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3 February 2014
Antelope Real Estate Professional Pleads Guilty to Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — Jun Michael Dirain, 41, of Antelope, pleaded guilty today to conspiracy to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, Delta Homes and Lending Inc., a real estate and mortgage lending company, employed Dirain and other co-defendants in the case. Between October 2004 and May 2007, Dirain, a loan processor, conspired with others to obtain home loans from mortgage lenders based upon loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status. As part of the scheme, Dirain and his co-conspirators provided money to borrowers in order to temporarily inflate the borrowers’ assets and bank account balances until the lenders approved the loans. Then the borrowers returned the money to the defendants. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the defendants’ actions, mortgage lenders and others suffered losses of at least $4 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Lee S. Bickley is prosecuting the case.
Dirain is scheduled to be sentenced by Judge William B. Shubb on April 28, 2014. Dirain faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
A status conference is scheduled for February 10, 2014, for the remaining defendants, including Moctezuma Tovar, Manuel Herrera, Ruben Rodriguez, and Jaime Mayorga, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, of Woodland, formerly a loan officer; and Christian Parada Renteria, of Sacramento, formerly a loan officer.Allen Man Sentenced for Stealing Money OrdersRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota, man convicted of Larceny was sentenced on January 24, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Clarence Yellow Hawk, Sr., age 45, was sentenced to time served, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund and $3,000 in restitution.
In March of 2012, at Pine Ridge, Yellow Hawk and another person took three money orders belonging to someone else, arranged to have them cashed, and then kept part of the money for himself.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Algona Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced February 3, 2014, to twelve years in federal prison.
Ryan Hansen, 32, from Algona, Iowa, received the prison term after a September 6, 2013, guilty plea to conspiring to distribute methamphetamine.
At the guilty plea, Hansen admitted his involvement from September 2012 through March 2013 in a conspiracy that distributed at least 500 grams of actual (pure) methamphetamine. Hansen admitted to obtaining ounces of methamphetamine in Minnesota on multiple occasions and distributing it in Iowa. On March 16, 2013, law enforcement conducted a traffic stop of the vehicle Hansen was driving. Officers located and seized several bags of “ice” methamphetamine totaling 14.76 grams of actual (pure) methamphetamine. Hansen admitted he had traveled to Minnesota to obtain the methamphetamine, transported it back to Iowa, and sold some of the methamphetamine in the Mason City area prior to being stopped by law enforcement.
Hansen was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Hansen was sentenced to 144 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Hansen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Kossuth County Sheriff’s Office and the Iowa DCI Criminalistics Laboratory.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3010.
Aisan Industry Co. Ltd. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
WASHINGTON — Aisan Industry Co. Ltd., an Obu, Japan-based company, has agreed to plead guilty and to pay a criminal fine of $6.86 million for its role in a price-fixing conspiracy involving electronic throttle bodies sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Aisan engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of electronic throttle bodies sold to Nissan Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the criminal fine, Aisan has also agreed to cooperate with the department’s ongoing auto parts investigations. The plea agreement is subject to court approval.
“The Antitrust Division will continue to hold companies accountable for anticompetitive conduct that impacts the automobile industry in the United States,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “To date, 25 companies have been charged as part of the Antitrust Division’s ongoing auto parts investigation.”According to the charges, Aisan and its co-conspirators carried out the price-fixing conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations for electronic throttle bodies. Aisan’s involvement in the conspiracy to fix prices of electronic throttle bodies lasted from at least as early as October 2003 until at least February 2010.
Aisan manufactures and sells automotive electronic throttle bodies, which are part of the air intake system in an engine that controls the amount of air flowing into an engine’s combustion chamber. By controlling air flow within an engine, the electronic throttle body controls engine speed.
Including Aisan, 25 corporations have pleaded guilty or agreed to plead guilty in the department’s investigation into price fixing and bid rigging in the auto parts industry. The companies have agreed to pay a total of more than $1.8 billion in fines. Additionally, 28 individuals have been charged.
Aisan is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the San Francisco Office of the Antitrust Division with assistance provided by the National Criminal Enforcement Section of the Antitrust Division, the Detroit Field Office of the FBI, and the FBI headquarters’ International Corruption Unit. Anyone with information concerning this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the Detroit Field Office of the FBI at 313-965-2323.
Aaron John Cashatt Sentenced to 50 Months in Prison for Credit Card Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. – On Feb. 3, 2015, Aaron John Cashatt, 35, of Phoenix, Ariz. was sentenced by the Honorable Leon Jordan, Senior U.S. District Judge, to serve 50 months in prison for his role in a credit card fraud scheme. Upon his release from prison, Cashatt will be supervised by the U.S. Probation Office for a term of three years. Additionally, he was ordered to forfeit his interest in a laundry list of items which he used to perpetrate the scheme and purchased through the scheme, including computer equipment, cellular telephones, laminating equipment for fake identification cards, credit card readers, and a credit card encoder.
Cashatt pleaded guilty in October 2014 to a federal grand jury indictment charging him with conspiracy, access device fraud, and aggravated identity theft. The indictment and plea agreement on file with the U.S. District Court detailed the scheme in which Cashatt would use stolen credit card information with a credit card encoder to re-encode credit cards with the stolen information. He and his co-conspirators would then use a credit card reader and smart phone to “dump” funds from the stolen accounts into a bank account controlled by Cashatt. He purchased some of the stolen credit card account information and obtained some of the credit card account information by breaking into hotel rooms in the Phoenix area.
U.S. Attorney Bill Killian said, “The local and federal law enforcement agencies are to be congratulated for their detection, investigation and successful prosecution of this individual. The devastating economic consequences from identity theft affect many people. Our office, working with law enforcement, will continue our aggressive efforts to uncover these crimes and prosecute the individuals responsible.”
The indictment and subsequent conviction of Cashatt was the result of an investigation conducted by the U.S. Secret Service, with assistance from the Knoxville Police Department and U.S. Marshals Service. Assistant U.S. Attorney Matthew T. Morris represented the United States.
2 February 2014
St. Thomas Man Sentenced to Three Years in Prison for Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced David Haddow, 52, of St. Thomas, Virgin Islands, to three years in prison for conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, announced United States Attorney Ronald W. Sharpe and Internal Revenue Service Special Agent in Charge Jose A. Gonzalez. The Court also sentenced Haddow to three years of supervised release, 300 hours of community service, and ordered him to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $821,094 and to the United States Internal Revenue Service in the amount of $1,104,741. Haddow was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing.
According to the evidence presented during the jury trial of Haddow and co-conspirator, Hansel Bailey, in 2004, Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted Economic Development Commission tax benefits. Bailey, 36, and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow.
According to the evidence, in the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, co-conspirator Haddow, at the direction of Bailey, transferred a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
The jury also convicted co-conspirator Bailey of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands. Bailey was sentenced on January 9, 2014, to five years in prison, and ordered to pay the same amounts in restitution to the Internal Revenue Service and the Virgin Islands Bureau of Internal Revenue. A third co-conspirator, Dwight Padilla, pleaded guilty in June 2013 to conspiracy to defraud the United States and was sentenced to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $1,296,941 to the Internal Revenue Service.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant U.S. Attorneys Bryan E. Foreman and Kim L. Chisholm.
1 February 2014
Pensacola Man Sentenced for Conspiring to Distribute Approximately $20 Million Worth of CocaineRead the Press Release
PENSACOLA, FLORIDA - - United States Attorney Pamela C. Marsh announced that Ricky L. Blankenship, age 43, of Pensacola, was sentenced today on federal charges related to a multi-year conspiracy to distribute cocaine throughout Pensacola, Florida.
The investigation into Blankenship culminated in November 2013, when Blankenship and his co-defendant were apprehended leaving a residence in which over $260,000.00 in cash was located. The co-defendant was found to be in possession of eight (8) kilograms of cocaine when stopped by law enforcement. Telephone records corroborated Blankenship’s illicit relationship with the co-defendant and the deliverer of the seized cocaine. Over the multi-year criminal conspiracy, Blankenship was responsible for over five hundred (500) kilograms of cocaine entering into the Northern District of Florida. This, coupled with his prior criminal history, was considered by the Court at sentencing.
Blankenship was sentenced by Senior United States District Judge Lacey A. Collier to life imprisonment to be followed by 10 years of supervised release. Blankenship was also ordered to forfeit multiple vehicles, gold vehicle rims, a Rolex watch, diamond earrings, six flat screen televisions, and over $260,000.00 in cash.
The prosecution was a result of a joint investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Escambia County Sheriff’s Office, and the Pensacola Police Department. The case was prosecuted by Assistant U.S. Attorney David L. Goldberg.
31 January 2014
Zapata Firearms Trafficking Ring Sentenced for Purchasing Firearms for Los ZetasRead the Press Release
LAREDO, Texas - Six members of a firearms trafficking organization operating out of the Zapata, Texas, area from approximately 2009 through mid-2011 have been ordered to federal prison, announced United States Attorney Kenneth Magidson. Claudia Medrano, 29, Maria Micaela Berrones, 26, Marlene Riojas, 32, Anna Salinas-Alaniz, 53, all of Zapata; Maria Elena Ramos, 31, of Rio Grande City; and Maria Del Carmen Carbajal, 31, of Sullivan City, all previously pleaded guilty to their roles in the firearms offenses.
Today, Senior U.S. District Judge George P. Kazen sentenced Ramos to a 60-month-term of imprisonment. Berrones will serve term of 35 months in prison, while Riojas, Salinas-Alaniz and Carbajal received respective terms of 16, 24 and 28 months. Medrano was ordered to federal prison for 42 months. All were further ordered to be on supervised release for three years following completion of their prison terms. Adriana Garza, 32, of Mission, who also pleaded guilty, will be sentenced Monday, Feb. 3, 2014.
The convictions and sentences were a result of crimes that were discovered during a three‑plus year investigation into a drug trafficking and money laundering organization based out of Zapata. That investigation led to the conviction and lengthy sentences of 16 defendants for various drug trafficking and money laundering activities in August 2013.
As part of the investigation, the defendants sentenced today had been purchasing firearms on behalf of other persons at Gladiator Guns and Ammo in Roma, Texas, and that these weapons and ammunition were ultimately being illegally smuggled to members of Los Zetas drug cartel in Mexico.
