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7 February 2014
Jury Trial Cancelled as the Last of 39 Defendants Plead Guilty in Investigations of the Nuestra Familia Drug Trafficking OrganizationRead the Press Release
FRESNO, Calif. — The last five pending defendants in a series of huge cases targeting the Nuestra Familia organization pleaded guilty in U.S. District Court this week, U.S. Attorney Benjamin B. Wagner announced. Calixtro Israel Sanchez, aka Cali Killa, aka Cali, 26, of Hanford, pleaded guilty today to a drug trafficking offense. Jose Velez, aka Cisco, 31, of Delano; Felipe Ramirez, aka Casper, 33, of Visalia; Christopher Medrano, aka Bob, 32, of Hanford; and Florentino Acosta, of Mexico, all pleaded guilty earlier this week to drug trafficking offenses.
These five defendants are the last of 39 defendants to plead guilty to federal offenses in these coordinated cases. A jury trial that had been scheduled for March 11, 2014, has been vacated. All defendants were members or associates of the Nuestra Familia (NF). NF is a violent Hispanic prison gang based within the California prison system whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime throughout the Central Valley.
According to court documents, during 2009 and 2010, the NF trafficked in methamphetamine, distributing the drugs and collecting debts in Kings, Tulare, Kern, Stanislaus, Merced, Madera and Fresno Counties. The NF obtained large shipments of methamphetamine from Mexico and distributed it among NF regiments throughout California and elsewhere. Some of the profits of the trafficking funded NF members in prison in order to maintain the NF’s power structure within the prison system.
“Numerous federal, state and local law enforcement agencies in this region came together to take on one of the most dangerous gangs in California,” said U.S. Attorney Wagner. “That battle will continue, but the guilty pleas taken this week are a major step forward in protecting the communities of the Central Valley from the violent drug traffickers of the Nuestra Familia.”
“Organized prison gangs and other criminals who traffic drugs are responsible for increased violence in our communities,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “This investigation is a prime example of teamwork and superior collaboration among many law enforcement agencies with a successful investigative conclusion and prosecution.”
Twenty-six of the defendants who have pleaded guilty have already been sentenced to prison. Nine of them received sentences of between 10 and 16 years in prison, while the remaining 17 have received sentences of between four and 10 years in prison. Parole has been abolished in the federal system, and all defendants will be required to serve at least 85 percent of the prison time imposed.
This case is the product of an extensive series of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the DEA; Kings County Narcotic Task Force; the California Department of Justice; and the California Department of Corrections and Rehabilitation. Numerous local law enforcement agencies played key roles in the investigations, including the Police Departments of Hanford, Lemoore, Visalia, Los Banos, and Corcoran, the Kings County Sheriff’s Office, the California Highway Patrol, and the U.S. Marshals Service. Assistant United States Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, and Melanie L. Alsworth are prosecuting the cases.
Calixtro Sanchez is scheduled to be sentenced by Judge O’Neill on April 21, 2014. Jose Velez is scheduled to be sentenced by Judge O’Neill on April 28, 2014. Felipe Ramirez, Christopher Medrano, and Florentino Acosta are scheduled to be sentenced by Judge O’Neill on April 21, 2014. The defendants face a maximum statutory penalty of life in prison and a mandatory minimum of 10 years in prison and a $4 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Juicio Por Jurado Es Cancelado Pues El Ultimo De Los 39 Acusados Se Declara Culpable En Las Investigaciones De La Organizacion De Trafico De Drogas Nuestra FamiliaRead the Press Release
FRESNO, Calif. — Los últimos cinco acusados con juicio pendiente en una serie de casos importantísimos dirigidos a la organización Nuestra Familia se declararon culpables esta semana en el Tribunal Federal de Distrito de los EE.UU., anunció el procurador federal del distrito oriental de los EE.UU. Benjamín B. Wagner. Calixtro Israel Sanchez, alias Cali Killa, alias Cali, 26, de Hanford, se declaró culpable hoy de un delito de tràfico de drogas. Jose Velez, alias Cisco, 31, de Delano; Felipe Ramirez, alias Casper, 33, de Visalia; Christopher Medrano, alias Bob, 32, de Hanford y Florentino Acosta, de Mexico, todos se declararon culpables a principios de esta semana de delitos de tràfico de drogas.
Estos cinco acusados son los últimos entre 39 acusados que se han declarado culpables de delitos federales en estos casos coordinados. El juicio por jurado que estaba programado para el 11 de marzo de 2014 ha sido cancelado. Todos los acusados eran miembros o asociados de Nuestra Familia (NF). NF es una violenta ganga carcelaria hispana con base dentro del sistema de prisiones de California y cuyos miembros ejercen el control sobre los miembros de la ganga callejera Norteño que participan en el tràfico de drogas y crímenes violentos en toda la región de Central Valley.
De acuerdo con los documentos judiciales, durante el 2009 y 2010 la NF traficó metanfetamina por medio de la distribución de la droga y cobrando deudas en los condados de Kings, Tulare, Kern, Stanislaus, Merced, Madera y Fresno. La NF obtuvo grandes cargamentos de metanfetamina provenientes de México y los distribuyó entre los grupos de la NF en California y otros lugares. Algunas de las ganancias de este tràfico sirvieron de financiamiento para los miembros presos para poder mantener la estructura de poder dentro del sistema de prisiones.
“Muchas agencias federales, estatales y locales en esta región colaboraron para hacerle frente a una de las gangas màs peligrosas de California”, dijo Wagner, el procurador federal del distrito oriental de California. “Esa batalla continuarà, pero las declaraciones de culpabilidad tomadas esta semana son un paso importante para proteger a las comunidades del Central Valley de los violentos traficantes de la organización Nuestra Familia.”
“Las gangas carcelarias organizadas y otros criminales que trafican drogas son responsables por el aumento en la violencia en nuestras comunidades”, dijo Joseph M. Riehl, agente encargado especial de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos. “Esta investigación es un ejemplo excelente del trabajo en equipo y colaboración superior entre muchas agencias del orden público con una conclusión exitosa de investigación y enjuiciamientos.”
Veintiséis de los acusados que se declararon culpables ya han sido sentenciados a prisión. Nueve de ellos recibieron sentencias de entre 10 y 16 años en prisión, mientras que los 17 restantes han recibido sentencias de entre cuatro y 10 años en prisión. En el sistema federal se ha abolido la libertad condicional, y todos los acusados tendràn que servir por lo menos el 85 por ciento del tiempo de prisión que se les ha impuesto.
Este caso es producto de una serie extensa de investigaciones de la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos; el FBI, la DEA; el Grupo de Trabajo de Narcóticos del condado de Kings; el Departamento de Justicia de California y el Departamento de Corrección y Rehabilitación de California. Muchas agencias del orden público locales tuvieron una función importante en las investigaciones, incluyendo los Departamentos de Policía de Hanford, Lemoore, Visalia, Los Banos, y Corcoran, la oficina del Alguacil del condado de Kings, la Patrulla de Carreteras de California y el Servicio de Alguaciles Federales de los EE.UU. Las ayudantes del procurador federal del distrito oriental de California, Kimberly A. Sanchez, Kathleen A. Servatius y Melanie L. Alsworth estàn procesando los casos.
La sentencia de Calixtro Sanchez està programada ante el Juez O’Neill quien lo sentenciarà el 21 de abril de 2014. La sentencia de Jose Velez està programada ante el Juez O’Neill quien lo sentenciarà el 28 de abril de 2014. Las sentencias de Felipe Ramirez, Christopher Medrano y Florentino Acosta estàn programadas ante el Juez O’Neill quien los sentenciarà el 21 de abril de 2014. Los acusados se enfrentan a una pena mandada por estatuto de un màximo de prisión de por vida y un mínimo obligatorio de 10 años en prisión y una multa de $4 millones. Sin embargo, las sentencias realmente impuestas se determinaràn a discreción del tribunal después de considerar los factores de sentencia mandados por estatuto que apliquen y las Guías Federales de Sentencia, que toman en cuenta ciertas variables.
Honduran Man Sentenced to 27 Years in Prison for Sex Offenses Against Two Native American FemalesRead the Press Release
TUCSON, Ariz – On Feb. 7, 2014, Hernan Ramirez-Ortega, 39, of Honduras was sentenced by U.S. District Judge Cindy K. Jorgensonto 27 years in prison as the result of his guilty pleas to one count each of aggravated sexual abuse and abusive sexual contact. Ramirez-Ortega admitted sexually assaulting an 11-year-old Tohono O’odham girl in March of 2010 while he was living on the Tohono O’odham Nation, and sexually abusing another adult female who is a member of, and was living on, the Gila River Indian Reservation in August of 2010.
“The United States takes very seriously the victimization of Native American women. The nearly three year effort to bring Mr. Ramirez-Ortega to justice is a reflection of that resolute commitment,” said U.S. Attorney John S. Leonardo.
After Ramirez-Ortega completes his 27 year prison sentence, he will be immediately deported to Honduras. He will also be placed on 20 years of federal supervision, which includes a prohibition against his return to the United States.
The investigation in this case was conducted by the Tohono O’Odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-2307-TUC-CKJ; CR-12-1295-TUC-CKJ
RELEASE NUMBER: 2014-010_Ramirez-OrtegaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Hillsborough County Man Charged in Federal Court for Transportation and Receipt of Child PornographyRead the Press Release
Tampa, FL –United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Jonathan Newhall (28, Brandon) with transportation and receipt of child pornography. If convicted, Newhall faces a mandatory minimum penalty of 5 years, up to a maximum penalty of 20 years in federal prison on each count.
According to the indictment, between May 2013 and January 2014, Newhall transported and received child pornography over the Internet. On January 10, 2014, a federal search warrant was executed at Newhall’s residence. Numerous images and videos of child pornography were found in his e-mail account, on his iPhone, and on his computer.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation, Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Herndon Man Charged with Theft of Insurance FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that criminal charges have been filed in U.S. District Court in Williamsport against Derl Knarr of Herndon, Pennsylvania.
According to United States Attorney Peter J. Smith, Knarr, age 55, is charged in a one-count felony Information with stealing insurance funds while he worked for Allstate Financial Services. The thefts are alleged to have occurred between 2006 and 2012, and total over $630,000.
The investigation was conducted by the Federal Bureau of Investigation, State College Resident Office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine of over $250,000. 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.
Hartford Woman Sentenced to 20 Months in Prison for Role in Heroin Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NORMA TORRES, 56, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by three years of supervised release, for her role in a heroin trafficking ring.
According to court documents and statements made in court, this matter stems from “Operation Solid Sweep,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy, who is a member of the Los Solidos street gang. Rosa’s cousin, Angel Rosa, also known as “Mo Betta” and “Fab,” supervised the daily operations of the organization, which distributed heroin and other narcotics in the Zion Street area.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that TORRES assisted the conspiracy by allowing her apartment, located at 592 Zion Street, to be used as a “stash house,” storing five to 15 stacks of heroin at her residence every day. A stack of heroin consists of 100 dose bags, with each bag containing approximately .025 grams of heroin.
