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Wednesday 11 December 2013
Members of the Varrio South Park Gang Charged with Racketeering Conspiracy, Attempted Murder, Robbery, and Narcotics TraffickingRead the Press Release
SAN FRANCISCO – A seventeen-count federal indictment charging eight members and associates of the Varrio South Park (“VSP”) gang was returned by the Grand Jury on December 10, 2013 and unsealed today in federal court, announced United States Attorney Melinda Haag.
Three defendants were arrested last night during a joint law enforcement operation in Sonoma County, California. Four additional defendants were already in state custody and have been transferred to federal custody to face charges. One defendant is being sought. The defendants in custody were arraigned before The Honorable Maria-Elena James, United States Chief Magistrate Judge this morning.
Of the eight defendants named in the indictment, seven — David Martinez; Edmund Deneiliom; Ruben Quiroz; Cesar Castellanos; Lucio Mendoza; Samuel Tewolde; and Kalin Carell — are charged with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, and conspiracy to commit assault with a dangerous weapon in aid of racketeering, arising from their participation in the VSP gang. These seven defendants are also charged with using firearms in furtherance of crimes of violence. According to the indictment, VSP is a racketeering enterprise and its members and associates agreed to conduct the affairs of the enterprise through, among other crimes, narcotics trafficking, witness intimidation, robbery, and murder.
Two of the defendants – David Martinez and Ruben Quiroz – are also charged with conspiracy to commit a robbery affecting interstate commerce and a robbery affecting interstate commerce arising from an August 19, 2013, robbery and high-speed car chase during which Martinez fired shots at the victim’s vehicle.
Two other defendants – Samuel Tewolde and Cesar Castellanos – are each charged with separate counts of attempted murder in aid of racketeering. The attempted murder charge against Tewolde arises from an incident on September 5, 2013, in the parking lot of a restaurant in downtown Santa Rosa, where Tewolde fired shots at an individual whom he believed to have “snitched” against other members of VSP. Casetellanos’s attempted murder charge arises from an incident on October 9, 2012, where he shot and wounded a fellow gang member whom Castellanos believed to have challenged his status and authority within the gang. Castellanos is also charged with one count of witness tampering for threatening to kill a woman to prevent her ex-boyfriend from testifying against Tewolde.
Defendants David Martinez and Edmund Deneiliom are also charged with trafficking methamphetamine and marijuana. Defendant Edmund Deneiliom and Andrew Hill-Piccola are also charged with being felons in possession of firearms.
The maximum possible punishments faced by each defendant are as follows:
- David Martinez, a/k/a “Oso,” a/k/a “Fat Boy,” a/k/a “Big Homie” – Life
- Edmund Deneiliom, a/k/a “EZ” – Life
- Ruben Quiroz – Life
- Cesar Castellanos, a/k/a “Cheese” – Life
- Lucio Mendoza, a/k/a “Juce” – Life
- Samuel Tewolde – Life
- Kalin Carell – Life
- Andrew Hill-Piccola – 10 years
Any sentence following conviction would be imposed by the court only after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentence, 18 U.S.C. § 3553(a).
Assistant U.S. Attorney Randy Luskey and Special Assistant U.S. Attorney Marc Price Wolf are prosecuting these cases with the assistance of Kevin Costello and Daniel Charlier-Smith. This prosecution is the result of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Santa Rosa Police Department, the Sonoma County District Attorney’s Office, the Sonoma County Sherriff’s Office, and the California Department of Corrections and Rehabilitation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, the defendants in this case must be presumed innocent unless and until proven guilty.
(Varrio South Park indictment )
Member of Albanian Drug Gang Called the “Wolfpack” Sentenced in Manhattan Federal Court to 135 Months in Prison in Connection with Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANKIE FROKAJ, a leader of an Albanian drug gang called the “Wolfpack,” was sentenced today by United States District Judge George B. Daniels to 135 months in prison in connection with his role in the organization. FROKAJ pled guilty in April 2013 to one count of conspiring to distribute 1,000 kilograms and more of marijuana. All thirteen members and associates of the Wolfpack originally charged in this case in September 2012 have pled guilty, and 10 have now been sentenced to terms ranging from probation to 168 months in prison.
Manhattan U.S. Attorney Preet Bharara said: “Today, Frankie Frokaj became the latest member of the Wolfpack organization to be punished for his role in this Bronx-based narcotics trafficking crew, whose members also illegally carried and sold dangerous firearms. All 13 defendants charged in this case have been convicted, several have been sentenced to significant prison time, and the Bronx neighborhood streets are safer as a result.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case:
The Wolfpack was a criminal organization composed primarily of individuals of Albanian descent that operated from at least 2008 until August 2012 in the Bronx, New York. The group planned and committed a variety of criminal acts as opportunities arose, including narcotics distribution and weapons possession. For example, the group maintained dedicated phones over which customers could order cocaine and marijuana, and coordinated the use of cars to deliver cocaine and marijuana to its customers. Members and associates of the Wolfpack used these “drug routes” to distribute at least 1,000 kilograms of marijuana and 500 grams of cocaine. The group also distributed prescription pills containing oxycodone, a Schedule II controlled substance.
Wolfpack members, including Christopher Nrecaj, David Nrecaj, Joseph Camaj, and FROKAJ, carried firearms in furtherance of their narcotics crimes and engaged in the sale of firearms. To date, the Government has recovered eight firearms and ammunition from members of the Wolfpack through sales involving a confidential informant and during their arrests, including:
- a Sig Sauer nine millimeter handgun, a Bushmaster rifle, a Mac 11 machine pistol, and ammunition purchased by the CI from David Nrecaj;
- a Taurus PT99 AF nine millimeter handgun and ammunition purchased by the CI from David Nrecaj and Corry Lombardi;
- two nine millimeter handguns and a pump action shotgun recovered during the course of Christopher and David Nrecaj’s arrests; and
- a .22 caliber handgun recovered during the course of Driton Haxhijaj’s arrest. Haxhijaj was found hiding in a closet, and the handgun and roughly one pound of marijuana were found in the same closet.
The Government has further recovered a bullet-proof vest, quantities of cocaine and marijuana, drug ledgers, digital scales, and other drug paraphernalia from various members and associates of the Wolfpack.
In addition to the prison term, FROKAJ, 29 of the Bronx, New York, was also sentenced to five years of supervised release and ordered to forfeit $3,000,000.