Collectively, during the course of the offenses, the defendants illegally obtained a total of 51 firearms from Gladiator Guns and Ammo, the vast majority of which were AR-15-type assault rifles. These weapons were ultimately illegally exported to Mexico. In addition, on June 8, 2010, officers caught Ramos in Zapata attempting to illegally export 3,500 rounds of ammunition and other items to Mexico. She had just obtained this ammunition from Gladiator Guns and Ammo, which included approximately 320 .50 caliber rounds, 1,260 7.62 x 39 millimeter caliber rounds, 2,000 .223 caliber rounds, one night vision spotting scope and two sets of night vision goggles.
Of the firearms the defendants illegally obtained, the Mexican military subsequently recovered approximately seven of the assault rifles at various locations in northern Mexico after military engagements between the Mexican military and members of Los Zetas.
This case is the result of an investigation conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Border Patrol, Homeland Security Investigations, Texas Department of Public Safety and the Zapata and Webb County Sheriff’s Offices. Assistant United States Attorney Arthur R. Jones is prosecuting the case.
Whitley County Woman Admits Involvement in Scheme to Steal Prescription Drugs from Pharmacy and Distribute ThemRead the Press Release
LONDON, KY - The final member of a scheme to steal prescription pills, from a Whitley County, KY., pharmacy, and provide the pills to area drug dealers has pled guilty to federal charges.
Lora Cupp, 35, of Rockholds, KY., pled guilty on Thursday to conspiracy to distribute a controlled substance.
Cupp admitted that from October 2011 to February 22, 2012, she conspired with her son, Jordan Chute, 21, and his wife at the time, Breanna Rhoades, 24, to steal approximately 6,000 oxycodone pills from Whitley Family Pharmacy.
According to court documents, Rhoades worked as a pharmacy technician and stole between 100 and 200 oxycodone pills a week. Chute assisted Rhoades in transferring the stolen pills to Cupp, who ultimately provided the pills to drug dealers in Whitley County.
Rhoades and Chute previously pled guilty to the conspiracy charge.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration jointly announced the plea today.
The investigation was conducted by the DEA, Kentucky Board of Pharmacy, London Police Department and the Williamsburg Police Department. Assistant U.S. Attorney Stephen C. Smith prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.
Cupp will appear in U.S. District Court for sentencing, on June 5, 2014. Chute is scheduled to be sentenced on February 20, 2014 and Rhoades is scheduled to be sentenced on May 15, 2014. The conspiracy charge carries a maximum penalty of 20 years.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following:
PLEA:
Ronald Simmons, 46, of Goshen, Indiana pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of taking, killing, or possessing migratory birds. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by United States Fish and Wildlife Service.Sentencing has been set for 4/8/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS: (before United States District Judge Jon E. DeGuilio)
Javier Montoya, 33, of Howe, Indiana was sentenced to 21 months imprisonment with 3 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute cocaine.According to documents filed in this case, from the fall of 2012 through spring of 2013, Montoya participated in a multi-person arrangement to distribute cocaine. Montoya both personally delivered the drugs and also had others deliver for him. This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney William Grimmer.
Tenneil Selner, 34, of South Bend, Indiana was sentenced to 21 months imprisonment with 2 years of supervised release after pleading guilty to the felony offense of distribution of pseudoephedrine.According to documents filed in this case, in April 2011, Selner purchased pseudoephedrine four (4) times at drug stores in the Northern District of Indiana. Selner then turned over this pseudoephedrine to individuals with histories of illegal drug manufacturing. This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Azzam Al-Hindi, 56, of Whiting, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of mail fraud.Sentencing has been set for 4/25/14.This charge was filed as a result of an investigation by the United States Secret Service.This case is being prosecuted by Assistant United States Attorney Randall Stewart.
Valon Tyson, 37, of Hammond, Indiana, pled guilty before Magistrate Judge Andrew Rodovich to the felony offense of making false statements to a United States Postal Inspector.Magistrate Rodovich is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 3/7/14.This charge was filed as a result of an investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation and the U.S. Department of Education-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Toi Houston.
Christopher Bour, 40, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of purchase of a child for production of child pornography, production of child pornography and possession of child pornography featuring a child under the age of twelve.Sentencing has been set for 5/15/14.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police, the Gary Police Department and the Michigan City Police Department.This case is being prosecuted by Assistant United States Attorney Jill Koster.
John Michael Johnson, 44, of Michigan City, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jose de Jesus Mariscal-Rivas, 42, of Indianapolis, Indiana, was sentenced by Chief Judge Philip Simon to 42 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Heriberto Hernandez-Fraye, 35, of East Chicago, Indiana, was sentenced by Chief Judge Philip Simon to 46 months imprisonment and 1year of supervised release after pleading guilty to illegal reentry after having been convicted of an aggravated felony.This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Philip Benson.
Kevin Brewster, 41, of Portage, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 35 years of imprisonment and 20 years of supervised release after pleading guilty to the felony offenses of production of child pornography, receipt of child pornography and possession of child pornography.According to documents filed in this case, Brewster admitted that on four separate occasions he caused a six to nine year old child to engage in sexual acts which he recorded on videotape.He also admitted to downloading child pornography from the internet and possessing that material for his own use. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation and the Portage Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
Pleas (each before Magistrate Judge Roger B. Cosbey)
Juan Pena, 21, of Sturgis, Michigan, pled guilty to the felony offense of conspiracy to distribute a controlled substance. The Magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
JD Richey, 65, of Fort Wayne, Indiana, pled guilty to the felony offense of embezzlement of labor organization funds. The Magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
DISPOSITIONS:
William Sallee, 21, of Ossian, Indiana was sentenced by District Judge Theresa L. Springmannto 46 months imprisonment, 2 years supervised release and payment of $703.19 in restitution after pleading guilty to the felony offense of retaliating against a witness, victim, or an informant.According to documents filed in this case, Sallee along with several others, including Tyson Allen (a co-defendant in United States v. Sallee, et al.), assaulted a fellow inmate in Wells County jail.The motive for the attack was retaliation against an inmate who was perceived as a “snitch” and a cooperator with law enforcement. Sallee, along with several others, threatened the assaulted inmate with further attacks should that perceived cooperation continue.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Weaubleau Man Charged with Child Porn after Texting Teenage VictimRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Weaubleau, Mo., man was charged in federal court today with producing, receiving and possessing child pornography after exchanging pornographic images with a teenage girl via cell phone.
Larry Allison, 49, of Weaubleau, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Allison remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Springfield police officers were contacted by the victim’s mother on Jan. 9, 2014, to report an incident that occurred earlier that day. The mother had observed another daughter walking home from school when Allison pulled up to her in his car and stopped. Allison apparently mistook the younger daughter for her sister, identified in the affidavit as “Minor Victim” (MV). The mother went to the victim’s school, located MV, and took her cell phone. She found several text messages and photos allegedly sent between MV and Allison.
The text messaging, which started on Jan. 4, 2014, became sexual in nature, according to the affidavit. Allison allegedly sent MV a nude photo of himself and asked her to send nude photos of herself to him, which she did.
A Springfield detective, portraying herself as MV, began texting Allison. Allison allegedly asked her sexual questions, invited her to come live with him, and suggested that she perform oral sex on his horse.
Law enforcement officers executed a search warrant at Allison’s residence on Thursday, Jan. 30, 2014. Officers questioned Allison about the text messages and the photos and placed him under arrest.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Vancouver, Washington Gang Member Sentenced to 10 Years in Prison for Gun PossessionRead the Press Release
A repeat offender with a long history of domestic violence was sentenced today to ten years in prison and three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. HERBERT D. ZENO, 32, a known gang member from the Vancouver, Washington area was convicted following a three day jury trial in November of 2013. ZENO was arrested and booked into the Clark County Jail on January 31, 2013. ZENO was charged federally on February 19, 2013. At sentencing, U.S. District Judge Ronald B. Leighton said, “You are a walking, talking crime wave…you are a bully and a predator.”
According to testimony presented at trial, on the same day of his arrest on state charges, ZENO tried to get his girlfriend to hide a firearm he had left in his car. When a court-authorized search warrant was served at ZENO’s home and a relative’s home, the firearm was discovered hidden under a dresser. ZENO has eight prior felony convictions including drug possession (2003 and 2005), robbery (2002), and illegal firearm possession (2002). ZENO has five prior convictions for domestic violence. ZENO’s prior convictions bar him from possessing firearms. ZENO has tattoos identifying him as a Bloods gang member, and the firearm was found wrapped in a red Bloods bandana – a sign of his ownership.
In asking for a ten year prison term, prosecutors told the court, “This case is the fourth time Zeno has been convicted of unlawful firearm possession. It is dangerous for any felon to possess a gun. When the felon is a man like Zeno – a gang member with a history of brutal violence – it is simply terrifying. His conduct in this case is a continuation of Zeno’s patterns – his pattern of crime, his pattern of gun possession, his pattern of abuse and exploitation of the women in his life.”
The case was investigated by the FBI’s Safe Streets Gang Task Force, which contains officers from the Vancouver Police Department and Clark County Sheriff’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the investigation.
The case was prosecuted by Assistant United States Attorney Michael Dion and former Assistant United States Attorney Thomas Bates.
Vancouver, Washington Gang Member Sentenced to 10 Years in Prison for Gun PossessionRead the Press Release
A repeat offender with a long history of domestic violence was sentenced today to ten years in prison and three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. HERBERT D. ZENO, 32, a known gang member from the Vancouver, Washington area was convicted following a three day jury trial in November of 2013. ZENO was arrested and booked into the Clark County Jail on January 31, 2013. ZENO was charged federally on February 19, 2013. At sentencing, U.S. District Judge Ronald B. Leighton said, “You are a walking, talking crime wave…you are a bully and a predator.”
According to testimony presented at trial, on the same day of his arrest on state charges, ZENO tried to get his girlfriend to hide a firearm he had left in his car. When a court-authorized search warrant was served at ZENO’s home and a relative’s home, the firearm was discovered hidden under a dresser. ZENO has eight prior felony convictions including drug possession (2003 and 2005), robbery (2002), and illegal firearm possession (2002). ZENO has five prior convictions for domestic violence. ZENO’s prior convictions bar him from possessing firearms. ZENO has tattoos identifying him as a Bloods gang member, and the firearm was found wrapped in a red Bloods bandana – a sign of his ownership.
In asking for a ten year prison term, prosecutors told the court, “This case is the fourth time Zeno has been convicted of unlawful firearm possession. It is dangerous for any felon to possess a gun. When the felon is a man like Zeno – a gang member with a history of brutal violence – it is simply terrifying. His conduct in this case is a continuation of Zeno’s patterns – his pattern of crime, his pattern of gun possession, his pattern of abuse and exploitation of the women in his life.”
