar Lazarov and others used the stolen debit card numbers and PINs to withdraw at least $30,536 from 20 victims’ accounts. On October 17, 2010, Bozhidar Lazarov and others used a skimming device at a bank ATM in Ellicott City, Maryland, subsequently using the stolen account information and PINs to illegally withdraw at least $24,347 from at least 19 victims’ accounts.
Bozhidar Lazarov obtained at least $54,883 from 39 individual bank customers and two banks during his participation in the scheme.
Stoycho Ivanov Lazarov, age 41, a Bulgarian citizen residing in Millersville, Maryland, previously pleaded guilty to the same charges, and was sentenced to four years in prison and ordered to pay restitution of $185,512.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and praised Assistant U.S. Attorneys Kristi N. O’Malley and Tamera Fine, who prosecuted the case.
Boston Man Sentenced for Armed RobberyRead the Press Release
BOSTON - A Boston man was sentenced today for his role in an armed robbery of a Metro PCS store in Boston.
Ronald Brown, 40, was sentenced by U.S. District Court Judge Denise J. Casper to 272 months in prison and five years of supervised release. On May 10, 2013, Brown was convicted, following a five-day jury trial of armed robbery, being a previously convicted felon in possession of a firearm and using and carrying a firearm during, and in relation to, a crime of violence.
On Oct. 31, 2011, Brown and his co-conspirator, Lynch Arthur, armed with loaded semi-automatic weapons, entered the Metro PCS store in Codman Square in Dorchester. Arthur was observed carrying a black nylon bag as he entered the store. Once inside the store, the men displayed their firearms and took the clerk into a back storage area where the men restrained the clerk by duct-tapping her hands feet and mouth. The clerk was then placed on the floor while the robbers removed $664 in cash from the cash box. The individuals left the store and fled onto Washington Street. The Boston Police responded and a short time later two individuals who fit the description of the robbers were stopped and questioned. After questioning, the individuals were returned to the store and positively identified by the clerk as the robbers. A short time later the police observed a black nylon bag in a blue recycle bin. The bin was located a few yards from where the individuals were stopped and questioned. Inside the nylon bag the officers observed two loaded semi-automatic firearms, duct tape, and $664.
In June 2013, Brown’s co-defendant, Lynch Arthur, was sentenced to 228 months in prison and five years of supervised release.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case was prosecuted by Kenneth G. Shine and Robert E. Richardson of Ortiz’s Major Crimes Unit.
Beloit Wisconsin Woman Charged with Mail FraudRead the Press Release
ROCKFORD — The former shipping manager for American Extrusion International (“AEI”), was indicted today on federal mail fraud charges. REVA K. VERA, 57, of Beloit, Wis. was charged with two counts of mail fraud.
According to the indictment, Vera, as the shipping manager, was responsible for authorizing payments to vendors who provided shipping services to AEI. The indictment alleges that from May 4, 2012 to Oct. 9, 2013, Vera defrauded AEI out of at least $352,743.23. The indictment alleges that Vera created fictitious invoices from Val Tech, Inc. and TQL for shipping services that those companies had purportedly performed for AEI when in fact, Val Tech, Inc. and TQL provided no such shipping services for AEI. According to the indictment, Vera submitted the fictitious invoices to AEI’s accounts payable department causing checks to be issued by AEI payable to Val Tech, Inc. or TQL in the amounts of the invoices. The indictment further alleges that after AEI’s accounts payable department generated the checks for the fictitious invoices submitted by Vera, AEI mailed the checks payable to Val Tech, Inc. to an address of Vera’s relative in Beloit, Wis., and the checks payable to TQL to a post office box in Loves Park, Ill. belonging to Vera. According to the indictment, as part of the scheme to defraud AEI, Vera obtained $85,993 in checks from AEI payable to Val Tech, Inc., and $266,810.23 in checks from AEI payable to TQL that she either cashed or deposited into her personal bank account.
Each count of mail fraud carries a maximum penalty of 20 years in prison, a maximum fine of $250,000 fine, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Vera appeared today at the federal courthouse in Rockford for an arraignment and initial appearance conducted by U.S. Magistrate Judge P. Michael Mahoney. Vera was released on bond and is scheduled to appear for a status hearing before Magistrate Judge Mahoney on Jan. 27, 2014 at 11 a.m.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The South Beloit Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Bankruptcy Fraud Results in Federal PrisonRead the Press Release
HOUSTON – Darren David Chaker, 41, of Beverly Hills, Calif., and Las Vegas, Nev., has been ordered to federal prison following his conviction of bankruptcy fraud, announced United States Attorney Kenneth Magidson. Chaker was found guilty April 4, 2013, following a five-day bench trial before U.S. District Judge Nancy Atlas.
Today, Judge Atlas sentenced Chaker to a term of 15 months in prison to be immediately followed by a three-year-term of supervised release. He was further ordered to pay a $2000 fine. As part of the sentencing, Judge Atlas included special conditions that he not stalk or harass anyone and obtain mental health counseling and anger management. In handing down the sentence, Judge Atlas noted that the bankruptcy system depends on the reliability of those who petition for bankruptcy relief and added that the case involved a defendant who could not tell the truth to the court. She rejected Chaker’s request for a sentence of probation, calling this a significant crime and finding that a sentence of custody is critical.
The evidence at trial showed that Chaker filed bankruptcy under Chapter 13, in which a debtor is required to propose a plan of reorganization to pay the debtor’s creditors over time. The debtor is required to pay at least as much as the creditors would receive if the debtor’s assets were liquidated on the date of the filing of the bankruptcy petition. The process is designed to achieve an orderly transfer of a debtor’s assets to creditors from available assets truthfully and accurately disclosed and to provide a “fresh start” to honest debtors by allowing them to obtain a discharge or release of debt incurred prior to filing bankruptcy.