The earlier sentencings of Wolfpack members and associates included the following:
- On December 3, 2013, Christopher Nrecaj was sentenced to 168 months in prison on narcotics and firearms charges;
- On December 3, 2013, Corry Lombardi was sentenced to 70 months in prison on narcotics charges;
- On December 3, 2013, Driton Haxhijaj was sentenced to 60 months in prison on narcotics charges;
- On August 7, 2013, Joseph Camaj was sentenced to 70 months in prison on narcotics charges;
- On August 3, 2013, Deda Frokaj was sentenced to 63 months in prison on narcotics charges;
- On April 18, 2013, George Cekaj was sentenced to 151 months in prison on narcotics charges;
The three remaining defendants are scheduled for sentencing in January and February 2014.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Peter M. Skinner and Rebecca G. Mermelstein are in charge of the prosecution.
Mattapan Man Charged with the Possession and Distribution of Child PornographyRead the Press Release
BOSTON – A Mattapan man was charged today with possession and distribution of child pornography.
Luis Miguel Gonazlez-Buzetta, of Mattapan, was charged with possessing and distributing child pornography. According to the criminal complaint affidavit, filed in U.S. District Court, federal agents learned that Gonzalez-Buzetta, using a Google email address, had been sending and receiving images containing child pornography to individuals located outside of Massachusetts. On June 28, 2013 a search was executed at Gonzalez-Buzetta’s home, where digital devices containing child pornography were recovered. According to the affidavit, a forensic examination of Gonzalez-Buzetta’s computer revealed a collection of child pornography depicting pre-pubescent girls engaged in sexual activity, including those previously images identified as having been distributed by the defendant.
If convicted, Gonzalez-Buzetta faces a mandatory minimum sentence of five years and up to 20 years in prison, a five year mandatory minimum and up to a lifetime of supervised release and a $250,000 fine on the charge of distribution of child pornography; and up to 10 years in prison, lifetime supervised release, and a $250,000 fine on the charge of possession of child pornography.
United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Bruce M. Foucart, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to thank the Suffolk County District Attorney’s Office, the United States Secret Service, and the Boston Police Department for their tremendous work on the case and their continued cooperation with the prosecution. The case is being prosecuted by Assistant United States Attorney Stacy Dawson Belf of Ortiz=s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lockport Nurse Pleads Guilty to Misprision of Felony ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Janelle Hawkins, 36, of Lockport, N.Y., a registered nurse, pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to misprision of felony. The charge carries a maximum penalty of three years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that from July, 2009 through August 17, 2010, the defendant knew that her boyfriend, Eric Williams, a co-defendant in the investigation, was using the residence she owned at 118 Chestnut Street in Lockport to engage in drug trafficking activities. After conducting an extensive criminal investigation, including obtaining a wiretap for Williams’ cellular telephone, members of the Niagara County Drug Task Force and the Drug Enforcement Administration executed a federal search warrant at Hawkins’ residence on August 17, 2010. Agents seized drug paraphernalia and $8,614.00 in cash. They also seized more than a half kilogram of cocaine after apprehending Williams in a downstairs bathroom at Hawkins’ residence as he was flushing cocaine down a toilet.
Williams pleaded guilty to conspiracy to possess with intent to distribute and to distribute cocaine and was sentenced to five years in prison. Hawkins is one of 23 defendants convicted as a result of this drug investigation.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Lafayette, Tennessee, Man Charged with Two Armed Bank Robberies in Kentucky and CarjackingRead the Press Release
BOWLING GREEN, Ky. – A Lafayette, Tennessee, man was charged today by a federal grand jury with the armed robbery of two banks located in Kentucky and one-count carjacking in Adair County, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the six-count indictment, Eugene Earl Gentry, age 63, is charged with two counts of bank robbery, three counts of brandishing a firearm during a crime of violence and one count of carjacking. Gentry allegedly brandished a black semi-automatic handgun while robbing the United Citizens Bank, located at 1582 Campbellsville Road, in Columbia, Kentucky, of approximately $90,000 on October 15, 2012. On the same day, in Adair County, Kentucky, Gentry is charged with taking a 1998 Ford Ranger Pickup from a person identified as “M.C.” and in doing so brandished a black semi-automatic handgun which carries an additional charge of carjacking. One year later, on October 29, 2013, Gentry allegedly brandished a Hi-Point, semi-automatic, 9mm handgun while attempting to rob the Citizens Bank, located at 209 Campbellsville Bypass, located in Campbellsville, Kentucky.
If convicted at trial, Gentry faces 122 years in prison, a fine of $1.5 million, and supervised release for a period of five years.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Campbellsville Police Department, Columbia Police Department and the Adair County, Kentucky, Sheriff’s Department.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Jury Convicts Inmate in Murder for Hire Plot Against Federal JudgeRead the Press Release
FORT WORTH, Texas - Phillip Monroe Ballard, 72, of Fort Worth, has been convicted in the attempted murder for hire of a federal judge in Texas, announced United States Attorney Kenneth Magidson of the Southern District of Texas. The verdict was returned this afternoon after approximately two days of trial and less than an hour of deliberation.
From on or about Sept. 9, 2012 and continuing through Sep. 27, 2012, Ballard solicited the murder for hire of a U.S. District Judge in the Northern District of Texas. During trial, the jury heard from four government witnesses, one of whom was an informant who testified he had developed a friendship with Ballard as they both were in custody on unrelated criminal matters. He stated that Ballard had asked him if he would help him arrange the shooting death of the judge, who was presiding over his federal tax case. They eventually negotiated a price of $100,000.
The informant reported the incident to authorities and the plot was foiled before any harm came to the judge.
Ballard’s defense claimed he never had any actual intent to kill the judge. The jury disagreed and convicted him as charged.
U.S. District Judge Donald E Walter from the Western District of Louisiana presided over trial. He has set sentencing for March 2014 in Fort Worth, at which time Ballard faces up to 20 years in prison and a $250,000 fine. Ballard will remain in custody pending that hearing.
The case was investigated by the FBI. Assistant U.S. Attorneys Mark McIntyre and Craig Feazel from the Southern District of Texas are prosecuting the case.
John Charles Mccluskey to Receive Life Prison<br /> Sentence for Murdering Oklahoma CoupleRead the Press Release
John Charles McCluskey, 48, will receive a life prison sentence for a host of crimes arising out of the carjacking and murder of a couple from Tecumseh, Okla., after a federal jury today announced that it could not reach a unanimous decision on whether to impose the death penalty.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas made the announcement.
