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Monday 16 December 2013
Two admit to conspiracy for identity theft and wire fraud in connection with the filing of false income tax returnsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Lucille Stansberry, 40, of Anchorage, Alaska, and Joe Murl Douglas, Jr., 54, of Los Angeles, California, entered guilty pleas in federal court on Friday, December 13, 2013, before U.S. District Court Judge Timothy M. Burgess, to conspiracy to commit wire fraud in connection with filing false income tax returns, and aggravated identity theft.
Stansberry and Douglas admitted conspiring with two others to obtain identifying information, such as names, dates of birth, and Social Security numbers, which were then used to prepare false IRS Forms W-2 that contained fabricated wage and withholding amounts. The identifying information and falsified documents were taken to tax return preparation services in Anchorage, Eagle River, and Palmer, Alaska, as well as in Los Angeles and Orange Counties, California, to have tax returns prepared and electronically submitted to the IRS.
In order to increase the refunds claimed on the false returns, in some instances, stolen identifying information was used to claim dependent children on the false returns. The returns requested refunds totaling between $1,400 and $8,600. In many cases the defendants applied for refund anticipation loans and had the fraudulently obtained tax refunds loaded onto reloadable stored value cards allowing them instant access to the money even if the IRS later rejected the falsely filed returns.
The fraudulently obtained tax refunds were used to purchase personal items, including a 2002 Mercedes E320 Sedan. Title to the Mercedes will be forfeited to the government and a money judgment of up to $102,313 – representing the total amount of money involved in the offenses alleged in the indictment – may be entered jointly and severally against convicted defendants.
Douglas and Stansberry will be sentenced on March 21, 2014.
Two other defendants were charged as co-conspirators in the case, Demetrick Ruffin, who is a fugitive, and Jameane Bolton-Williams, a/k/a Jameane Williams, who is scheduled for a court appearance on January 6, 2014.
According to Assistant U.S. Attorneys Retta Randall and Stephanie Courter, the defendants face up to 20 years in prison for the wire fraud, and a mandatory two-year consecutive sentence for the aggravated identity theft. The potential maximum fine is $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Tamera Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation. “Filing fraudulent tax returns in the names of other individuals may result in significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury.”
Ms. Loeffler commends the IRS Criminal Investigation Division for the investigation of this case.
Trio Sentenced in Fake Id Conspiracy CaseRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The three Charlottesville residents convicted of producing tens of thousands of fraudulent driver’s licenses and shipping them across the country were sentenced this morning in the United States District Court for the Western District of Virginia in Charlottesville.
Alan McNeil Jones, 32, Kelly Erin McPhee, 31, and Mark Gil Bernardo, 28, all of Charlottesville, Va., previously waived their rights to be indicted and pled guilty to a two-count Information. The three defendants each pled guilty to one count of conspiracy to commit identification document fraud and one count of aggravated identity theft.
This morning in District Court, they three were sentenced to the following: Jones was sentenced to 60 months of federal incarceration; Bernardo was sentenced to 40 months of federal incarceration and McPhee was sentenced to 25 months of federal incarceration. In addition, each defendant will serve three years of supervised release after their respective prison terms.
“These three defendants developed a sophisticated scheme to produce and sell high-quality false identification documents throughout the nation,” United States Attorney Timothy J. Heaphy said today. “Their criminal enterprise was tremendously lucrative, generating profits of more than $3 million over several years. The sentences handed down today reflect how serious these crimes were. Law enforcement personnel will continue to take every available step to recover these counterfeit driver’s licenses and ensure that they cannot be used to facilitate additional criminal activity.”
“Regardless of the reasons for seeking fraudulent documents we focus to detect, deter and dismantle individuals and organizations that present an active threat to national security or public safety, and who seek to undermine the integrity of the laws and regulations of the United States,” said Scot Rittenberg, Acting Special Agent in Charge, ICE Homeland Security Investigations, Washington.
Previously, Jones, McPhee and Bernardo admitted to conspiring to create high-quality, fraudulent driver’s licenses out of the home they shared on Rugby Road in Charlottesville. The conspiracy, which began in 2010 and operated under the name Novel Design, produced and sold more than 25,000 fraudulent driver’s licenses, primarily to college students, throughout the nation.
As part of the scheme, Jones paid commissions to students at the University of Virginia, and elsewhere, to refer his service to other students interested in obtaining fraudulent driver’s licenses. He also outsourced some of the manufacturing work to companies in Bangladesh and China.
During the entire period of time in which Novel Design was in operation, Jones, McPhee and Bernardo produced approximately 25,000 fraudulent driver’s licenses for customers. They charged customers anywhere from $75 to $125 per fake license and the three obtained more than $3 million from customers. To date, over $2.7 million in assets have been seized by law enforcement.
At the height of the conspiracy, Jones, McPhee and Bernardo, were able to create fraudulent driver’s licenses for the states of Arizona, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Maine, Mississippi, Montana, New Jersey, Pennsylvania, Ohio, Rhode Island, South Carolina, Tennessee and Virginia.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HIS) Washington, the United States Postal Inspection Service, the Virginia State Police and the Virginia Attorney General’s Computer Forensics Unit. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
Top Lieutenant in Fernando Sanchez Arellano Cartel SentencedRead the Press Release
SAN DIEGO - Armando Villareal Heredia, who was extradited to the United States from Mexico last year to face federal racketeering and drug charges, was sentenced today to 30 years in prison for his role as a leader in the Fernando Sanchez Arellano (FSO) drug trafficking organization and his participation in cartel activities such as murder, kidnapping and the importation and sale of methamphetamine.
Villareal, who was sentenced by U.S. District Judge William Q. Hayes, pleaded guilty in September to Conspiracy to Conduct Enterprise Affairs through a Pattern of Racketeering Activity (RICO conspiracy) and Conspiracy to Distribute Controlled Substances.
“This sentence is a major blow to the Fernando Sanchez Arellano organization,” said U.S. Attorney Laura Duffy. “We and our law enforcement partners are committed to keeping cartel violence out of our communities.”
Villareal acknowledged in his plea agreement that the FSO’s activities included assaults on law enforcement officers attempting to arrest FSO members, bribing public officials to release FSO members from prison, and payments to public officials for confidential law enforcement information.
According to the plea agreement, Villareal also admitted that the cartel attempted to keep rival traffickers, potential informants, witnesses against the cartel, law enforcement, the media and the public in fear through intimidation, threats of violence, assaults and murders, and the organization “taxed” other criminals who operated within FSO territory, which includes Tijuana and parts of San Diego.
Villareal, aka “El Gordo,” was arrested in Sonora, Mexico in July of 2011 and extradited to the U.S. in May of 2012. Villareal is the lead defendant in a 43-defendant prosecution which has been ongoing in the Southern District of California since July 2010. Villareal was arrested by Mexican law enforcement officers at the request of the United States.
To date, 40 of 42 defendants have entered guilty pleas in the case. Like Villareal, those defendants admitted to participating in a violent transnational racketeering enterprise controlled by Fernando Sanchez-Arellano, and to committing murders, kidnappings, robberies, assaults, money laundering and a wide range of drug trafficking offenses. Among those who have pleaded guilty is Jesús Quiñónez Màrquez, then- international liaison officer with the Baja California Attorney General’s Office.
Two defendants remain fugitives.
The indictment in this case resulted from a long-term investigation conducted by the multi-agency San Diego Cross Border Violence Task Force (CBVTF). The CBVTF was formulated to target those individuals involved in organized crime-related violent activities affecting both the United States and Mexico. Law enforcement personnel assigned to the CBVTF made extensive use of court-authorized wiretaps and other sophisticated investigative techniques to develop the significant evidence which led to the charges in this case.
United States Attorney Duffy praised the Mexican government for their assistance in the extradition of Villareal. She also commended the Organized Crime Drug Enforcement Task Force (OCDETF) for the coordinated team effort in handling this investigation, “Operation Luz Verde.” Agents and officers from the Federal Bureau of Investigation, San Diego Police Department, Drug Enforcement Administration, San Diego Sheriff’s Office, Chula Vista Police Department, U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms, San Diego District Attorney’s Office, and California Department of Justice participated in this OCDETF investigation. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against organized crime and major drug trafficking organizations.
DEFENDANT Case Number 10CR3044-WQH Armando Villareal Heredia SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum penalties: Life in prison, Maximum $250,000 fine, 5 years of supervised release
Title 21, United States Code, Sections 846 and 841(a)(1) - Conspiracy to Distribute Methamphetamine
Maximum penalties: Mandatory Minimum of 10 years in prison; Maximum of Life in prison; Maximum
AGENCIES
$10 million fine; 5 years of supervised releaseFederal Bureau of Investigation
San Diego Police Department
Drug Enforcement Administration
San Diego Sheriff's Office
Chula Vista Police Department
U.S. Marshals Service
Bureau of Alcohol Tobacco and Firearms
California Department of Justice
San Diego District Attorney's OfficeToledo Man Sentenced to Prison for His Role in Illegal Dumping of AsbestosRead the Press Release
A Toledo man was sentenced to one year in prison and ordered to pay a $2,000 fine for his role in the illegal removal and disposal of asbestos-containing material, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
John J. Mayer, 52, pleaded guilty in July to violating the Clean Air Act.
“Mr. Mayer ignored the laws and regulations that are in place to protect the public,” Dettelbach said. “Protecting the environment, including the air we breathe, is a priority of my office and the Justice Department.”
“Improper removal and disposal of asbestos endangers human health, and exposure to asbestos fibers can prove fatal,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio. “The Defendant oversaw the illegal removal of large quantities of asbestos-containing materials, which were ultimately dumped in three residential areas in Toledo. This case should serve notice that U.S. EPA and its partner agencies are prepared to prosecute those who 'cut corners' by avoiding the costs of handling or disposing of asbestos properly.”
Mayer directed individuals to remove asbestos-containing insulation from boilers, duct work and pipes in a former manufacturing facility in Toledo between September and December 2010, in order that Mayer could sell the scrap metal from those items. This work was performed in violation of the federal Clean Air Act regulations regarding asbestos abatement, according to court documents.
The asbestos-containing insulation was not wetted at any time during the removal process; the City of Toledo, Division of Environmental Services, was not notified prior to the work commencing and there was not on site a person trained in the provisions of the federal asbestos regulations, according to court documents.