According to the evidence, Chaker filed for bankruptcy under Chapter 13 on March 6, 2007. Specifically, on or about March 26, 2007, during a bankruptcy hearing before the Honorable Jeffrey Bohm, while under oath, Chaker falsely and fraudulently represented to the court that the property was never leased out prior to January 2007, when he had in fact previously contracted with a realtor who secured at least two rental contracts with Chaker personally. Chaker failed to disclose income and the existence of past and present residential leases of a residential property facing foreclosure in Houston to his creditor, Saxon Mortgage in the hearing and to the court.
In order for the bankruptcy system to work for all parties, it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system - the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
Chaker will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI with assistance from the United States Trustee’s Office and is being prosecuted by Assistant United States Attorneys Carolyn Ferko and Sharad Khandelwal.
Baltimore Brothel Operator Sentenced to over 11 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, today to 140 months in prison, followed by five years of supervised release, for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Jamar Simmons. Judge Russell ordered that upon his release from prison, Coit must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, Coit and Simmons operated a brothel in Baltimore City on Madison Avenue. Simmons was a Baltimore City firefighter at the time of the offense. They also rented hotel rooms and a residence in Maryland for prostitution. Coit and Simmons falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women they recruited were in financial distress, had no place to live, or were otherwise vulnerable.Coit and Simmons took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Coit and Simmons shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.
Simmons pleaded guilty to the same charge. Judge Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, on December 13, 2013 to 15 years in prison.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.Attorney General, Director of Executive Office of the U.S. Attorneys and U.S. Attorney of the Western District of Louisiana Recognizes Assistant U.S. Attorney Kelly UebingerRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Assistant U.S. Attorney Kelly P. Uebinger was recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett, with a 2013 Director’s Award.
Each year the Executive Office of the United States Attorneys recognizes the exceptional work, dedication, and distinguished achievements of the men and women of the Department of Justice, the Offices of the United States Attorneys, and partners of the law enforcement community nationwide. The recipients provide support in the United States Attorneys’ Offices, investigate and prosecute the most heinous criminals, and represent the United States in significant criminal and civil cases. All of the recipients continue to make major contributions to the Offices of the United States Attorneys and to the mission of the Department of Justice. The Superior Performance award recognizes Assistant United States Attorneys (AUSAs) who have distinguished themselves through the outstanding performance of their duties in criminal matters. This year marks the 30th anniversary of the Director’s Award.
H. Marshall Jarrett and U.S. Attorney Finley presented the award to AUSA Uebinger today at a gathering at the U.S. Attorney’s Office in Lafayette. Because of sequestration, the awards presentation at the Justice Department in Washington, D.C., was canceled, but Jarrett was able to attend by video teleconference.
AUSA Kelly Uebinger received the Superior Performance as an Assistant U.S. Attorney award recognizing her exceptional work in the case of United States v. Dr. Mehmood M. Patel, a practicing cardiologist in the Lafayette area for more than 25 years.
AUSA Uebinger coordinated a joint investigation by the Department of Health and Human Services, Office of the Inspector General, and the FBI which revealed that Dr. Patel had falsified patient symptoms in medical records, falsified findings on medical tests, and performed unnecessary coronary procedures such as deploying angioplasty balloons and stents, and used radiation in coronary arteries that had little or insignificant disease. In the first criminal case of its kind in the country, Dr. Patel was indicted on 94 counts of health care fraud. During the three-year period covered by the indictment, he billed Medicare and private insurance companies more than $3 million for unnecessary cardiology services, performing procedures at two area hospitals and eventually opening his own catheterization laboratory at his private office.
Uebinger presented the government’s case to a jury during a 3 ½ month trial. Through months of pre-trial preparation, and after more than 100 witnesses and nine expert witness presentations, AUSA Uebinger accurately and effectively presented complex testimony to the jury. The jury deliberated for six days and returned a guilty verdict on 51 counts of health care fraud. Dr. Patel was sentenced to 10 years in prison, received a $175,000 fine, and was ordered to pay $387,511 in restitution.
In a personalized letter to the recipient, Attorney General Holder told the awardee that the Director’s Award for Superior Performance as an Assistant U.S. Attorney was “a significant achievement that recognizes your exceptional efforts to promote the fair and impartial administration of justice for all Americans.”
Jarrett also explained that only 155 out of nearly 800 nominees from across the United Stated were selected, and only 29 received an Award for Superior Performance as an Assistant U.S. Attorney in the criminal category.
“There is no doubt that Kelly’s performance was outstanding and moreover met these lofty requirements to earn her a Director’s Award,” Jarrett added.
“It is Kelly’s tireless work and dedication to justice on this case and throughout the years that garnered this award,” Finley stated. “Her efforts have righted wrongs in our community and continue to bear fruit. I am honored to present this award to such an outstanding member of our office.”
AUSA Kelly Uebinger joined the U.S. Attorney’s Office in August of 1992 and worked in the Shreveport office as an OCDETF AUSA until 1997. While working with the OCDETF program, she received a Director’s Award for her role in the prosecution of the Bottoms Boys, a notorious Shreveport street gang. In 1997, she transferred to the Lafayette office where she prosecutes a variety of complex white collar cases, to include health care fraud, investment fraud, embezzlement fraud and tax fraud. Ms. Uebinger currently serves as the Criminal Health Care Fraud Coordinator for the District. She received the Inspector General’s Integrity Award for the Patel prosecution.
Prior to joining the U.S. Attorney’s Office, AUSA Uebinger clerked for Magistrate Judge John F. Simon in the Alexandria Division. Ms. Uebinger has a Bachelor of Business Administration degree and graduated with a double major in Finance and International Business from Loyola University in New Orleans in 1988, and was chosen as the Outstanding International Business Graduate. In 1991, she received her Juris Doctorate from Tulane Law School.