The case was investigated by the FBI’s Safe Streets Gang Task Force, which contains officers from the Vancouver Police Department and Clark County Sheriff’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the investigation.
The case was prosecuted by Assistant United States Attorney Michael Dion and former Assistant United States Attorney Thomas Bates.
Two Sioux Falls Men Indicted for Possession with Intent to Distribute Marijuana and HashishRead the Press Release
United States Attorney Brendan V. Johnson announced that two men from Sioux Falls, South Dakota, have been indicted by a federal grand jury for two counts of Possession with Intent to Distribute a Controlled Substance.
Dalton Rogers, age 23, and Ryan Quarve, age 23, were indicted by a federal grand jury on January 15, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno on January 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years of custody and/or a $250,000 fine, at least 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
On October 18, 2013, in Lyman County, South Dakota, a traffic stop by the South Dakota Highway Patrol found that Rogers and Quarve knowingly and intentionally possessed with intent to distribute marijuana and hashish.The charges are merely an accusation and Rogers and Quarve are presumed innocent unless and until they are proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
Rogers and Quarve were released on bond pending trial. A trial date has not been set.
Two Dallas-Area Residents Admit Defrauding Investors in Gold Purchase SchemeRead the Press Release
Defendant Arrested at JFK International Airport Just Prior to
Boarding Flight to GhanaDALLAS — Two recent, Dallas-area residents, Annetta Lou Smith, aka “Annette Crawford,” 49, and Warren Michael Hills, 54, have each pleaded guilty to conspiracy to commit wire fraud stemming from a gold purchase investment fraud scheme they ran in November and December 2010. Hills pleaded guilty yesterday, before U.S. District Judge Reed C. O’Connor, to count one of the indictment and was remanded into federal custody. Smith entered her plea earlier this month to a superseding information. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, on August 27, 2013, Smith was informed that an indictment charging her and Hills with fraud would be presented to a federal grand jury in Dallas the following week. On Sunday evening, September 1, 2013, Smith was arrested on a criminal complaint, by FBI agents at JFK International Airport where she was awaiting a flight, she had booked to Ghana, scheduled to depart later that evening. She has been in custody since that time.
According to plea papers filed in the case, Smith and Hills worked together to recruit investors to purchase gold from the country of Ghana, located in West Africa. Smith and Hills represented to two particular investors that if these investors wired their funds to a specific bank account in Ghana, then they would cause the promised (and paid for) gold to be shipped to the investors. These two particular investors suffered substantial financial losses as a direct result of the failure of Smith and Hills to cause all of the promised gold to be delivered to them.
Although both Smith and Hills knew that the investors had fully paid for all of their promised gold, they also knew that all of the promised gold was ultimately not shipped and was never going to be shipped to them. Rather than be truthful to the investors, Smith and Hills made false representations to them promising the remaining gold would be shipped.
According to the indictment, Smith and Hills caused substantial monetary losses to investors, including approximate total net losses of $113,483 to investor P.G. and approximately total net losses of $325,000 to investor M.W.
Hills faces a maximum statutory penalty of 20 years in federal prison, and Smith faces a maximum statutory penalty of five years in federal prison. Each could also be fined up to $250,000 and ordered to pay restitution. Judge O’Connor will sentence Hills on May 15, 2014, and Smith on April 24, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Three Tennessee Men Plead Guilty in $18 Million Ponzi SchemeRead the Press Release
Top officers and a salesman for an investment company based in Nashville, Tenn., have pleaded guilty for their roles in an $18 million Ponzi scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the IRS-Criminal Investigation in Nashville made the announcement today after the pleas were accepted by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
Terry Kretz, 61, of Gallatin, Tenn., the chief executive officer for Hanover Corporation, and Daryl Bornstein, 54, of College Grove, Tenn., a Hanover salesman, pleaded guilty today to securities fraud, money laundering, and conspiracy to commit securities fraud, wire fraud and mail fraud. On Jan. 29, 2014, Hanover’s chief financial officer, Robert Haley, 54, pleaded guilty to the same charges. Kretz and Haley also pleaded guilty to mail fraud.
“The three men who pleaded guilty today schemed, lied, and stole at the expense of innocent investors,” said Acting Assistant Attorney General Raman. “They ran a classic Ponzi scheme until the bottom fell out, and their clients – people looking to provide stability for their families or save for their retirements – suffered serious financial harm. We will stay vigilant to ensure that fraudsters like Kretz, Bornstein and Haley are held accountable.”
“Ponzi schemes typically leave unsuspecting investors in financial ruin and many have lost their life’s savings,” said U.S. Attorney Rivera. “The U.S. Attorney’s Office and our law enforcement partners will continue to place a great emphasis on educating the public about investment fraud and will vigorously pursue those who prey upon unsuspecting investors.”
“It is a priority of the FBI to target fraudsters who use criminal investment and Ponzi schemes to scam innocent working families and retirees out of their hard earned money,” said FBI SAC McCall. “These pleas demonstrate the effectiveness of state and federal law enforcement working together to protect the public from financial fraudsters and bring those responsible to justice.”
“Promoters of Ponzi schemes prey upon trusting investors and then steal their hard earned money,” said IRS-CI SAC Henry. “Investors should be wary of programs promising unbelievable returns and investments should be looked at carefully. Remember the old cliché, ‘If it seems too good to be true, it probably is’.
The three men were indicted by a federal grand jury on July 27, 2011. Sentencing is scheduled for April 2, 2014.
According to court documents, the defendants carried out the fraudulent scheme from October 2004 through August 2006. During that period, Kretz and Bornstein offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates. Through representations in the promissory notes, as well as their own discussions with investors, Kretz and Bornstein told clients that their money would be used for specific purposes, such as investing in stock options and startup companies. In fact, as all three defendants knew, more than half the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead, or to benefit the defendants personally. Such personal benefits included the purchase of a $600,000 residential building lot in the name of Kretz personally, contributing more than $176,000 to a church, and paying for golf memberships.
Kretz and Bornstein also issued Hanover promissory notes to reimburse individuals who had previously lost money investing in ventures recommended by Bornstein before he joined Hanover. In some cases, these old investors contributed new money to Hanover, while in other cases, they invested nothing. In both cases, money from new investors in Hanover was used to make payments on promissory notes issued to cover non-Hanover losses without the Hanover investors’ knowledge.
Haley, in his role as chief financial officer, furthered the fraud by sending note holders checks that purported to be for “interest” — but were in fact simply transfers of money recently taken in from new investors. Haley also prepared a false balance sheet that overstated Hanover’s financial health and that he knew would be shown to note holders.
The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Assistant United States Attorney Scarlett S. Nokes of the Middle District of Tennessee and Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section.
Today’s convictions are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.govThree Tennessee Men Plead Guilty in $18 Million Ponzi SchemeRead the Press Release
WASHINGTON – Top officers and a salesman for an investment company based in Nashville, Tenn., have pleaded guilty for their roles in an $18 million Ponzi scheme.
U.S. Attorney David Rivera of the Middle District of Tennessee, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the IRS-Criminal Investigation in Nashville made the announcement today after the pleas were accepted by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
Terry Kretz, 61, of Gallatin, Tenn., the chief executive officer for Hanover Corporation, and Daryl Bornstein, 54, of College Grove, Tenn., a Hanover salesman, pleaded guilty today to securities fraud, money laundering, and conspiracy to commit securities fraud, wire fraud and mail fraud. On Jan. 29, 2014, Hanover’s chief financial officer, Robert Haley, 54, pleaded guilty to the same charges. Kretz and Haley also pleaded guilty to mail fraud.
“Ponzi schemes typically leave unsuspecting investors in financial ruin and many have lost their life’s savings,” said U.S. Attorney Rivera. “The U.S. Attorney’s Office and our law enforcement partners will continue to place a great emphasis on educating the public about investment fraud and will vigorously pursue those who prey upon unsuspecting investors.”
“The three men who pleaded guilty schemed, lied, and stole at the expense of innocent investors,” said Acting Assistant Attorney General Raman. “They ran a classic Ponzi scheme until the bottom fell out, and their clients – people looking to provide stability for their families or save for their retirements – suffered serious financial harm. We will stay vigilant to ensure that fraudsters like Kretz, Bornstein and Haley are held accountable.”
“It is a priority of the FBI to target fraudsters who use criminal investment and Ponzi schemes to scam innocent working families and retirees out of their hard earned money,” said FBI SAC McCall. “These pleas demonstrate the effectiveness of state and federal law enforcement working together to protect the public from financial fraudsters and bring those responsible to justice.”
“Promoters of Ponzi schemes prey upon trusting investors and then steal their hard earned money,” said IRS-CI SAC Henry. “Investors should be wary of programs promising unbelievable returns and investments should be looked at carefully. Remember the old cliché, ‘If it seems too good to be true, it probably is’.”
The three men were indicted by a federal grand jury on July 27, 2011. Sentencing is scheduled for April 2, 2014.According to court documents, the defendants carried out the fraudulent scheme from October 2004 through August 2006. During that period, Kretz and Bornstein offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates. Through representations in the promissory notes, as well as their own discussions with investors, Kretz and Bornstein told clients that their money would be used for specific purposes, such as investing in stock options and startup companies. In fact, as all three defendants knew, more than half the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead, or to benefit the defendants personally. Such personal benefits included the purchase of a $600,000 residential building lot in the name of Kretz personally, contributing more than $176,000 to a church, and paying for golf memberships.
Kretz and Bornstein also issued Hanover promissory notes to reimburse individuals who had previously lost money investing in ventures recommended by Bornstein before he joined Hanover. In some cases, these old investors contributed new money to Hanover, while in other cases, they invested nothing. In both cases, money from new investors in Hanover was used to make payments on promissory notes issued to cover non-Hanover losses without the Hanover investors’ knowledge.
Haley, in his role as chief financial officer, perpetuated the fraud by sending note holders checks that purported to be for “interest” — but were in fact simply transfers of money recently taken in from new investors. Haley also prepared a false balance sheet that overstated Hanover’s financial health and that he knew would be shown to note holders.
The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Assistant United States Attorney Scarlett S. Nokes of the Middle District of Tennessee and Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section.
Today’s convictions are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Executive Office for Immigration Review Announces Availability of Country Conditions Resource Information on the InternetRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the new Country Pages section of the Virtual Law Library, the agency’s online legal research resource. The new section is an extensive collection of information about the conditions in countries around the world. This unique educational resource, containing publicly-available documents that report on multiple aspects of country conditions, could be relevant to respondents in proceedings before the immigration courts and the Board of Immigration Appeals. The release of these pages is a new effort to provide the public with access to one website that hosts detailed information from many sources.