The illegally removed asbestos-containing insulation was placed into approximately 82 garbage bags, which were dumped at various locations throughout Toledo in violation of the requirement that such material be disposed at a site operated in accordance with federal law, according to court documents.
Timothy Byes, 32, of Toledo, also pleaded guilty to violating the Clean Air Act and is scheduled to be sentenced at a later date.
The investigating agencies in this case are the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency – Office of Special Investigations, the City of Toledo – Division of Environmental Services, all members of the Northwest Ohio Environmental Crimes Task Force. The case was prosecuted by Assistant United States Attorney Gene Crawford and Special Assistant United States Attorney James J. Cha.
Three of 20 Defendants Sentenced in Meth Distribution RingRead the Press Release
BOISE – Jason Lee Holmberg, 39, of Middleton, Idaho, Ute Hornak, 47, of Nampa, Idaho, and Patrick Siemsen, 56, of Meridian, Idaho, were sentenced today for their role in distributing methamphetamine and/or interstate travel and transportation in aid of racketeering, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge sentenced Holmberg to 180 months in federal prison, followed by five years of supervised release for conspiracy and interstate travel or transportation in aid of racketeering enterprises; Siemsen was sentenced to 60 months in prison, followed by three years of supervised release for interstate travel and transporting drugs and money; Ute Hornak was sentenced to time-served and three years of supervised release for her role in traveling with Siemsen to transport drugs and money.
The conspiracy involved two methamphetamine distribution cells in the Treasure Valley, one led by Holmberg and the other led by Andrew Polney. Siemsen and Hornak made five or six round- trips to Sacramento, California, where co-defendant Kenneth Jones supplied them each time with multiple pound shipments of methamphetamine to transport for Holmberg in the Nampa-Caldwell area, and to Polney in Boise. The group operated from about June 2012 through the time of their arrests on April 18, 2013.
Fourteen other defendants have pleaded guilty and are awaiting sentencing in January 2014: Andrew Polney, Kenneth Jones, Doreen O’Brien, Jerry Holmberg, John Odenwalt, Randi Seferos, Crystal Clark, Lena Kettle, Steven Richard, Robbie Gallegos, Adrea Smith, Randy Beal, Heidi Aguilar, and Cynthia Prado. Three other defendants are scheduled for trial in January 2014.
The case was investigated by the Drug Enforcement Agency (DEA) Task Force, which includes agents of the DEA as well as task force officers from Nampa Police Department.
Susan Wells Sentenced for Oxycodone DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Susan Wells, 40, of Colchester, was sentenced today in United States District Court in Burlington following her guilty plea to a charge that she distributed oxycodone. U.S. District Judge William K. Sessions III sentenced Wells to two years of probation. As one condition of probation, Wells must perform 100 hours of community service.
This past June, the government filed a criminal information alleging that Wells distributed oxycodone on three dates in April and May 2012; Wells pled guilty to the charge one week later. According to court records, after authorities learned that employees and others had participated in the embezzlement of more than $550,000 from Brault's Mobile Homes, Inc. of Colchester, they interviewed two former employees. The employees admitted to embezzling funds from the company and stated that they had used the money to buy prescription pain medications. They identified Wells as their source for some of the drugs they bought between 2009 and 2011. In the spring of 2012, police arranged for one of the embezzlers to make three controlled purchases of oxycodone from Wells.
This case was investigated by the Colchester Police Department and the Office of Inspector General, U.S. Department of Housing and Urban Development.
Wells is represented by David Kidney. The prosecutor is Assistant U.S. Attorney Gregory Waples.
St. Louis Man Sentenced for Possession with Intent to Distribution HeroinRead the Press Release
Royce Spann, 28, of St. Louis, Missouri, was sentenced in federal court on December 16, 2013, to 97 months’ in prison, 5 years’ supervised release after his imprisonment, and a $100 special assessment, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spann had previously pled guilty to Possession with Intent to Distribute Heroin, on August 6, 2013.
United States Attorney Stephen Wigginton commented that, “I am proud that we were able to get Spann off the streets. Heroin is the most dangerous drug in the world. These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. The prosecution and sentencing of Royce Spann is part of our ongoing anti-heroin initiative.”
According to public documents filed with the Court, Spann was riding an Amtrak passenger train from Chicago, Illinois, on March 27, 2013 with large amounts of heroin. Drug Enforcement Administration (DEA) agents confronted Spann at the St. Louis, Missouri train station where Spann dropped his bag and ran away on foot. Inside the bag, DEA agents found over $10,000 in cash and over three-quarters of a kilogram of heroin.
The case was investigated by the Drug Enforcement Administration in the Southern District of Illinois and was prosecuted by Special Assistant United States Attorney Jungmin Lee.
St. Francis Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Fabian McCloskey, age 38, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
McCloskey is accused of assaulting his domestic partner on November 29, 2013, when at the time of the assault, McCloskey had a final conviction on a least three separate prior occasions in Rosebud Sioux Tribal Court proceedings for offenses that would have been, if subject to federal jurisdiction, an assault against a domestic partner.
The charge is merely an accusation and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sixth Alien Found Guilty of Conspiracy to Grow Marijuana in a National Forest and of Damaging Government Property in Largest Marijuana Grow Ever Found in OregonRead the Press Release
91,000 Plants Found Encompassing a Stretch Over A Mile and a HalfPORTLAND, Ore. – A federal jury in Portland returned verdicts of guilty Monday, December 16, 2013, in the trial of Fredy Figueroa-Montes, age 34. The counts of conviction included conspiracy to manufacture marijuana which carries a maximum penalty of 20 years in prison and a fine of $1,000,000; and depredation of government property which carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Trial evidence showed that the defendant joined five co-defendants in growing more than 91,000 marijuana plants in the Wallowa Whitman National Forest, and that they used more than 500 pounds of illegal rodenticides, pesticides, herbicides and fertilizer to cultivate the marijuana, causing an estimated $97,000 in damage to the Wildcat Creek riparian area. Investigating officers found an Uzi long gun and two pistols in the campsite. The five co-defendants previously pled guilty and were sentenced to periods of incarceration ranging from 30 months to 120 months.
“These convictions are the result of the effective collaboration between local, state and federal law enforcement partners,” said U.S. Attorney Amanda Marshall. “Here in Oregon, federal prosecutors will remain aggressive when it comes to protecting federal enforcement interests that include preventing marijuana from growing on public lands, as well as preventing violence and the use of firearms in the cultivation and distribution of marijuana.”
Testimony presented by the government described the outdoor grow as “staggering”, encompassing a stretch over one mile and a half in the Wildcat Creek riparian zone, where the marijuana growers disrupted the natural terrain with extensive terracing. The plants were concealed in several separate pods developed by removing trees and underbrush to camouflage the grow site, and miles of plastic irrigation tubing was found. The Marijuana Enforcement Team, a trained group of state troopers who work with law enforcement agencies during the summer months to assist with marijuana eradication and investigations related to outdoor marijuana grows, called this the largest marijuana grow ever found in the State of Oregon saying many people would be outraged at the damage to public lands caused by illegal marijuana growers. Evidence presented identified an extensive amount of trash including tubing, plastic planter containers, herbicide and other toxic chemicals that were dumped along a river’s edge.
The five-day trial was held in the Federal District Court in Portland, Oregon, with Judge Michael W. Mosman presiding.
The investigation of the marijuana grow site was led by the Wallowa County Sheriff's Office, the La Grande Police Department, and the Union/Wallowa County Drug Task Force, the Oregon State Police SWAT Team, the Blue Mountain Enforcement Narcotics Team (BENT), Wallowa County Search & Rescue, Enterprise Police Department, the Union County Sheriff’s Office, the United States Forest Service Law Enforcement and Investigations, Union County Sheriff's Office, the Baker County Narcotics Enforcement Team, the Oregon Army National Guard Counterdrug Program, and the Oregon State Police Marijuana Enforcement Team, as well as the Oregon Department of Justice, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Drug Enforcement Administration, Immigration and Customs Enforcement Homeland Security Investigations and the Wallowa County District Attorney’s Office.
Assistant U. S. Attorney Jennifer J. Martin and Certified Law Clerk Courtney Peck prosecuted the case.
Six Indicted in International Investment Fraud SchemeRead the Press Release
Six individuals have been indicted for their role in an investment scam perpetrated from the United States and Switzerland, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office announced today.
The U.S. District Court for the District of Nevada has unsealed indictments against Anthony Brandel, 46, of Las Vegas; Joseph Micelli, 59, of Las Vegas; James Warras, 67, of Waterford, Wis.; Sean Finn, 44, of Whitefish, Mont.; Martin Schlaepfer, 55, of Zurich, Switzerland; and Hans-Jurg Lips, 50, of Zurich, Switzerland. Brandel and Micelli were arrested on Dec. 12, 2013, in Las Vegas, and Warras was arrested on Dec. 13, 2013, in Wisconsin. Finn, Schalepfer and Lips remain at large.
According to court documents, from October 2009 through October 2013, the defendants used a Swiss corporation known as Malom Group AG to promote investments in European equities and debt offerings, which they said would yield high rates of return. The indictment alleges that the defendants created and provided to investors fake bank statements representing that Malom Group AG had large deposit balances at prominent European banks. The defendants collected payments of between $200,000 and $1.2 million per investor but did not put the funds toward the advertised investments. Instead, the defendants used the money for their own purposes. Court documents allege that Brandel, Micelli, Finn and Warras attempted to conceal the proceeds of the conspiracy by not filing tax returns with the Internal Revenue Service (IRS).
According to allegations in the indictment, the investments that the defendants promoted did not yield any returns to their victims. When victims complained, the defendants told investors that the Malom Group AG would refund their money with the proceeds of pending transactions the defendants knew were fictitious and would not generate any proceeds. Despite the defendants’ promises of refunds, court documents allege that none of the investors identified in the indictment received a refund. The indictment alleges that Micelli, Warras and Lips went so far as to submit to a U.S. Bankruptcy Court declarations they knew contained false statements about a transaction that the Malom Group AG had promoted to an investor who had an interest in a company that had filed for bankruptcy protection.