H. Marshall Jarrett was appointed Director for the Executive Office for United States Attorneys by Attorney General Holder on April 13, 2009. The Executive Office, created in 1953, provides general guidance and supervision to the 94 United States Attorneys’ Offices and its nearly 12 thousand employees.
From left, Assistant U.S. Attorney, Kelly Uebinger and U.S. Attorney, Stephanie A. Finley
Attorney General Holder Announces $1.5 Million to<br /> Reimburse Support Efforts to Victims of the Sandy Hook Elementary School ShootingRead the Press Release
Attorney General Eric Holder today announced a $1,519,713 grant to reimburse organizations and agencies that provided direct support to victims, first responders and the community in the immediate aftermath of the mass shooting at Sandy Hook Elementary School in Newtown, Conn., on Dec. 14, 2012. The Justice Department’s Office for Victims of Crime (OVC) provided this grant to the Connecticut Judicial Branch, which administers funding for services to victims of violent crime. This initial award will be used toward costs incurred by those organizations that provided crisis intervention services, trauma-informed care, select victim-related law enforcement support and costs incurred in moving students from Sandy Hook to a new school location. OVC is working directly with Newtown city officials and the state of Connecticut to develop an additional grant application to provide more funding for long-term victim recovery.
“This funding will provide critical support to the brave women and men who responded to the devastating violence at Sandy Hook Elementary School, as well as the counselors and others who are helping the community to recover,” said Attorney General Eric Holder. “One year after the senseless violence in Newtown, we continue to mourn the innocent children and selfless adults who were taken from us on that terrible day. We admire and continue to support the community that has displayed such strength and resilience since then. And through this grant, and the additional funds that have already been provided to the Newtown Police Department and their law enforcement partners, we reaffirm our commitment to standing with the people of Newtown, the families of the victims, and all who are helping to bring help and healing to those affected by this heartbreaking tragedy.”
“OVC is committed to ensuring that the community of Newtown has the resources necessary to assist victims of this horrific crime,” said OVC Director Joye Frost. “Almost one year ago, our country was shocked to its core with this senseless slaughter of innocents; we have all mourned the loss of these young children and their courageous teachers. Through this funding, which will be administered by the Connecticut state government, OVC is supporting the critically important work of the school system, social service and medical organizations and the city government as they continue to assist victims. I am humbled by the courage and resoluteness of the victims, first responders, educators, town leaders and residents of Newtown for their support of one another and their incredible grace and dignity in the aftermath of this tragedy.”
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an Antiterrorism and Emergency Assistance Program (AEAP) grant award for crisis response, criminal justice support, crime victim compensation and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the shootings in Oak Creek, Wis. (2012); Aurora, Colo. (2012); Tucson, Ariz. (2011); Binghamton, N.Y. (2009); and at the Virginia Polytechnic Institute and State University (2007).
For more information on the AEAP program, please visit: www.ojp.usdoj.gov/ovc/AEAP/index.html.
OVC is one of six components in the Justice Department’s Office of Justice Programs (OJP), which is headed by Assistant Attorney General Karol V. Mason. OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. In addition to OVC, OJP’s components include: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Albuquerque Man Sentenced to Sixty-Three Months in Prison for Federal Wire Fraud and Money Laundering ConvictionRead the Press Release
ALBUQUERQUE – Rodney Chavez, 47, of Albuquerque, N.M., was sentenced yesterday afternoon to 63 months in federal prison followed by three years of supervised release for his wire fraud and money laundering conviction. Chavez also was ordered to pay restitution in the amount of $847,370.52 to the victims of his criminal conduct. He also was ordered to forfeit $233,548.40 in funds that were seized from three bank accounts during the investigation of the case. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Chavez and his co-defendants, Wayne Brian Church, Jr., 28, and Joshua G. Ellis, 43, both of Albuquerque, were charged in Jan. 2012, with wire fraud and money laundering charges in a 22-count indictment that generally alleged that the three men defrauded investors of more than $800,000 in a real estate venture. Chavez and Church were arrested based on the charges in the indictment in Feb. 2012. Ellis has yet to be arrested and is considered a fugitive.
After Church pleaded guilty in Aug. 2012 to a felony information charging him with conspiracy to commit wire fraud, Chavez and Ellis were charged in a 21-count superseding indictment filed in Oct. 2012. The superseding indictment charged Chavez and Ellis with conspiracy to commit wire fraud and five substantive wire fraud offenses. It also charged Chavez with conspiracy to launder the proceeds generated by their fraudulent activities and 14 substantive money laundering offenses, and sought forfeiture of the proceeds of the defendants’ unlawful activities.
On Sept. 9, 2013, Chavez pled guilty to Counts 6 and 7 of the superseding indictment, charging him with wire fraud and conspiracy to commit money laundering, respectively. In his plea agreement, Chavez admitted that, between March 2010 and April 2011, he designed and executed a scheme to defraud a group of investors of their interest in certain properties located in Puerto Peñasco, Mexico. Chavez embarked on the scheme after learning that the investors were interested in selling the properties at a substantial loss after realizing that they would not be able to recoup the full amount of their original investments. In March 2010, Chavez contacted a representative of the investor group under an assumed identity and entered into an agreement to sell the properties on behalf of the investors with the understanding that the investors would receive a return of 30% of their original investments. Despite his stated intention to sell the properties and distribute the agreed amount to the investors, Chavez admitted that he never intended to honor that agreement and instead intended to defraud the investors by selling the properties and retaining the proceeds for himself.