“EOIR is constantly evaluating its programs to improve the way we serve the public,” said EOIR Director Juan P. Osuna. “The release of country conditions information will allow the public ease of access to more specific and complete information to aid parties in preparing their cases before EOIR’s tribunals. I am so pleased to be able to offer this tremendous resource to the public.”
EOIR’s new section hosts information on 54 countries, including documents addressing areas such as political parties, human rights, religion, sexual orientation and trafficking, as well as maps, citizenship documents, and relevant laws. Information is culled from reports from multiple sources, including the U.S. Government, the United Nations, foreign governments, non-governmental organizations, and media outlets.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Swedish Company Founder Indicted for Operating $17 Million Ponzi SchemeRead the Press Release
GAINESVILLE, FLORIDA – Pamela C. Marsh, the United States Attorney for the Northern District of Florida, announced today that a Gainesville grand jury returned a seven-count indictment against Samuel J. Cusumano, 64, of Orlando, Florida, charging him with wire fraud violations of Title 18, United States Code, Section 1343.
The indictment alleges that Cusumano, as the founder and Chairman of the Board of Directors of the Swedish company Storehouse Credit Union Ek., promoted and disseminated materials claiming to offer its members the opportunity to obtain high-yield investments. The materials purported to provide a variety of financial benefits and services, as well as falsely represented that the accounts yielded monthly returns in excess of 5 percent. Through these misrepresentations, Cusumano induced investors into making more than $17 million in payments and deposits to Storehouse Credit Union Ek., through which he diverted more than $600,000 to his personal benefit.
If convicted, Cusumano faces a maximum of 20 years in prison for each count in the indictment.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the FBI.The case is being prosecuted by Assistant U.S. Attorney Gregory McMahon.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sterling Man Sentenced on Bribery ChargesRead the Press Release
Defendant bribed DMV employee to process applications for over 100 illegal aliens
ALEXANDRIA, Va. – Jose Calderon, 42, of Sterling, Va., was sentenced today to 30 months in prison, followed by three years of supervised release, for engaging in a bribery scheme that resulted in the issuance of driver’s licenses to illegal aliens.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
“Schemes such as this, trading cash for DMV documents, undermine the enforcement of our immigration laws and potentially threaten public safety,” said Acting U.S. Attorney Boente. “The U.S. Attorney’s Office is committed to combatting public corruption at all levels of government, and we thank our partners at the FBI for their commitment to this issue.”
“Allegations of public corruption will not be overlooked or downplayed, and those who take part in such activity will be held responsible for their crimes,” said Assistant Director in Charge Parlave. “Citizens who observe behavior like this are encouraged to call the FBI.”
On Nov. 6, 2013, Calderon pleaded guilty to conspiracy to bribe an employee at Virginia’s Department of Motor Vehicles (DMV), a state agency that receives federal funding.
According to court documents, from September 2007 to July 2010, Calderon solicited cash payments from illegal aliens in return for helping them secure DMV documents for which they were not eligible. After Calderon collected cash from ineligible applicants, he provided a DMV employee, Maria Cavallaro, 45, of Springfield, Va., a portion of the money to induce her to falsely verify that the ineligible applicants had produced documentation establishing their eligibility for the requested DMV documents. As part of this scheme, Calderon brought more than 100 ineligible applicants to the DMV Service Center located at the Fair Oaks Mall to obtain driver’s licenses, learner’s permits and identification cards.
Maria Cavallaro pleaded guilty to participating in the conspiracy and also was sentenced during court proceedings today. A third defendant, Noemi Barboza, 42, of Sterling, Va., previously entered a guilty plea to the bribery conspiracy, and she will be sentenced on Feb. 14, 2014.
This case was investigated by the Federal Bureau of Investigation with assistance from the Department of Homeland Security, Homeland Security Investigations. Assistant United States Attorney Rebeca H. Bellows prosecuted the case on behalf of the United States.
Any person who believes they may have information regarding public corruption in the northern Virginia area is encouraged to contact the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.South Suburban Father and Son Indicted for Allegedly Operating $2 Million Synthetic Marijuana Mail Order BusinessRead the Press Release
CHICAGO — A father and son were indicted on federal charges for allegedly operating a nationwide mail order synthetic marijuana business in the south suburbs that netted them approximately $2 million over three years, federal law enforcement officials announced today. Following an undercover investigation, JAMES M. BOLIN and his son, JAMES P. BOLIN, were charged with multiple offenses relating to misbranding and trafficking drugs, and James M. Bolin was also charged with money laundering. Both defendants allegedly defrauded and misled the Food and Drug Administration and the Drug Enforcement Administration regarding the drug status of their purported “herbal” products to avoid regulation of the drugs they sold.
Federal agents seized hundreds of packages of allegedly illegal synthetic cannabinoids, or a version of the psychoactive component of marijuana, as well as $165,247, on June 4, 2013, when they executed a search warrant at James M. Bolin’s former residence in Manhattan, Ill., where he operated a business known as “Herbal City,” “H City,” “Shop HC,” and “Show Off City.” The defendants allegedly advertised the sale of misbranded drugs online and created videos to promote human consumption of their products.
James M. Bolin, also known as “James Matthew,” 49, and his son, James P. Bolin, aka “Jimmy,” 31, both of New Lenox, were each charged with one count of conspiracy to commit misbranding of drugs, four counts of placing misbranded drugs into commerce, five counts of receiving and delivering misbranded drugs, two counts of conspiracy to possess and distribute synthetic marijuana products, six counts of distributing controlled substances or analogues, and one count of attempting to do so. James M. Bolin alone was also charged with seven counts of money laundering.
The 26-count indictment, which also seeks the forfeiture of approximately $2 million in illegal proceeds, was returned by a federal grand jury yesterday. The Bolins will be arraigned on a date yet to be determined in U.S. District Court.
According to the indictment, between January 2010 and June 2013, the defendants conspired to introduce, receive and deliver misbranded drugs into interstate commerce. The Bolins bought and sold products that they and their suppliers ― located in California, Florida, and New York ― falsely referred to as “incense,” “herbal incense,” “herbal potpourri,” and other misleading names, but, in fact, the drugs were falsely labeled, indicating they were not intended for human consumption when they actually were. The packages also failed to bear labels identifying the name and quantity of active ingredients, as well as the name and location of the manufacturer, packer, or distributor, the indictment alleges.
The indictment identifies the following products that the Bolins allegedly bought, marketed, and sold as misbranded drugs: G-20 Herbal Potpourri, Joker Herbal Potpourri, Caution Blitzen Herbal Potpourri, Kronik Kryponite Herbal Potpourri, AK-47 24 Karat Gold Potpourri, ZenBio Sonic Zero Cherry, ZenBio Sonic Zero Blueberry, Hip Hop, Darkness Prince, Out World, Cherry Bomb, Caution Platinum Super Strong Incense, Caution Silver Super Strong Incense, Diablo Botanical Incense, Bizarro, Smoking Santa, Mr. Happy and OMG Next Generation.
The indictment alleges that the defendants used the U.S. Postal Service and commercial carriers to ship and receive their illegal products and leased mailboxes in commercial stores in Frankfort and New Lenox. They allegedly paid at least $1 million to out-of-state suppliers for the misbranded drugs they obtained, while collecting approximately $3 million in revenue from customers between 2010 and June 2013.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Gary Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago; John Redmond, Special Agent-in-Charge of the Food and Drug Administration’s Office of Criminal Investigations in Chicago; Jack Riley, Special Agent-in-Charge of the Chicago office of the Drug Enforcement Administration; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois State Police also assisted in the investigation, which was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
The government is being represented by Assistant U.S. Attorney Matthew Schneider.
Each count in the indictment contain various maximum penalties, ranging from three years in prison on the misbranded drug counts to 20 years in prison on the controlled substance counts and some of the money laundering counts against James M. Bolin. Each count also carries a maximum fine ranging between $250,000 and $1 million. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Somali Immigrant Sentenced for Providing Support to Foreign TerroristsRead the Press Release
SAN DIEGO – Ahmed Nasir Taalil Mohamud, a cabdriver from Anaheim, was sentenced today to six years in prison for his part in a San Diego-based conspiracy to provide material support to the terrorist group al-Shabaab.
Nasir is the last of four defendants to be sentenced by U.S. District Judge Jeffrey T. Miller. The others were sentenced in November 2013, including San Diego cabdriver Basaaly Saeed Moalin to 18 years in prison; Mohamed Mohamed Mohamud, the imam at a popular mosque frequented by the city’s immigrant Somali community, to 13 years in prison; and Issa Doreh, who worked at a money transmitting business that was the conduit for moving the illicit funds, to 10 years in prison.
Nasir and his co-conspirators were found guilty during a three-week trial in February. The United States presented evidence that Nasir, Moalin, Mohamud and Doreh conspired to provide money to al-Shabaab, a violent and brutal militia group that engages in suicide bombings, targets civilians for assassination, and uses improvised explosive devices. In February, 2008, the U.S. Department of State formally designated al-Shabaab as a foreign terrorist organization.
During the trial, the government contended that Nasir conspired to collect money from donors in Orange County as part of the conspiracy to support al-Shabaab.
During today’s sentencing hearing, Judge Miller acknowledged that Nasir was the least culpable member of the conspiracy and he noted the defendant’s background as a refugee from war-torn Somalia. Still, the judge said, “These offenses were very serious.”
This case was prosecuted in federal court in San Diego by Assistant U.S. Attorneys William Cole and Caroline Han and Department of Justice Trial Attorney Steven Ward. This case was investigated by the San Diego Joint Terrorism Task Force; the Federal Bureau of Investigation; the Department of Homeland Security, Immigration and Customs Enforcement; and the Department of Homeland Security, Customs and Border Protection.