According to the indictment, Anthony Brandel acted as the director of MY Consultants Inc., a Nevada corporation that purported to review potential investments for the Malom Group AG. Micelli, a disbarred former attorney, identified himself to victims as Malom Group AG’s “compliance officer.” Warras served as Malom Group AG’s Executive Vice President for U.S. Operations and Finn acted as a broker who recruited victims and referred them to Malom Group AG. Schlaepfer was Malom Group AG’s Chief Executive Officer and Lips identified himself as the head of Malom Group AG’s Structured Finance Group. Schlaepfer and Lips presently reside in Switzerland.
The case was investigated by the Las Vegas Field Office of the FBI. The Enforcement Division of the U.S. Securities and Exchange Commission, which referred the matter to the Department of Justice, provided valuable assistance and is conducting a parallel civil enforcement investigation. The Public Prosecutor of the Canton of Zurich State Attorney’s Office assisted with the investigation.
This case is being prosecuted by Trial Attorneys Brian R. Young, Stephen J. Spiegelhalter and Anna Kaminska of the Criminal Division’s Fraud Section, with assistance from the Criminal Division’s Office of International Affairs and the Office of the United States Attorney for the District of Nevada.
Today’s indictment was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the Task Force, visit www.StopFraud.gov .Sioux Falls Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on December 12, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jeremy Jeunesse, a/k/a Jeremy Chasing Horse, a/k/a Jeremy Trudell, age 34, was sentenced to 30 months in custody to run consecutive to his North Dakota sentence, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Jeunesse pled guilty to the charge on September 5, 2013. The charge related to Jeunesse failing to register as a convicted sex offender in Pennington County on September 1, 2012.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Jeunesse was immediately turned over to the custody of the U.S. Marshals Service.
Shirley Man Charged for Stealing Military Humvee from Fort DevensRead the Press Release
BOSTON - A Shirley man was charged today with stealing a Humvee from Fort Devens.
Lowell A. Shorey, 26, was indicted with theft of government property.
The indictment alleges that on Oct. 16, 2013, Shorey stole a Humvee from Fort Devens. According to the affidavit, Shorey then attempted to sell the stolen military Humvee, which is worth $60,000, to an undercover police officer. After stealing the military vehicle, Shorey drove it out of the motor pool through a hole he cut in a fence. He then parked the vehicle in the woods near his Shirley home, which is in close proximity to Fort Devens. Additionally, Shorey told the undercover officer that we wanted to “boost” the other 12 Humvees at Fort Devens all in one day.
If convicted, Shorey faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and the Department of Defense’s Police Department at Fort Devens made the announcement today. The case is being prosecuted by David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Individuals Indicted for Operating Million Dollar Marijuana ConspiracyRead the Press Release
BOSTON – Seven individuals from central Massachusetts were charged today in U.S. District Court in Worcester for operating a million dollar marijuana conspiracy.
Lam Ly, 43, and Tam Pham, 36, of Leicester; Nhi Le, 32, Diep Pham, 52, Ut Le, 33, and Minh Bui, 43, of Webster; and Luan Bui, 42, of Worcester were charged in a superseding indictment with conspiracy to manufacture marijuana, manufacturing and possession with the intent to distribute marijuana, and maintaining several drug involved premises. The indictment and arrests announced today are the culmination of a lengthy joint federal, state, and local investigation.
The indictment alleges that Lam Ly, Tam Pham, Nhi Le, Diep Pham, Ut Le, Luan Bui, Minh Bui, and others, maintained indoor marijuana growing operations in Douglas, three locations in Webster, Worcester, Paxton, and Leominster. To date, the investigation has led to the seizure of over $124,000 in cash and over 2,000 marijuana plants – a quantity that is capable of producing over a $1 million worth of marijuana.
If convicted, Lam Ly faces a mandatory minimum of 10 years and up to a lifetime in prison, a minimum of five years of supervised release, and a fine of up to $10 million dollars. If convicted, Tam Pham, Nhi Le, Diep Pham, Ut Le, Luan Bui, and Minh Bui faces a mandatory minimum of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Timothy J. Bent of the Webster Police Department; Chief Gary J. Gemme of the Worcester Police Department; Chief Patrick T. Foley of the Douglas Police Department; Chief Michael Hassett of the Oxford Police Department; Chief Robert Desrosiers of the Paxton Police Department; and Chief Robert Healey of the Leominster Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Antonio Man Guilty of Armed Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas – Joseph C. M. Krist, 41, has been convicted of bank robbery and using a firearm during the commission of a crime of violence, announced United States Attorney Kenneth Magidson. The Corpus Christi federal jury convicted Krist following a two-day trial and less than three hours of deliberation.
On Jan. 13, 2013, Krist robbed the IBC Bank on the corner of Everhart and Burney in Corpus Christi. Krist entered the bank wearing a hoodie and a green shirt sleeve covering part of his face while carrying a .40 caliber pistol. He pointed the weapon at the tellers and told them to “hurry up.” He obtained a large amount of currency and fled the bank.
The Corpus Christi Police Department (CCPD) responded to the robbery, but were unable to apprehend Krist at that time. Three days later, the U.S. Marshals Service (USMS) was able to locate Krist at a camp ground in Uvalde and arrested him. At that time, authorities found a large amount of cash, the firearm, a hoodie and a green t-shirt missing a single shirt sleeve. Krist admitted to committing the robbery.
At the time of the robbery, Krist was a prior convicted bank robber both in state and federal court and was wanted by the authorities for violations of his state parole and federal supervised release.
At trial, Krist claimed he was not in Corpus Christi at the time of the robbery and that he knew the robber’s identity and is prepared to assist the authorities.
U.S. District Judge Nelva Gonzalez Ramos, who presided over trial, has set sentencing for March 28, 2014. At that time, he faces up to 20 years in federal prison for the bank robbery as well as a mandatory seven-year-term for using the firearm during the commission of the crime which must be served consecutively to any other prison term imposed.
The case was investigated by the FBI and CCPD with the assistance of USMS. Assistant United States Attorney Lance Duke prosecuted the case.
Rosebud Woman Charged with Acquiring Controlled Substances by Fraud and Theft in Connection with HealthcareRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Acquiring Controlled Substances by Fraud and Theft in Connection with Healthcare.
Bonnie Melissa Levy, age 38, was indicted on December 10, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 4 years in custody and/or a $250,000 fine, 1 year of supervised release, and $125 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2013, and October 30, 2013, Levy knowingly and intentionally acquired and obtained possession of a controlled substance, Morphine. Further alleged is that she embezzled, stole, and converted without authority to her own use when she was not the rightful owner, Morphine and Benadryl, of a value of less than $100. The items were the property of the Rosebud Indian Health Services Facility, a healthcare benefit program in Rosebud.
The charges are merely accusations and Levy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Levy was released on bond pending trial. A trial date has not been set.
Rhode Island Estate Planning CEO, Employee Sentenced to Federal Prison for Obtaining Millions in Death Benefits in the Names of Terminally-Ill IndividualsRead the Press Release
PROVIDENCE, R.I. – Joseph A. Caramadre, 53, president, CEO and majority owner of Estate Planning Resources in Cranston, R.I., was sentenced today to 72 months in federal prison for conspiring to steal and use the identities of terminally-ill patients to obtain millions of dollars in illicit profits from insurance companies and bond issuers. In addition, Caramadre was ordered by U.S. District Court Chief Judge William E. Smith to serve 3 years of supervised release upon completion of his prison term, during which time he is required to perform 3,000 hours of community service to the elderly and terminally-ill individuals.
Raymour Radhakrishnan, 29, a former employee of Estate Planning Resources, was sentenced to 12 months and one day in federal prison for his participation in the scheme. In addition, Radhakrishnan was ordered by U.S. District Court Chief Judge William E. Smith to serve 3 years of supervised release upon completion of his prison term, the first six months to be served in home confinement, during which time he is required to perform 3,000 hours of community service to the elderly and terminally-ill individuals.
At today’s sentencing hearing, Chief Judge Smith announced that he would determine restitution in this matter at a later date. U.S. District Court Magistrate Judge Patricia A. Sullivan previously recommended to Chief Judge Smith that Joseph Caramadre pay approximately $46 million dollars in restitution to insurance companies and bond issuers, and that Radhakrishnan pay approximately $33 million dollars in restitution. Caramadre and Radhakrishnan pleaded guilty on November 19, 2012, prior to the start of testimony in the second week of their trial, to conspiracy to commit identity theft and wire fraud.
The sentences were announced by Peter F. Neronha, United States Attorney; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation.
“Both men are going to prison for what they did, as they should,” commented United States Attorney Peter F. Neronha. “The reality is that Joseph Caramadre saw death as a holiday. He saw it as a cause for celebration. He saw it as an opportunity to make money. Both defendants, particularly Mr. Caramadre, wrapped themselves in morality. Having sat through a week of trial and knowing as much about this case as I do, it is at best ironic. At its worst it is reprehensible.”According to information presented to the court, in the mid-1990s, Joseph Caramadre developed investment strategies that depended upon, among other things, the identity of terminally-ill individuals. On his own behalf, and on behalf of investors, friends and family members, Caramadre purchased variable annuities from insurance companies. The annuities offered death benefits upon the death of the person identified as the annuitant. These benefits included a guaranteed return of all monies invested plus, in many instances, a guaranteed profit and various other bonuses and enhancements.
According to information presented to the court, Caramadre and Radhakrishnan made misrepresentations to terminally-ill and elderly patients and their family members in order to obtain their personal identifying information. They used the information, including names, dates of birth, and social security numbers, to obtain more than 200 variable annuities and to open more than 75 brokerage accounts in order to purchase “death-put" bonds in the victims’ names without their knowledge and consent. Caramadre and Radhakrishnan either forged the signatures of terminally-ill people on account documents or obtained the signatures by means of misrepresentations. When the terminally-ill person died, Caramadre and others reaped substantial profits by exercising death benefits associated with the investments. Under the terms of these bonds, the owner of the bond is able to redeem the bond years or decades prior to the maturity date upon the death of the bond’s co-owner.
According to information presented to the court, Caramadre located terminally-ill individuals in various ways, including visits to AIDS patients at a House of Compassion, through family members and associates of the terminally-ill, and by soliciting individuals who were terminally ill to purchase life insurance policies. Caramadre also placed advertisements in a local Catholic newspaper that provided that there was a compassionate organization that would immediately give $2000 in cash to terminally-ill individuals. Dozens of terminally-ill individuals or family members responded to the ad. Caramadre gave Raymour Radhakrishnan, who began working for Caramadre in July 2007, the job of meeting with the people who responded to the ad for the purpose of obtaining their identity information and using that information on annuities and brokerage accounts.