McCluskey was charged with several capital offenses in a 20-count indictment arising out of the carjacking and murders of Gary and Linda Haas, both 61, in Quay County, N.M., on Aug. 2, 2010. On Oct. 7, 2013, the jury found McCluskey guilty on all counts of the indictment after an eight-week trial. On Nov. 5, 2013, the jury found McCluskey eligible for the death penalty following a three-week proceeding. The capital trial concluded today when the jury said it was unable to reach a unanimous verdict on the death penalty. McCluskey will receive a sentence of life in prison. The court has not yet scheduled a date for the imposition of the sentence.
“During an exceptionally violent criminal episode in the summer of 2010, John Charles McCluskey escaped from prison where he was serving a sentence for attempted murder, committed multiple kidnappings during his interstate flight from justice, and mercilessly killed two innocent victims to eliminate them as witnesses,” said Acting Assistant Attorney General Raman. “Through the hard work of federal and state law enforcement and Department of Justice prosecutors, McCluskey and his co-defendants have been brought to justice. Our thoughts are with the victims and their family.”
“The men and women on this jury dedicated the last six months of their lives to performing a very difficult, but necessary, civil service. I respect their verdict and thank them for their personal sacrifice,” said Acting U.S. Attorney Steven C. Yarbrough. “Hopefully, the fact that John Charles McCluskey has been found guilty of every count charged and will now spend the rest of his life in prison with no possibility of parole will bring some measure of comfort and closure to the friends and family Gary and Linda Haas left behind. The prosecutors and investigators who so tirelessly have worked toward the pursuit of justice are also to be commended.”
According to the evidence presented at trial, on July 30, 2010, McCluskey and co-defendant Tracy Allen Province, 46, escaped from an Arizona state prison with the aid of co-defendant Casslyn Mae Welch, 47. On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County, N.M. McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, N.M. The three confederates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, N.M., where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside. On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer. Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.
The trial evidence also established that McCluskey has the following prior convictions: convictions in 1993 in Pennsylvania for aggravated assault with a firearm and three armed robberies for which he served 15 years in state custody; convictions in 2009 in Arizona for attempted second degree murder and aggravated assault with a firearm, for which he received a 15-year state prison sentence in Arizona; and convictions in 2011 in Arizona for escape, kidnapping, armed robbery, aggravated assault, and felon in possession of a firearm, for which he received a 43-year prison sentence to run consecutive to his 15-year sentence.
On Jan. 20, 2012, Province and Welch each entered a guilty plea to numerous crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and both testified during the guilt phase of McCluskey’s trial. Under the terms of his plea agreement, Province will be sentenced to five consecutive terms of life in prison without the possibility of release. Welch faces a maximum penalty of life in prison under her plea agreement. Both remain in custody pending their sentencing hearings, which have yet to be scheduled.
“A long, painful ordeal for the Haas family has finally come to an end. Nothing we can do or say here today can return Gary and Linda Haas to their loved ones, but we hope this sentence gives them some measure of closure,” said FBI Special Agent in Charge Carol K.O. Lee. “I would like to recognize the FBI investigators and support personnel who contributed to this case, as well as the federal prosecutors, victim/witness specialists, the New Mexico State Police, and U.S. Marshals Service. The Albuquerque FBI Division will continue to combat violent crime in our big cities and small towns by working closely with our state and local partners.”
“I hope the conviction of John McCluskey brings a sense of closure to the family of Gary and Linda Haas,” said New Mexico State Police Chief Pete N. Kassetas. “This was a difficult and complex investigation but is yet another example of the exemplary relationship the New Mexico State Police maintains with our Federal law enforcement partners. I would like to thank the Federal Bureau of Investigation, United States Attorney’s Office, the Criminal Division of the Department of Justice and all the other New Mexico and Arizona law enforcement agencies that participated in the investigation, capture of John McCluskey and subsequent successful prosecution.”
The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorneys Linda Mott and Gregory J. Fouratt of the District of New Mexico and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section.John Charles Mccluskey to Receive Life Prison Sentence for Murdering Oklahoma CoupleRead the Press Release
ALBUQUERQUE –John Charles McCluskey, 48, will receive a life prison sentence for a host of crimes arising out of the carjacking and murder of a couple from Tecumseh, Okla., after a federal jury today announced that it could not reach a unanimous decision on whether to impose the death penalty, announced Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and New Mexico State Police Chief Pete N. Kassetas.
McCluskey was charged with several capital offenses in a 20-count indictment arising out of the Aug. 2, 2010, carjacking and murders of Gary and Linda Haas, both 61, in Quay County, N.M. On Oct. 7, 2013, the jury found McCluskey guilty on all counts of the indictment after an eight-week trial. On Nov. 5, 2013, the jury found McCluskey eligible for the death penalty following a three-week proceeding. The capital trial concluded today when the jury said it was unable to reach a unanimous verdict on the death penalty. McCluskey will receive a sentence of life in prison. The court has not yet scheduled a date for the imposition of the sentence.“During an exceptionally violent criminal episode in the summer of 2010, John Charles McCluskey escaped from prison where he was serving a sentence for attempted murder, committed multiple kidnappings during his interstate flight from justice, and mercilessly killed two innocent victims to eliminate them as witnesses,” said Acting Assistant Attorney General Mythili Raman. “Through the hard work of federal and state law enforcement and Department of Justice prosecutors, McCluskey and his co-defendants have been brought to justice. Our thoughts are with the victims and their family.”
“The men and women on this jury dedicated the last six months of their lives to performing a very difficult, but necessary, civil service. I respect their verdict and thank them for their personal sacrifice,” said Acting U.S. Attorney Steven C. Yarbrough. “Hopefully, the fact that John Charles McCluskey has been found guilty of every count charged and will now spend the rest of his life in prison with no possibility of parole will bring some measure of comfort and closure to the friends and family Gary and Linda Haas left behind. The prosecutors and investigators who so tirelessly have worked toward the pursuit of justice are also to be commended.”
According to the evidence presented at trial, on July 30, 2010, McCluskey and co-defendant Tracy Allen Province, 46, escaped from an Arizona state prison with the aid of co-defendant Casslyn Mae Welch, 47. On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County. McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, N.M. The three confederates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, N.M., where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside. On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer. Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.
The trial evidence also established that McCluskey has the following prior convictions: convictions in 1993 in Pennsylvania for aggravated assault with a firearm and three armed robberies for which he served 15 years in state custody; convictions in 2009 in Arizona for attempted second degree murder and aggravated assault with a firearm, for which he received a 15-year state prison sentence in Arizona; and convictions in 2011 in Arizona for escape, kidnapping, armed robbery, aggravated assault, and felon in possession of a firearm, for which he received a 43-year prison sentence to run consecutive to his 15-year sentence.