TORRES was arrested on April 11, 2013. On November 14, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute heroin.
Angel Rosa, aka “Little” and “Daddy,” and Angel Rosa, aka “Mo Betta” and “Fab,” have each pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hartford Crack Dealer Sentenced to Eight Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUSTIN POWELL, also known as “Jus,” 32, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, one of the main targets of the investigation was Dementrius Nave, a member of the AVE street gang with a lengthy criminal history. POWELL, who is not believed to be a member of the AVE, conspired with Nave and others to distribute crack cocaine and other narcotics in Hartford’s Northeast neighborhood. POWELL and Nave would pool money to acquire narcotics and would serve customers for each other.
POWELL has been detained since his arrest on February 10, 2012. On that date, investigators conducted a traffic stop of a vehicle in which POWELL was a passenger after they observed what appeared to be a narcotics exchange. POWELL was on state parole at the time and was wearing a monitoring bracelet. A subsequent search of POWELL’s residence revealed 63 bags of heroin, which were stamped “Super Bowl XLVI,” and a scale with white-powder residue that tested positive for the presence of cocaine.
On November 4, 2013, POWELL pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
POWELL’s criminal history includes multiple convictions for sale of narcotics, violation of probation, violation of protective order and assault.
Nave has pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harrisburg Man Sentenced to 108 Months in Federal Firearms CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl E. Murphy, Jr., a 33 year old resident of Harrisburg, PA, was sentenced yesterday by Senior U.S. District Court Judge Sylvia H. Rambo, following Murphy’s guilty plea to Possession of a Firearm by a Convicted Felon.
On August 29, 2013, Murphy pled guilty to possessing a loaded firearm in Harrisburg on March 7, 2012 and on October 13, 2012. Murphy has multiple prior felony convictions making him ineligible to possess a firearm.
According to United States Attorney Peter J. Smith, Judge Rambo sentenced Murphy to 108 months (9 years) incarceration to be followed by three years of supervised release and a fine of $500 for the firearms conviction.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
****Harrisburg Doctor Charged with Distribution of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that child pornography distribution charges were filed against David H. Scanlan III. Scanlan, 38, of Harrisburg, was charged with one count of distribution of child pornography in a criminal Information filed today in U.S. District Court in Harrisburg.
According to U.S. Attorney Peter Smith, Scanlan is charged with distributing child pornography over the internet between May and June 2011. The charges stem from an investigation by the Internet Crimes Against Children Task Force, Pennsylvania State Police, and U.S. Department of Homeland Security, Homeland Security Investigations. At the time of the offense, Scanlan was a physician specializing in pediatric oncology. He has surrendered his medical license.
Along with the Information, a plea agreement was filed in which Scanlan agrees to plead guilty to the child pornography distribution charge. The plea agreement must be approved by the court. Scanlan faces a minimum of five and a maximum of 20 years in prison and a $250,000 fine, Smith said.
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."
The case was investigation by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Greenwich Nail Salon Owner Sentenced for Currency Structuring and Immigration OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAE HEE YANG, formerly known as Jae Hee Yang Kim, 58, of Englewood, N.J., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three years of probation for currency structuring and immigration offenses. YANG was also ordered to forfeit $100,000 and perform 150 hours of community service.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, YANG is the sole owner of Tip Top Nails, Inc., a nail salon located in Old Greenwich, Conn. Between May and September 2009, YANG made 15 cash withdrawals in increments ranging from $4,000 to $8,000 and totaling $100,000, from a bank in New Jersey where she maintained a business checking account. The currency was generated from the operation of Tip Top Nails. At the time, YANG knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting her financial transactions in amounts less than $10,001, she intended to evade the transaction reporting requirements.
In addition, Tip Top Nails employed individuals who were unauthorized aliens not permitted to work in the U.S., paid the aliens in cash rather than by check as it did with legal employees, and transported the aliens between New York and Greenwich daily.
On August 28, 2012, YANG pleaded guilty to one count of structuring currency transactions to evade reporting requirements and one count of employing an unauthorized alien.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Government Contractor Pays $229,060 to Resolve Allegations of Improper ClaimsRead the Press Release
HONOLULU – J.M. Waller Associates, Inc. (“JMWA”), a corporation headquartered in Fairfax, Virginia, will pay $229,060 to settle certain civil claims under the federal False Claims Act in an agreement signed on February 5, 2014. The United States had alleged that JMWA submitted false or fraudulent claims for payment to the United States Air Force in connection with a professional services contract which required JMWA to provide design architect-engineering services and inspection services in connection with various construction projects located on Joint Base Pearl Harbor-Hickam in Honolulu.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the settlement agreement, the United States alleged that during the period from October 1, 2008, through November 30, 2010, JMWA submitted false or fraudulent claims for payment that included (1) JMWA’s alleged use of inappropriate labor categories and billing rates for certain tasks; (2) JMWA’s alleged billing for inspection services on days when no construction had been performed; and (3) JMWA’s billing of time charged to a particular task order for work that allegedly was outside the scope of that task order. While JMWA agreed to the settlement, it did not admit that the allegations were correct.
USA Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted in connection with all government contracts: She stated: “As the Air Force and our other military services enter into thousands of contracts for goods and services in support of our military efforts both at home and abroad, we will work tirelessly with our military law enforcement partners to protect the taxpayers’ money and combat procurement fraud.”
This civil investigation was initiated after the Air Force contracting office identified billing discrepancies while processing claims submitted by JMWA. The investigation, conducted by the Air Force Office of Special Investigations, included a review of thousands of pages of documents and numerous witness interviews during the course of the three-year investigation. The Defense Contract Audit Agency auditors and Air Force contracting officers shared their expertise and provided critical support to the investigation. The case was handled by Assistant U.S. Attorney Rachel Moriyama.
Geneva Man Convicted of Transporting and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that, following a jury trial, JOSEPH VINCENT JENKINS, (43, of Geneva, New York) was found guilty in U.S. District Court in Syracuse, N.Y. of the felony offenses of Transportation of Child Pornography, in violation of Title 18, United States Code, Section 2252A(a)(1) and 2256(8)(A), and Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B) and 2256(8)(A). JENKINS is facing a statutory mandatory minimum sentence of 5 years and a maximum sentence of twenty years imprisonment for the Transportation of Child Pornography offense, for the Possession of Child Pornography charge a maximum sentence of imprisonment of ten years; a term of supervised release of at least five years and up to lifetime supervision, a maximum fine of $250,000.00 and mandatory registration as a sex offender. JENKINS is scheduled to be sentenced on June 17, 2014, before Judge Glenn T. Suddaby, in Syracuse, New York.
“Consumers of child pornography re-victimize the children abused by these horrific crimes and create demand for more of this material”, said Nicholas DiNicola, assistant special agent in charge of HSI Albany. “HSI special agents will continue to work with our partners on both sides of the border to identify these criminals and ensure they are brought to justice.”
United States Attorney Richard S. Hartunian said “This case should serve as a warning to those who download child pornography over the internet with the belief that they will never be caught. We will continue to pursue these offenders and prosecute them in the courts of the United States.”
JENKINS was arrested on May 24, 2009, at the Port of Lansdowne in Ontario, Canada, when he crossed the United States-Canadian border with a laptop and two thumb drives containing images and videos of child pornography. JENKINS was charged in Canada and failed to appear at his trial. A bench warrant was issued for his arrest by the Ontario Court of Justice. Federal Agents with Homeland Security Investigations took the case after a referral from the Ontario Provincial Police as the defendant entered the Port of Lansdowne from Jefferson County, New York, and had transported and possessed child pornography in the Northern District of New York before entering Canada.
This prosecution resulted from an investigation conducted by Homeland Security Investigations, Canada Border Services Agency, and Ontario Provincial Police. The case was prosecuted by Assistant United States Attorneys Tamara B. Thomson and Gwendolyn Carroll. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Gallatin County Woman Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
Angela Seavers, 35, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a term of 37 months in prison for conspiring with others to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Seavers pled guilty on October 24, 2013, to conspiring with Dustin J. Lowe, 25, also of Ridgeway, and others, between February 2012 and March 2013 to illegally manufacture the drug.
Lowe also pled guilty to the conspiracy charge on December 13, 2013, and is currently scheduled for sentencing on April 3rd at 10:00 a.m. at the United States District Courthouse in Benton.
In addition to the 37 month term, Seavers was ordered to pay fines and special assessments totaling $200 and was placed on a 3 year term of supervised release to follow her incarceration. Under federal law, parole has been abolished, meaning that Seavers will be required to serve a minimum of 85% of her sentence.
Seavers has been held in the custody of the United States Marshal since her bond was revoked in September. She was again remanded to the custody of the Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Fort Worth Man Sentenced to Nearly 22 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Dwight L. Looney, 62, was sentenced today by U.S. District Judge John McBryde to 262 months in federal prison following his guilty plea in October 2013 to one count of production of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in May 2010, Looney knowingly used, persuaded and enticed “Jane Doe” to engage in sexually explicit conduct, and Looney used a digital camera to take a still image of that conduct. Jane Doe was younger than 16 years old at the time.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem prosecuted.
Former Usps Facilities Project Manager Pleads Guilty to Bribery, Fraud and Tax ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Tom Frost, Special Agent in Charge of the United States Postal Service Office of Inspector General, Major Fraud Investigations Division, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and John Collins, Acting Special Agent in Charge, Internal Revenue Service – Criminal Investigation, announced that former U.S. Postal Service employee ROBERT GIULIETTI, 57, of Cheshire, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to bribery, fraud and tax offenses.
According to court documents and statements made in court, GIULIETTI was a Facilities Project Manager for the U.S. Postal Service (USPS) at the USPS Northeast Facilities Office in Windsor, Conn. GIULIETTI’s duties included recommending and selecting facilities improvement contractors, reviewing and approving bids received from those contractors for USPS work, certifying the completion of work by contractors and approving payment authorizations. In pleading guilty, GIULIETTI admitted that he accepted approximately $89,000 from two contractors to direct inflated USPS facilities construction contracts to them.
Also, in approximately September 2009, GIULIETTI formed MGC LLC to do business with the USPS on projects on which he worked. MGC was owned in name by GIULIETTI’s wife, and its business address was his home address in Cheshire. Operating MGC from his USPS office in Windsor, GIULIETTI used his position to direct USPS contracts to MGC, to approve MGC’s work and to authorize payment to MGC for work. After GIULIETTI directed USPS contracts to MGC, he engaged other contractors to perform the actual work involved with the project. GIULIETTI generated almost a million dollars in profit by having MGC charge USPS more than MGC had to pay the contractors who performed the actual work.
Between November 2009 and November 2011, GIULIETTI directed more than 150 USPS facility projects to MGC, causing a loss to the USPS of approximately $982,064.68.