“From Bernie Madoff to Mr. Caramadre and Mr. Radhakrishnan, devious schemes concocted for greedy purposes always end the same way,” said Vincent Lisi, Special Agent in Charge of the FBI. “Others who think they can victimize people for personal gain without ending up in the same company as them should think twice because our team of agents, investigators and prosecutors who specialize in white collar crime can’t be outmatched.”
“What makes these defendants’ conduct particularly disturbing is that they targeted individuals who were terminally ill,” said Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “It's difficult enough when a family member loses a loved one; to have to endure the additional financial strain brought about by this type of scam artist is just not right. The U.S. Postal Inspection Service remains vigilant pursuing criminals like Mr. Caramadre, and bringing them to justice.”
John Collins, Acting Special Agent in Charge, IRS Criminal Investigation stated, "Today's sentencing of Joseph Caramadre and Raymour Radhakrishnan brings to justice two individuals who have committed despicable crimes against our society. Not only have they defrauded insurance companies and financial institutions but they have taken advantage of a community of our most vulnerable citizens. Caramadre and Radhakrishnan benefitted from a sophisticated scheme that preyed on terminally ill individuals and allowed them to line their pockets with the fruits of their crime. Individuals who commit identity theft and fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. This investigation highlights the positive impact on justice which is obtained through the collaborative efforts of multiple Federal law enforcement agencies and the U.S. Attorney's Office."
The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams, with the assistance of paralegal Kellyann Anderson.
The matter was investigated by the U.S. Attorney’s Office, FBI, U.S. Postal Inspection Service inspectors and IRS – Criminal Investigation.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Reed Springs Man Pleads Guilty to Making False Tax ClaimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reed Springs, Mo., man pleaded guilty in federal court today to making more than $124,000 in fraudulent tax refund claims.
Michael R. Jett, 47, of Reed Springs, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with making a false claim against the government.
By pleading guilty today, Jett admitted that he filed 22 false or fraudulent tax returns in order to obtain larger tax refunds between January 2009 and January 2012. Jett prepared tax returns for himself, his family and for other individuals using fraudulent W-2 forms issued by companies under his control, including Air1Assault, Creative Designs, Southwest Missouri Home Products and Corvette Specialist. Using the fraudulent W-2 forms, Jett prepared tax returns requesting tax refunds in amounts larger than actually owed. Those refunds were electronically deposited in bank accounts in his name, or the names of family members.
Jett requested a total of $124,493 in refunds on those 22 tax returns, which actually qualified for only $19,137 in legitimate refunds. The total loss for the scheme was $105,356.
Under federal statutes, Jett is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by IRS-Criminal Investigation.
Poplar Bluff Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
St. Louis, MO - DAVID L. CATHEY of Poplar Bluff, Missouri, was sentenced to 30 years imprisonment on two felony charges for producing child pornography. He appeared before U.S. District Judge John A. Ross in Cape Girardeau. Upon completion of that sentence, he will be placed on supervised release for the remainder of his life.
Previously with his plea, Cathey admitted that over a period of several years he took photographic images of two minor females whom he caused to engage in sexually explicit conduct. Both children were less than twelve years old when Cathey started taking the photographs. Cathey stored some of the sexually explicit images on a compact disc. The images of the children were discovered when Cathey sold his computer and failed to remove the compact disc containing the photographs.
The Poplar Bluff Police Department, the Southeast Cyber Crimes Task Force, the Butler County Sheriff’s Department and the Federal Bureau of Investigation are commended for their efforts to jointly investigate this case. Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the Government.
Philadelphia Doctor Sentenced to 30 Years for Running Pill MillRead the Press Release
PHILADELPHIA - Kermit Gosnell, 72, of Philadelphia, was sentenced today to 360 months in prison for running a pill mill out of his clinic located at 3801-3805 Lancaster Avenue in Philadelphia. Gosnell pleaded guilty on July 9, 2013 to 12 counts including conspiracy to distribute controlled substances (oxycodone, alprazolam, and codeine), distribution and aiding and abetting the distribution of oxycodone, and maintaining a place for the illegal distribution of controlled substances. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered a fine in the amount of $50,000, a $1200 special assessment, and $200,000 in forfeiture.
Gosnell, with the assistance of several of his former office staff at Family Medical Society, A Division of Women’s Medical Society, Inc. (“WMS”), ran a prescription pill mill from June of 2008 through February 18, 2010. Gosnell wrote fraudulent prescriptions for hundreds of thousands of prescription pills and the frequently-abused syrups Phenergan and Promethazine with Codeine, to drug “seekers,” who met with Gosnell briefly for a cursory exam or no exam. Gosnell wrote and sold prescriptions from his medical office for over 600,000 pills containing oxycodone (a Schedule II controlled substance, brand names Percocet, Endocet and OxyContin) including over 100,000 pills of the highly addictive OxyContin 80mg; over 800,000 pills containing alprazolam (a Schedule IV controlled substance, brand name Xanax); and over 27,000 ounces of cough syrup containing codeine (a Schedule V controlled substance, brand name Phenergan with Codeine cough syrup) to cash-paying customers without there being any medical necessity for these prescriptions. Gosnell and his staff allowed customers to purchase multiple prescriptions under multiple names; customers could place orders for refills in person, over the phone, or by leaving a message on a WMS office answering machine; the WMS office staff would give the refill orders to Gosnell, who, without seeing the customer, would write the requested prescription and give it to WMS staff who would then collect cash and “tips” from customers. Gosnell went from writing several hundred prescriptions for controlled substances per month filled at pharmacies in 2008 to over 2,300 filled at pharmacies in January of 2010. Gosnell charged from $115.00 to $150.00, with a follow up visit fee of $50.00 and a $20 fee for refills of controlled substances for cash paying customers.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office. It was prosecuted by Assistant United States Attorneys Joan E. Burnes and Jessica Natali.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pearl City Man Sentenced to 13 Years in Jail for Child Pornography OffensesRead the Press Release
HONOLULU – Kyle Tom Kamaiopili, 40, a resident of Pearl City, was sentenced in federal court on December 13, 2013 to a jail term of 13 years for five federal child pornography offenses. Kamaiopili previously pled guilty to four counts of distributing child pornography over the Internet, and to one count of possessing approximately 4,300 still images and 125 videos of child pornography at his residence.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information presented in court, federal agents learned of Kamaiopili’s identity following the arrest of a Tennessee individual for exchanging child pornography. A review of the Tennessee individuals’ email accounts revealed that he had exchanged images with Kamaiopoli. Agents then searched Kamaiopili’s Pearl City residence, and recovered computers and storage media containing child pornography files. Kamaiopili was arrested on May 24, 2013, and has been in custody since then.
During sentencing proceedings, the government pointed out that Kamaiopili had admitted viewing and collecting child pornography since 2001, including a five year period when he was serving a state probationary sentence for a negligent homicide case arising out of an incident in which he drove a vehicle while intoxicated. Kamaiopili also exchanged non-graphic images of a nine-year old girl who was the daughter of his friend. Chief U.S. District Judge Susan Oki Mollway imposed a jail term of 156 months, following which he will be on supervised release for ten years, during which he will be monitored by the probation office and have restrictions on his access to the Internet.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Larry Tong.
Okeechobee Woman Sentenced for Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Maria Garcia, 33, of Okeechobee County, was sentenced today on charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Garcia was sentenced by U.S. District Judge Donald Graham in Fort Pierce to 18 months in prison, followed by one year of supervised release and a special assessment of $100. In addition, the Court ordered Garcia to pay restitution to the Government for tax losses of $534,946. The Court also noted that Garcia is permanently enjoined by a Consent Judgment and Order filed in a parallel civil case, barring her in the future from ever preparing federal income tax returns for other persons.
According to statements made in open court and documents filed in the case, Garcia prepared multiple fraudulent tax returns for customers from January 2008 through May 2013, first while working for other tax preparers and then in her own tax preparation business. She prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ohio Woman Sentenced to Probation for Conspiring to Distribute Oxycodone and MethadoneRead the Press Release
JOHNSTOWN, Pa. - A resident of Hubbard, Ohio, has been sentenced in federal court to two years probation on her conviction of conspiracy to distribute controlled substances, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelley S. Johns, 43.
According to information presented to the court, from July 2008 to May 9, 2011, Johns conspired to distribute and possess with the intent to distribute quantities of oxycodone and methadone. Evidence presented to the court at the time of Johns' sentencing reflected that Johns conspired with George M. Lowmaster and others in order to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Johns. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
North Dakota Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Brandon Wutzke, age 28, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on December 13, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 25, 2012, Wutzke knowingly engaged, or attempted to engage, in sexual contact with a female who had not attained the age of 16 years.
The charge is merely an accusation and Wutzke is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Wutzke was released on bond pending trial. A trial date has not been set.
New York Man Charged with Purchasing Atv in Enosburg with Counterfeit MoneyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Francis Hamblin, 30, of Fort Ann, New York, entered a not guilty plea to a one-count indictment charging that he used counterfeit currency to purchase an ATV in Enosburg, Vermont. Hamblin was ordered detained, without bail, pending trial by Magistrate-Judge John Conroy.
According to court records, the government alleges that, on October 19, 2013, Hamblin, in response to an advertisement on Craig’s List, purchased a Yamaha ATV vehicle from a man in Enosburg with $3,500 in counterfeit U.S. currency. The seller of the ATV later became suspicious of the currency and contacted the Franklin County Sheriff’s Office who confirmed the currency was counterfeit. Investigation by the Franklin County Sheriff’s Office then led to Hamblin’s arrest.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty. If he is convicted, Hamblin faces a maximum possible term of imprisonment of twenty years.
This case was investigated jointly by the United States Secret Service and the Franklin County Sheriff’s Office. The United States is represented by Assistant U.S. Attorney Joseph Perella. The defendant is represented by the Federal Public Defender’s Office in Burlington.
New Kensington Man Admits Possessing, Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa., pleaded guilty in federal court to charges of violating the federal child exploitation laws, United States Attorney David J. Hickton announced today.
Mark Randall Salego, 53, pleaded guilty to one count of possession and one count of distribution of material depicting the sexual exploitation of a minor before Senior United States District Judge Donetta W. Ambrose. He possessed the materials on Feb. 28, 2013 and distributed them on Jan. 27, 2013.