On Jan. 20, 2012, Province and Welch each entered a guilty plea to numerous crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and both testified during the guilt phase of McCluskey’s trial. Under the terms of his plea agreement, Province will be sentenced to five consecutive terms of life imprisonment without the possibility of release. Welch faces a maximum penalty of life imprisonment under her plea agreement. Both remain in custody pending their sentencing hearings, which have yet to be scheduled.
“A long, painful ordeal for the Haas family has finally come to an end. Nothing we can do or say here today can return Gary and Linda Haas to their loved ones, but we hope this sentence gives them some measure of closure,” said FBI Special Agent in Charge Carol K.O. Lee. “I would like to recognize the FBI investigators and support personnel who contributed to this case, as well as the federal prosecutors, victim/witness specialists, the New Mexico State Police, and U.S. Marshals Service. The Albuquerque FBI Division will continue to combat violent crime in our big cities and small towns by working closely with our state and local partners.”
“I hope the conviction of John McCluskey brings a sense of closure to the family of Gary and Linda Haas,” said New Mexico State Police Chief Pete N. Kassetas. “This was a difficult and complex investigation but is yet another example of the exemplary relationship the New Mexico State Police maintains with our Federal law enforcement partners. I would like to thank the Federal Bureau of Investigation, United States Attorney’s Office, the Criminal Division of the Department of Justice and all the other New Mexico and Arizona law enforcement agencies that participated in the investigation, capture of John McCluskey and subsequent successful prosecution.”
The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorneys Linda Mott and Gregory J. Fouratt of the District of New Mexico, and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section.
Jeremy T. Lauzon Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 9, 2013, before U.S. District Judge Sam E. Haddon, JEREMY T. LAUZON, a 34-year-old resident of Billings, was sentenced to a term of:
- Prison: 21 months
- Special Assessment: $100
- Supervised Release: 3 years
LAUZON was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
On December 27, 2000, LAUZON was convicted of felony possession of a controlled substance in the State of Oregon which prohibited him from possession of firearms.
At approximately 8:41 p.m. on August 30, 2011, a sergeant with the Yellowstone County Sheriff's Office was dispatched to a residence in Billings regarding a complaint about a neighbor who fired a gun. When the sergeant arrived, he spoke with M.C. who stated that her neighbor, LAUZON, fired a gun into the ground near her boyfriend, J.K., and their two daughters. M.C., however, did not witness the incident.
The sergeant spoke with the two daughters and J.K. The daughters stated that there was an argument earlier that day with LAUZON about LAUZON's dogs entering their backyard. Later that day, the children were in their backyard with their dad when the dogs again ran onto their property. The children returned the dogs to LAUZON who was standing in his backyard. J.K., however, stated that he could overhear LAUZON yelling at the girls and telling them that the dogs could go wherever they wanted. J.K. then became upset and started to walk quickly toward LAUZON. According to J.K., he was about twenty to thirty feet away from LAUZON when LAUZON started to walk toward him. They were both arguing with each other. LAUZON then pulled out a gun from his side and fired it into the ground. The children and J.K. then turned around and retreated back into their house.
Additional units arrived on scene and helped search for LAUZON. LAUZON was subsequently detained. LAUZON admitted that he fired the gun into the ground. LAUZON also consented to a search of his residence. In an office in the residence, the officers recovered a Hi-Point model CF380 .380 caliber semi-automatic handgun.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAUZON will likely serve all of the time imposed by the court. In the federal system, LAUZON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamie Lynn Strosky Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 9, 2013, before U.S. District Judge Sam E. Haddon, JAMIE LYNN STROSKY, a 33-year-old resident of Shepherd, was sentenced.
STROSKY was sentenced in connection with her guilty pleas to conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine to:
- ison: 105 months
- ecial Assessment: $100
- pervised Release: 5 years
In Offers of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
Homar Renova-Castillo, an alien and citizen of Mexico, was previously convicted in 2000 in Yellowstone County for felony criminal endangerment. Renova-Castillo was then deported from the United States on January 31, 2002, and left through El Paso, Texas. Renova-Castillo was subsequently found in the United States. Specifically, on November 19, 2012, Renova-Castillo was pulled over in a motor vehicle near Park City by law enforcement.
In August of 2012, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force (EMHIDTA) began investigating the sale of methamphetamine in Billings by STROSKY and Renova-Castillo.
On August 22, 2012, agents spoke with an individual identified here as "D.N." D.N. stated that he had made two trips to Idaho with Renova-Castillo to pick up methamphetamine. D.N. estimated that they picked up two pounds of methamphetamine each time. D.N. said that a woman named Jamie was Renova-Castillo(s "right-hand girl."
On September 6, 2012, agents met with a confidential informant (CI) who provided information about STROSKY. The CI stated that STROSKY had been selling methamphetamine since 2000. The CI indicated that STROSKY went to Idaho to obtain methamphetamine. The CI stated that STROSKY got her methamphetamine from a Mexican male named Homar. The CI indicated that approximately two months prior, STROSKY met with Renova-Castillo and she was "fronted" one ounce of methamphetamine.
On November 6, 2012, the CI met STROSKY at a residence in Billings. STROSKY sold the CI a quarter (1/4) ounce of methamphetamine for $550. STROSKY told the CI that she was paying $21,000 for one pound of methamphetamine. The methamphetamine was later tested at the DEA lab and the actual weight was 7.0 grams.
On November 8, 2012, the CI and STROSKY met in a parking lot in Billings Heights, and the CI purchased methamphetamine from STROSKY for $550. The methamphetamine was later tested at the DEA lab and the actual weight was 6.7 grams.
On November 14, 2012, the CI met STROSKY at STROSKY's residence in Shepherd. The CI purchased meth from STROSKY for $550. The methamphetamine was later tested at the DEA lab and the actual weight was 6.6 grams. Additionally, STROSKY told the CI that she recently had one pound of methamphetamine stolen from a stash house.
On December 7, 2012, the CI made another purchase of methamphetamine from STROSKY at a location in Billings. The methamphetamine was later tested at the DEA lab and the actual weight was 6.8 grams.
On December 11, 2012, STROSKY told the CI that she planned to re-up with "her guy" in the next few days.