DEFENDANTS Criminal Case No. 10CR4246-JMAhmed Nasir Taalil Mohamud Basaaly Saeed Moalin Mohamed Mohamed Mohamud Issa Doreh
SUMMARY OF CHARGESCount 1 (all defendants) : Title 18, United States Code, Section 2339A(a)(1) - Conspiracy to provide material support to terrorists; Maximum penalties: 15 years in prison
Count 2 (all defendants): Title 18, United States Code, Section 2339B(a)(1) – Conspiracy to provide material support to foreign terrorist organization; terrorists; Maximum penalties: 15 years in prison
Count 3 (all defendants): Title 18, United States Code, Section 1956(h) – Conspiracy to launder monetary instruments; Maximum penalties: 15 years in prison
Count 4 (Basaaly Moalin) Title 18, United States Code, Section 2339A(a) – Providing material support to terrorists; Maximum penalties: 15 years in prison
Count 5 (defendants Basaaly Moalin, Mohamed Mohamed Mohamud and Issa Doreh) Title 18, United States Code, Section 2339B(a)(1) – Providing material support to foreign terrorist organization; Maximum penalties 15 years in prison
INVESTIGATING AGENCIESSan Diego Joint Terrorism Task Force
Federal Bureau of Investigation
Homeland Security Investigations, Immigration and Customs Enforcement
Homeland Security Investigations, Customs and Border ProtectionSheldon Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced January 8, 2014, to ten years in federal prison.
Leroy Raffaelli, 44, from Sheldon, Iowa, received the prison term after a September 25, 2013, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Raffaelli admitted his involvement in a conspiracy that distributed at least 50 grams of actual (pure) methamphetamine from February 2011 through February 2013. On one occasion in January 2013, in Sheldon, Raffaelli distributed 9.76 grams of actual (pure) methamphetamine to an individual cooperating with law enforcement.
Raffaelli was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Raffaelli was sentenced to 120 months’ imprisonment. A special assessment of $100. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Raffaelli is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Clay County Sheriff’s Office, Iowa Department of Narcotics Enforcement, and Iowa Division of Criminalistics Laboratory.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4013.
Seven Plead Guilty in Widening Bribery and Kickback CaseRead the Press Release
Six former government contractors and a former Defense Department employee who called himself the “Godfather of Camp Pendleton” have entered guilty pleas in federal court in connection with a scheme involving bribery and kickbacks at federal facilities.
The guilty pleas, which also include two corporations, took place over a span of 10 days, culminating with the admissions today of subcontractors Paul Dana Kay of PK Excavation and Manuel Ramirez of MRN Construction, Inc., before U.S. Magistrate Judge David H. Bartick to Anti-Kickback Act violations.
Likewise, on Tuesday of this week, subcontractors Gerardo Mercado and Raul Mercado of Blue Ocean Construction, Inc., entered guilty pleas before Judge Bartick. Last week, former U.S. Department of Defense employee Natividad “Nate” Lara Cervantes, the self-described “Godfather,” as well as government prime contractors Hugo Hernandez Alonso and Bayani Yabut Abueg, Jr., and their companies, Hugo Alonso, Inc. (“HAI”) and MBR Associates, Inc. (“MBRA”) admitted crimes as well.
According to court records, Cervantes used his position at Camp Pendleton to solicit bribes from construction companies HAI and MBRA seeking to do business on the base, and referred to himself as the “Godfather of Camp Pendleton.” At least as early as September 2008, Cervantes admitted using his position supervising construction and service contracts to seek bribes from Alonso and Abueg, on behalf of either HAI or MBRA, to do business at Camp Pendleton. In return for these contracts, Cervantes received cash payments from Alonso and Abueg and remodeling work on a condominium that was paid for by HAI.
As part of his plea agreement, Cervantes admitted that as early as 2008, he agreed to accept a bribe of $25,000 to assist Alonso and HAI in obtaining a $3.5 million government contract to install flooring at Camp Pendleton. In arranging for a bribe payment, Cervantes, through a third party conduit, requested that Alonso “have the 25 package” (code for the $25,000 bribe) available on September 5, 2008. On that same day, Alonso provided the $25,000 to the third party conduit for delivery to Cervantes. Cervantes and Alonso admitted that Alonso paid Cervantes at least $74,000 in bribes between 2008 and 2011. Cervantes and Abueg, acting on behalf of HAI, also admitted exchanging an additional $20,000 in bribes during this time, all of which was approved by Alonso. Alonso’s company, HAI, also entered a guilty plea regarding the paying of bribes to Cervantes.
The bribes to Cervantes were not limited to just HAI. Both Cervantes and Abueg admitted to exchanging a bribe in 2011 related to the awarding of a $3 million contract at Camp Pendleton to Abueg’s company, MBRA. Further, Cervantes admitted that on March 26, 2013, he met with Abueg, who agreed to pay Cervantes a $40,000 bribe in exchange for assistance in obtaining a new $4 million contract at Camp Pendleton for MBRA. The bribe was to be structured over a number of payments. The first payment was scheduled for March 28, 2013, with the balance of the bribe to be paid after the contract was awarded.
On March 28, 2013, Abueg met with Cervantes at a local business on Miramar Road in San Diego, California, to make the first payment that was discussed earlier in the week. During this meeting, Cervantes discussed, among other things, the payment schedule and the source of funds for the bribe payments. At the end of the meeting, Abueg handed Cervantes an envelope containing $10,000 cash. At that point, federal agents intervened.
In addition to the bribery scheme, Alonso and Abueg engaged in a vast scheme to solicit kickbacks from subcontractors in exchange for favorable treatment in the awarding of subcontracts on various government contracts awarded to HAI and MBRA. Some of these government contracts were the same contracts at Camp Pendleton improperly awarded to HAI and MBRA with Cervantes’ help in exchange for bribes. Abueg, as a representative of HAI and then MBRA, admitted that between 2008 and 2011, he solicited, received, and accepted over $539,000 kickbacks from various subcontractors.
The kickbacks typically consisted of cash given to Abueg or to Abueg’s son, and checks issued to Abueg, his son, or his daughter, all in an attempt to conceal the nature of the kickbacks. Other kickbacks to Abueg consisted of subcontractors performing discounted work at the personal residences of Abueg’s wife, relatives, and associates, including Cervantes. For some of the kickbacks, Abueg requested that the subcontractors inflate their original estimate for certain work associated with the government contract. The inflated amount used for the kickback was then improperly included in corporate books and records as a legitimate business expense.
Separately, Alonso, as representative of HAI, admitted that in 2009, he accepted a kickback in the form of discounted remodeling of his Chula Vista residence by a subcontractor employee. Abueg’s and Alonso’s companies, MBRA and HAI, respectively, also entered guilty pleas regarding the solicitation and acceptance of kickbacks.
The four subcontractors who pleaded guilty this week admitted paying tens of thousands of dollars in kickbacks for favorable treatment in their subcontracts with HAI or MBRA. For example, Kay admitted to paying Abueg at least $50,000 in kickbacks, and the Mercados admitted to paying Abueg over $44,000 in kickbacks.
“The public confidence of citizens in their government is seriously undermined when federal employees and contractors engage in deceitful, corrupt practices for personal gain,” said U.S. Attorney Laura Duffy. “Corruption exacts a price, and those costs are ultimately born by honest taxpayers and forthright vendors. This office will continue to vigorously prosecute and hold accountable all those who seek personal enrichment at the public’s expense.”
FBI Special Agent in Charge Daphne Hearn commented, “The FBI is committed to working with our law enforcement partners in rooting out fraudulent schemes that defraud the Department of Defense and ultimately American taxpayers. Today’s guilty pleas are an example of that continued commitment to the American public to protect our precious tax dollars from waste, fraud, and abuse.”
Acting Special Agent in Charge of Internal Revenue Service (IRS) Criminal Investigation for the Los Angeles Field Office, Joel P. Garland stated, “Today’s court action reaffirms IRS Criminal Investigation’s role in combating tax and other financial crimes stemming from bribery of public officials.”
Small Business Administration Inspector General Peggy E. Gustafson said: “There is zero tolerance for corruption in SBA’s set-aside contracting programs. We will aggressively pursue allegations of fraud and corruption in these programs and seek justice on behalf of taxpayers. I want to thank the U.S Attorney’s Office and our law enforcement partners for their dedication and hard work throughout this investigation.”
“The special agents in my office work hard to fight fraud and protect taxpayer dollars,” said Inspector General Brian D. Miller of the General Services Administration. “We will continue to actively investigate GSA contractors whose ‘business as usual’ involves bribes and kickbacks.”
Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service (DCIS) Western Field Office commented, “We are committed to aggressively pursuing those who abuse the public trust and ultimately undermine the efforts of the Department of Defense to support our warfighters.” Special Agent in Charge Susan M. Simon of the Naval Criminal Investigative Service (NCIS) Southwest Field Office observed, “This investigation once again highlights the excellent cooperation between multiple investigative agencies working together in the pursuit of justice. Combating procurement fraud perpetrated by U.S. Navy and U.S. Marine Corps contract companies and government contracting personnel remains a top priority for the Naval Criminal Investigative Service. It has been a pleasure for NCIS to have worked so closely with our federal partners, including the United States Attorney's Office, in the successful resolution of this case. We look forward to building on the excellent relationships forged throughout the course of this investigation.”
Cervantes, Alonso and Abueg are scheduled to next appear in court for sentencing before U.S. District Judge Anthony J. Battaglia on April 18, 2014. Kay, Ramirez, Gerardo Mercado, and Raul Mercado are all scheduled to appear for sentencing before Judge Battaglia on April 25, 2014.
The public is encouraged to report possible public corruption criminal activity by calling the FBI’s public corruption/border corruption hotline at (877) NO-BRIBE or (877) 662-7423, or by contacting the Department of Defense Hotline at (800) 424-9098 or email: [email protected].
DEFENDANT Case Number: 13cr1345AJBLara Cervantes Natividad
DEFENDANT Case Number: 14cr0120-AJBHugo Hernandez Alonso
DEFENDANT Case Number: 14cr0144-AJBBayani Yabut Abueg, Jr.
DEFENDANT Criminal Case No. 14cr0180-AJBGerardo Ricardo Mercado
DEFENDANT Criminal Case No. 14cr0181-AJBRaul Mercado
DEFENDANT Criminal Case No. 14cr0187-AJBPaul Dana Kay
DEFENDANTS Criminal Case No. 14cr0213-AJBManuel Ramirez
CORPORATE DEFENDANT Case Number: 14cr0120-AJBHugo Alonso, Inc.
CORPORATE DEFENDANT Case Number: 14cr0144-AJBMBR Associates, Inc.
SUMMARY OF CHARGESTitle 18, United States Code, Section 201(b)(2)—Bribery of public official Maximum penalties: 15 years’ imprisonment, $250,000 fine, or three times the monetary equivalent of the bribe (Defendant Cervantes only)
Title 18, United States Code, Section 371 – Conspiracy to commit bribery of public official Maximum penalties for individual defendants: 5 years’ imprisonment, $250,000 fine, or twice the gross amount of defendant’s pecuniary gain from the offense (Defendants Cervantes, Alonso, and Hugo Alonso, Inc.)