Judge Ambrose scheduled sentencing for April 8, 2014. The law provides for a total sentence of not less than 5 years and up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Mark Salego.
New Jersey Attorney and Tax Preparer Admit Roles in $30 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. — A New Jersey attorney and a tax preparer today admitted their roles in a long-running, large-scale mortgage fraud that caused losses of more than $30 million, U.S. Attorney Paul J. Fishman announced.
Michael Rumore, 55, of Toms River, N.J., and Kenneth Jones, 64, of Elizabeth, N.J., both pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with conspiracy to commit bank fraud. Jones also pleaded guilty to aiding and abetting the filing of false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
From 2006 to 2010, Rumore, Jones and numerous others engaged in two related mortgage fraud conspiracies through a company called Premier Mortgage Services (PMS). The conspirators targeted properties in low-income areas of New Jersey. After recruiting “straw buyers,” they used a variety of fraudulent documents, some of them created by Jones, to make it appear as though the straw buyers possessed far more assets and earned far more income than they actually did.
The conspirators then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties. The conspirators then split the proceeds from the mortgages among themselves at closing time, including at closings presided over by Rumore. The closings went forward through the use of fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings. The conspirators defrauded financial institutions out of more than $30 million.
The conspirators each performed different roles in the scheme. Michael Rumore was an attorney licensed in New Jersey and served as the settlement agent on mortgage loans brokered by other conspirators. Rumore used his status as an attorney to further the fraudulent scheme, including by convening closings, receiving funds from lenders, and preparing HUD-1s that purported to reflect the sources and destinations of funds for mortgages on subject properties B when in fact, the HUD-1s were neither true nor accurate. Rumore disbursed mortgage loan proceeds directly to PMS and other conspirators, including amounts not reflected on the HUD-1s. Rumore received a fee for each fraudulent loan in which he participated.
Jones, a tax preparer, created numerous false documents used in the scheme. When contacted by loan officers, Jones would create fraudulent verifications of employment for straw buyers, which claimed falsely that the straw buyers were employed by certain businesses. Jones included his own phone numbers on the verifications of employment, so that when financial institutions called to verify the information, Jones would answer and confirm the false statements. Jones received a fee for each fraudulent document that he created. Jones also engaged in a separate scheme in his capacity as a tax preparer, to which he also pleaded guilty. Jones would inflate the deductible expenses to which his clients were purportedly entitled, obtaining larger tax refunds for his clients than they should have received.
The bank fraud conspiracy count to which Rumore and Jones pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million. The aiding and abetting false tax returns to which Jones pleaded guilty is punishable by a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for March 31, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Zach Intrater of the Criminal Division.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
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Defense counsel:
Rumore: Donna Newman Esq., Westfield, N.J., and New York
Jones: Hassan Abdellah Esq., Elizabeth, N.J.Rumore Information
Jones InformationNew Fairfield Resident Sentenced to More Than Five Years in Federal Prison for Trafficking MarijuanaRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS CALAMARAS, 30, of New Fairfield, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 63 months of imprisonment, followed by four years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation that revealed that CALAMARAS was a lead participant in a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation, which included the use of court-authorized wiretaps, revealed that CALAMARAS obtained large quantities of marijuana from other members of the conspiracy and then redistributed the drug in the New Fairfield and Danbury areas. He also partnered with co-conspirators to establish grow-house operations and to cultivate hundreds of marijuana plants.
CALAMARAS has been detained since his arrest on June 13, 2012. On that date, law enforcement officers executed a court-authorized search of CALAMARAS’s Macbean Drive residence and seized marijuana plants, approximately 18 pounds of processed marijuana, more than $378,000 in cash and a .223 caliber, semi-automatic rifle.
CALAMARAS was ordered to forfeit the seized cash and firearm.
On June 5, 2013, CALAMARAS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 100 kilograms of marijuana.
The investigation resulted in charges against 13 individuals and the seizure of processed marijuana, approximately 140 marijuana plants, more than $520,000 in cash, 10 firearms, vehicles and real property.
This matter was investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant U.S. Attorneys Tracy L. Dayton and David X. Sullivan.
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U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Man who Torched Vancouver Business Under Construction Sentenced to 30 Months in PrisonRead the Press Release
A 61-year old Vancouver, Washington man was sentenced today in U.S. District Court in Tacoma to 30 months in prison for conspiracy to commit arson in connection with a March 2003 fire, announced U.S. Attorney Jenny A. Durkan. MARK DUANE FUSTON, also known as “Mau Mau,” pleaded guilty in October 2013, to using propane and various flammable liquids to burn down the ‘Desire Video’ store that was nearing completion on NE 94th Avenue in Vancouver. The fire destroyed the building causing some $850,000 in damage. U.S. District Judge Benjamin H. Settle imposed the prison sentence and three years of supervised release saying FUSTON was “an outlaw,” and had been for “way too much of (his) life.”
According to the plea agreement signed in October, FUSTON was hired to torch the building. FUSTON and another man (now deceased) acted together to commit the arson. On the night of March 27, 2003, FUSTON rerouted a propane line into the building and placed a remote control incendiary device intended to ignite the propane and destroy the building. However, when the remote control device malfunctioned, FUSTON returned to the building and left a fuel trail to the building which he later ignited manually. The fire ignited the propane trapped inside the building causing the explosion and fire.
FUSTON was indicted March 27, 2013. A hearing will be held in February 2014 to determine the amount of restitution FUSTON must pay.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Vancouver Police Department and the Vancouver Fire Department. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Man Charged for Escape from Coolidge HouseRead the Press Release
BOSTON - A Providence man was charged today with escaping from a halfway house.
Jason Shepard, 34, was indicted with escape from the Coolidge House. Coolidge House is a residential reentry center in Boston that assists incarcerated individuals successfully transition to the community after they are released. Shepard was confined there in connection with his federal conviction for being a felon in possession of a firearm.
If convicted, Shepard faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U. S. Marshals Service, District of Massachusetts, made the announcement today. The case is being prosecuted by Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lower Burrell Man Sentenced to Probation for Participating in Cambria County Marijuana Distribution RingRead the Press Release
JOHNSTOWN, Pa. - A resident of Lower Burrell, Pa., has been sentenced in federal court to three years probation on his conviction of possession of marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anthony T. Digirolamo, 65.
According to information presented to the court, on May 2, 2011, Digirolamo possessed with the intent to distribute less than 50 kilograms of marijuana.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Digirolamo. Other agencies participating on the task force include the Internal Revenue Service- Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Lowell Woman Indicted for Misuse of Social Security Account Number and False Statement to Federal AgentsRead the Press Release
BOSTON – A Lowell woman was charged with misuse of a social security account number.
Estafany Elizabeth Montero Munoz, 28, of Lowell, was indicted with misuse of a social security account number and making false statements.
It is alleged that Montero Munoz provided a false social security account number on her driver's license application and misrepresented her name to a federal agent.
If convicted, Montero Munoz faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Gregory K. Null, Special Agent in Charge of the U.S. Department of Homeland Security, Office of Inspector General, Office of Investigations; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - A federal indictment was unsealed today naming RONALD L. ROBERTS as the culprit in a multi-million-dollar loan fraud scheme. The indictment alleges that Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, from which Roberts claimed he would receive between $7 million and $22 million in proceeds after the property was sold to Wal-Mart. According to the indictment, there was no such real estate transaction pending, the property in question was worth substantially less than Roberts represented and the funds provided by lenders were instead diverted to Roberts’ personal use, including gambling at the River City Casino. The indictment alleges that Roberts caused more than $2.5 million in losses as a result of the fraud.
Roberts was indicted by a federal grand jury on three felony counts of wire fraud and one felony count of mail fraud. The indictment was returned December 11th, but remained sealed until the defendant turned himself in to authorities earlier today.
If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Little Eagle Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Theron Makes Him First, age 28, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on December 13, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Makes Him First unlawfully committed domestic assaults, one resulting in substantial bodily injury. At the time of the assaults, Makes Him First had a final conviction on at least two separate prior occasions for assaults that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The charge is merely an accusation and Makes Him First is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Makes Him First was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Leader of San Diego Mortgage Company Sentenced to 41 Months in Prison and Ordered to Pay over Half A Million Dollars in RestitutionRead the Press Release
Today United States Attorney Laura E. Duffy announced the sentencing of Brian Nels Peterson, the head of a mortgage company called Terra Finance in San Diego, California, for originating millions of dollars in fraudulent mortgage applications generated between 2005 and 2007, many for properties in two neighborhoods in San Diego County. District Court Judge John A. Houston sentenced Peterson today to 41 months in custody, ordered him to pay a $50,000 fine, and ordered restitution in the amount of $542,075 to Citi Mortgage.
Peterson admitted that he devised a scheme to procure mortgage funds through deceptive means, including falsifying income on applications to qualify borrowers for loans. Terra Finance facilitated loans in several San Diego neighborhoods, including the expensive then-new “Ivy Gate” housing development in North County’s 4S Ranch, and the “Rolling Hills” development in southern San Diego County. Court documents indicate that in its heyday, Terra Finance generated between $80 million and $100 million worth of residential mortgage loans. Peterson, who held a broker’s license with the California Department of Real Estate, personally signed most of the fraudulent loan applications containing false income, employment, asset, and liability information submitted under his license number.
Peterson earned over $1 million from his fraudulent loan business through broker’s fees, kickbacks from cash-out refinances, and other sources in 2006 alone. He admitted that he failed to report his over $1 million income in 2006, and that he evaded paying taxes by arranging to be paid in cash, and other means.
According to court documents, Peterson orchestrated the fraudulent conduct of employees, borrowers, and industry professionals as the head of Terra Finance. Peterson recruited a cadre of loan officers, loan processors, office staff, real estate “investors” and other industry professionals to participate in his scheme, including appraisers, tax preparers, and lender representatives. These knowing participants included people who made up job titles and income figures so borrowers would appear to qualify for a loan, added borrowers to another person’s bank account and then had the borrowers falsely claim the funds in the account as assets, fabricated false “verifications” of phony information in the loan applications, and prepared appraisals “to order” based on the property value Peterson sought. Borrowers used a succession of fake loan applications to purchase multiple properties that they could not afford. The initial loans were often re-financed – through fraudulent loan applications -- to fund additional purchases, in an upward spiral of home ownership built on a foundation of fraud.