GIULIETTI also filed false federal income tax returns for the 2008 through 2011 tax years by fraudulently deducting payments from MGC to members of his family, and by not reporting the corrupt payments that he received.
“This defendant was a corrupt federal employee who perpetrated a multifaceted and brazen scheme that defrauded the Postal Service of nearly a million dollars,” stated U.S. Attorney Daly. “I commend the USPS Office of Inspector General, the Connecticut FBI and IRS-Criminal Investigation for their excellent work in this investigation, which included the seizure of significant assets of approximately $740,000 in cash and a house in Cheshire.”
“The Office of Inspector General will continue to pursue instances in which contractors and employees attempt to take advantage of the Postal Service and commit fraud,” stated Special Agent in Charge Frost. “This should serve notice to all contractors and employees that such conduct, as perpetrated by Mr. Giulietti in this case, will be fully investigated.”
GIULIETTI was arrested on December 13, 2012. Today, he pleaded guilty to one count of bribery of a public official, one count of wire fraud and one count of filing a false tax return.
Judge Underhill scheduled sentencing for May 2, 2014, at which time GIULIETTI faces a maximum term of imprisonment of 38 years.
GIULIETTI has agreed to pay restitution in the amount of $882,064.68, and back taxes penalties and interest in the amount of $291,026.82. The government is seeking the forfeiture of a residence GIULIETTI owns on South Pond Circle in Cheshire, and approximately $740,000 that has been seized from bank accounts.
U.S. Attorney Daly noted that the investigation is ongoing.
This case is being investigated by the U.S. Postal Service, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Mayor of Manalapan, N.J., Arrested for Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Indictment Alleges Former Mayor Defrauded Investment Client of $250,000 and Submitted Falsified Tax Returns in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, N.J., was arrested today on charges that he falsified his 2007 and 2008 tax returns in order to purchase a farm property in Manalapan and that he provided federal investigators and a federal grand jury with a fabricated document in 2013, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 36, was arrested as a result of an 11-count indictment charging him with wire fraud, illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. Lucas is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to the indictment unsealed today:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached “Victim 1,” who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Victim 1, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Victim 1 that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Victim 1 that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’s out-of-state relative, “Victim 2,” without Victim 2’s knowledge or permission.
On Feb. 22, 2010, Lucas wired $250,000 from Victim 1’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Victim 2’s name and Social Security number without Victim 2’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Victim 2 concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton and Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Special Prosecutions Division in Newark.The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-043
Defense counsel: Mario F. Gallucci Esq., Staten Island, N.Y.
Lucas Indictment
Former Jarrell Police Chief Pleads Guilty to Federal Bribery ChargeRead the Press Release
Former Jarrell (TX) Police Chief Andres Tomas Gutierrez, age 51, faces up to 20 years in federal prison after pleading guilty this morning to a wire fraud/theft of honest services charge announced United States Attorney Robert Pitman; Homeland Security Investigations (HSI) Special Agent In Charge Janice Ayala in San Antonio; Department of Homeland Security Office of Inspector General–Investigations Special Agent In Charge J. Kirk Beauchamp in Houston; and Federal Bureau of Investigation Acting Special Agent In Charge John Boles, San Antonio Division.
Appearing before United States Magistrate Judge Mark Lane in Austin this morning, Gutierrez admitted that from the Fall of 2011 to November 2013, he devised a scheme to defraud and deprive the citizens of Jarrell of their right to his honest services through bribery and concealment of information.
“Gutierrez solicited and accepted cash bribes—between $10,000 and $40,000—from several undocumented aliens in return for requesting and obtaining for the aliens limited immigration benefits that the U.S. government intended and designed for law enforcement purposes,” stated U.S. Attorney Robert Pitman. “Gutierrez falsely represented to the U.S. government that the undocumented aliens were assisting the Jarrell Police Department with ongoing investigations into narcotics trafficking and human trafficking,” Pitman added.
According to court records, individuals unconnected to the City of Jarrell and its Police Department introduced Gutierrez to undocumented aliens who had money to pay for immigration benefits. Gutierrez or the individuals who made the introductions, or both, then met with the aliens and explained the benefits they could receive if they paid certain amounts of money. They lied to the aliens, telling them that the Jarrell Police Department would receive the money and use it to pay for law enforcement operations. They also told the aliens that they would provide information or assistance to the Jarrell Police Department, for use in criminal investigations, in return for the immigration benefits. That was also a lie. Gutierrez never asked the aliens to provide assistance or information in connection with criminal investigations. What Gutierrez asked for and received from the aliens was money.
Furthermore, with the help of the individuals who introduced him to the aliens, Gutierrez simply sold the aliens the benefits. After an alien paid his or her money, Gutierrez would submit to the U.S. government an application for the alien to receive what is known as a Significant Public Benefit Parole, which is a type of immigration status that federal immigration laws make available to aliens who actually assist federal, state and local law enforcement agencies. The Paroles authorize an alien to reside and work in the United States for up to a year, and they can be renewed. The applications that Gutierrez submitted said the aliens were providing assistance with ongoing criminal investigations by the Jarrell Police Department, which was false. Also, the Defendant never disclosed to the United States government that he was selling the Paroles.
“Today’s guilty plea serves as a stern and sobering reminder that no one is above the law especially those who hold a position of public trust,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “HSI will continue to work with its law enforcement partners to root out public corruption wherever it exists.”
“Acts of corruption within law enforcement threaten our nation’s system of justice and undermine the honest and hardworking law enforcement personnel who consistently strive to keep that system the best in the world. The Department of Homeland Security will not tolerate corruption, and we will aggressively pursue those who choose to break the law,” stated DHS OIG SAC J. Kirk Beauchamp,
“Gutierrez abused his authority and repeatedly broke the law he was sworn to uphold. He tarnished the badge he wore and violated the trust of the people of Jarrell. This case demonstrates the FBI's commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status,” stated FBI Acting Special Agent In Charge John Boles.
Gutierrez is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with Homeland Security Investigations, Department of Homeland Security Office of Inspector General--Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Alan M. Buie and Gregg N. Sofer are prosecuting this case on behalf of the Government.
The government’s investigation into the bribery scheme is ongoing. Anyone who has pertinent information should call one of the following: the FBI at (512) 506-2136; HSI at (512) 801-1862; or, the DHS Office of Inspector General at (713) 212-4305.
Former Employee of Federal Contractor Pleads GuiltyTo Disclosing National Defense InformationRead the Press Release
WASHINGTON – Stephen Jin-Woo Kim, a former Lawrence Livermore National Laboratory (LLNL) employee, pleaded guilty today in the District of Columbia in connection with his unauthorized disclosure of national defense information.
At a hearing before U.S. District Judge Colleen Kollar-Kotelly, Kim pleaded guilty to one count of making an unauthorized disclosure of national defense information. The plea agreement, which is contingent upon the Court’s approval, calls for Kim to be sentenced to 13 months in prison, to be followed by a year of supervised release. If the plea is accepted, Kim is to be sentenced on April 2, 2014.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Kim, 46, worked as an LNLL employee on detail to the State Department’s Bureau of Verification, Compliance and Implementation (VCI) at the time of the disclosure. At the time, Kim worked as a Senior Advisor for Intelligence to the Assistant Secretary of State for VCI. According to court documents, on June 11, 2009, Kim knowingly and willfully disclosed TOP SECRET/SENSITIVE COMPARTMENTED INFORMATION (TS/SCI) national defense information to a reporter.
The information concerned the military capabilities and preparedness of North Korea and was contained in an intelligence report classified at the TS/SCI level that Kim accessed on a classified computer database. Within hours of the disclosure, the news organization published an article on the Internet that included the TS/SCI national defense information that Kim had disclosed.
“Today Stephen Kim admitted to violating his oath to protect our country by disclosing highly classified intelligence about North Korea’s military capabilities,” said U.S. Attorney Machen. “Stephen Kim admits that he wasn’t a whistleblower. He admits that his actions could put America at risk. Within hours of the dissemination of a top secret intelligence report about North Korea, he exposed its secrets, which were then broadcast to the world. As this prosecution demonstrates, we will not waver in our commitment to pursuing and holding accountable government officials who blatantly disregard their obligations to protect our nation’s most highly guarded secrets.”
“Mr. Kim was entrusted with a Top Secret security clearance, which included a responsibility to protect classified national defense information. Instead, he knowingly disclosed that material to someone not authorized to receive it,” said Assistant Director in Charge Parlave. “Today, as the result of the hard work of dedicated Special Agents, analysts and prosecutors, Mr. Kim has taken responsibility for his illegal action.”
Kim was indicted in August 2010. According to the court documents that were filed today, Kim admitted that he did not believe that he was exposing government waste, fraud, abuse, or any other kind of government malfeasance or misfeasance. Further, Kim admitted that he had reason to believe that his unauthorized disclosure could be used to the injury of the United States or to the advantage of a foreign nation. Finally, he acknowledged that he was never authorized, directly or indirectly, by the United States Government to communicate any national defense information to the media.
This investigation was conducted by the FBI’s Washington Field Office. The prosecution was handled by Assistant U.S. Attorneys G. Michael Harvey, Jonathan M. Malis, and Thomas A. Bednar of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Deborah A. Curtis and Julie A. Edelstein of the Counterespionage Section of the Justice Department’s National Security Division.
14-035Former City of Miami Police Officer Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department (MPD), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Malinsky Bazile, 28, of North Miami Beach, was sentenced today for his participation in a stolen identity tax refund scheme. Bazile was sentenced to 144 months in prison, to be followed by three years of supervised release and ordered to pay restitution in the amount of $140,000.
Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver's license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant's residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.
Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.
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 Chiropractor Convicted of Tax FraudRead the Press Release
Last night, following a trial that began on Jan. 29, 2014, a federal jury convicted David Moleski, formerly of Neptune, N.J., of 14 counts of mail fraud, one count of wire fraud, one count of corruptly endeavoring to obstruct and impede Internal Revenue laws and three counts of submitting false claims for tax refunds, the Justice Department and Internal Revenue Service (IRS) announced.
According to the evidence introduced at trial, Moleski, a former chiropractor, submitted three false tax returns in 2009 for the tax years 2006 through 2008 that collectively requested over $1.3 million in income tax refunds to which he was not entitled. Prior to filing these returns, Moleski failed to file tax returns from 1999 through 2005, even though he was legally required to file. When the IRS assessed taxes for those years and began collecting, Moleski obstructed the collection efforts and demanded that a third-party financial institution not comply with the IRS levy. In addition, Moleski attempted to pay credit card bills and other debts with fake financial instruments that claimed to draw on an account at the U.S. Treasury that did not actually exist. For instance, Moleski sent a fake financial instrument for $500,000 in alleged payment of a mortgage debt.
U.S. District Judge Freda L. Wolfson of the District of New Jersey scheduled sentencing for May 21, 2014. David Moleski faces more than 30 years in prison and fines of $250,000 per count of conviction.