Title 41, United States Code, Sections 8701, 8702, and 8707 – Anti-Kickback Act Violation Maximum penalties for individual defendants: 10 years’ imprisonment, $250,000 fine, or twice the gross amount of defendant’s pecuniary gain from the offense (Defendants Alonso, Hugo Alonso, Inc., Abueg, MBR Associates, Inc., Gerardo Mercado, Raul Mercado, Kay, Ramirez)
Title 26 United States Code, Section 7206(1) – Filing a False Tax Return Maximum penalties: 3 years imprisonment, $250,000 fine, or twice the gross amount of the tax loss from the offense (Defendant Abueg only)
INVESTIGATING AGENCIESFederal Bureau of Investigation
Naval Criminal Investigative Service
Internal Revenue Service, Criminal Investigation
Department of Defense Criminal Investigative Service
General Services Administration, Office of Inspector General
Small Business Administration, Office of Inspector GeneralRussian National Sentenced to 30 Months in Prison for $1 Million Trading Account Hack, Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Russian national living in New York was sentenced today to 30 months in prison for conspiring with others to hack into retail brokerage accounts and execute sham trades, New Jersey U.S. Attorney Paul J. Fishman announced.
Petr Murmylyuk, 33, of Brooklyn, N.Y., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with conspiracy to commit securities fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Murmylyuk admitted that he participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms. Members of the conspiracy first gained unauthorized access to the online accounts of brokerage firm customers. The conspirators then used stolen identities to open additional accounts – referred to in the Information as “Profit Accounts” – at other brokerage houses. They then caused the victims’ accounts to make unprofitable and illogical securities trades with the Profit Accounts, leading to losses in the victims’ accounts and gains in the Profit Accounts. One version of the fraud involved causing the victims’ accounts to sell options contracts to the Profit Accounts, then to purchase the same contracts back minutes later for many times the price.
The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited. The conspirators then caused the proceeds of the sham trades to be transferred from the Profit Accounts into those accounts, where the stolen money could be withdrawn. The scheme caused combined losses to Scottrade, E*Trade, Fidelity, Schwab and other affected brokerage firms of approximately $1 million.
In addition to the prison term, Judge Salas sentenced Murmylyuk to serve three years of supervised release and ordered him to pay $505,357.79 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Toni M. Weirauch, with the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the leadership of its Regional Director Daniel M. Hawke, and the Justice Department’s Computer Crime and Intellectual Property Section for their assistance in the investigation, as well as the Manhattan District Attorney’s Office, under the direction of District Attorney Cyrus R. Vance Jr., for its contributions and cooperation in coordinating parallel investigations.
The government is represented by Assistant U.S. Attorney Christopher J. Kelly, Chief of the Economic Crimes Unit in Newark.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
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Defense counsel: Bradley L. Henry Esq., New YorkRoxbury Correctional Institution Sergeant Convicted of Obstructing JusticeRead the Press Release
The Justice Department, the U.S. Attorney’s Office for the District of Maryland and the FBI announced that Josh Hummer, a sergeant at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., was convicted today by a federal jury of obstructing justice during the investigation of an assault against an inmate.
Hummer faces a statutory maximum of 20 years when he is sentenced by U.S. District Judge James K. Bredar. The assault against the inmate occurred on March 9, 2008.
In related cases, Judge Bredar has accepted guilty pleas from former RCI officers Ryan Lohr, Dustin Norris, Tyson Hinckle, Reginald Martin, Michael Morgan, Edwin Stigile, Lanny Harris, Philip Mayo, Jeremy McCusker, Walter Steele, Keith Morris and Robert Harvey. Two former RCI officers previously pleaded guilty in state court.
Two current or former RCI officers still face federal charges in connection with this incident. The officers, who are presumed innocent until proven guilty, will stand trial in February.
The investigation by the Fredrick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorneys Christine Siscaretti and Sanjay Patel for the Civil Rights Division.
Rosebud Woman Charged with ArsonRead 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 Arson.
Mary Peneaux, age 25, was indicted on November 14, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 28, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an incident on March 23, 2013, when Peneaux allegedly set fire to and burned the victim’s residence. The charge is merely an accusation and Peneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Peneaux was released on bond pending trial. A trial date has not been set.
Rosebud Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Phillip Little Hoop, age 31, was indicted on January 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2014, 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, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On four separate incidents starting on or about September 1, 2013, until January 14, 2014, Little Hoop, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Little Hoop is presumed innocent until and unless proven guilty
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The investigation is being conducted by the U.S. Marshals Service, South Dakota Division of Criminal Investigation, and the Mitchell Police Department. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Little Hoop was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Man Charged with Assaulting, Resisting, Opposing, and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Jeremy Waln, age 32, was indicted on April 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 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.
The charge stems from an incident that took place on February 14, 2013, when Waln assaulted a law enforcement officer. The charge is merely an accusation and Waln 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 Tim Maher is prosecuting the case.
Waln was released to a third party custodian pending trial. A trial date has not been set.
Rapid City Man Indicted for Internet Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Attempted Enticement of a Minor Using the Internet and Attempted Transfer of Obscene Material to a Minor.
Godfrey was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Casey James Godfrey, age 27, was indicted on January 22, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 24, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 10 years’ imprisonment up to life imprisonment and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that Godfrey used the Internet to entice a girl under the age of 18 to engage in sexual activity and to send obscene matter to the girl.
The charges are merely accusations and Godfrey is presumed innocent until and unless proven guilty.
The investigation was conducted by the Nebraska State Patrol and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Rapid City Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Waldo Patrick War Bonnett, age 45, was indicted on January 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 21, 2014, 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, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about between the 15th day of October, 2013, and the 9th day of January, 2014, War Bonnett, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and War Bonnett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
War Bonnett was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Queens, N.Y., Doctor Sentenced for His Role <br /> in $15 Million Medicare Fraud SchemeRead the Press Release
A Queens, N.Y., medical doctor was sentenced today to serve 12 months and a day in prison for his role in a scheme that fraudulently billed Medicare more than $15 million for, among other things, physical therapy and lesion removal services that were medically unnecessary and never provided.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office, and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
Hoi Yat Kam, 59, was sentenced by U.S. District Judge Edward R. Korman in the Eastern District of New York. In addition to his prison term, Kam was sentenced to serve three years of supervised release and to pay $2,217,656 in restitution.
Kam pleaded guilty on Jan. 9, 2013, to conspiracy to commit health care fraud. According to court documents, Kam conspired with others to execute a fraudulent scheme in which he and others provided a variety of spa services, such as massages and facials, as well as free meals and social activities to Medicare beneficiaries at URI Medical Service PC and Sarang Medical PC to induce those beneficiaries to allow their Medicare numbers to be billed for medical services that were never provided and were not medically necessary. URI and Sarang were two clinics in Queens that purportedly provided physical therapy and lesion removals. In total, Kam and his co-conspirators submitted approximately $15.1 million in false and fraudulent claims to Medicare.
The case was investigated by HHS-OIG and the FBI and brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case was prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Bryan D. Fields of the Fraud Section. Trial Attorney Katherine Houston formerly prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Porcupine Man Indicted on Three Charges of Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for three charges of Aggravated Sexual Abuse.
Jaron Thunder Hawk, age 20, was indicted on January 22, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 27, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, and a lifetime of supervised release.
The charges relate to Thunder Hawk engaging in sexual acts with three children under the age of twelve in 2012 and 2013.
The charges are merely accusations and Thunder Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Thunder Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 1, 2014.
Pierce County Man who Killed Two while Protecting his Marijuana Grow Sentenced to Seven Years in PrisonRead the Press Release
A Puyallup, Washington man who shot and killed two men who had entered the garage where he was growing marijuana, was sentenced today in U.S. District Court in Tacoma to seven years in prison and three years of supervised release for manufacturing marijuana and possession of a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jenny A. Durkan. JEREMY PETER CAPODANNO, 37, was arrested in April 2013. Under the terms of the plea agreement, CAPODANNO is forfeiting nearly $670,000 in proceeds from the sale of two properties -- his Puyallup home and a second home in Kent, Washington. CAPODANNO is also forfeiting a 2008 Mercedes, a 2008 Toyota pickup truck and five firearms seized at the crime scene. At sentencing U.S. District Judge Ronald B. Leighton said Capodanno had “earned 84 months” in prison. “There’s no excuse for you to do that, to set the conditions for the fire fight in your garage is inexcusable. . . the conditions were set, the fuse was lit, and the ravage began,” Judge Leighton said.
“This defendant knew the risks of drug dealing, and armed himself with multiple weapons to protect his business. He invited violence to his child’s home and his community,” said U. S. Attorney Jenny A. Durkan. “He acted as judge, jury and executioner for the two men who came to rip his illegal operation. Our federal enforcement focus remains on those who bring violence and use firearms to protect illegal drug businesses.”
On December 6, 2012, CAPODANNO shot two people who had entered the garage of his Puyallup residence – killing both of them. In the garage loft was a marijuana grow with nearly 200 plants. When police officers arrived, they found CAPODANNO in possession of a Glock 17, 9mm semiautomatic pistol, which is the gun that CAPODANNO used to kill the two men. While searching CAPODANNO’s truck, police found additional marijuana as well as other weapons including a Bushmaster XM-15 assault rifle; an Intratec Tec-9 9mm pistol; a Benelli 12 gauge tactical shotgun; and a Professional Ordinance MDL Carbon 15.
Writing to the court, prosecutors described how CAPODANNO left the house (with his minor son still inside), while he took his gun and circled around the side of the house and fired back into the house through a window likely killing one of the intruders. CAPODANNO is seen on the surveillance system he installed carefully aiming and shooting through the window. Evidence retrieved at the scene indicates CAPODANNO then went into the garage and continued to fire more than a dozen shots at the two men, killing both.
CAPODANNO “is a long-time drug trafficker, selling large amounts of marijuana for over a decade. Based on the assets he accumulated, his illegal activity was quite lucrative, letting him live a lifestyle that included expensive real estate, high-powered ski boats, motorcycles, luxury vehicles, and other assets. Unfortunately, like so many drug dealers, he also possessed a number of firearms. Unfortunately his vocation also led, as it often does, to violence and death,” prosecutors wrote in their sentencing memo.
The case was investigated by the Drug Enforcement Administration (DEA), the Pierce County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service (USMS). The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Matthew Thomas.