On December 21, 2012, agents spoke with "K.V." K.V. admitted that she stole the pound of methamphetamine that STROSKY kept at her "stash house." K.V. said that she was told by another individual that K.S. was "babysitting" the methamphetamine at K.S.'s residence in the Billings Heights for STROSKY. K.V. stated that around November 12, 2012, she and her boyfriend broke into K.S.'s residence and stole a safe from the closet in the bedroom. Inside the safe, K.V. found two bags of methamphetamine, $100 in cash and two watches.
The CI made additional purchases of approximately ( ounce of methamphetamine from STROSKY on January 8th, 22nd, and 29th of 2013 and April 3, 2013.
On February 3, 2013, Renova-Castillo and his wife were stopped in a motor vehicle near Wickenburg, Arizona and Renova-Castillo was subsequently arrested. In a statement provided to law enforcement, Renova-Castillo indicated that he has purchased drugs from his source in Las Vegas, Nevada. He admitted that on two occasions he transported cocaine and methamphetamine from Las Vegas to Billings.
Renova-Castillo pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that she will likely serve all of the time imposed by the court. In the federal system, she does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation Task Force.
German Engineering Firm Bilfinger Resolves <br /> Foreign Corrupt Practices Act Charges <br /> and Agrees to Pay $32 Million Criminal PenaltyRead the Press Release
Bilfinger SE, an international engineering and services company based in Mannheim, Germany, has agreed to pay a $32 million penalty to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials of the Federal Republic of Nigeria to obtain and retain contracts related to the Eastern Gas Gathering System (EGGS) project, which was valued at approximately $387 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
As part of the agreed resolution, the department today filed a three-count criminal information in U.S. District Court for the Southern District of Texas charging Bilfinger with violating and conspiring to violate the FCPA’s anti-bribery provisions. The department and Bilfinger agreed to resolve the charges by entering into a deferred prosecution agreement for a term of three years. In addition to the monetary penalty, Bilfinger agreed to implement rigorous internal controls, continue cooperating fully with the department, and retain an independent corporate compliance monitor for at least 18 months. The agreement acknowledges Bilfinger’s cooperation with the department and its remediation efforts.
According to court documents, from late 2003 through June 2005, Bilfinger conspired with Willbros Group Inc. and others to make corrupt payments totaling more than $6 million to Nigerian government officials to assist in obtaining and retaining contracts related to the EGGS project. Bilfinger and Willbros formed a joint venture to bid on the EGGS project and inflated the price of the joint venture’s bid by 3 percent to cover the cost of paying bribes to Nigerian officials. As part of the conspiracy, Bilfinger employees bribed Nigerian officials with cash that Bilfinger employees sent from Germany to Nigeria. At another point in the conspiracy, when Willbros employees encountered difficulty obtaining enough money to make their share of the bribe payments, Bilfinger loaned them $1 million, with the express purpose of paying bribes to the Nigerian officials.
Including today’s action, the department has filed criminal charges in the Southern District of Texas against three institutions and four executives and consultants in connection with the EGGS bribery scheme:· On Sept. 14, 2006, Jim Bob Brown, a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract and in connection with his role in making corrupt payments in Ecuador. Brown was sentenced on Jan. 28, 2010, to serve 12 months and one day in prison, to be followed by two years of supervised release, and ordered to pay a $17,500 fine.
· On Nov. 5, 2007, Jason Steph, also a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract. Steph was sentenced on Jan. 28, 2010, to serve 15 months in prison, to be followed by two years of supervised release, and ordered to pay a $2,000 fine.
· On May 14, 2008, Willbros Group Inc. and Willbros International Inc. entered into a deferred prosecution agreement and agreed to pay a $22 million criminal penalty in connection with the company’s payment of bribes to government officials in Nigeria and Ecuador. On March 30, 2012, the government moved to dismiss the charges against Willbros on the grounds that Willbros had satisfied its obligations under the deferred prosecution agreement, and on April 2, 2012, the court granted the United States’ motion.
· On Dec. 19, 2008, Kenneth Tillery, a former Willbros executive, was charged with conspiring to make and making bribe payments to Nigerian and Ecuadoran officials in connection with the EGGS project and pipeline projects in Ecuador and conspiring to launder the bribe payments. Tillery remains a fugitive. The charges against Tillery are merely accusations, and he is presumed innocent unless and until proven guilty.
· On Nov. 12, 2009, Paul Grayson Novak, a former Willbros consultant, pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract. Novak was sentenced on May 3, 2013, to serve 15 months in prison, to be followed by two years of supervised release, and ordered to pay a $1 million fine.
The case was investigated by the FBI’s Washington Field Office and its team of special agents dedicated to the investigation of foreign bribery cases. The case is being prosecuted by Senior Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Former Washington, D.C.-Area Accountant Sentenced to Prison for Tax FraudRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that John T. Hoang, of Woodbridge, Va., was sentenced in federal district court in Washington, D.C., for willfully aiding and assisting in the preparation of false income tax returns for the 2004 tax year. U.S. District Judge Richard J. Leon sentenced Hoang to serve 48 months in prison, 24 months of supervised release and 240 hours of community service. Judge Leon also ordered him to pay $331,896 in restitution to the IRS. Hoang previously pled guilty on July 31, 2013.
According to court documents and statements made in court, Hoang was a certified public accountant (CPA) and an attorney. From January 2005 through April 2007, Hoang operated John T. Hoang CPA, a tax return preparation business,, and was one of two partners who owned Tax-Smart Technology Services. Hoang operated these businesses from various locations in Washington, D.C., and Fairfax, Va. In 2008, a federal district court in Virginia barred Hoang from preparing federal tax returns.
As alleged in court documents, in his capacity as a tax return preparer, Hoang prepared and supervised the preparation of client tax returns to be filed with the IRS and various state taxing authorities. For the tax years 2004, 2005 and 2006, Hoang prepared hundreds of U.S. Individual Income Tax Returns and earned substantial income from his tax preparation activities. Hoang further received a substantial portion of the refunds issued by the IRS to his clients through his businesses. Despite earning revenue through his businesses of approximately $1 million in 2004; $2 million in 2005; and $3 million in 2006, Hoang failed to file any federal income tax returns or pay any federal income taxes for himself or his businesses during this time.
Hoang admitted that he prepared and caused the preparation of false and fraudulent 2004, 2005 and 2006 income tax returns for his clients. When preparing these false tax returns and related schedules for his clients, Hoang created wholly fictitious business income and expenses for what seemed to be a technology licensing business. The false information resulted in the client-taxpayers reporting fake losses from business activity and receiving either refunds larger than those they were entitled or decreases in the amount of taxes due. Hoang admitted that the tax loss caused by certain false returns he prepared was greater than $30,000 per return, and that he prepared at least 24 such false returns for the 2004 through 2006 tax years.