According to the plea agreement, while falsely assuring investors of his efforts to sell the properties on their behalf, Chavez hired a real estate agent to sell the properties and sold five properties, the sales of which generated approximately $847,370.52 in proceeds. After the proceeds were wire-transferred to a bank in Albuquerque with assistance from Church, Chavez did not distribute the proceeds to the investors. Instead, Chavez and Church kept the proceeds and conspired to conceal the source of the proceeds by transferring the money to bank accounts held in the names of businesses they exclusively controlled. None of the proceeds from the sale of properties were returned to the investors.
Church remains on conditions of release pending his sentencing hearing when he faces a maximum penalty of 30 years in prison. The charges in the superseding indictment against Ellis are merely accusations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Albuquerque Man Pleads Guilty to Robbing Western Commerce Bank in September 2013Read the Press Release
ALBUQUERQUE – Solas Jansen, 36, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with bank robbery under a plea agreement with the U.S. Attorney’s Office.
Jansen was arrested on Sept. 29, 2013, based on a criminal complaint charging him with robbing the Western Commerce Bank located at 1910 Wyoming Blvd. NE in Albuquerque on Sept. 24, 2013. Jansen committed the robbery by presenting a demand note to a bank teller who complied with Jansen’s demand for money. As Jansen was leaving the bank, surveillance cameras captured video images of Jansen as he ran away from the bank. On Sept. 26, 2013, after the surveillance camera images of Jansen were broadcast by local media outlets, a tipster contacted the Albuquerque Police Department and identified Jansen as the bank robber. On Sept. 27, 2013, the FBI presented a photo array that included Jansen’s photograph to the victim bank teller who identified Jansen as the bank robber.
During today’s plea hearing, Jansen admitted robbing the bank. Jansen has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Jansen faces a maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.ALBUQUERQUE – Solas Jansen, 36, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with bank robbery under a plea agreement with the U.S. Attorney’s Office.
Jansen was arrested on Sept. 29, 2013, based on a criminal complaint charging him with robbing the Western Commerce Bank located at 1910 Wyoming Blvd. NE in Albuquerque on Sept. 24, 2013. Jansen committed the robbery by presenting a demand note to a bank teller who complied with Jansen’s demand for money. As Jansen was leaving the bank, surveillance cameras captured video images of Jansen as he ran away from the bank. On Sept. 26, 2013, after the surveillance camera images of Jansen were broadcast by local media outlets, a tipster contacted the Albuquerque Police Department and identified Jansen as the bank robber. On Sept. 27, 2013, the FBI presented a photo array that included Jansen’s photograph to the victim bank teller who identified Jansen as the bank robber.
During today’s plea hearing, Jansen admitted robbing the bank. Jansen has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Jansen faces a maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Albuquerque Man Pleads Guilty to Being an Armed Career Criminal and Heroin TraffickingRead the Press Release
ALBUQUERQUE – Arthur Sanchez, 35, of Albuquerque, N.M., pleaded guilty this morning to a two-count indictment charging him with heroin trafficking and being an armed career felon in possession of a firearm and ammunition. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Albuquerque Police Chief Allen Banks.
Sanchez was arrested on state charges on March 30, 2011, after officers of the Albuquerque Police Department observed Sanchez throw an object out of his vehicle’s window when they pulled him over for a traffic violation. The object was a package containing approximately 22 grams of heroin. The officers subsequently recovered a pistol with a loaded magazine from Sanchez’s vehicle.
In March 2013, Sanchez was indicted federally and charged with possession of heroin with intent to distribute and being a felon in possession of a firearm and ammunition based on the conduct occurring on March 30, 2011. At the time, Sanchez was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses: aggravated assault and auto burglary; robbery; and aggravated robbery with a firearm. The related state charges were dismissed after Sanchez was transferred to federal custody in April 2013.
During today’s proceedings, Sanchez entered a guilty plea to both counts of the indictment. Sanchez admitted intentionally possessing heroin on March 30, 2011, with the intention of distributing it. He also admitted possessing a loaded pistol on that day.
Sanchez will remain detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Sanchez will be sentenced to 15 years in federal prison followed by three years of supervised release. Sanchez will receive this enhanced sentence because of his status as an armed career criminal.
Sanchez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Alabama Real Estate Developer Pleads Guilty to Filling Protected Mississippi WetlandsRead the Press Release
William R. “Rusty” Miller, a real estate developer from Fairhope, Ala., pleaded guilty today in federal district court in Gulfport, Miss., to the unpermitted filling of wetlands near Bay St. Louis, Miss., in violation of the Clean Water Act, announced U.S. Attorney for the Southern District of Mississippi Gregory K. Davis and Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division.
Miller, admitted to having caused the excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, west of the intersection of Route 603 and Interstate 10. The charging document to which the defendant pleaded guilty states that Miller was a part-owner of corporations that purchased and intended to develop the land. It alleges that in 2001 when Miller and his companies acquired the property, he was informed by a wetland expert that as much as 80 percent of the land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and as such could not be developed without a permit from the U.S. Army Corps of Engineers. Wetland permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite of additional notice he had received of the prohibition against filling and draining wetland without authorization, it is alleged that Miller hired excavation contractors to trench, drain, and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise be an impediment to commercial development.
In pleading guilty, defendant Miller has acknowledged that he knowingly ditched, drained and filled wetlands at 10 locations on the Hancock County property without having obtained a permit from the U. S. Army Corps of Engineers.
“This conviction is the latest in a series of enforcement actions the Department of Justice has initiated to preserve the wetlands that protect the Gulf coast from storms and that nourish the Gulf’s fisheries and support its marine life,” said Acting Assistant Attorney General Dreher. “Those who unlawfully destroy this valuable natural resource, either by pollution or by development, will face vigorous prosecution.”