Peterson’s real estate empire eventually crumbled, resulting in millions of dollars of losses, dozens of foreclosures, numerous neighborhoods depressed – and the indictment of 26 loan officers, loan processors, appraisers, borrowers, and a lender representative, all who participated in loans with Terra Finance. In a related case, United States v. Berkenfield, case number 11CR3486-JAH, 13 out of 25 arrested defendants have pled guilty and have been sentenced to penalties ranging from probation and home confinement to 5 months in custody. Twelve defendants remain pending in that case. (One defendant remains a fugitive.)
DEFENDANT Criminal Case No. 11CR3486-JAH Brian Nels PetersonCount 1- Wire Fraud (Title 18, United States Code, § 1343): 41 months custody; 3 years of supervised release; $50,000 fine; $542,075 restitution; $100 special assessment.
Count 2 – Willful Failure to File Tax Return (Title 26, United States Code, § 7203): 12 months custody; 1 year of supervised release, $10 special assessment, all to run concurrently with Count 1.
PARTICIPATING AGENCIESDepartment of Homeland Security, Immigration and Customs Enforcement, Office of Professional Responsibility
Internal Revenue Service – Criminal Investigations
Federal Bureau of InvestigationLeader of Kentland Drug Organization Sentenced to over 24 Years in PrisonRead the Press Release
Total of 22 Defendants Prosecuted in Federal Conspiracy Case Targeting Kentland Neighborhood
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, today to 294 months in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George=s County Police Department; and Prince George=s County State’s Attorney Angela D. Alsobrooks.
“Federal authorities worked with the Prince George’s County Police Department and State’s Attorney’s Office to dismantle a criminal organization that dealt drugs and despair in the Kentland area of Landover, Maryland,” said U.S. Attorney Rod J. Rosenstein. “This sort of coordinated effort contributes to the crime reduction in the county.”
According to court documents, from June 2010 to August 2011, Whitehurst organized and led a large scale cocaine distribution conspiracy that operated in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. Whitehurst was responsible for the distribution of between 2.4 and 8.4 kilograms of cocaine base during the conspiracy.
On September 28, 2011, FBI agents executed a search warrant at Whitehurst’s residence and seized a loaded semi-automatic firearm.
Co-conspirator Antonio Marshall, age 36, of College Park, Maryland, was sentenced to 78 months in prison this morning. Last week, Chris Vondell Rainey, age 43, was sentenced to nine years in prison, Jason Scrivner, age 34, was sentenced to 78 months in prison; and Kenneth Smith, age 30, was sentenced to 30 months in prison, for their participation in the drug conspiracy. Other defendants who participated in the drug conspiracy and have been sentenced include: Xavier D. Eccleston, age 36, of Bethesda, Maryland, who was sentenced to 210 months in prison after being convicted following an eight day trial; Shawn R. Lomax, age 35, of Capitol Heights, Maryland, who was sentenced to 148 months in prison; Demeco Savoy, age 34, of Laurel, and John Holt, age 32, of Temple Hills, Maryland, who were each sentenced to 10 years in prison; Barnell Banks, age 34, of Landover, Maryland, who was sentenced to eight years in prison; Markus J. Humphries, age 34, of Washington, D.C., and Rodney Jennings, age 41, of Suitland, Maryland, who were each sentenced to 70 months in prison; and Robert Sears, age 34, of Suitland, who was sentenced to five years in prison. Seven additional defendants have been convicted and are awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem, Arun Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.Justice Department Requires Divestiture from Gannett Co. Inc. <br /> in Order to Proceed with Its Acquisition of Belo Corp.Read the Press Release
The Department of Justice announced today that it will require Gannett Co. Inc., Belo Corp. and Sander Media LLC to divest their interests in KMOV‑TV, a CBS affiliate in St. Louis, in order to proceed with Gannett’s acquisition of Belo, and Sander’s related acquisition of six Belo television stations that Gannett cannot hold under Federal Communications Commission (FCC) rules. The department said that, without the required divestiture, Gannett would have gained a dominant position in broadcast television spot advertising in the St. Louis area, resulting in higher prices advertisers.
In addition to acquiring the six stations from Belo, Sander will enter into several agreements with Gannett in order to both finance purchasing the stations and facilitate operating the stations. KMOV-TV is one of the six stations Sander would acquire from Belo and would be subject to agreements between Sander and Gannett. These agreements, however, do not include any joint negotiation of retransmission rights in St. Louis. The Gannett-Belo acquisition is valued at approximately $2.2 billion.The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition and related agreements between Gannett and Sander, including an option for Gannett to assign or acquire the Belo stations sold to Sander, a financing guarantee and a long-term shared services agreement. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“Gannett’s KSDK‑TV and Belo’s KMOV‑TV compete head-to-head in the sale of broadcast television spot advertising in the St. Louis area, and this rivalry constrains advertising rates,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The full divestiture required by the department will ensure that KMOV-TV will remain a vigorous competitor in St. Louis.”
The department’s complaint alleges that the proposed acquisition would lessen competition in broadcast television spot advertising in the St. Louis Designated Market Area (DMA). Even though the two stations would maintain separate sales forces, the various agreements between Gannett and Sander, KMOV‑TV’s new owner, would align the incentives of the two stations. To remedy this harm, the proposed settlement requires Gannett, Belo and Sander to divest all assets primarily used in the operation of KMOV‑TV to an independent purchaser to be approved by the United States. That purchaser will not be permitted to have any agreements with Gannett concerning KMOV-TV that could limit competition with KSDK-TV, including options to acquire or assign, financing agreements and shared services or joint sales agreements.
Gannett, a Delaware corporation with headquarters in McLean, Va., owns and operates 23 broadcast television stations nationwide, 12 of which are in the top 25 markets, as well as numerous newspapers. Gannett’s KSDK‑TV is the NBC affiliate in St. Louis.
Belo, a Delaware corporation with headquarters in Dallas, owns and operates 20 broadcast television stations nationwide, nine of which are in the top 25 markets. Belo’s KMOV‑TV is the CBS affiliate in St. Louis.
Sander, a Delaware limited liability company with headquarters in Scottsdale, Ariz., has no current business activity other than preparing to acquire six Belo stations, including KMOV‑TV in St. Louis, as part of the transactions between Gannett, Belo and Sander.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60‑day comment period to Scott A. Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60‑day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Justice Department Files Fair Housing Lawsuit Against Owner and Manager of Rental Housing in New Hampshire for Discrimination Against Families with ChildrenRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against the owner and manager of rental apartments in Jaffrey, N.H., for violating the Fair Housing Act by discriminating against families with children.
The lawsuit, filed in the U.S. District Court for the District of New Hampshire, alleges that Bruce R. Edwards, as Trustee of the Bruce R. Edwards Revocable Trust of 2004 and in his personal capacity, engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the Act. According to the complaint, the defendant allegedly established and implemented a discriminatory “no children” policy for prospective tenants in a boarding house that he owned and managed. The suit also alleges that the defendant violated the Fair Housing Act by enforcing the “no children” provision of the lease against a tenant and requiring the tenant to immediately find other housing arrangements for his daughter, who visited the boarding house on weekends.
“This lawsuit demonstrates the Department of Justice’s commitment to ensuring fair and equal access to housing for all New Hampshire citizens and attempts to erect discriminatory barriers to this fundamental civil right will not be tolerated,” said U.S. Attorney John P. Kacavas for the District of New Hampshire.
“The Fair Housing Act protects tenants with children from facing unfair terms and conditions of rental that do not apply to tenants without children,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that ensure that tenants can secure rental housing for their families without fear of discrimination.”
This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by a tenant who lived in the defendant’s boarding house and had joint custody of his minor daughter. The defendant’s lease stated that no children were allowed in the building, and the defendant made additional oral statements to the tenant that children were not permitted. After receiving noise complaints about the tenant’s child, the defendant notified the tenant in a letter marked “Eviction Notice” that he was enforcing the “no children” provision of the lease and that the tenant had to immediately find other arrangements for his daughter on the weekends. As a result, the tenant began taking his daughter to stay with family members, which resulted in both economic and emotional costs. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
“It’s surprising that 25 years after Congress outlawed housing discrimination against families with children, many landlords don’t know it’s illegal or don’t take the law seriously,” said Acting Assistant Secretary Bryan Greene for HUD’s Office of Fair Housing and Equal Opportunity. “HUD will continue work alongside the Department of Justice in educating people on the law and obtaining housing relief for families denied housing."
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, ext. 3.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Irving, Texas, Man Sentenced to 150 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Travis Olt, 40, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 150 months in federal prison, following his guilty plea in August 2013 to an Information charging one count of transporting and shipping child pornography. Judge Lindsay remanded Olt, who had been on bond, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in May 2013, federal agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Olt’s residence and seized several computers and computer-related items. Olt admitted that he intentionally and knowingly received child pornography using a file-sharing computer software program.
Prior to the execution of the warrant, law enforcement was able to access and download child pornography that Olt received by using the software. Olt admitted that he believed he possessed approximately 1,000 videos of child pornography.
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 ICE HSI and the Plano, Texas Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Investigators in Rx Drug, Immigration Cases Receive Guardian of Justice AwardsRead the Press Release
WICHITA, KAN. - Three investigators who worked on a federal prescription drug trafficking prosecution involving a user who died from an overdose, and another investigator whose mastery of facial recognition software and other digital tools helped build federal immigration cases are this year’s winners of Guardian of Justice Awards, U.S. Attorney Barry Grissom said today.
Grissom presented the awards Monday. Honored during a ceremony at the U.S. Attorney’s Office in Kansas City, Kan., were:
Jeremi Thompson, Franklin County Sheriff’s Office.
Traci Allen, Kansas Bureau of Investigation.
Jeff Thomas, Internal Revenue Service.
Miguel Arellano-Hernandez, special agent in charge of the Kansas Department of Revenue’s Office of Special Investigations.
Thompson, Allen and Thomas investigated a trafficking organization whose business peddling prescription drugs on the streets of Franklin County accounted for at least one overdose death. The other winner, Arellano-Hernandez, used facial recognition software and other tools to investigate several federal criminal immigration cases.