As part of the plea agreement, Hoang admitted that the total tax loss caused by his criminal conduct is greater than $1.5 million.
The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Jorge Almonte and Jeffrey B. Bender of the Justice Department’s Tax Division.
Former Motel Owner, Anil Patel, Sentenced for Tax FraudRead the Press Release
ANIL PATEL, age 47, formerly a resident of Metairie, Louisiana, was sentenced today by U.S. District Judge Sarah S. Vance to thirteen months incarceration, announced U. S. Attorney Kenneth A. Polite, Jr.
According to court documents, on August 6, 2009, PATEL signed and filed a 2008 U. S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. That tax return did not report approximately $426,744 in income, which resulted in $111,378 in tax due and owing to the Internal Revenue Service.
PATEL was the former owner of the Trade Winds and La Village motels that were located on Airline Drive in Metairie, Louisiana. As part of his plea agreement, PATEL agreed to accept responsibility for failing to report $1,373,076 in total unreported income for the tax years 2006 - 2009. As a result, the tax due and owing to the IRS for those years is $393,048. PATEL also previously agreed to pay taxes due and owing to both the parish and state.
“Those who cheat on their taxes impose an unfair burden on everyone else who dutifully pay their fair share,” stated U.S. Attorney Polite.
“Mr. Patel underreported his taxable income by over $425,000 in a single year”, stated Gabriel L. Grchan, Special Agent in Charge of Internal Revenue Service Criminal Investigations, “the agents of Criminal Investigation will continue to diligently pursue those individuals that evade their responsibility to accurately report their earnings and pay their fair share of taxes. We will continue to work with the United States Attorney Office, our federal, state and local law enforcement partners to ferret out those that fail to obey the law.”
U.S. Attorney Polite also acknowledges the outstanding job performed by the Jefferson Parish Sheriff’s Office and Special Agents of the Internal Revenue Service, Criminal Investigations.
The prosecution was handled by Assistant U. S. Attorney Jon Maestri.
Former Houston Banker Arrested for Bank FraudRead the Press Release
HOUSTON – Carlos Ibarra, 33, formerly of Houston, has been arrested on charges of bank fraud and money laundering, announced United States Attorney Kenneth Magidson.
Ibarra was taken into custody yesterday without incident at a family member’s residence in Houston. He is expected to appear this afternoon before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m.
The 10-count sealed indictment was returned June 19, 2013, and unsealed upon his arrest. It alleges he knowingly executed a scheme to defraud Chase Bank and obtain money under the control of the bank by means of materially false and fraudulent pretenses.
Ibarra had been employed by J.P. Morgan Chase Bank in Houston. Between September 2010 and June 2012, Ibarra allegedly purchased cashier’s checks on an account at Chase that belonged to a deceased individual. According to the indictment, he gave those checks to others for them to deposit into their own bank accounts. They then made wire transfers and obtained cashier’s checks as instructed by Ibarra, according to the allegations.
If convicted, Ibarra faces up to 30 years imprisonment on each of three counts of bank fraud and a possible $1 fine. For the remaining seven charges of money laundering, Ibarra also faces up to 20 years and a maximum $500,000 fine upon each conviction.
The indictment further contains a notice of forfeiture of $779,000, alleged illegal proceeds derived from the charged crimes.
The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Executive Director of Rockwall Housing Development Corporation Admits Role in Conspiracy to Steal Federal Funds from HUDRead the Press Release
DALLAS — Jennifer Tyson, 37, of Rockwall, Texas, the former Executive Director/Manager of the Rockwall Housing Development Corporation (RHDC), appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and admitted conspiring to steal federal funds from the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Tyson pleaded guilty to an Information charging one count of conspiracy to commit theft concerning programs receiving federal funds. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine, or twice the pecuniary gain to Tyson or loss to the victim(s), and restitution. Sentencing is set for March 19, 2014, before U.S. District Judge Ed Kinkeade.
The RDHC is a landlord to several authorized public housing agencies (PHAs) in Rockwall. These PHAs, and, in turn, the RHDC, receive federal funds from HUD through the “Housing Choice Voucher Program.” The RHDC owns and operates a 36-unit apartment complex in Rockwall, known as “the Meadows.”
In her role as the RHDC’s Executive Director/Manager from June 2009 to November 2012, Tyson was an agent of the RHDC. Her responsibilities included, among other things, reviewing and processing monthly housing assistance payments and had managerial discretion and responsibility for the day-to-day running of the Meadows.
According to the factual resume filed in the case, beginning in March 2010 and continuing until June 2011, Tyson wrote approximately 128 RHDC checks, made out to Co-conspirator B, totaling approximately $126,063. While this co-conspirator did perform some work for the Meadows, such as watering plants and picking up trash, Co-conspirator B did not earn, and was not owed, $126,063 over the course of less than 16 months.
Generally, Co-conspirator B cashed the checks that Tyson gave to him. Then, Tyson, along with this Co-conspirator B and his fiancé, Co-conspirator A, used the cash to purchase illegal narcotics for their own personal use.
From February 2011 until January 2012, Tyson wrote approximately 94 RHDC checks made out to “cash” and used the proceeds for her own personal use.
From October 2009 until October 2012, Tyson wrote approximately 55 RHDC checks made out to “reimbursement” and used the proceeds for her own personal use.
In January 2011, Co-conspirator A was evicted from the Meadows and began living with Co-conspirator B in hotels in Rockwall. Tyson would occasionally visit them and the three would often use illegal narcotics in these hotel rooms. Tyson paid for these hotel stays using RHDC funds.
The investigation was conducted by HUD and the FBI. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Former Employee of Allstate Electrical to Serve Eight Months in Prison for Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Renea I. Windham, of Oklahoma City, was sentenced today to eight months in federal prison for making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors, Inc., in Oklahoma City. According to the Information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At the plea hearing on September 11, 2013, Windham admitted that she prepared that check to herself without Allstate’s permission, and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The Information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At the plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
Today, United States District Judge Robin J. Cauthron sentenced Windham to eight months of imprisonment, followed by three years of supervised release. Windham was ordered to pay restitution to Allstate and its insurance company in the amount of $143,057.10. She was also ordered to pay $26,682.00 in restitution to the Internal Revenue Service for federal income tax due from her unreported embezzlement income.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Chief Executive of Mortgage Servicing Company Sentenced for Scheme to Withhold Funds from <br /> Wells Fargo BankRead the Press Release
Earl Gross, 74, of Las Vegas, the former President and Chief Executive Officer of U.S. Mortgage, a loan servicing company, was sentenced to serve 18 months in prison for his role in an $8 million scheme to defraud Wells Fargo Bank.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement after the sentence was imposed by U.S. District Court Judge Andrew P. Gordon of the District of Nevada.