It is a felony under the Clean Water Act for any person knowingly to discharge pollutants into waters of the United States without a permit. Any person convicted of this offense is subject to imprisonment of up to three years and a penalty of not more than $250,000. A sentencing hearing has been scheduled before Chief District Court Judge Louis Guirola, Jr. of the Southern District of Mississippi on March 17, 2014.Alabama Man Sentenced to Maximum 20 Years in Federal Prison for Assault of U.S. Border Patrol Agents Near Langtry, TexasRead the Press Release
Incident resulted in the deaths of two area residents and serious injury to a third
In Del Rio this afternoon, 39-year-old David Steiner of Vinegar Bend, AL, was sentenced to 20 years in federal prison after pleading guilty to felony assault of a U.S. Border Patrol agent announced United States Attorney Robert Pitman and Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol.
In addition to the prison term, United States District Judge Alia Moses ordered that Steiner pay $4,390 restitution to the owner of the vehicle he stole and wrecked. Judge Moses also ordered that Steiner be placed on supervised release for a period of three years after completing his prison term.
In July, Steiner pleaded guilty to one count of assaulting, resisting, or impeding an officer by using a deadly or dangerous weapon. By pleading guilty, Steiner admitted that on May 25, 2012, he used his vehicle to charge at three Border Patrol agents near Langtry, TX, during an attempt to avoid potential detention after fleeing from a traffic stop near Comstock, TX.
As a result of Steiner’s actions, the agents were forced to drive off the paved roadway to avoid being struck by Steiner. While looking for Steiner, agents came upon a vehicle accident near Sanderson, TX, wherein Steiner hit an oncoming vehicle killing two occupants and gravely injuring the driver while trying to evade law enforcement.
This case was investigated by agents with the Department of Homeland Security – U.S. Customs and Border Protection Office of Internal Affairs with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kinney County Sheriff’s Office, Terrell County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney Ralph Paradiso prosecuted this case on behalf of the Government.
ATM "Skimmer" Found Guilty by Orlando JuryRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that a federal jury today found Marin Gigore Dobre (36, a citizen of Romania) guilty of possession of device making equipment. He faces a maximum penalty of 15 years in federal prison. A sentencing hearing has been set for March 10, 2013.
Dobre was indicted on October 9, 2013.
According to testimony and evidence presented at trial, between September 11, 2013 and September 13, 2013, Dobre was part of a team from Romania that had installed skimming devices on at least two bank ATMs in Orlando. A “skimmer” device captures a person’s account information stored in the magnetic strip on credit and debit cards. Bank officials were alerted to installation of the first device by an alert bank customer, and when a second device was installed two days later, the bank notified the Orange County Sheriff’s Office. Sheriff’s deputies began surveillance at the second ATM location and observed Dobre serving as a lookout, while his associate (Cristian Octavian Barbu, 31) removed the skimmer device from the ATM. Both men were apprehended at the scene.
Barbu pleaded guilty on December 2, 2013. His sentencing hearing is scheduled for March 10, 2014.
This case was investigated by the U.S. Secret Service and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
26 Individuals Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2013, a federal grand jury in the District of Puerto Rico returned an indictment against 26 defendants charged with conspiracy to possess with intent to distribute heroin, crack, cocaine and marihuana, and firearms offenses announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department were in charge of the investigation, in collaboration with the US Marshal Services and the Puerto Rico Department of Corrections.
The object of the conspiracy was to distribute controlled substances at the Francisco Figueroa Public Housing Project (PHP) located in the Municipality of Añasco, Puerto Rico, all for significant financial gain and profit. According to the indictment, beginning in 2010, as part of the manner and means of the conspiracy, the drug distribution points would be moved through different locations at the PHP to avoid detection by law enforcement. It was further part of the manner and means of the conspiracy that members of the drug trafficking organization would use force, violence, and intimidation in order to intimidate rival drug trafficking organizations and discipline members of their own drug trafficking organization.
The leader of the organization, Nestor Class-Hernàndez, aka “Papito,” had the final approving authority as to the discipline to be imposed upon residents of the PHP, members of the conspiracy, as well as its enemies and rivals. The other leaders/drug point owners are: Ángel A. Méndez-Gonzàlez, aka “Corina;” Amaury Balbino-Nazario, aka “Amaury;” and Carlos L. Carrero-Ramos, aka “Carlitos.”
The other co-conspirators are: Luis Fosse-Morales, aka “Pito,” Henry Rodríguez-López, aka “Moña;” Ovidio Datiz-Rodríguez; Francis H. Roman-Tavares, aka “Fanfi;” José J. López-Calero, aka “El Gordo;” Ana Hernàndez-Valentin, aka “La Tia;” Isoel Cuevas-Medina; Wilmy Pacheco-Ureña, aka “Caco;” Jorge Israel Bonilla-Irizarry; Wilson Quintana-Hernàndez, aka “Bimbo;” Joshua Class-Hernàndez; Mark Anthony Irizarry-Rivera, aka “Mikey;” Josue Class-Hernàndez, aka “Chino;” Ruben Alexis Ruiz-Vàzquez, aka “Mozan;” Johanna Irizarry-Rodríguez; Julio Ruiz-Mayo; Oniel J. Ruiz-Torres; Carlos Claudio-Aquino, aka “Carli Bemba;” Nelson Junio Ruiz-Justiniano, aka “Rockerito;” Annette Gaya-Concepción; Juan C. Bracero-Crespo, aka “Joaquin;” and Christopher Acevedo-Díaz, aka “Bocajo.”
According to the indictment, the 26 co-conspirators had many roles in order to further the goals of the conspiracy. These were: four (4) leaders/drug point owners; five (5) suppliers and facilitators; three (3) enforcers; five (5) runners; twelve (12) sellers; nine (9) drug processors and facilitators. Twenty-five of the twenty-six defendants face one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime.