“These are law enforcement professionals who stand out,” said U.S. Attorney Barry Grissom. “They are dedicated and talented individuals who we can depend on to safeguard our neighborhoods and protect the people of Kansas from crime and violence.”
The Guardian of Justice Awards recognizes law enforcement officers who did outstanding work on cases that were successfully prosecuted by the U.S. Attorney’s office. Since 2002, the award has been given to state and local law enforcement officers, as well as federal agents, who were nominated by federal prosecutors for their outstanding work.
Thompson, Allen and Thomas
Thompson, Allen and Thomas uncovered a drug trafficking ring that was distributing oxycodone, morphine and other prescription drugs throughout Franklin County. The case they helped build resulted in the ring leader, Connie Edwards, being convicted and sentenced to federal prison for 25 years. Thompson worked long hours, holidays and weekends on the investigation, following leads, interviewing witnesses and providing prosecutors with sharp, accurate reports. Allen worked as an undercover officer and co-case agent with Thompson. Thomas of the IRS followed the money trail to bring down the traffickers’ money laundering and tax evasion scheme. The investigation also identified Medicare and Medicaid fraud at a local pharmacy.
Arellano-Hernandez
Miguel Arellano-Hernandez is the special agent in charge of the Kansas Department of Revenue’s Office of Special Investigations. In the past three years, he has worked on a series of cases successfully prosecuted by the U.S. Attorney’s office. In addition to his work ethic and dedication, his expertise in using facial recognition tools and motor vehicle and financial records, have proven to be invaluable assets during investigations. He and his agents received national attention, for instance, in the prosecution of Benita Cardona Gonzalez, a case in which the defendant stole a Texas school teacher’s identity in order to buy a house and pay hospital bills for the birth of her own children.Assistant U.S. Attorney Brent Anderson nominated Arellano-Hernandez. Assistant U.S. Attorney Sheri McCracken nominated Thompson, Allen and Thomas.
Immigration Attorney Pleads Guilty to Bribing an Immigration OfficialRead the Press Release
Client Also Pleads Guilty to Immigration Fraud
Baltimore, Maryland – Attorney Kiran Dewan, age 59, of Woodbine, Maryland pleaded guilty late on December 13, 2013, to bribery, and one of his clients, Mohammad Khan, age 58, of Baltimore, also pleaded guilty to immigration fraud.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.“Immigration attorneys hold positions of public trust and it is disturbing that anyone would defraud the very system in which they work for their own personal profit,” said HSI Special Agent in Charge in Baltimore William Winter. “Document and benefit fraud poses a significant vulnerability to our national security and exploits America's legal immigration system. Whether you are trying to illegally obtain an immigration benefit or facilitating the fraud, know this – you will be found, arrested and held accountable for your actions.”
Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.According to his plea agreement, from March 2011 to May 2013, Dewan conspired with clients, including Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official who was willing, in return for cash, to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unbeknownst to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.
Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan was afraid that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice of removal, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.
In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the $5,000 bribe.
In 2012, Dewan also spoke extensively about his knowledge of establishing an overseas Hawala to transfer the purported public official’s alleged bribery profits. A Hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this Hawala method for other clients, including a $400,000 transfer via a reverse Hawala method.
Dewan faces a maximum sentence of 15 years in prison and a $250,000 fine for bribery. U.S. District Judge William D. Quarles, Jr. scheduled Dewan’s sentencing for March 6, 2014, at 9:30 a.m.
Khan, a citizen of Pakistan living in Baltimore, who operated Pizza City in Brooklyn Park, Maryland, faces a maximum sentence of 10 years in prison and a $250,000 fine for immigration fraud. Judge Quarles scheduled Khan’s sentencing for February 25, 2014, at 1:00 p.m.
Amjad Israr, age 46, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison on September 20, 2013.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who are prosecuting the case.
Illinois Man Sentenced for Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chicago, Illinois, man charged with Criminal Trespass pled guilty to and was sentenced on December 13, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Steven Nichols, age 42, was sentenced to 6 months' custody, 1 year probation, $50 to the Federal Crime Victims Fund and was ordered to not reenter the Rosebud Sioux Indian Reservation.
The conviction stems from incidents that took place in August and September, 2013, when Nichols, a non-Indian, entered or remained on the Rosebud Sioux Indian Reservation after the Rosebud Sioux Tribal Court and the Rosebud Sioux Tribal Council excluded him from entering its lands.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Nichols was remanded to the custody of the U.S. Marshals Service.
INTERPOL and INTERPOL Washington request public assistance to track international fugitives across AmericasRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Friday, December 16, 2013INTERPOL and INTERPOL Washington request public assistance to track
international fugitives across AmericasLYON, France - INTERPOL is calling for the public's assistance in helping to track down international fugitives linked to organized crime networks and wanted for offenses including murder and drug trafficking.
Operation Infra (International Fugitive Round Up and Arrest) Americas was launched in Costa Rica on 18 November, involving 46 countries and territories and targeting 266 fugitives. Members of the public are now being asked to provide information to help locate 15 individuals, including Rafael Caro-Quintero the former leader of the Guadalajara Cartel in Mexico.
The fugitives are believed to be hiding out in Central America, Colombia, Ecuador, Peru, Venezuela or the Caribbean. They are all cases where no new leads were generated during the initial phase of Infra Americas or where there is no current intelligence on the potential location of these individuals.
“Any piece of information, no matter how small or apparently insignificant could be the missing piece in the puzzle which will help locate these dangerous criminals,” said Ervin Prenci, criminal intelligence officer with INTERPOL's Fugitive Investigative Unit.
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Hunters plead guilty to shooting two bull moose in Denali National ParkRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that three Southcentral men plead guilty and were sentenced for violating the Lacey Act in the illegal hunting, take and transport of two bull moose shot in Denali National Park in September, 2012.
On Monday, December 16, 2013, Anchorage residents, Charlie W. Hart, 55, and Deric C. Hart, 33, pled guilty to the illegal take and transportation of bull moose from within Denali National Park. Homer resident Michael J. Barth pled guilty last Friday, December 13th. In connection with their guilty pleas, all three men were sentenced before the Hon. Deborah M. Smith, United States Magistrate Judge, to a term of probation of two years, the payment of $15,000 in restitution to Denali National Park for the two moose illegally taken, a $2500 fine, no hunting for one year, and forfeiture of moose antlers, and moose meat as well as one firearm used in the illegal take of a moose.
According to Assistant U.S. Attorney Steven Skrocki, in September 2012, Charles Hart sought permission to moose hunt on a private in-holding of land in the Kantishna area of Denali National Park through a third party. Based on Charles Hart’s request, the third-party contacted a landowner who granted permission to Charlie Hart’s party to hunt the inholding on the express condition that only one (1) bull moose be taken, and that the hunt occur within the confines of the private inholding.
Charlie Hart and Deric Hart admitted that in September 2012 they travelled with co-defendant James Riggs and another individual on the Denali National Park Road to the Kantishna area of Denali National Park to the private inholding. The hunting party obtained appropriate Denali Park Road permits prior to traveling.
During the hunt, all members of the hunt party hunted for bull moose outside the confines of the private inholding and on Denali National Park property. While doing so, the party used electronic moose cow calls and hunted the lands well outside the boundary of the inholding, including the mountainsides above the inholding. Using an electronic cow call for hunting is illegal under state law.
On September 3, 2012, Deric Hart, in the company of Michael Barth and another individual, hunted for bull moose outside of the inholding. While hunting outside the property the group spotted a bull moose a short distance outside the property boundary and/or adjacent the boundary line which Deric Hart killed. Thereafter, the hunt party dragged the unlawfully hunted and killed bull moose onto the private inholding by ATV. The bull moose was thereafter field dressed and the antlers removed from the skull. The bull moose’s antlers measured approximately 64”.
Two days later, on September 5, 2012, Michael Barth and Deric Hart continued to hunt moose on Denali National Park property. As part of his guilty plea, Michael Barth admitted that he was stalking a Moose on Denali National Park property and that co-defendant James Riggs shot and killed the moose and allowed Barth to tag the moose as if Barth had shot and killed it. After shooting the second moose, the party illegally used ATV’s and a UTV in a closed ORV area to drag the moose from the location where it fell, on Denali National Park property, approximately another ½ mile back to the inholding property for field dressing. The second moose’s antlers measured approximately 65”.
The following day, the hunt party loaded the meat and antlers of the two unlawfully killed moose into vehicles and transported them to Anchorage. On the way out of Denali National Park, the party was stopped by the National Park Service and questioned. During the questioning, the hunting party lied to a National Park Ranger about the location and other details of the kills.
Co-defendant James Riggs is scheduled to appear in court on January 6, 2014.
Ms. Loeffler commends the National Park Service and the United States Fish and Wildlife Service, and the Bureau of Land Management for their work in the investigation of this case.
Houston Man Heads to Prison for Area Bank RobberyRead the Press Release
HOUSTON – Terrance Trent Batiste, 21, has been ordered to prison for his involvement in the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Kenneth Hoyt sentenced Batiste to 60 months for conspiracy to commit bank robbery as well as 78 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 162 months in federal prison. He will be further required to serve five years of supervised release following completion of the prison term.Kendrick Deswhan Castille, 20, Joshua Demond Clay, 29, also pleaded guilty to the bank robbery and are pending sentencing.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed that Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money from the victim teller. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.Hogsett Announces Breakup of Sophisticated Indianapolis-area Counterfeiting OperationRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the filing of federal counterfeiting charges against Brandon Clark, age 24, of Indianapolis. In a criminal complaint filed today, it is alleged that Clark manufactured more than a quarter-million dollars in counterfeit bills at a home on the eastside of Indianapolis.
“During this city’s busiest shopping season, this alleged scheme was flooding the area with counterfeit currency designed to victimize both consumers and businesses,” Hogsett said. “This operation was as sophisticated as any this city has ever seen, but was brought to a halt thanks to great investigative work by the U.S. Secret Service and our IMPD partners.”
A federal criminal complaint filed by prosecutors this morning alleges that since September 2013, more than $250,000 in counterfeit currency was distributed in the Indianapolis area, all of which was traced by investigators to a single source. On December 5, a confidential informant identified an individual known as “Brandon” that was distributing counterfeit currency from a home on the eastside of Indianapolis. The informant alleged that the defendant spoke openly about technical aspects related to the manufacture of counterfeit currency, and was willing to trade counterfeit bills as part of drug transactions.