Assistant Attorney General Kathryn Keneally of the department’s Tax Division commended the special agents of IRS - Criminal Investigation who investigated the case, as well as Trial Attorneys Tino M. Lisella and Yael Epstein for the Tax Division who prosecuted the case. Assistant Attorney General Keneally also thanked U.S. Attorney Paul J. Fishman for the District of New Jersey and his entire office for their assistance.
Fifteen People Arrested and Charged in Drug ConspiracyRead the Press Release
St. Louis, MO – Five local men and ten out-of-state associates have been arrested on charges involving a conspiracy to distribute large amounts of cocaine and methamphetamine in the St. Louis area and New Mexico, along with money laundering of the proceeds of the illegal activity.
According to the indictment, ALPHONSO EDUARDO GONZALES of Albuquerque, New Mexico, is charged with engaging in a Continuing Criminal Enterprise between 2009 and November 2013. The indictment alleges that Gonzales committed a series of violations of federal drug statutes by transporting large quantities of cocaine, methamphetamine and marijuana from Albuquerque to other cities, including St. Louis. Fourteen associates are charged on multiple drug conspiracy and money laundering charges as part of the Gonzales criminal enterprise.
Charged locally are Floyd Huntley, Jr. of St. Ann; Jonathan Arnez Spencer of Ferguson; Orlando James Allen of St. Louis; Dallas Wayne Lane of St. Louis; and David Michael Young of St. Louis. The defendants were arrested Thursday and are expected to appear in federal court on Monday, February 10.If convicted, defendant Alphonso Gonzales is subject to a minimum mandatory term of imprisonment of 20 years for the Continuing Criminal Enterprise. Other charges carry penalties ranging from10 years to life in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration – St. Louis Division, with the cooperation of the St. Ann Police Department.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Family Members Who Were Convicted in Mail Fraud Conspiracy Involving A Local Travel Agency Are SentencedRead the Press Release
DALLAS — A Dallas resident and his wife, along with her son, who were arrested by U.S. Postal Inspectors in January 2013 in Amityville, New York, on charges outlined in a federal indictment returned in the Northern District of Texas, have been convicted and sentenced for their respective roles in a mail fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roxana Flores, 43, also of Dallas, was sentenced today, by Chief U.S. District Judge Sidney A. Fitzwater, to 24 months in federal prison. Her husband, Jorge Armando Flores, 45, was sentenced in October 2013 to 46 months in federal prison. Her son, Julio C. Funes-Alas, 27, also of Dallas, was sentenced in December 2013 to 24 months in federal prison. Jorge and Roxana Flores were ordered to pay $2,056,162 in restitution, jointly and severally. Julio Fuenes-Alas was ordered to pay $511,865 in restitution.
Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to retail travel agencies, known as “subagents,” who would in turn sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
According to documents filed in the case, from at least March 2007 until approximately August 2011, the defendants conspired with each other, and others, to commit mail fraud. Defendants obtained subagents’ checks that had been mailed to Gateway and diverted them to bank accounts they had established for their joint use and financial benefit. These accounts were opened in names similar to Gateway and the defendants would write checks and make ATM withdrawals on these accounts for their personal benefit and use.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes prosecuted.
Family Members Who Were Convicted in Mail Fraud Conspiracy Involving A Local Travel Agency Are SentencedRead the Press Release
DALLAS — A Dallas resident and his wife, along with her son, who were arrested by U.S. Postal Inspectors in January 2013 in Amityville, New York, on charges outlined in a federal indictment returned in the Northern District of Texas, have been convicted and sentenced for their respective roles in a mail fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Roxana Flores, 43, also of Dallas, was sentenced today, by Chief U.S. District Judge Sidney A. Fitzwater, to 24 months in federal prison. Her husband, Jorge Armando Flores, 45, was sentenced in October 2013 to 46 months in federal prison. Her son, Julio C. Funes-Alas, 27, also of Dallas, was sentenced in December 2013 to 24 months in federal prison. Jorge and Roxana Flores were ordered to pay $2,056,162 in restitution, jointly and severally. Julio Fuenes-Alas was ordered to pay $511,865 in restitution.
Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to retail travel agencies, known as “subagents,” who would in turn sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.
According to documents filed in the case, from at least March 2007 until approximately August 2011, the defendants conspired with each other, and others, to commit mail fraud. Defendants obtained subagents’ checks that had been mailed to Gateway and diverted them to bank accounts they had established for their joint use and financial benefit. These accounts were opened in names similar to Gateway and the defendants would write checks and make ATM withdrawals on these accounts for their personal benefit and use.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes prosecuted.
Evansville Man Sentenced to Ten Years in Prison as Part of “operation Community Watch”Read the Press Release
More local results as federal law enforcement cracks down on child exploitation in Indiana
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Benjamin David Thomas, age 58, of Evansville, has been sentenced to 120 months in prison by U.S. District Judge Richard L. Young after admitting that he accessed and intended to view sexually-explicit material involving. This case was the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force and the Evansville Police Department as part of the U.S. Attorney’s ongoing Operation Community Watch initiative.
“The great tragedy is that every time these horrific images and videos are viewed, the child victims are exploited all over again,” Hogsett said. “That’s why we’ve teamed up with our federal and local partners with Operation Community Watch to impose a zero-tolerance policy on this type of criminal behavior.”
After his arrest, Thomas admitted to law enforcement that he viewed images depicting actual minors engaging in sexually explicit conduct using his home computer. Forensic analysis revealed that the computer had been used to browse various web sites that displayed images of minors engaged in sexually explicit conduct. The defendant is a registered sex offender with a 1997 multi-count conviction for child molestation against a female child.
According to Assistant U.S. Attorney, Todd Shellenbarger, who prosecuted the case for the government, Judge Young also imposed a lifetime term of federally-supervised release, to be served at the end of the defendant’s prison term. During the period of supervised release, the defendant must register as a sex offender, participate in a sex offender treatment program, and cannot have any unsupervised contact with minors. Thomas also consented to the forfeiture of computer equipment used in the offenses he committed.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana known as "Operation Community Watch," which allows prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 cases, a dramatic increase over prior years. These are all-time records for the Office.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Elderly California Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
PITTSBURGH - A California man has been sentenced in federal court to time served (2 ½ months imprisonment), 12 months home detention, and five years of supervised release, on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Dominick Spickle, 80, of Sacramento, Calif.
According to information presented to the court, Spickle was involved in a conspiracy to distribute more than 50 grams of methamphetamine.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Spickle.
Eighty-Four, Pa., Man Sentenced to 5 Years in Prison for Structuring Financial TransactionsRead the Press Release
PITTSBURGH – Daniel Young has been sentenced in federal court to 63 months imprisonment, to be followed by three years of supervised release on his conviction of conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today. Young was also ordered to forfeit $440,000 in money and equipment.
United States District Judge David S. Cercone imposed the sentence on Young, 42, of Eighty- Four, Pa.
According to information presented to the court, Daniel Young and his co-defendants, Kimberly Ostrander and Dennis Young, participated in a conspiracy in which they structured financial transactions with financial institutions and businesses to avoid the filing of Currency Transaction Reports. Currency Transactions Reports are required to be filed when financial institutions and businesses receive in excess of $10,000 in cash. Young, who is serving a 12- to 24-year sentence for drug trafficking, structured approximately $260,000 in cash from his drug trafficking proceeds to purchase his home, heavy equipment, and a vehicle. Young and his co-conspirators used a variety of bank accounts and individuals to structure the cash payments.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Daniel Young.
District Man Sentenced to 20 Years in Prison for Murder of Girlfriend’s Four-Year-Old Son-Defendant Beat Child While Babysitting-Read the Press Release
WASHINGTON – Peter I. Hendy, II, 33, of Washington, D.C., was sentenced today to 20 years in prison on a charge of second-degree murder in the death of his girlfriend’s four-year-old son, U.S. Attorney Ronald C. Machen Jr. announced.
Hendy pled guilty in September 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Hendy will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 5, 2013, Hendy was babysitting his girlfriend’s son, Kamari Zavon Taylor, at an apartment in Northeast Washington while she went to work. Sometime around noon, he called his girlfriend and reported that he had disciplined the boy. He told her that he had given Kamari a “body shot” and that the child’s legs were wobbly.
According to Hendy’s own admissions, he became upset when Kamari disobeyed his restriction about how far he could ride his scooter. According to Hendy, when he admonished the child, Kamari responded that he did not have to listen to him. Hendy admitted to punching Kamari in the mid-section four to five times, including one direct punch to the stomach.
Once back inside, according to Hendy, the child fell to the floor and could not stand. When offered food or water, Kamari declined the food but drank the water. Hendy carried the child to bed and then went outside to sell marijuana.
After an hour, he returned to the apartment. He noted that Kamari had a “blank look” on his face and appeared “spent.” Hendy then went outside again for another hour to sell marijuana. When he returned, Kamari was not breathing. Hendy called 911 at about 2:05 p.m. and reported that his girlfriend’s son was unconscious and not breathing. The 911 operator advised Hendy to give the child cardiopulmonary resuscitation, and he did.
When they arrived, members of the District of Columbia Fire and Emergency Medical Services Department found Kamari to be unconscious and unresponsive. The child was taken to Children’s National Medical Center and pronounced dead.
The District of Columbia Office of the Medical Examiner determined that Kamari died from multiple injuries to the torso. The forcefulness of the defendant’s punches caused the child’s liver to lacerate in three places. There was also bruising on his stomach, consistent with multiple fist prints. Finally, Kamari had a couple of broken ribs.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the D.C. Office of the Medical Examiner for its assistance. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocate Marcia Rinker, Intern Brian Edgerton, and Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
14-036Disbarred Somerset Attorney Charged with FraudRead the Press Release
BOSTON – A disbarred Somerset attorney was arrested this morning on fraud charges arising out of his promotion of a variety of investment opportunities.
John Silvia, 64, was charged in a complaint with mail and wire fraud. Silva, purportedly the “Managing Member” of Richardson Consulting, LLC, was charged for his promotion of various investments, including investments in real estate and a “performance bond.” According to the complaint, Silvia represented that the investments were “risk-free” and promised to return the principal, along with substantial interest, within approximately 90 days. Silvia did not invest the funds and did not make the promised payments. Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003.
The statutory maximum penalties for the mail and wire fraud charges are 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain to the defendant or loss to the victim.
The Massachusetts Securities Division, which filed an administrative complaint today charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Concord Man Pleads Guilty to Possession of Child PornographyRead the Press Release
OAKLAND – Scott Alan Seidlitz pleaded guilty in federal court in Oakland today to possessing child pornography, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Seidlitz admitted that starting in 2010, he copied child pornography images from another person’s email account over the Internet using his laptop computer and stored them on his external hard drive. Seidlitz admitted to possessing more than 4,000 images of child pornography, including images depicting bondage and bestiality.