“This drug trafficking organization has been identified as one of the major narcotic distribution organizations operating in the Western portion of Puerto Rico. Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, while ensuring that they face justice for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, to reduce gang violence and to bring narcotics and firearms violators to justice.”
“Today DEA, with the support of our Commonwealth and Federal counterparts, neutralizes a violent drug trafficking organization terrorizing the law abiding citizens of the Francisco Figueroa Public Housing Project in Añasco and whose tentacles extended to the towns of San Sebastian and Mayagüez,” said Vito Salvatore Guarino, the Special Agent in Charge of the Drug Enforcement Administration in Puerto Rico and the Caribbean. “DEA will continue attacking the drug trafficking organizations in every corner of the Island as part of our commitment to help the Commonwealth authorities reduce the drug related violence affecting our communities.”
The case is being prosecuted by Assistant U.S. Attorney Dennise N. Longo. If convicted, the defendants could face from 10 years up to life in prison.
26 Indicted on Racketeering and Drug Charges Related to Violence and Drug Dealing in the Cherry Hill Area of BaltimoreRead the Press Release
Indictments Allege Gangs Involved in Five Murders, Shootings and Bank Robberies
Baltimore, Maryland - A federal grand jury has indicted 21 individuals in two separate indictments on racketeering conspiracy and drug charges related to their alleged drug dealing and violence in the Cherry Hill section of Baltimore. In a third indictment, an additional five defendants are charged in a drug conspiracy in the same area. The indictments were returned on December 4, and December 11, 2013, and unsealed today upon the arrest of 11 defendants. Nine of the defendants were already detained on state charges.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
“The defendants allegedly belong to rival drug gangs that have terrorized Cherry Hill, resulting in five murders as well as numerous shootings and robberies,” said U.S. Attorney Rod J. Rosenstein. “For other criminals in Cherry Hill who were not arrested today, these indictments send a clear message to stop the violence or be prepared to spend the rest of your life in a federal prison far from home.”
Fifteen individuals are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” On July 21, 2013, one of the alleged members of UDH, Gregory Sykes-Bey, posted the following message to Facebook: “They say ur nobody until somebody kills u but where im from ur nobody until u kill somebody.”
In the second indictment, six individuals are charged in a separate racketeering conspiracy as members of the Little Spelman organization, which operates in the “Down the Hill,” section of Cherry Hill, as well as a conspiracy to distribute heroin, powder and crack cocaine and marijuana.
According to the indictments, the members of UDH and Little Spelman were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. Specifically, the indictments allege that beginning in 2011, UDH and Little Spelman were involved in a dispute that resulted in three murders and the shootings of two others. In addition, the indictments allege that members of UDH committed two bank robberies.
Five other defendants are charged with conspiracy to distribute crack cocaine and heroin, and the UDH indictment alleges that UDH was in a long-running dispute with an organization known as Coppin Court that is involved in criminal activity in the ‘Down the Hill’ section of Cherry Hill.
All 26 defendants face a maximum sentence of life in prison.
The defendants arrested today are expected to have an initial appearance in U.S. District Court in Baltimore. Initial appearances for those defendants detained on state charges have not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Brooke Carey, who are prosecuting the case.
See Attachment A for list of defendants.
ATTACHMENT A
Cherry Hill DefendantsUDH Indictment:
Steven Jackson, a/k/a Cutty, age 23, of Baltimore;
Eugene Anderson, a/k/a Petey, age 36, of Baltimore;
Asim Benns, a/k/a Seem, age 30, of Baltimore;
Ronald Hall, a/k/a JJ, age 37, of Baltimore;
Delano Johnson, a/k/a Lano, age 36, of Baltimore;
Tony Johnson, a/k/a Tony Mack, age 29, of Baltimore;
Rashaud Kearney, a/k/a TT, age 20, of Baltimore;
Russell Lumpkins, a/k/a Mr. Man, age 26, of Baltimore;
Demond Pinkney, a/k/a Cal, age 28, of Baltimore;
Clarence Shipley, a/k/a Mook, age 26, of Baltimore;
Gregory Sykes-Bey, age 20, of Baltimore;
Bryan Turner, a/k/a BT, age 28, of Baltimore; and
Antione White, a/k/a Twan, age 25, of Baltimore.Little Spelman Indictment:
Davon Martin, a/k/a Ack and Black, age 25, of Baltimore;
Brian Parker, a/k/a ES, age 35, of Baltimore;
Shaquan Robinson, a/k/a Quanny, age 22, of Baltimore; and
Richard Williams, a/k/a Wis, age 22, of Baltimore.Third Indictment:
Danna Fraser, a/k/a Stroke, age 25, of Baltimore;
Ernest Thomas, a/k/a EJ, age 25, of Baltimore; and
Melvin Truesdale, a/k/a MJ, age 20, of Baltimore.
Monday 16 December 2013
Wichita Man Who Sold ScootersPleads Guilty to Tax EvasionRead the Press Release
WICHITA, KAN. A Wichita man who owned a business that sold scooters has pleaded guilty to tax evasion, U.S. Attorney Barry Grissom said today.
Dinh Nguyen, 31, Wichita, Kan., who owned BN Scooters, pleaded guilty Monday to one count of tax evasion. In his plea, he admitted he owed substantial income tax in addition to the tax liability he reported on his 2006 income tax return. He knew he was making a false statement when he reported he did not owe any income tax.
Sentencing is set for March 3, 2014. He faces a maximum penalty of five years in federal prison and a fine up to $100,000. The parties have agreed that the court will determine the amount of tax owed at the sentencing hearing.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney David Lind for their work on the case.