Pawtucket Felon Sentenced to 5 Years in Federal Prison on Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Jamal Bannister, 20, of Pawtucket, R.I., and Dorchester, Mass., was sentenced today to 60 months in federal prison for being a felon in possession of a firearm with an obliterated serial number, announced United States Attorney Peter F. Neronha and Pawtucket Police Chief Paul King.
At sentencing, U.S. District Court Judge William E. Smith also ordered Bannister to serve 3 years of supervised release following completion of his prison term. Bannister pleaded guilty on October 17, 2013, to one count each of being a felon in possession of a firearm and possession of a firearm with an obliterated serial number. No plea agreement was filed in this matter.
According to information presented to the court at the time of Bannister’s guilty plea, on June 27, 2013, members of the Pawtucket Police Department executed a court authorized search warrant at Bannisters residence. While searching the defendant’s bedroom, a Pawtucket detective discovered and seized a loaded .25 caliber semi-automatic pistol and additional ammunition. The serial number on the firearm had been ground off and was unreadable.
Jamal Bannister has been detained since his arrest. According to information presented to the court, records of the Commonwealth of Massachusetts show that Bannister was convicted of crimes punishable by a term of imprisonment exceeding one year in December 2011.
The case was prosecuted by Assistant U.S. Attorneys Stephen G. Dambruch and Adi Goldstein.
An agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Pawtucket Police Department detectives in the investigation of this matter.
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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]Passport Office Worker Convicted of Passport FraudRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted Nyle Churchwell, 51, for his role in the issuance of passports for unqualified people, announced United States Attorney Kenneth Magidson along with George M. Nutwell III, special agent in charge of the Department of State’s Diplomatic Security Service (DSS). The verdict was returned moments ago following four days of trial and approximately six hours of deliberation.
“The DSS is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Nutwell. “When a public servant in a position of trust is alleged to have committed a federal felony such as passport fraud, we vigorously investigate claims of corruption.”
Churchwell was a passport office adjudications manager at the Mickey Leland Federal Building in Houston. The jury heard that Churchwell used his knowledge and authority to conspire to falsely submit and approve passport applications with substandard documentation. He also falsely documented parental identification for a minor child. By Churchwell’s approval, the passports were issued to individuals under false identities and non-citizens of the United States.
Several passport employees provided testimony at trial that detailed how Jamaican applicants who were not U.S. citizens would come in to the office and use other person’s identification and photos of their birth certificate. One of those co-conspirators was Lorna Brown, whom Churchwell knew. He would accept the substandard documents without question and, due to his status in the office, the passports would be issued. Additional evidence demonstrated that Churchwell’s initials and signature were on all the applications and he was asked for by name.
Specifically, the trial evidence proved a non-U.S. citizen and minor child from Jamaica received a passport without the proper two-parent consent. Further, Jamaican criminals were issued valid and full passports under true U.S. citizen names when they were not entitled to them.
Temi Russell, an Internal Revenue Service tax examiner and co-conspirator who worked in the same building as Churchwell, also testified. She described how she would pick up the fraudulent passports from the will-call desk and deliver them to co-conspirators, knowing the true identities and immigration status of the co-conspirators.
Eventually, the fraud was uncovered when one employee came forward and confronted Churchwell.
At trial, Churchwell’s defense contended was he was guilty only for being a nice guy and did not commit any crimes. He further suggested he did not know that the applicants were fraudulent.
The jury ultimately did not believe all of his story and found him guilty on two counts of making false statements in the application and use of a passport.
Churchwell, who has worked for the Department of State for several years, was placed on indefinite suspension after his arrest in September 2012.
U.S. District Judge David Hittner, who presided over the trial, remanded Churchwell to custody following the return of the verdicts today where he will remain pending sentencing, which has yet to be determined. At that time, he will face a maximum of 10 years on each count of conviction.
Brown and Russell both pleaded guilty in advance of trial and will be sentenced in June and April, 2014, respectively.
The case was investigated by the DSS and the Department of Treasury’s Inspector General for Tax Administration. Assistant U.S. Attorney Suzanne Elmilady and Robert Stabe are prosecuting the case.
Owner of Metro East Title Company Pleads Guilty to Embezzling Funds from Clients and StructuringRead the Press Release
Karen Strasser Steinke, 65, of Millstadt, Illinois, entered a plea of guilty in federal district court to an Information charging, in Count 1, Wire Fraud in a scheme to defraud clients of Metro East Title, and in Count 2, Structuring of Financial Transactions to Avoid Currency Transaction Reporting Requirements, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses carry a total statutory maximum sentence of up to 25 years in prison, three years of supervised release, a fine of up to $500,000 and mandatory restitution. Sentencing has been scheduled for May 2, 2014.
Court proceedings revealed that Strasser Steinke was an officer, owner and operator of Metro East Title Company. Operating as a title insurance agent, she received money on behalf of others, which included escrow, settlement and closing funds. Strasser Steinke was required to hold these funds as a fiduciary in a fiduciary trust account. On or about July 16, 2013, R. L. and M. L. purchased real property in St. Clair County, Illinois, and Metro East served as the settlement agent for the transaction. As part of the transaction, the proceeds paid were to be used to satisfy a mortgage against the real property for $76,864.98 held by Wells Fargo Home Mortgage. $84,109.57 of purchase funds were deposited into Metro East's escrow account, however the fiduciary funds were misused by Strasser Steinke. On or about August 7, 2013, Metro East served as a settlement and escrow agent pursuant to an escrow disbursement agreement in connection with a real property transaction between the Columbia American Legion, Columbia Post 581 District 22, American Legion Department of Illinois, which acted as the seller to the transaction, and the City of Columbia, the buyer. The City of Columbia deposited $407,960.04 into the escrow account of Metro East which was to serve as the source for the ultimate escrow and settlement disbursals however the fiduciary funds were misused by Strasser Steinke.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service with the assistance of the Columbia, IL, police department. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Omaha Man Sentenced to Seven Years for Distributing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael Partain, 44, was sentenced in federal court in Omaha for distributing child pornography. The Honorable Lyle E. Strom, Senior District Court Judge, sentenced Partain to seven years in prison. There is no parole in the federal system. After his release from prison Partain will be on supervised release for five years and will be required to register as a sex offender.
On two separate occasions Partain distributed child pornography videos to agents of the Federal Bureau of Investigation acting in an undercover capacity. Some of these videos involved victims under five years of age.
On August 29, 2012, agents assigned to the Omaha FBI Cyber Crimes Task Force executed a search warrant at Partain’s residence. The agents recovered 109 files of child pornography. Twenty-seven videos involved a victim under the age of five. Sixty-one videos involved victims between the ages of six and ten.
The case was investigated by the Omaha Cyber Crimes Task Force and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
North Dakota Man Charged with Sexual Abuse of A Person Incapable of ConsentRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, man, has been indicted by a federal grand jury for Sexual Abuse of a Person Incapable of Consent.
William Left Hand, age 29, was indicted on January 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on January 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, a mandatory term of five years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 22, 2012, Left Hand knowingly engaged in, and attempted to engage in a sexual act with the victim, who was physically incapable of declining participation in, or communicating her unwillingness to, engage in the sexual act.
The charge is merely an accusation and Left Hand 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.
Left Hand was released on bond pending trial. A trial date has not been set.
Nine Brockton Men Face Narcotics and Weapons ChargesRead the Press Release
BOSTON – Nine Brockton men have been charged with federal and state narcotics and firearms charges.
Federal indictments were returned against Jethro Lujares, 27; George Guyton, 28; Peterson Paul, 35; and Manuel Gomes, 34, for distribution of cocaine base, they will have an initial appearance in U.S. District Court in Boston later today. Lujares and Paul were arrested today, Gomes is still wanted on the charge, and Guyton was already in federal custody on an unrelated matter.
The following were arrested today and charged by Plymouth County District Attorney Timothy Cruz’s Office and will appear in Brockton District Court: Jason Lopes, 19, was charged with unlawful possession of a firearm; Jeffrey Fonseca, 29, charged with distribution of Class D, marijuana; Brendan Fernandes, 24 and Matthew Veiga, 23, were charged with distribution of Class B, Percocets; and Nelson Dossantos, 23, is still wanted in the charge of distribution of Class C, Ecstasy. If convicted, Lopes faces five years in prison; Fonseca faces two years in prison; Fernandes and Veiga each face 10 years in prison; and Dossantos faces five years in prison.
U.S. Attorney Carmen M. Ortiz said, “Today’s arrests are the culmination of excellent investigative work and outstanding interagency cooperation. The U.S. Attorney’s Office and its sister agencies will continue to work in the City of Brockton to ensure that it is a safe place to live and work. I want to commend all of our law enforcement partners for all of their hard work and tireless efforts.”
“This successful investigation brought together law enforcement professionals from local, state and federal agencies to remove drug dealers from the streets of Brockton,” said Plymouth County District Attorney Timothy J. Cruz. “These defendants will be prosecuted for dealing crack cocaine, prescription narcotics, marijuana and a concentrated form of the drug Ecstasy known as “Molly,” on the streets of this city. The sale of illegal drugs fuels a vicious cycle of addiction, property crimes and violence in the community…the quality of life in the community is enhanced when drug dealers are held accountable for their crimes. This sweep is another example of the strong partnership between local, state and federal law enforcement that we have here in Plymouth County, and of the benefit to the community through these concerted efforts.”
“I would like to thank all those who made today’s operation a success, including our own special agents, the DEA, and the brave officers of Plymouth County Sheriff’s Office and the Brockton Police Department. The long arm of the law reaches further when we all work together,” said Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “Working alongside our partner law enforcement agencies, HSI can remove more hardcore criminals from our streets, making our communities safer for everyone.”
“This is an ongoing relationship between the Plymouth County Sheriff’s Department, the U.S. Attorney’s Office, Homeland Security and the Brockton Police Department to conduct cooperative investigations that will lead to the removal of gang members and guns from the streets of our city,” said Brockton Mayor Bill Carpenter. “I fully support the efforts of all involved.”
“The DEA is committed to the dismantling of criminal organizations that bring drugs and violence into our communities,” said John Arvanitis, Special Agent in Charge of the DEA’s Boston Field Division. “Our commitment to the citizens of these neighborhoods is unwavering. Together with our federal, state and local law enforcement partners we will continue to target drug trafficking organizations operating throughout New England.”
“The hallmark of this investigation has been teamwork and cooperation,” said Plymouth County Sheriff Joseph D. McDonald Jr. “These arrests today should have an immediate and positive effect on all the communities of Plymouth County.”