Seidlitz, 29, of Concord, was arrested on August 30, 2013, by local law enforcement on separate charges. Seidlitz was charged by federal complaint on September 1, 2013. He made his initial appearance in federal custody on September 4, 2013, and has since remained in federal custody. Seidlitz was indicted on September 12, 2013.
Seidlitz’s sentencing hearing is scheduled for April 29, 2014, before the Honorable Jeffrey S. White, United States District Court Judge in Oakland. The maximum statutory penalty for possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2), is a maximum term of 10 years in prison, a fine of $250,000, a minimum of 5 years of supervised release and a maximum of a life term of supervised release. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI and the Concord Police Department.
(Seidlitz indictment )
Chattanooga Resident Pleads Guilty to Preparing Fraudulent Tax ReturnRead the Press Release
CHATTANOGA, Tenn. – On Feb. 6, 2014, Dedric Landrum, 40, of Chattanooga, Tenn., was sentenced by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 18 months in prison, for preparing a false and fraudulent income tax return. Upon his release from prison, he will be subject to one year of supervised release. He was also ordered to pay $148,678 in restitution to the Internal Revenue Service (IRS).
Landrum pleaded guilty to a one count information charging him with these offenses. According to supporting documentation for the plea agreement, Landrum fraudulently obtained tax refunds by fraudulently inflating deductions and credits on tax returns prepared by him.
The investigation leading to the charges, guilty plea and sentencing was conducted by the IRS. Assistant U.S. Attorneys John P. MacCoon and James Brooks represented the United States.
Car Repair Shop Owner and His Son Admit to Drug Trafficking and Armed Commercial BurglariesRead the Press Release
Sold Drugs from Paschall Auto Body Shop in Baltimore, and Robbed Businesses and Homes in Maryland, Virginia, West Virginia and Pennsylvania
Baltimore, Maryland –Chad Paschall, age 28, of Baltimore, pleaded guilty today to conspiring to distribute oxycodone and two counts of conspiring to commit bank burglary. His father, David Paschall, age 54, of Catonsville, Maryland, pleaded guilty yesterday to the drug and burglary conspiracies.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Howard County Police Chief William McMahon; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Kevin Davis; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“This case dismantled an organization responsible for a wide range of criminal activity,” said U.S. Attorney Rod J. Rosenstein.
David Paschall operated Paschall’s Auto Body Shop, formerly located at 801 Desoto Road in Baltimore. According to their plea agreements, it was widely known that the car shop served as a marketplace for an assortment of illegal narcotics, including oxycodone, cocaine and heroin. David Paschall used more than five drug “brokers” to buy drugs almost every day at his shop which he would then either consume or sell for profit. As a leader in the drug conspiracy, he supervised others in the distribution of the drugs. In order to protect the drug conspiracy, David Paschall maintained many guns at the shop and sometimes carried a gun. It was reasonably foreseeable to David Paschall that this conspiracy distributed more than 59.70 grams of oxycodone, 200 grams of cocaine, and 80 grams of heroin from no later than 2010 to July 2013.
Chad Paschall was at the shop most every day, knew that the shop operated as a hub for drug sales and helped his father in brokering drug sales.
The defendants also admitted to committing commercial burglaries in Maryland, Virginia, West Virginia, and Pennsylvania. The defendants conspired to steal cash, money orders, stamps, silver bars, jewelry, cigarettes, lottery tickets, prescription drugs, food, beverages, safes, laptop computers, cell phones, electronics, vehicles and other valuable items from gas stations, convenience stores, banks, credit unions and other commercial establishments. The conspirators often stole or attempted to steal cash from ATMs.
The conspirators usually cut power lines, telephone lines, cables and other wires before entering a business. They used vise grips, sledgehammers, chopsaws, grinders and blow torches to enter the business, and then often waited – for several minutes or sometimes up to several hours – before ransacking the business of its valuable items. David Paschall admitted that he committed, or attempted to commit, dozens of commercial burglaries with one or more coconspirators. For example, David and Chad Paschall used a forklift at a salvage or junk yard located on Hawkins Point Road in Baltimore to pile several junk cars next to a rear upstairs balcony. They climbed up the cars and broke into the office off the balcony. They used the forklift to transport a safe from the office to the ground, where it was broken open and approximately $48,000 was stolen.
At their sentencing David and Chad Paschall face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy, and five years in prison for the bank larceny conspiracy.
David Paschall has agreed to forfeit $500,000, his ownership interest in Paschall’s Auto Body Shop and his residence, three firearms and his vehicle. Chad Paschall has agreed to forfeit $250,000, his interest in his residence, four firearms and ammunition.
To date, a total of 10 defendants charged in the drug and burglary conspiracies have pleaded guilty to their participation in the criminal activities. Charges remain pending against six other defendants.
United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, Baltimore County Police Department; Anne Arundel County Department, ATF, Department of Health and Human Services - Office of Inspector General; Coast Guard Investigative Service and Baltimore Police Department for their work in the investigation. Mr. Rosenstein also praised the many local and state agencies in Virginia, West Virginia and Pennsylvania for their assistance in the investigation.
Mr. Rosenstein thanked Assistant United States Attorneys David I. Sharfstein and Andrea L. Smith, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Canadian Man Sentenced for Smuggling More Than $5 Million Worth of “molly” into the United StatesRead the Press Release
Received Fourteen Years in Prison
ALBANY, NEW YORK – JOEL CUNNINGHAM, age 30, of Ottawa, Canada, was sentenced today to fourteen years in prison by United States District Court Judge Glenn T. Suddaby, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent-in-Charge Nick DiNicola. The sentence follows CUNNINGHAM’s September 20, 2013 guilty plea to one count of possession with intent to distribute a controlled substance.
On April 9, 2013, CUNNINGHAM was observed entering the United States from Canada through an unmanned border crossing in the Akwesasne Mohawk Reservation. Members of the Border Enforcement Security Task Force in Massena, New York followed CUNNINGHAM and later stopped him. Law enforcement officers searched the sport utility vehicle driven by CUNNINGHAM and found 58,183 grams of 3,4-Methylenedioxymethamphetamine Hydrochloride (commonly known as “Molly”), as well as over $140K in U.S. currency, in hidden compartments and duffel bags. The street value of the substance is over $5 million. CUNNINGHAM helped load the sport utility vehicle earlier that day.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
California Man Sentenced to Prison for Drug ConspiracyRead the Press Release
Jackson, Miss - Salvador Gonzales Elias, 46, of Los Angeles, California, was sentenced in U.S. District Court today to 115 months in federal prison for his role in a conspiracy to possess with intent to distribute methamphetamine. Elias was charged following an extensive investigation, dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi. He entered a guilty plea before U.S. District Judge Henry T. Wingate on August 29, 2013.
"The U.S. Attorney’s Office is committed to the elimination of criminal enterprises that peddle drugs in our communities,” said U.S. Attorney Gregory K. Davis. “The success of this investigation and prosecution makes clear that law enforcement agencies are united and determined to dismantle the networks that try to profit by selling methamphetamine, an extremely addictive drug that ruins lives.”
“Methamphetamine is a cancer on countless communities that drug traffickers exploit without any regard for the violence and damage they leave in their wake,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “This case highlights the added value that a solid partnership between state and federal law enforcement brings to bear in combating multi-jurisdictional criminal organizations. Working with the Miss. Bureau of Narcotics, ATF, and the other agencies involved with this investigation to identify and bring criminals like these to justice remains among HSI's top priorities.” Parmer oversees a five-state area of responsibility including Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
“Operation Brusha” was conducted by Homeland Security Investigations, Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco Firearms and Explosives. Assisting agencies included the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Butler Arson Homicide Charge Dismissed Without PrejudiceRead the Press Release
ALBANY, NEW YORK – The federal criminal complaint charging Robert A. Butler with arson resulting in personal injury and death, in violation of Title 18, United States Code, Section 844(i), was dismissed today without prejudice, announced United States Attorney Richard S. Hartunian.
The complaint was filed on June 4, 2013, based on an affidavit alleging that on or about May 2, 2013, Butler used gasoline to start a fire at 438 Hulett Street, Schenectady, New York, resulting in the deaths of four people and the destruction of the building and its contents. The dismissal of the charge results in the release of Butler from federal custody.
The basis for the dismissal was set forth in the filed order as follows:
This case involves unusual and complex facts, with the complaint based upon allegations (in the affidavit in support of the complaint) that the defendant used gasoline to start a fire at a residential rental property in Schenectady, New York that resulted in the destruction of the building and its contents and the deaths of a father and three young children and very serious burn injuries for another child. The gravity of the crime and the potential punishments, the unusual and complex facts, including information regarding the involvement of others, and the circumstances regarding eyewitnesses necessitate further investigation.
U.S. Attorney Hartunian said, “We are completely committed to continuing this investigation until justice is done. We are grateful for the dedication of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Schenectady Police Department, and the Schenectady Fire Department to this case, and for the assistance of other federal agencies and police departments in the region. The victims of this horrific crime deserve and will continue to get our best efforts to secure justice.”
Questions may be addressed to First Assistant U.S. Attorney Grant C. Jaquith at 518-431-0247.
Burns, Wyoming Man Convicted for Felon in Possession of A FirearmRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that 47 year old Burns, Wyoming resident James Keith Beierle has been convicted in federal court. On February 6, 2014, a jury found Beierle guilty of being a felon in possession of a firearm after a three-day jury trial in the U.S. District Court in Cheyenne. Beierle is scheduled to be sentenced by Chief Federal District Court Judge Freudenthal on April 17, 2014.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Broward County Resident Sentenced in $2 Million Stolen Identity Tax Refund Fraud SchemeRead 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 Lee Ervin Dale, 31, of Fort Lauderdale, was sentenced today for his participation in a tax refund scheme using stolen identities. United States District Judge Kathleen M. Williams sentenced Dale to 120 months in prison, followed by three years of supervised release, and ordered restitution in the amount of $275,740. A jury previously convicted Dale of two counts of converting government funds to his own use, six counts of making and presenting false claims to the IRS, and two counts of aggravated identity theft.
According to testimony and evidence presented at trial and sentencing, Dale filed approximately 291 handwritten tax returns claiming more than $2 million in refunds between 2006 and 2009 using stolen identities and listing his P.O. Box address. Although the IRS was able to prevent refund checks from being issued on most of these claims, approximately $275,000 in refund checks were mailed to his P.O. Box. Several of these checks were deposited directly into bank accounts bearing both Dale’s name and the identity theft victim’s name. Other checks were cashed at a check cashing store in Oakland Park, Florida, in exchange for cash and money orders that Dale then deposited into his own accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Jared M. Strauss and now-former Assistant U.S. Attorney Laurie E. Rucoba.
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.