Wichita Man Sentenced to Five Years for Marijuana TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man has been sentenced to federal prison for marijuana trafficking, U.S. Attorney Barry Grissom said today.
James Kasinger, 38, Wichita, Kan., was sentenced Monday to five years in federal prison. He pleaded guilty to one count of conspiracy to distribute marijuana. In his plea, he admitted that he and other conspirators distributed more than 100 kilograms of marijuana. Specifically, he helped other conspirators break down loads of marijuana, distribute the marijuana and pack U.S. currency to send to Mexico to pay for the marijuana.
One of Kasinger’s co-defendants, Osbaldo Garcia Garcia, was sentenced in November to 41 months. In his plea, Garcia Garcia admitted using a telephone on Dec. 12, 2011, to talk with another conspirator about a problem with a shipment of marijuana. The caller asked Garcia Garcia to find out what had happened. In fact, the Wichita Police Department and the Drug Enforcement Administration had served a search warrant and seized a significant quantity of marijuana from hidden compartments in tractors.
Grissom commended the Drug Enforcement Administration, the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
West Plains Men Sentenced for Drug TraffickingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two West Plains, Mo., men have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine and marijuana in Howell County, Mo.
Joseph R. Ledwa, 63, and David L. Collins, 38, both of West Plains, were sentenced by U.S. District Judge Beth Phillips on Thursday, Dec. 12, 2013. Ledwa was sentenced to 15 years in federal prison without parole and must forfeit to the government $43,871 that was seized by law enforcement officers during the investigation, as well as 10 firearms and miscellaneous ammunition that were seized during the investigation. Collins was sentenced to eight years and four months in federal prison without parole and must forfeit to the government two rifles that were seized by law enforcement officers during the investigation.
Ledwa pleaded guilty on May 28, 2013, to his role in a conspiracy to distribute 50 grams or more of methamphetamine and 100 kilograms or more of marijuana in Howell County from April 2009 to May 19, 2011. Ledwa also pleaded guilty to one count of possessing a firearm in furtherance of that drug-trafficking conspiracy, and two counts of illegally possessing firearms.
According to Ledwa’s plea agreement, the total amount that the government can prove Ledwa distributed is at least 50 grams, but less than 150 grams of actual methamphetamine and at least 2.5 kilograms but less than five kilograms of marijuana.
Ledwa admitted that he was in possession of a Ruger .45-caliber pistol on Dec. 20, 2009, which he carried in order to protect himself while distributing methamphetamine and marijuana.
Ledwa also admitted that he was in possession of 11 firearms – including pistols, revolvers, shotguns and rifles – on Dec. 20, 2009. He was also in possession of a Saiga 7.62x39-caliber rifle on Aug. 13, 2010. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ledwa has a prior felony conviction for robbery.
On Nov. 19, 2012, Collins pleaded guilty to his role in the drug-trafficking conspiracy, to being a felon in possession of firearms and to possessing a firearm in furtherance of a drug-trafficking crime.
Collins admitted that he initially received “eight ball” (3.5 grams) quantities of methamphetamine from Ledwa to distribute, but then began to receive larger amounts (seven to 14 grams). Within a couple of months, Collins was receiving one to four ounces of methamphetamine a week from Ledwa. During the conspiracy, Collins also received marijuana from Ledwa for distribution.
On two occasions, Collins admitted, he assisted Ledwa in obtaining methamphetamine from Ledwa’s source of supply. On both occasions the two traveled to pick up methamphetamine. On one occasion, Ledwa gave Collins $10,000 and Collins went to Kansas City and obtained 7.5 ounces of methamphetamine from one of Ledwa’s sources.
Collins also admitted that he was in possession of a Smith & Wesson .38-caliber revolver on May 19, 2011. On this date, Collins was in possession of a distribution amount of methamphetamine and marijuana. Law enforcement officers executed a search warrant at Collins’s residence the same day and found various controlled substances in the master bedroom, along with the revolver, which Collins admitted he had for protection.
Collins, who has a prior felony conviction, was also in possession of a Mossberg .22-calbier rifle and a Remington .22-caliber rifle on May 19, 2011.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Central Drug Task Force, the Howell County, Mo., Sheriff’s Department, the Kansas City, Mo., Police Department, and the Grandview, Mo., Police Department.Veteran Sentenced for Fraudulent Receipt of Travel Reimbursement Benefits from Department of Veterans Affairs Medical Center in White River JunctionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on December 12, 2013, Scott Lavertue, 45, of Vershire, Vermont, was sentenced to five years of probation, including a four-month period of home confinement, and restitution in the amount of $24,637.29.
Under certain circumstances, the Department of Veterans Affairs reimburses veterans’ transportation costs when they travel to and from a VA medical facility for treatment. According to court records, Lavertue submitted 340 mileage reimbursement claims between November 2, 2009 and April 20, 2011. The bulk of these reimbursement forms Lavertue submitted indicated that he was living in Richford, Vermont, which is located along the U.S./Canada border approximately 127 miles from the VA Medical Center in White River Junction, Vermont. At the time he made these claims for reimbursement, Lavertue was not actually living at the Richford address, but rather at a location much closer to the VA facility.
On August 12, 2013, Lavertue pled guilty to knowingly submitting false claims for reimbursement to the VA, and agreed to pay restitution in the amount of the fraudulent proceeds.
United States Attorney Tristram, J. Coffin commented that the travel program provides financial reimbursement to veterans so that they can more easily receive the medical treatment they deserve at VA medical facilities. The fraud in this case diverted important financial resources from the VA’s critical mission of caring for our veterans.