Five days later, on December 10, it is alleged that a second confidential informant provided investigators with information about a counterfeit operation being run out of a house on Riley Avenue. This informant allegedly admitted to having purchased counterfeit $100 bills from the defendant on a number of occasions, with a negotiated price of $20 in real currency for each counterfeit $100 bill. The informant alleged that he had purchased approximately $10,000 in fake currency during each of these transactions. The informant also alleged that he purchased firearms for the defendant, who had armed himself in order to protect his counterfeit materials.
Based on this information, a state search warrant was executed by the Indianapolis Metropolitan Police Department at a Riley Avenue house on December 10, 2013. The defendant allegedly made post-arrest statements indicating that the production of counterfeit currency is something he considers an “art,” and made statements implying that the operation had at times sold counterfeit bills in quantities exceeding $100,000.
It is alleged that in executing the search warrants, investigators seized materials related to an incredibly sophisticated counterfeit operation, including:
• approximately $60-70,000 in counterfeit currency;
• six firearms;
• methamphetamine;
• six high-quality printers;
• six paper cutters;
• a laminating machine;
• a money counting machine;
• a counterfeit detection machine;
• various bottles of ink;
• and a large quantity of blank paper stock.According to Assistant U.S. Attorney Winfield Ong, who is prosecuting the case for the government, the counterfeit bills found within the home allegedly resembles the approximately $250,000 in counterfeit currency previously identified by investigators. Clark could face up to 20 years in federal prison if he is found guilty, as well as significant fines and years of federally-supervised release.
This case was the result of a collaborative investigation led by the United States Secret Service and the Indianapolis Metropolitan Police Department, with significant assistance from the Marion County Prosecutor’s Office. Hogsett specifically applauded the work of IMPD’s Violent Crime Unit for their tireless investigative work into the scheme.
A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Goodwin Awards Former Mingo Pill Mill Bldg. and Forfeited Cash to the West Virginia State PoliceRead the Press Release
Total of more than $1.5 million has been seized from pill mill operators
WILLIAMSON, W.Va. – A Williamson-based office building that formerly housed Mountain Medical Care Clinic, a notorious pill mill, along with more than $340,000 in cash proceeds forfeited by one of its operators now will belong to the West Virginia State Police, U.S. Attorney Booth Goodwin today announced.
Goodwin, joined by U.S. Marshal John Foster, Federal Bureau of Investigation (FBI) Senior Supervisory Resident Agent in Charge Chris Courtright and other members of law enforcement, presented West Virginia State Police Superintendent Col. C.R. “Jay” Smithers with a check in amount of $341,937.61 today in front of the former West Third Avenue pill mill, shut down in 2010 following an extensive federal investigation that ended with several criminal convictions.
“This pill mill did enormous harm across a wide swath of Mingo County and beyond,” U.S. Attorney Booth Goodwin said. “Now we’ve put its operators in prison and hit them in the pocketbook, to the tune of more than $1.5 million.”
Goodwin continued, “A few years back, I made a commitment to go after pill dealers, along with the proceeds generated from their illegal activities. Today’s announcement is a result of that commitment. Every time we put a pill mill out of business, it’s a big step toward getting this district’s biggest crime problem under control.”
A final order of forfeiture was entered in federal court in Charleston on Oct. 23 in the civil forfeiture case against Myra Miller, which concluded all forfeiture cases linked to Mountain Medical.
Myra Sue Miller, a former office manager at Mountain Medical, agreed to forfeit her interest in the clinic’s two commercial buildings valued at approximately $610,000, along with $475,823.75 in cash seized from her residence. Miller, 50, of South Williamson, Ky., previously pleaded guilty in March 2013 to misusing a Drug Enforcement Administration (DEA) registration number that belonged to her former boss, Mingo County doctor William F. Ryckman. Miller, who gave out prescriptions for powerful narcotics in exchange for cash from individuals at Mountain Medical, was sentenced in September 2013 to six months in federal prison.
Dr. Ryckman, 66, was previously convicted in March 2012 for his role in the conspiracy. Ryckman was sentenced to six months in prison followed by one year of supervised release for conspiracy to misuse his DEA registration number. From February 17, 2010, until February 19, 2010, Ryckman caused numerous controlled substances to be prescribed using his DEA registration number to individuals who were not evaluated or seen by him.
A total of $413,050.89 from a Mountain Medical bank account listed in Ryckman’s name has been seized and forfeited by federal authorities.
In a separate case, former Mingo County doctor Diane E. Shafer forfeited $134,550. Shafer, 60, was previously sentenced in September 2012 to six months in prison for conspiracy to misuse her DEA registration number. She also prescribed powerful narcotics to individuals she did not examine.
Records indicate between 2003 and early 2010, Shafer wrote more than 118,000 prescriptions for controlled substances. Though she was a solo practitioner, Shafer, by herself, wrote more prescriptions for controlled substances than several West Virginia hospitals did during that period.The government also seized $88,029 from former Mingo County practitioner, Katherine Hoover. Hoover, who did not work at Mountain Medical but had close ties to several employees at the clinic, has not been charged criminally to date.
A total of $1,586,903.72 in assets held by former employees, clinic bank accounts and related commercial property tied to the former Williamson clinic have been forfeited to the government.
The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
The criminal cases were investigated by the Drug Enforcement Administration, the West Virginia State Police, the FBI and the Department of Health and Human Services – Office of Inspector General.
Pictured from left to right: West Virginia State Police (WVSP) Superintendent Col. C.R. “Jay” Smithers, U.S. Attorney Booth Goodwin, FBI Senior Supervisory Resident Agent in Charge Chris Courtright, U.S. Marshal John Foster and WVSP Maj. Tim Bradley today in front of the former Mountain Medical Clinic in Williamson.
Gloversville Man Arraigned on Marijuana Manucaturing ChargesRead the Press Release
ALBANY, NEW YORK – DAVID M. GAMBUZZA, 40, of Gloversville, was arraigned today on an indictment charging him with manufacturing marijuana by Magistrate Judge Randolph F. Treece announced United States Attorney Richard S. Hartunian and New York State Police Bureau of Criminal Investigations Captain Scott P. Coburn. The case is set for trial on February 18, 2014. According to the indictment, GAMBUZZA manufactured 50 or more marijuana plants. If convicted, GAMBUZZA faces up to 20 years in prison. He could also be ordered to pay a fine of up to $1,000,000. GAMBUZZA was released pending trial.
The case was investigated by the New York State Police and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
Getaway Driver in Takeover-Style Armed Bank Robbery Is Sentenced to 140 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Gabriel Tenorio, 30, the getaway driver in the May 1, 2013, armed robbery of a Lubbock National Bank, was sentenced on Friday by U.S. District Judge Sam R. Cummings to 140 months in in federal prison. A resident of Lubbock, Tenorio has been in custody since his arrest in early June 2013. He pleaded guilty in August 2013 to one count of aggravated bank robbery and aiding and abetting as charged in a superseding indictment Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Tenorio’s co-defendant, Russell Eugene Heath, 44, also of Lubbock, was arrested in August in Calexico, California. He pleaded guilty last month to one count of aggravated bank robbery and aiding and abetting and one count of possession of a firearm in furtherance of a crime of violence and aiding and abetting. He faces a maximum statutory penalty of 25 years in federal prison on the robbery conviction and at least five years and up to life on the firearm offense. Each count of conviction also each carries a maximum statutory fine of $250,000. A sentencing date has not yet been set for Heath.
According to Tenorio’s factual resume, he and Heath planned and executed the robbery of the Lubbock National Bank located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying what appeared to be a Glock firearm, entered the bank, pointed the firearm at the tellers and began yelling at them to give him money. He jumped over a counter, opened a teller drawer and began stuffing money in his pockets. He then ran from the bank to a waiting vehicle driven by Tenorio. Tenorio and Heath split the proceeds of the robbery.
According to the factual resume filed in Heath’s case, he and Tenoria also robbed the FirstBank Southwest Bank, located at 5701 SW 34th Street in Amarillo, Texas, on May 20, 2013. In that robbery, Heath entered the bank carrying a short-barreled shotgun, vaulted over the teller counter and stole money. Heath then ran to the vehicle being driven by Tenoria and they fled the area.
The investigation was conducted by the FBI, the Lubbock Police Department, the Amarillo Police Department and the Lubbock County Sheriff’s Office. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Fremont Man Sentenced to 24 Years in Prison for Child Pornography ConvictionRead the Press Release
A Fremont man was sentenced to more than 24 years in prison after previously being found guilty of three counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Lehman, 57, was arrested in January after investigators determined he downloaded more than 50 images of young boys being sexually abused.
Lehman was previously sentenced to eight years in state prison for corruption of a minor in 1987 and nine years in state prison for corruption of a minor and sexual imposition in 2009, according to court documents.
This case was prosecuted by Assistant U.S Attorney Alissa Sterling following an investigation by Immigration and Customs Enforcement -- Homeland Security Investigations.
Four Sentenced in San Antonio Hermanos Pistoleros Latinos Methamphetamine Trafficking CaseRead the Press Release
In San Antonio today, Senior U.S. District Judge David Ezra sentenced four individuals for their roles in a San Antonio methamphetamine trafficking conspiracy announced United States Attorney Robert Pitman and San Antonio Police Chief William McManus.
Judge Ezra sentenced 37-year-old Serafin Villanueva, an active member of the Hermanos Pistoleros Latinos (HPL), to 130 months in federal prison; 27-year-old James Lopez to 70 months in federal prison; 46-year-old Gilbert Guzman to 50 months in federal prison; and 26-year-old Felisha Salinas to five years of probation.
Previously, all four defendants pleaded guilty to conspiracy to distribute a controlled substance from September 2012, until January 2013. Court documents reveal that in September 2012, investigators with the San Antonio Police Department Gang and Intelligence Units began investigating the defendants and others connected to a methamphetamine distribution network operating out of the custom paint and auto body shop, A-1 Kustom.
On January 28, 2013, investigators arrested Guzman, Salinas, Lopez and Villanueva following a drug transaction and seized approximately 80 grams of methamphetamine.
In a separate, but related indictment, 41-year-old Andres Sanchez, a high ranking HPL member, was sentenced last week to 63 months in federal prison for being a convicted felon in possession of a firearm.
Assistant United States Attorney David Shearer prosecuted this case on behalf of the Government.