On June 11, 2013, Gross pleaded guilty to one count of bank fraud. In addition to his prison term, Gross was ordered to forfeit $8,440,439 in fraudulent proceeds.
According to plea documents, Wells Fargo Bank contracted with U.S. Mortgage to service pools of residential mortgage loans held by investors in mortgage backed securities. Under the agreement, Gross and U.S. Mortgage were obligated to collect from the borrowers the monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to Wells Fargo Bank. In the event that a borrower paid off the loan – usually by selling the mortgaged property – U.S. Mortgage was obligated to remit to Wells Fargo Bank the full payoff amount. U.S. Mortgage agreed to provide Wells Fargo Bank with monthly reports that described the status of the loans, and it received servicing fees for each loan it serviced.
According to the indictment, from 2004 to 2009, Mr. Gross and U.S. Mortgage withheld over $8 million in loan payoffs that were due Wells Fargo Bank by submitting to the bank reports stating that numerous borrowers were continuing to make monthly payments when in fact they had paid off the loans in full. Rather than remit the full payoff amount to Wells Fargo Bank, Gross and U.S. Mortgage forwarded only what the borrowers’ monthly payments would have been and retained the difference in U.S. Mortgage’s bank account. To deceive Wells Fargo Bank about the status of paid-off loans, Gross and U.S. Mortgage created fake amortization schedules indicating that borrowers who had sold and paid off homes were continuing to make monthly payments. In addition to withholding loan payoff amounts to which he was not entitled, Gross charged Wells Fargo Bank fees to service mortgage loans that had been paid off.
The case was investigated by the FBI and prosecuted by Deputy Chief Charles La Bella and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, with assistance from Roberto Iraola of the Office of International Affairs and the United States Attorney’s Office for the District of Nevada.
Today’s guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the Task Force, visit www.StopFraud.gov .Florida Man Charged in $3.9 Million Fraud Scheme Targeting InvestorsRead the Press Release
PITTSBURGH - A resident of Tampa, Fla., was indicted on Dec. 3, 2013, by a federal grand jury in Pittsburgh on charges of wire fraud, United States Attorney David J. Hickton announced today.
The 13-count indictment named Fotios Geivelis, Jr., a/k/a Frank Geivelis, a/k/a Frank Anastasio, 34, as the sole defendant.
According to the indictment, Geivelis, through operation of his Florida company, Worldwide Funding III, Ltd. (WWF), obtained in excess of $3.9 million in increments of $60,000 or $90,000 from more than three dozen investors, to each of whom he promised to obtain a $10 million “non-recourse” overseas loan for a “humanitarian” or “job-creating” project. The funds were wired into the escrow accounts of a Florida attorney Geivelis designated as the “Paymaster,” and thereafter paid out to that attorney, brokers who had referred the investors to WWF and to Geivelis, who spent his share on personal expenses such as hotels, casinos, restaurants, strip clubs, automobiles, clothing and jewelry. No loans were ever obtained for the investors, who Geivelis attempted to lull by repeated assurances that their deals would close within a short period of time.
The law provides for a maximum total sentence (at each count) of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Court Shuts Down Atlanta-Area Tax PreparerRead the Press Release
A federal court in Atlanta permanently barred Matthew Adegbite and his companies, MAS & Associates CPA LLC and Mathew A. Adegbite CPA PC, from preparing federal income tax returns for others, the Justice Department announced today. The permanent injunction order was signed today by Judge Clarence Cooper of the U.S. District Court for the Northern District of Georgia.
According to the complaint, Adegbite has prepared more than 1,000 returns since 2008. Allegedly, Adegbite repeatedly understated his clients’ federal tax liabilities by claiming false or inflated tax deductions and credits his clients were not eligible to take. Adegbite’s alleged schemes include claiming the First Time Home Buyer Credit for taxpayers who did not actually purchase homes, deducting fictitious business expenses for taxpayers who did not operate a business and inflating deductions for legitimate businesses to claim losses for otherwise profitable enterprises. The complaint further alleged that the harm to the U.S. Treasury as a result of his conduct could amount to millions of dollars and that a permanent injunction was warranted to prevent further harm.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the department website.
Related Materials:
United States v. Matthew Adegbite, et al.
Final Judgment and Permanent InjunctionExecutive of Two Publicly Traded Companies Sentenced to 15 Months in Securities Fraud SchemeRead the Press Release
BOSTON – A Canadian man who served as an executive of two public companies, both of which traded on the over-the-counter securities market, was sentenced today for his role in a securities fraud scheme.
Seijin Ki, 42, of Toronto, was sentenced by United States District Court Judge William G. Young to 15 months in prison, one year of supervised release, a $4,000 fine, and ordered to forfeit illegal earnings. In October 2013, Ki pleaded guilty to wire fraud and mail fraud.
Ki was convicted for his role in a scheme to pay secret kickbacks to an investment fund representative who had agreed to steer the investment fund to buy stock in Lightlake Therapeutics, Inc. and Church & Crawford, Inc. The kickbacks were concealed through the use of a sham consulting agreement and other fraudulent documents. Ki did not know that the purported investment fund representative was actually an undercover federal agent.
The conviction and sentence followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission.
Ki is one of 15 defendants convicted of crimes associated with the illegal kickback scheme.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, as well as those against the other defendants.United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Escambia High School Teacher Arrested on Child Pornography ChargesRead the Press Release
PENSACOLA, FLORIDA - - United States Attorney Pamela C. Marsh announced that Jeffrey B. Richards, age 63, of Milton, was arrested today on a federal criminal complaint charging him with the distribution, receipt and possession of child pornography.
The criminal complaint, sworn to by a special agent of the Federal Bureau of Investigation, alleges that between December 2012 and December 2013, Richards utilized peer-to-peer software to share hundreds of images of child pornography online.
Richards made his initial appearance on the criminal complaint today before United States Magistrate Judge Charles J. Kahn, Jr.
The complaint was a result of a joint investigation by the Federal Bureau of Investigation, the Department of Homeland Security, the Pensacola Police Department and other members of the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.