This case was investigated by the Department of Veterans Affairs Office of Inspector General with assistance from the Veterans Affairs Police and VA Medical Center Management.This case was prosecuted by Assistant United States Attorney Kevin J. Doyle. Lavertue is represented by Michael L. Desautels, Federal Defender for the District of Vermont.
Valentino Bagola Sentenced to Life in Prison for First Degree Murders of Two Children on Spirit Lake ReservationRead the Press Release
FARGO—U.S. Attorney Timothy Q. Purdon announced that on Dec.16, 2013, Valentino Bagola, 20, of St. Michael, N. D., was sentenced by U.S. District Judge Ralph R. Erickson on two charges of first-degree murder.
Judge Erickson sentenced Bagola to life in prison on each of two counts of first degree murder. The life sentences will be served concurrently. Bagola was convicted by a federal jury on September 23, 2013, for the May 19, 2011, stabbing deaths of 9-year-old Destiny Shaw and 6-year-old Travis DuBois, Jr. in St. Michael, on the Spirit Lake Reservation.
In Fargo, U.S. Attorney Timothy Purdon said, “The life sentences imposed today cannot bring Destiny and Travis, Jr. back or undo any of the horror of these criminal acts. It does, however, provide some measure of justice to these victims, their family, and the Spirit Lake Community. It was this commitment to obtaining justice for Destiny and Travis, Jr. that kept us going in the 14-month search-for-the-truth between the discovery of the bodies of these children and the Indictment in this case. It was this same desire that sustained our incredibly skilled trial team of Assistant United States Attorneys, trial support staff from the U.S. Attorney’s Office, FBI Agents and FBI Laboratory personnel through a grueling three-week trial. The resources and effort brought to bear on this investigation by the federal law enforcement agencies and the U.S. Attorney’s Office should leave no doubt as to the Department of Justice’s commitment to the cause of public safety in Indian country.”
In Minneapolis, Special Agent in Charge Chris Warrener, who heads the FBI’s Minneapolis Division that includes North Dakota said, ”The FBI remains steadfast in its commitment to ensuring that those who commit such horrific crimes on Spirit Lake Nation lands are brought to justice. We, along with our partners at the Bureau of Indian Affairs and the Spirit Lake Tribal authorities, will continue in our efforts to safeguard public safety at Spirit Lake."
In the early morning hours of May 19, 2011, Bagola entered the Dubois/Shaw residence in the St. Michael housing area located on the Spirit Lake Indian Reservation. Bagola, an enrolled member of the Sisseton-Wahpeton Sioux tribe, armed himself with a knife found in the residence and entered the bedroom of Destiny Shaw, age 9, and began to sexually assault her. At some point, Destiny’s brother, Travis Dubois, Jr., age 6, interrupted the sexual assault. Using the knife, Bagola stabbed Travis, Jr. approximately 60 times. Travis, Jr. died from these stab wounds. During the murder of Travis Dubois, Jr., the knife Bagola was using broke. Bagola then retrieved another knife from the residence and stabbed Destiny Shaw, inflicting approximately 40 stab wounds which led to her death.
After discovery of the bodies of the two child victims, a 14-month investigation ensued to identify the killer. This investigation was complicated by the fact that the children’s father falsely confessed to the killings in the days following the discovery of their bodies. The investigation included the thorough examination of a vast amount of forensic evidence gathered at the murder scene and law enforcement interviews of many, many individuals. Eventually, forensic analysis by the FBI laboratory of DNA found under the fingernails of Destiny Shaw and of a bloody palm-print found at the murder scene identified Bagola as a suspect in the killings. Bagola was then interviewed by FBI Agents, confessed to the sexual assault of Destiny Shaw and the murders of the two children, and relayed to the FBI Agents non-public details that were known only to the killer.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, the North Dakota Bureau of Criminal Investigation, and the FBI Laboratory in Quantico, Virginia.
Assistant U.S. Attorneys Chris Myers, Clare Hochhalter, Janice Morley and Scott Schneider prosecuted the case.
U.S. Attorney’s Office for the Western District of Michigan Honored by Department of Defense for Support of Employees Serving in the Guard and ReserveRead the Press Release
GRAND RAPIDS, MICHIGAN – Michigan Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, joined U.S. Attorney Patrick A. Miles, Jr., in announcing today that the US Attorney’s Office for the Western District of Michigan was honored with a Patriot Award in recognition of its extraordinary support of its employees serving in the United States military Reserve Components. U.S. Attorney Miles accepted the award on behalf of the office.
According to Paul Ryan, Michigan ESGR State Chair, “the Patriot Award was created by ESGR to publicly recognize individuals who provide outstanding patriotic support and cooperation to their employees, who like the citizen warriors before them, have answered their nation’s call to serve. U.S. Attorney Patrick A. Miles, Jr. and the U.S. Attorney’s Office for the Western District of Michigan were nominated for being highly supportive of the Reserve Service. Supportive supervisors are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units.”
U.S. Attorney Patrick A. Miles said, “Many of my relatives served in the U.S. Military so I place great value on hiring veterans and supporting Reserve Component members as they complete their military obligations throughout the year. The skills, training, and contributions to the U.S. Attorney’s Office of these outstanding citizens is critical to accomplish the mission of the U.S. Attorney’s Office and the Department of Justice.”
ESGR, a Department of Defense office, seeks to foster a culture in which all employers support and value the employment and military service of members of the National Guard and Reserve in the United States. ESGR facilitates and promotes a cooperative culture of employer support for National Guard and Reserve service by developing and advocating mutually beneficial initiatives, recognizing outstanding employer support, increasing awareness of applicable laws and policies, resolving potential conflicts between employers and their service members, and acting as the employers’ principal advocate within the Department of Defense. Paramount to ESGR's mission is encouraging employment of Guardsmen and Reservists who bring integrity, global perspective and proven leadership to the civilian workforce.
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