Brothers Sentenced to Life in Prison for Murder in Aid of Racketeering Involving False Identification Document RingRead the Press Release
CHICAGO — Two brothers were sentenced today to life in federal prison for murder in aid of racketeering and related crimes they were convicted of after a seven-week trial in U.S. District Court last year. JULIO and MANUEL LEIJA-SANCHEZ, who operated a lucrative, black-market counterfeit identification document business in Chicago’s Little Village community for at least 15 years, each received the mandatory life sentence from U.S. District Judge Rebecca Pallmeyer. There is no federal parole.
The Leija-Sanchez brothers were convicted together with GERARDO SALAZARRODRIGUEZ, whom they directed to commit an execution-style murder in Mexico of a fledgling competitor. The murder plot was intended to prevent two former employees from starting a competing business and to maintain control over employees of their enterprise, which generated annual revenues of at least $3 million. Salazar-Rodriguez also faces life imprisonment and is scheduled to be sentenced on Feb. 14.
“Julio and Manuel Leija-Sanchez were the kingpins of a decades-long, multimilliondollar international criminal organization and they killed to protect their own pocketbook and the empire they built,” Assistant U.S. Attorney Michelle Nasser said at today’s sentencing hearing.
Evidence at trial showed that Salazar-Rodriguez, at the direction of Julio and Manuel Leija-Sanchez, fired more than a dozen shots in killing one of the victims in his taxi cab near Mexico City in April 2007, and the jury heard transcripts of intercepted telephone conversations in which he boasted to the brothers after the murder. He and Manuel Leija-Sanchez also hunted for a second victim whom they believed was in Mexico at the time but who was actually in federal custody in Chicago. That intended victim, who pleaded guilty to fraudulent identification document charges, cooperated and testified as a government witness at trial.
The case was part of Operation Paper Tiger, an investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents, along with other federal, state, and local law enforcement agencies. In April 2007, the investigation resulted in charges against 24 defendants and the dismantling of the Leija-Sanchez fraudulent document organization that operated in and around the Little Village Discount Mall at West 26th and Albany in Chicago. All but three defendants who remain fugitives were convicted.
Manuel Leija-Sanchez, 46, and Salazar-Rodriguez, 41, were arrested later in Mexico and were extradited to the United States in 2010 and 2011 to stand trial, together with Julio Leija- Sanchez, 38, who was arrested in Chicago in 2007. A third Leija-Sanchez brother, Pedro, 41, was also arrested in Mexico and extradited to the U.S in 2011. He pleaded guilty in 2012 to racketeering conspiracy for operating the fraudulent ID ring with his brothers and was sentenced last March to 20 years in prison.
Evidence at trial showed that the three Leija-Sanchez brothers operated the bustling illegal business between 1993 and 2007. The organization was supervised by an overall leader living in Chicago, and the leadership position rotated among the Leija-Sanchez brothers. The organization sold as many as 100 sets of fraudulent identification documents each day, charging customers approximately $200 per “set,” consisting of a Social Security card and either an immigration “green card” or a state driver’s license.
Manuel and Julio Leija-Sanchez and Salazar-Rodriguez conspired to murder Guillermo Jimenez-Flores, also known as “Montes,” a former member of their organization who became a rival and was shot to death by Salazar-Rodriguez in Mexico. The three trial defendants were also convicted of conspiracy to kill a second victim, Bruno Freddy Ramirez-Camela, who they believed was in Mexico but was actually incarcerated in Chicago.
The sentences were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago. Also participating in the investigation were the Chicago Police Department and the Galveston, Tex., Police Department, and the Chicago offices of the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Government of Mexico and Mexican law enforcement partners also provided significant assistance.
The government is represented by Assistant U.S. Attorneys Michelle Nasser, Andrew Porter and William Ridgway.
Attorney General Will Not Seek the Death Penalty Against Pedersen or GrigsbyRead the Press Release
PORTLAND, Ore. - U. S. Attorney Amanda Marshall announced today that Attorney General Eric Holder has decided not to seek the death penalty against defendants David Joseph “Joey” Pedersen or Holly Ann Grigsby for the 2011 murders of David Jones “Red” Pedersen of Everett, Washington, Leslie Mae “Dee Dee” Pedersen of Everett, Washington, Cody Faye Myers of Lafayette, Oregon, and Reginald Alan Clark of Eureka, California.
U.S. Attorney Marshall stated, “While I understand the public interest in this matter, we have rules that limit the release of information and the scope of public statements. The process by which this decision was made is confidential, and I cannot comment further about it except to say that it entailed a careful and detailed consideration of all the circumstances of this case.”
A federal grand jury indicted the pair in August 2012 on racketeering and other charges, including five potential capital offenses. Trial is set for July 7, 2014 before U. S. District Judge Ancer L. Haggerty. An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The official notice is attached Here.
Anne Arundel County Drug Dealer Sentenced to over 17 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Donwand Cuppatino Harmon, age 37, of Annapolis, Maryland, today to 210 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Hollander also ordered Harmon to forfeit $27,895 in cash, a 2010 Porsche Panamera, a 2008 Mercedes Benz CL550, and jewelry, including a Breitling wrist watch with a diamond face and band.
The sentence was 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; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Kevin Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; U.S. Marshal Johnny Hughes; and Anne Arundel County State’s Attorney Anne Colt Leitess.“Heroin is a powerful drug that is affecting communities, destroying lives and tearing apart families,” said Anne Arundel County Police Chief Kevin Davis. “I am committed to collaborating with our law enforcement partners on a local, state and federal level in an effort to rid our neighborhoods of this drug and to take distributors off the streets and this case is an example of that.”
According to Harmon’s plea agreement, from at least August 2012 until August 2013, Donwand Harmon conspired with Damian Brown and others to distribute heroin in the Baltimore and Anne Arundel County, Maryland areas.
As part of the conspiracy, Harmon obtained and distributed bulk quantities of heroin to a number of individuals in the area. On five occasions from August 30, 2012 through October 18, 2012, investigators purchased a total of 49.8 grams of heroin directly from Harmon. On November 17, 2012, a confidential source contacted Harmon about another purchase of heroin. Harmon was not available but agreed to send an associate to complete the sale. At that meeting, the confidential source purchased approximately 10.2 grams of heroin from Damian Brown. On three occasions from December 12, 2012 through April 9, 2013, Harmon arranged for the confidential source to purchase an additional 42.1 grams of heroin directly from Damian Brown.
On June 13, 2013, agents tracked Mr. Harmon to a motel in Baltimore. There, agents saw a female previously associated with Mr. Harmon leaving the hotel. She drove slowly around the parking lot, looking at all the cars parked there, then pulled into a parking spot. Agents saw Harmon leaving the motel and ran after him, but Harmon got away. The woman got out of her car in a crouched position, and Agents saw her remove a black duffel bag from the rear driver’s side of the car and place the bag under the car next to hers. Agents retrieved the bag, which contained a black nylon holster, a box of ammunition, a black loaded magazine for a Glock handgun, and several digital scales that appeared to have residue on them.
Agents obtained a search warrant for Harmon’s room at the motel and recovered: a black men’s wallet with a Maryland identification for Donwand Harmon; a set of car keys for a Porsche driven by Harmon; $16,000 in cash; and three large bags containing approximately 1.7 kilograms of heroin.
On August 23, 2013, Deputy U.S. Marshals tracked Mr. Harmon to a residence in Suitland, Maryland, an arrested him as he left the home. A search incident to arrest revealed keys to the residence, $845 in cash, and a Washington, D.C. driver’s license in the name of Paul Simmons with Mr. Harmon’s picture. Members of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives then obtained and executed a search warrant at the residence. From the first floor of the home law enforcement recovered, among other things: $10,050 in cash, wrapped in foil, and approximately 205.5 grams of crack cocaine found in the freezer; one 20-ton shop press with kilogram and half-kilogram sized molds with cocaine and heroin residue, approximately 516 grams of heroin in the mold on the press, and two bags containing approximately 625.1 grams of heroin that was found in the dining room closet. On the second floor law enforcement recovered a loaded .45 caliber handgun, a .loaded .357 caliber handgun, and a loaded 5.56 caliber firearm, as well as additional ammunition for all three guns; over six kilograms of cocaine; seven cell phones; $1,000 in cash; men’s jewelry and watches; and tally sheets for suspected narcotics transactions.
Harmon admitted that during the conspiracy he was responsible for distributing at least 1 kilogram of heroin.
Damian Brown pleaded guilty to the same charge on February 3, 2014, and is scheduled to be sentenced on June 17, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department, U.S. Marshals Service and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Scott Lemmon who are prosecuting this Organized Crime Drug Enforcement Task Force case.
6 February 2014
Watertown Man Sentenced for Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Watertown, South Dakota, man charged with Unlawful Taking of Migratory Birds and Lacey Act Violations pled guilty and was sentenced on February 4, 2014, by U.S. Magistrate Judge William D. Gerdes.
Roger Meyer, age 53, was sentenced to 2 years of unsupervised probation, no hunting or guiding for 2 years, $550 in restitution to the U.S. Fish and Wildlife Services, a $3,000 fine, and $35 to the Federal Crime Victims Fund.
The conviction stems from incidents that took place in 2008 and 2009 when Meyer, doing business as Meyer Guide Service, guided paying clients on duck hunts on two separate occasions. During these duck hunts, Meyer allowed and encouraged the hunters to exceed their daily limit of ducks. Following the hunts, the ducks were not tagged properly and transported in violation of federal law.
The investigation was conducted by the U.S. Fish and Wildlife Services. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Warren County Man Pleads Guilty to Receiving and Possessing Child PornograhpyRead the Press Release
Defendant Used his Computer and the Internet to Download and Save Approximately 600 Child Pornography Files
ALBANY, NEW YORK — GARY MINER, age 45, of Glens Falls, New York, pled guilty today in Albany before United States District Court Judge Mae A. D’Agostino to one count of receiving child pornography and one count of possessing child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. On the child pornography receipt count, MINER faces at least five years of imprisonment and up to a maximum sentence of twenty years of imprisonment. On the child pornography possession count, MINER faces a maximum sentence of ten years of imprisonment. MINER was detained pending his sentencing.
During the plea hearing, MINER admitted that between January 2010 and November 29, 2011, he accessed the Internet and downloaded and possessed, from a website and other individuals who were distributing child pornography, approximately 600 files that contained child pornography.
Sentencing is scheduled for June 9, 2014, at 11:00 a.m. in Albany, New York. This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
U.S. Attorney’s Office Distributes $263,500 in Forfeited Proceeds of Interstate Marijuana Trafficking to El Dorado County Sheriff’s Department and District Attorney’s OfficeRead the Press Release
SACRAMENTO, Calif. — The U.S. Attorney’s Office has distributed a portion of forfeited narcotics proceeds to the El Dorado County Sheriff’s Department and District Attorney’s Office, United States Attorney Benjamin B. Wagner announced. The final payment was made in January 2014. In total, the Sheriff’s Department received $230,600, and the District Attorney’s Office received $32,900. Both agencies assisted in the investigation of an interstate marijuana-trafficking ring that resulted in a federal prosecution.