If convicted, Gomes faces a statutory maximum sentence of 40 years in prison, a mandatory minimum sentence of five years, a maximum fine of $5 million, and a minimum of four years of supervised release. If convicted, Lujares, Guyton and Paul all face a statutory maximum sentence of 20 years in prison, a maximum fine of $1 million, and a minimum of three years of supervised release.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Questions regarding the state defendants should be directed to Jessica Healy (508) 584-8120 at the Plymouth County District Attorney’s Office.
Anyone with information regarding the whereabouts of Manuel Gomes or Nelson Dossantos should call ICE at 866-347-2423.
Natchitoches Tax Preparer Sentenced to 18 Months in Prison for Filing False Tax ReturnsRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Lashanda E. Harris, 38, of Natchitoches, La., was sentenced by U.S. District Judge Dee D. Drell, to 18 months in prison and a year of supervised release for aiding and assisting in making and subscribing a false return. She was also ordered to pay $101,795 in restitution. Harris pleaded guilty October 29, 2013.
According to evidence presented at the guilty plea, from January 2012 to April 2012, Harris, a tax preparer in Natchitoches, assisted customers in preparing false tax returns for tax year 2011. The returns contained false information concerning W-2, federal tax withholdings, Earned Income Tax Credit and the American Opportunity Tax Credit. Based on the false statements in the tax returns, individuals were able to obtain in excess of $100,000 in fraudulent tax refunds. As part of the scheme, Harris received “kickbacks” from the customers.
The Internal Revenue Service – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Tax filing season is upon us, U.S. Attorney Stephanie Finley urges the public to also protect themselves from identity thieves. Tax identity theft can occur when someone files a phony tax return using your personal information to get a tax refund from the IRS. It can also happen when someone uses a Social Security number to get a job or claims a child who is not theirs as a dependent on a tax return. Tax identity theft is the most common form of identity theft reported to the Federal Trade Commission. The IRS has made tax identity theft a top priority.
Keep your personal information safe by:
- shredding personal information before trashing it;
- being aware of imposters who send phony emails that look like they’re from the IRS asking for personal information; and
- limiting the personal information given to the public and businesses.
For those who have had their identity stolen and used for fraud, the IRS will issue a special PIN to use for filing taxes. Information on the PIN program is available at www.irs.gov/uac/Newsroom/IRS-Combats-Identity-Theft-and-Refund-Fraud-on-Many-Fronts-2014. Please visit the FTC at ftc.gov/idtheft and the IRS at irs.gov/identitytheft for more information about tax identity theft.
Murphysboro Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On January 31, 2014, Toni J. Johnson, 33, of Murphysboro, pled guilty to a one-count superseding indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2009 and October 2013, in Union and Jackson Counties. The factual basis at Johnson’s plea hearing established that she was involved with others in the manufacture of methamphetamine. Johnson stole anhydrous ammonia and collected pseudoephedrine pills from others to use during the manufacture of methamphetamine. After Johnson would manufacture the methamphetamine, she would provide some of the drugs to individuals that had provided her with pseudoephedrine pills. During a February 2013 search of Johnson’s Carbondale hotel room, agents located an oxygen tank containing anhydrous ammonia, along with other methamphetamine-making materials.
The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Murphysboro Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team, Carbondale Police Department, and Union County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Mother and Son Sentenced in Celebrity Credit Card Account Takeover SchemeRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that U.S. District Judge John Antoon, II yesterday sentenced Luis Flores, Jr. (19, Lake Mary) to three and a half years in federal prison for credit card fraud and aggravated identity theft. The court also ordered Flores to forfeit computers, electronic equipment, and cellular telephones, which were traceable to and facilitated the offenses of conviction. As part of his sentence, the court also entered a money judgment in the amount of $16,082, the proceeds of the charged criminal conduct. Flores pleaded guilty on October 23, 2013. Flores’ mother, Kyah Green (41), was sentenced to three years of probation and ordered to make restitution in the amount of $16,082. Green lied to federal agents to cover up the fraud committed by Flores. She pleaded guilty on October 22, 2013.
According to court documents, in March 2013, Flores was terminated from his job at a call center for diverting a co-worker’s electronically deposited paycheck to a bank account controlled by Flores. Immediately after his termination, Flores began a scheme to take over the credit card accounts of celebrities. He was successful in obtaining $71,251.99 in fraudulent wire transfers from those accounts into a bank account controlled by him. From March 2013 through at least July 2013, these account takeovers by Flores resulted in numerous credit cards being delivered to Flores’ and Green’s house in the names of other persons.
In late March 2013, Flores was arrested on state charges for electronically diverting his co-worker’s paycheck. On May 19, 2013, Flores made bail on the state charge and immediately restarted his attempts to take over the credit card accounts of celebrities and, later, law enforcement officials.
In June 2013, federal agents executed a search warrant at the home of Flores and Green. During the execution of the search warrant, Green lied to agents and denied any knowledge of Flores’ bank account, in which Flores received the $71,251.99 in fraudulent wire transfers. In fact, while Flores was still in jail on his state charges, Green had used that bank account to make purchases and ATM withdrawals totaling about $16,082, including thousands of dollars of electronic equipment, designer merchandise, and other consumer goods.
This case was investigated by the United States Secret Service and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Mission Man Charged with Burglary of A Post Office and Theft of MailRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Burglary of a Post Office and Theft of Mail.
Jesse Robinson, age 26, was indicted on August 21, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 28, 2014, 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 on each count. Restitution may also be ordered.
The charges relate to an incident on June 17, 2013, when Robinson allegedly broke into the United States Post Office in Mission, and took multiple pieces of first class mail matter containing prescription medications.
The charges are merely accusations and Robinson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Postal Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Robinson was released on bond pending trial. A trial date has not been set.
Mission Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Reno Roubideaux, age 39, was indicted on August 21, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 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.
The charge relates to an incident that occurred on July 31, 2013, when Roubideaux forcibly assaulted a law enforcement officer. The charge is merely an accusation and Roubideaux 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.
Roubideaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 25, 2014.
Members of Alleged Sports Betting Ring Plead Guilty to Racketeering ChargesRead the Press Release
PHILADELPHIA – Joseph Vito Mastronardo, Jr., 63, of Meadowbrook, PA, pleaded guilty today to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, four counts of conspiring to launder money, eight counts of interstate travel in aid of racketeering, transmitting wagering information, and aggravated structuring of cash deposits. The guilty pleas stem from his leadership of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S. No sentencing date has been scheduled.
Mastronardo, Jr., is one of 19 defendants charged in the case; three defendants were charged by information and sixteen defendants were charged by indictment. In the indictment, fifteen of the sixteen defendants were charged with conspiring to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. With today’s guilty plea, 11 of the 16 defendants charged in the indictment have pleaded guilty.
At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. According to the indictment, between January 1, 2005 and January 1, 2011, the organization utilized internet websites (www.betroma.com and www.betrose.com) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2,100,000 of cash that Mastronardo hid in and around his home, including in specially-built secret compartments and in PVC pipes that were buried in his backyard.
Joseph Vito Mastronardo, Jr., ran the organization by using the internet, telephone, Skype, e-mail, United States mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts, and numerous international bank accounts. On occasion, Mastronardo, Jr., also provided instructions so that a losing bettor could pay a gambling debt through a charitable donation.
Joseph V. Mastronardo, Jr., supervised the agents, sub-agents, office employees, and websites. He laundered millions of dollars of betting proceeds, collected debts, and instructed others to collect debts. Other indicted defendants who have pleaded guilty include: Mastronardo=s son, Joseph F. Mastronardo, who worked as an office employee, collected debts, and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts, and was a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which was used to launder the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick, and Ronald Gendrachi.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna and Department of Justice Trial Attorney Kelly Pearson.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mdb Gang Member Pleads Guilty to Drug and Weapons ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jacob Rivera, a/k/a “JJ,” 20, of Rochester, N.Y., pleaded guilty to conspiracy to distribute more than 280 grams of crack cocaine and possession of a firearm in furtherance of drug trafficking activities Before U.S. District Judge Frank P. Geraci. The drug charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, a $10,000,000 fine, or both. The gun charge carries a mandatory minimum penalty of five years in prison, a maximum of life, which must be served in addition to the sentence Rivera receives on the drug charge.
“Today’s development is the result of law enforcement tracking down and prosecuting gangs that attempt to fill the streets of our community with illegal narcotics and violence" said U.S. Attorney Hochul. “But we also need the public to partner with us. As we often say, ‘if you see something, say something so that those of us in law enforcement can do something.’”
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that Rivera was part of a violent, street level drug trafficking organization that referred to themselves as “M.D.B.” or “The Broezel Boys.” From 2010 until June 2013, members and associates of M.D.B. controlled the open air drug market in a multi block area near the intersection of Dewey and Lexington Avenues, including all of Broezel Street, the north end of Maryland Street, portions of Driving Park and portions of Lakeview Park, in Rochester. M.D.B. members and associates also maintained and operated several drug houses at locations in Rochester including the duplex residence at 325/327 Lexington Avenue, the upstairs apartment at 171 Maryland Street, the upstairs apartment at 316 Lakeview Park and 672 West Main Street, each for the purpose of possessing, manufacturing, distributing, and using controlled substances.
In his plea before the court, Rivera admitted that he possessed firearms in furtherance of his drug trafficking activities and that he used violence and threats of violence against unaffiliated persons who attempted to sell illegal controlled substances within their territory and against certain witnesses who were viewed as hostile to the interests of M.D.B.
Rivera was arrested in June 2013 along with two other defendants.
The plea is the culmination of an investigation on the part of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office, the Rochester Police Department, under the direction of Acting Chief Michael Ciminelli, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.
Sentencing is scheduled for May 1, 2014 at 3:30 p.m. before Judge Geraci.
Maryland Man Sentenced to 51 Months in Prison for Traveling to Engage in Illicit Sexual ConductWith A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – John Cunningham, 26, of Hagerstown, Md., was sentenced today to 51 months in prison for traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cunningham pled guilty to the charges in November 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Beryl A. Howell. Upon completion of his prison term, Cunningham will be placed on 10 years of supervised release.
According to the government's evidence, on July 19, 2013, Cunningham contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Cunningham engaged in online email and text messaging with the undercover officer, whom he believed was the father of an under-aged girl. During this period of time, Cunningham arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On July 22, 2013, Cunningham traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Cunningham’s residence and recovered a large collection of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
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