Cash, bank accounts, and a house on 10 acres of land in Placerville were forfeited from two El Dorado County defendants. Robert Edward Mulready, 50, of Placerville, and Duane Patrick Petersen, 40, of Shingle Springs, were charged in U.S. District Court with conspiring to cultivate marijuana and distribute it out-of-state. Last year, Mulready was sentenced to three and a half years in prison, and Petersen was sentenced to 22 months in prison.
These funds were made available through the U.S. DOJ equitable sharing program. The program is designed to enhance cooperation among federal, state, and local law enforcement agencies through the sharing of proceeds resulting from federal forfeitures. State and local law enforcement agencies generally receive equitable sharing revenues by participating directly with DOJ agencies in joint investigations leading to the seizure or forfeiture of property. The amount shared with state and local law enforcement agencies is based on the degree of the agencies' direct participation in the case.
U.S. Attorney Wagner stated: “I particularly want to thank the El Dorado County Sheriff’s Department and the El Dorado County District Attorney’s Office for their outstanding cooperation and investigative work. Asset forfeiture is a powerful tool that deprives criminals of the proceeds of their illegal activities; the equitable sharing program equips law enforcement to better protect their communities.”
Sheriff D’Agostini said, “We are grateful for the investigation and prosecution efforts by the United States Attorney Benjamin B. Wagner and his staff. The arrest, prosecution and asset forfeiture of proceeds from this criminal operation should send a strong message that federal and local law enforcement will not allow such operations to continue.”
El Dorado County District Attorney Vern Pierson commented: “This case is a prime example of county, state, and federal law enforcement agencies working together to make El Dorado County a safer place to live.”
This case was the product of an investigation by the Drug Enforcement Administration and the Western El Dorado County Narcotics Enforcement Team (WENET). Assistant U.S. Attorney Todd A. Pickles prosecuted the case, and Assistant U.S. Attorney Kevin C. Khasigian handled the forfeiture.
Two Women Ordered to Prison in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have been handed prison sentences for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of IRS-CI’s Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States. They entered pleas of guilty May 10, 2013.
“Investigating identity theft and refund fraud is a priority for IRS-CI,” said Cruz. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, handed Walton and Rogers each a sentence of 24 months in federal prison. Both were further ordered to pay $60,000 in restitution to the IRS and to serve a term of three years of supervised release following completion of their prison terms. Judge Rosenthal previously sentenced co-defendant Antoinne Quinay Jackson to six months in federal custody. He has completed that term of imprisonment and is presently serving a three-year-term of supervised release.
Walton and Rogers acknowledged that between Feb. 15, 2013, and Feb. 27, 2013, they met with tax return preparer, Marlin Beckett, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.
The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.
Upon their arrests on March 8, 2013, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.
Both women will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The tax return preparer, Marlin Beckett, was also sentenced today by Judge Nancy F. Atlas in a separate case. Judge Atlas sentenced Beckett to 36 months in prison and ordered him to make full restitution for preparing false tax returns that generated $196,923 in excessive client refunds. Beckett has been in custody since violating his bond conditions by continuing to prepare client tax returns after his guilty plea on April 10, 2013.
The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Two Women Ordered to Prison in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have been handed prison sentences for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of IRS-CI’s Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States. They entered pleas of guilty May 10, 2013.
“Investigating identity theft and refund fraud is a priority for IRS-CI,” said Cruz. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, handed Walton and Rogers each a sentence of 24 months in federal prison. Both were further ordered to pay $60,000 in restitution to the IRS and to serve a term of three years of supervised release following completion of their prison terms. Judge Rosenthal previously sentenced co-defendant Antoinne Quinay Jackson to six months in federal custody. He has completed that term of imprisonment and is presently serving a three-year-term of supervised release.
Walton and Rogers acknowledged that between Feb. 15, 2013, and Feb. 27, 2013, they met with tax return preparer, Marlin Beckett, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.
The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.
Upon their arrests on March 8, 2013, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.
Both women will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The tax return preparer, Marlin Beckett, was also sentenced today by Judge Nancy F. Atlas in a separate case. Judge Atlas sentenced Beckett to 36 months in prison and ordered him to make full restitution for preparing false tax returns that generated $196,923 in excessive client refunds. Beckett has been in custody since violating his bond conditions by continuing to prepare client tax returns after his guilty plea on April 10, 2013.
The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Two Sentenced to Prison for Student Loan Fraud SchemesRead the Press Release
SACRAMENTO, Calif. — United States District Judge Troy L. Nunley sentenced Brent W. Wilder, 44, of Antelope, today to two years and nine months in prison, and on Tuesday, U.S. District Judge Lawrence K. Karlton sentenced Michelle Wright, 32, of Stockton, to three years in prison and one year of home confinement, United States Attorney Benjamin B. Wagner announced. The defendants were charged in separate cases with conspiracy to commit student loan fraud. Wright was also convicted of aggravated identity theft.
In the first case, according to court documents, between February 2009 and April 2012, Wilder and Michael J. Huddleston, 44, of Sacramento, obtained Federal Student Assistant (FSA) funds by recruiting more than 50 straw students to apply for aid and caused the fraudulent disbursement of more than $200,000. The straw students applied for FSA at American River College, Sacramento City College and Consumnes River College. These applications contained false statements regarding the eligibility of the applicant. For the most part, all of the students signed up by Wilder and Huddleston withdrew from classes shortly after receiving the funds or received failing grades. While some of those students may have used the funds for legitimate educational expenses, Wilder and Huddleston demanded approximately half of those funds for their own purposes. Wilder has been ordered to pay $19,411 in restitution.
In the second case, Michelle Wright was part of a similar conspiracy to commit student loan fraud. She and her co-defendants recruited straw students to sign up for college classes for the purpose of receiving financial aid funds. Some of the individuals agreed to have their identities used to commit fraud; other individuals had their personal information used to commit fraud without their consent.
“I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Michelle Wright and Brent Wilder accountable for their criminal actions and for shutting down two more student aid fraud rings in California,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “As these two fraud ringleaders and their co-conspirators who have been sentenced for participating in these fraud rings know, stealing student aid is a crime. Tracking down those who prey on this program and the innocent students who rely on it to make their dreams of a higher education a reality is a priority of our office.”
Huddleston is scheduled to be sentenced by United States District Judge Troy Nunley on March 6, 2013. He remains out of custody on a $100,000 bond.
Five others have been convicted and sentenced in Wright’s case. Janeigh Mendoza, 32, of Tracy, was sentenced to four years and three months in prison. The others, including Michelle Wright’s husband Kenneth Wright, were sentenced to terms of probation. Michelle Wright was ordered to pay $129,171 in restitution.
These cases are the product of investigations by the United States Department of Education, Office of Inspector General. Assistant United States Attorney Jared C. Dolan is prosecuting the cases.
Two Retailers Plead Guilty to Food Stamp FraudRead the Press Release
Six Retailers Have Pleaded Guilty to Date
Baltimore, Maryland –Abdullah Aljaradi, age 52, and Ahmed Ayedh Al-Jabrati, age 58, both citizens of Yemen residing in Baltimore, have each pleaded guilty to wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. Aljaradi’s guilty plea was entered on February 5th and Al-Jabrati entered his plea today.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Aljaradi and Al-Jabrati operated two convenience stores, Second Obama Express and D&M Deli and Grocery, located next door to each other at 901 Harlem Avenue in Baltimore. According to their plea agreements and court documents, the stores participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Aljaradi and Al-Jabrati knew that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from October 2010 to July 2013, Aljaradi and Al-Jabrati exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves.
The indictment alleges that as a result of these unlawful cash transactions, Aljaradi and Al-Jabrati obtained more than $2 million in payments for food sales that never occurred. While the Court will determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines, restitution, and forfeiture, any money judgment ordered by the Court will not be less than $259,344.15, the funds seized from the stores and from two bank accounts associated with the stores.
Aljaradi and Al-Jabrati each face a maximum sentence of 20 years in prison. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for Aljaradi on April 30, 2014, at 2:00 p.m. and for Al-Jabrati for March 25, 2014 at 1:00 p.m.Nine retail store owners or operators, including Aljaradi and Al-Jabrati, were indicted in September 2013 on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. Dae Cho, age 67, and her son Hyung Cho, age 40, both of Catonsville, Maryland, pleaded guilty to food stamp and wire fraud arising out of the operation of K&S Food Market located at 3910 W. Belvedere Avenue and are scheduled to be sentenced on February 21, 2014. Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, have also pleaded guilty to food stamp fraud and are scheduled to be sentenced on March 6, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.
Two More Adult Day Care Center Operators Sentenced in Manhattan Federal Court for Conspiring to Bribe Former New York State Assemblyman Eric StevensonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that IGOR BELYANSKY and DAVID BINMAN were sentenced today in Manhattan federal court to 20 and nine months in prison, respectively, for conspiring to pay approximately $20,000 in bribes to former New York State Assemblyman Eric Stevenson in exchange for Stevenson’s official acts, including drafting, proposing, and agreeing to enact legislation that favored the bribers’ business interests. BELYANSKY was also sentenced for conspiring to bribe former New York State Assemblyman Nelson Castro. BELYANSKY and BINMAN both pled guilty in September 2013 before U.S. District Judge William H. Pauley III, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Igor Belyansky and David Binman were more than willing to break the law by paying tens of thousands of dollars in bribes to Eric Stevenson to advance their own business interests and to buy favorable legislation. Today, they learned that their corruption of the legislative process comes at a cost, time behind bars in a federal prison.”
According to the Complaint and the Indictment filed in Manhattan federal court, and statements made in Court:
Stevenson began serving as a member of the New York State Assembly in 2011 representing District 79, which includes various neighborhoods in the Bronx. The four businessmen – BELYANSKY, BINMAN, Rostislav Belyansky (“Slava”), and Igor Tsimerman – are individuals who, during 2012 and 2013, were seeking to open and manage adult day care centers in the Bronx, New York, including a center on Westchester Avenue (the “Westchester Avenue Center”), within Stevenson’s Assembly District, and a second center on Jerome Avenue (the “Jerome Avenue Center”), within then-Assemblyman Castro’s Assembly District. During that time period, they paid multiple bribes to Stevenson in connection with efforts to open and operate both centers.
For example, at a meeting on July 23, 2012, Stevenson, BELYANSKY, and Tsimerman discussed the opening of the Westchester Avenue Center. During this meeting, Stevenson said that on July 26, 2012, he was “having a night [event]” for “my reelection” and that he needed “support and help like everyone else.” Subsequently, on July 25, 2012, Slava provided a cooperating witness (the “CW”) with a check for $2,000 made out to Stevenson’s political action committee, which the CW provided to Stevenson. Stevenson did not disclose this check as a campaign contribution as required by New York State Law.
At a September 7, 2012 meeting at a steakhouse in the Bronx, Slava and BELYANSKY offered to pay Stevenson $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. Stevenson agreed, but when BELYANSKY attempted to hand him the $10,000 in an envelope, Stevenson indicated that he was concerned that there might be surveillance cameras in the restaurant, so waited until he was outside of the restaurant to take the cash bribe. On September 18, 2012, Stevenson gave the CW a $1,500 cut of the $10,000 bribe in exchange for the CW’s assistance, and promised to pay the CW an additional $500.
On December 27, 2012, the CW met with Stevenson and showed Stevenson a copy of an email dated December 26, 2012, sent from the contractor for the Jerome Avenue Center to Slava and Tsimerman. In the email, the contractor stated that “[i]t is urgent . . . that we call the State Senator Eric Stevenson so that he can call the building department at once and ask them to have this application reviewed” in connection with getting “a permit to install the gas lines into the building.” After reviewing this email, Stevenson stated, “he’s not a smart guy . . . he’s not too bright, this guy” because “he put this in writing . . . why he got to put my name in it? . . . He shouldn’t have said that.” Stevenson said they needed to avoid creating a “paper trail.” During that meeting, the CW and Stevenson also discussed the possibility of Stevenson introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. Stevenson told the CW: “All you gotta do is tell me what you want in the bill, and the bill drafter will put it together…I just need you to tell me what they [the co-defendants] want; we prepare the bill. . . . You can write down the language, basically what you want.” Stevenson then asked: “Are Igor [BELYANSKY] and them putting together a nice little package [of money] for me, huh?” He said: “I got my inauguration I gotta take care of, I got a lot of sh*t man.” Stevenson then said to the CW, in reference to the legislation, “I’m telling you, it’s done. It’s no problem.” Subsequently, the CW met with Tsimerman and BELYANSKY. Tsimerman said that as a result of the Moratorium Legislation, the value of their adult day care centers was “gonna
skyrocket. . . . As long as [there’s a] moratorium, I can guarantee you at least a triple [in profits].”
On January 1, 2013, the CW and Stevenson spoke on the telephone and Stevenson referred to “Igor” [BELYANSKY] as “Santa,” in reference to the money he expected to receive. In a subsequent meeting on the same day in the CW’s car, Stevenson sought assurances that “Igor” [BELYANSKY] was going to “bless everything,” meaning pay Stevenson. He added that: “I got the inauguration, I want a blessing [payment] in place, man.” Two days later, the CW gave BELYANSKY and Slava a copy of a document titled “Proposed Adult Day Care Center Bill,” which contained a proposal for the Moratorium Legislation. On January 7, 2013, the CW provided the same proposal to Stevenson. Later that day, Tsimerman provided STEVENSON with another copy of the proposal containing Tsimerman’s notes. On January 9, 2013, the CW told BELYANSKY that Stevenson wanted $10,000 for the Moratorium Legislation, with $5,000 paid up front. Two days later, on January 11, 2013, at the Westchester Avenue Center, BELYANSKY, BINMAN, Slava, and Tsimerman gave the CW $5,000 cash. The CW then left the Westchester Avenue Center with the envelope of money and got in his car where Stevenson joined him, at which time the CW gave the envelope of money to Stevenson, after taking out his $500 cut.
On January 27, 2013, Stevenson met with the CW and told the CW that he was concerned that Tsimerman might be cooperating with law enforcement officials and recording their conversations. Stevenson expressed a concern that if “they bring me down … somebody’s going to the cemetery.”
Stevenson had a draft of the Moratorium Legislation prepared by January 31, 2013, which he showed the CW at a meeting in his office and which was consistent with the bullet points prepared by the CW and BELYANSKY, BINMAN, Slava, and Tsimerman. On February 11, 2013, Stevenson told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re
gonna . . . try to push it to get it to the floor.” On February 16, in a hotel room in Albany, Slava gave $5,000 in cash to the CW, which the CW gave to Stevenson after taking a $500 cut. While the CW took out his $500 cut, Stevenson walked into the bathroom of the CW’s room and left the door open so that he could receive the $4,500 cash in the bathroom.
On February 20, 2013, Stevenson introduced and sponsored Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City.
Two days later, in a meeting between the CW and BELYANKY, BINMAN, and Tsimerman, BELYANSKY said that the legislation would double the value of his share in the Jerome Avenue and Westchester Avenue Centers from approximately $350,000 to $700,000.
In addition to prison, BELYANSKY, 42, of Bronx, New York, was sentenced to three years of supervised release, and ordered to pay a $2,000 fine and a $200 special assessment fee. BINMAN, 52, of Glendale, New York, was also sentenced to three years of supervised release, and ordered to pay a $7,500 fine and a $100 special assessment fee.
Stevenson was convicted on January 13, 2014, of conspiring to commit honest services wire fraud, conspiring to commit federal programs bribery and to violate the Travel Act, committing federal programs bribery, and extortion under color of official right following a six-day jury trial before U.S. District Judge Loretta A. Preska. Stevenson is scheduled to be sentenced by Judge Preska on May 20, 2014.
Tsimerman and Slava pled guilty in September 2013 to conspiring to commit honest services wire fraud in connection with their payment of bribes to Stevenson before Judge Pauley. On January 24, 2014, Judge Pauley sentenced Tsimerman principally to 24 months in prison, and sentenced Slava principally to 18 months in prison.
Mr. Bharara praised the work of the investigators from the United States Attorney’s Office for the Southern District of New York and the District Attorney’s Office for Bronx County.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Special Assistant U.S. Attorney Pishoy Yacoub of the Bronx County District Attorney’s Office are in charge of the prosecution.
Two Found Guilty of Tax Fraud, Wire Fraud, and Identity TheftRead the Press Release
PANAMA CITY, FLORIDA – Following a six-day trial, a jury found Versiah M. Taylor, 33, and Tracy L. Collier, 48, guilty yesterday evening on multiple counts of tax fraud, wire fraud, and identity theft. Taylor and Collier are both from Panama City.
Evidence presented at trial proved that between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds. The defendants used the personally identifiable information (PII) of inmates of the Florida Department of Corrections, Bay County residents, and others to file fraudulent income tax returns. Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and mailed them to Taylor. Taylor, operating out of a small office that he rented in the Steele Boys Bail Bond’s Plaza in Panama City, orchestrated the filing of multiple tax returns creating false employment information and using the PII of other individuals. These returns each claimed fraudulent refunds between $3,000 and $9,530 and were to be deposited onto prepaid debit cards, which were then mailed to various locations throughout Bay County, Florida.
Taylor and Collier each face up to 20 years in prison, a fine of up to $250,000, up to three years of supervised release, restitution, criminal forfeiture, and a $100 special monetary assessment. Additionally, for each count of aggravated identity theft, Taylor and Collier face a minimum mandatory sentence of two years in prison that is to be served consecutive to any other sentence imposed.
Sentencing for both defendants is scheduled for May 7, 2014, before United States District Judge Richard Smoak.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division.
The case was prosecuted by Assistant U.S. Attorney Katy Risinger.
Two Defendants Convicted at Trial in Multi-Million Dollar Bank Fraud Scheme Involving Investment Properties in Miami-Dade, Broward, and Palm Beach CountiesRead the Press Release
Wifredo Ferrer, United States Attorney for the Southern District of Florida, and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that Darryl Burke, 50, and Vicki Garland, 50, both of Delray Beach, Florida, were convicted yesterday by a federal jury in Ft. Lauderdale of bank fraud and wire fraud conspiracy, after a two and half week trial before U.S. District Judge James I. Cohn. Burke was also convicted of four substantive counts of bank fraud, and Garland was convicted of three substantive counts of bank fraud.
Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.
Defendants used the proceeds of the fraud to acquire a multi-residence waterfront compound in Delray Beach, as well as Bentley, Mercedes and Range Rover automobiles, luxury goods, and courtside season tickets for the Miami Heat, and to obtain large amounts of cash. Evidence further showed that Burke was convicted in 1997 in the Southern District of Florida of federal bank fraud charges, in relation to conduct that spanned the late 1980s and early 1990s.
Sentencing of Burke and Garland is set for April 18, 2014 before Judge Cohn.
Previously, four defendants were convicted in connection with the scheme to defraud multiple lenders. Three title agents, Osvaldo Sanchez, 38, Rafael Amador, 32, both of Miami, Florida, and Devon Fraser, 31, of Sunrise, Florida, and real estate investor Chiquita Alexis, 46, of Boca Raton, Florida, all pled guilty before to the same conspiracy involving Burke and Garland. Sanchez and Amador were each sentenced to 24 months in prison on November 5, 2013. Fraser and Alexis are scheduled for sentencing before U.S. District Judge Ursula Ungaro on February 19, 2014
Mr. Ferrer commended the investigative efforts of the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
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.
Three South Floridians Sentenced in $2.2 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and J. Dennis Scott, Chief, North Miami Beach Police Department, announce that Frantz Pierre, 34, of Parkland, Terry Pierre, 29, and Christmanie Bissainthe, 33, both of Miami, were sentenced today by U.S. District Court Judge Marcia G. Cooke after having been found guilty by a federal jury of charges relating to their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $2.2 million in fraudulent refund claims to the Internal Revenue Service. Specifically, Frantz Pierre was sentenced to 208 months in prison, followed by three years of supervised release; Terry Pierre was sentenced to 121 months in prison, followed by three years of supervised; and Christmanie Bissainthe was sentenced to 84 months in prison, followed by three years of supervised. A restitution hearing is scheduled for April 30, 2014 at 9:30 a.m.
On October 24, 2013, a federal jury in Miami convicted Frantz Pierre, Terry Pierre and Christmanie Bissainthe on 12 counts, including conspiracy to submit fraudulent claims to the government, access device fraud, and aggravated identity theft. According to trial evidence and testimony, 1,000 pre-paid debit cards were sent to Frantz Pierre’s business in the name of Tax Professors in May 2010. Co-conspirators subsequently caused approximately 338 fraudulent and unauthorized tax returns using stolen prisoners’ identities to be submitted to the IRS seeking $2.2 million in refunds for payment onto the Tax Professors’ debit cards. The IRS paid approximately $1.9 million in refunds in connection with these fraudulent returns to these debit cards. Evidence at trial included, among other things, video evidence of all three defendants withdrawing funds from these debit cards.
According to trial evidence and testimony, law enforcement executed a search warrant at defendant Frantz Pierre’s seven-bedroom residence in Parkland, Florida in July 2012. The evidence showed that this residence had been purchased primarily with fraudulent tax refund proceeds. After law enforcement announced their presence, an individual was observed tossing laptops from the second floor of Pierre’s residence towards the pool. Law enforcement found over 70 pre-paid debit cards and a thumb drive with over 2,000 people’s names, dates of birth, Social Security numbers, and IRS pin numbers in Frantz Pierre’s bedside dresser.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI (Miami and St. Paul), the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Cristina Moreno.
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.