A criminal complaint is merely a preliminary allegation that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent until and unless the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.Eric Bartoli Arrested in Peru After A Decade as A FugitiveRead the Press Release
Eric V. Bartoli, who was indicted in 2003 on a 10-count indictment and has been a fugitive for more than a decade, has been arrested in Peru, said Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bartoli is accused of operation a large-scale ponzi scheme from 1995 through 1999. Bartoli allegedly created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America and Belize. Bartoli and his co-conspirators allegedly operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims include retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
A 10-count federal indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003. He was charged with conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud, money laundering, and attempted income tax evasion.
Bartoli has been featured on shows including American Greed and Life on the Run and on a wanted poster by the FBI posted on www.fbi.gov.
Bartoli was taken into custody this morning at 6:15a.m. in Chorillos, Lima, Peru by the Peruvian National Police without incident. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. The United States Government appreciates the Government of Peru’s cooperation on this sensitive case.
“We are thankful for our continued partnership with the international law enforcement community. A team of Cleveland and international FBI resources worked closely with the Peruvian authorities to locate and apprehend Eric Bartoli,” Anthony said. “We hope that the long awaited prosecution of Bartoli will provide some satisfaction to the many individuals he defrauded.”
“We are gratified by the all the hard work that was done to bring Mr. Bartoli into custody,” Dettelbach said.
Emergency Room Doctor Sentenced for Failure to File Tax ReturnsRead the Press Release
Dr. Michael Austin, 57, of Atlanta, Ga., was sentenced today to serve one year and one day in federal prison for willfully failing to file individual income tax returns for tax years 2008 and 2009, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. Austin was further ordered to serve one year of supervised release and to pay restitution to the Internal Revenue Service (IRS). Austin previously pleaded guilty to these charges on Aug. 27, 2013.
According to documents filed in court, during 2008 and 2009, Austin was a medical doctor licensed by the state of Georgia who earned substantial income from practicing of medicine at various hospitals, clinics and other health care institutions. As alleged in the case, Austin earned at least $213,931 in 2008 and $210,644 in 2009, which required him to file an income tax return with the Internal Revenue Service (IRS). Nonetheless, as Austin admitted in his plea agreement, he willfully failed to file an individual income tax return for both years. In total, Dr. Austin agreed to pay restitution of at least $215,906.44 to the IRS.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorney Hayden Brockett of the department's Tax Division prosecuted the case, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.
Eleven Indicted for Alleged Conspiracy to Distribute Drugs, Launder Money and Sell Millions in Contraband CigarettesRead the Press Release
Criminal Proceeds Laundered Through Eastern Europe
Baltimore, Maryland - A federal grand jury has indicted 11 individuals on charges related to a conspiracy to traffic over $6.6 million in contraband cigarettes. The indictment was returned on December 3, 2013, and unsealed today upon the arrest of eight defendants and the execution of twelve search warrants.
Charged in the indictment are:
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 41, of Owings Mills, Maryland;
Zarakh Yelizarov, age 51, of Baltimore, Maryland;
Salim Yusufov, age 43, of Baltimore;
Artur Zakharyan, age 52, of Owings Mills;
Ilgar Rakhamimov, age 39, of Owings Mills;
Timur Yusufov, age 35, of Baltimore;
Nikolay Zakharyan, age 23, of Owings Mills;
Adam Azerman, age 59, of Pikesville;
Shamil Novakhov, age 58, of Brooklyn, New York;
Yuliya Rakhamimov, age 33, of Owings Mills; and
Ruslan Ykiew, age 38, of Brooklyn, New York.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“The indictment alleges that the defendants participated in a criminal conspiracy to traffic in illegal drugs and contraband cigarettes and launder the criminal proceeds through wire transfers to Eastern European countries,” said U.S. Attorney Rod J. Rosenstein.
“FDA’s regulatory standards are designed to ensure the safety and quality of drugs distributed to American consumers,” said Special Agent-in-Charge Antoinette V. Henry, FDA’s Office of Criminal Investigations. “We will continue to work with our law enforcement partners to investigate all persons who disregard regulatory requirements and jeopardize the public health by participating in the distribution of unapproved products.”
The 42-count indictment alleges that the defendants are family members and associates who primarily live in northwest Baltimore County and New York City and operate businesses in the Pikesville area of Baltimore County, and in Baltimore City, including Healthway Pharmacy and Europe Restaurant. In addition to trafficking in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid, the indictment alleges that some of the defendants also have distributed oxycodone, sold drug samples and laundered money.
According to the indictment, the cigarette tax in Maryland is $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York is $4.35 per package of cigarettes ($43.50 per carton of cigarettes). Specifically, the indictment alleges that since December 2011, Elmar Rakhamimov has paid approximately $5.4 million for contraband cigarettes, which were received and stored at his residence in Maryland. The conspirators then transported the cigarettes to the New York area and resold them for a profit. According to the indictment, Elmar Rakhamimov, Artur Zakharyan and Ilgar Rakhamimov acted as a broker, middleman and distributor of contraband cigarettes and Nikolay Zakharyan, Adam Azerman, Shamil Novakhov andRuslan Ykiew transported contraband cigarettes to New York and other cities for resale. Elmar Rakhamimov and Yuliya Rakhamimov sometimes paid for the contraband cigarettes with prescription and counterfeit prescription drugs as well as other controlled substances. Elmar Rakhamimov and other conspirators used Rakhamimov’s residence and his restaurant to conduct the illegal transactions of contraband cigarettes and drugs. The indictment alleges that Salim Yusufov, who owned Healthway Pharmacy, received more than $81,000 in kickbacks for the contraband cigarette transactions.
Further, the indictment alleges that Elmar Rakhamimov and Zarakh Yelizarov conducted financial transactions involving the proceeds of the contraband cigarette sales, in order to conceal the nature, source, ownership and control of the proceeds of the illegal activity. Specifically, the indictment alleges that Rakhamimov and Yelizarov conducted wire transfers of cash from bank accounts they controlled in Latvia, Cyprus and Estonia.
In a separate indictment, Salim Yusufov, who owned and operated Healthway Pharmacy in Pikesville, is charged with illegally providing unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. According to the indictment, Corvalol, also referred to Corvalolum, and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. The indictment alleges that from July 23, 2010 through July 14, 2011, Yusufov imported and distributed Valocordin, dispensing the drug without a prescription.
All the defendants except Yuliya Rakhamimov face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes and for each of 18 counts of trafficking in contraband cigarettes. Elmar and Yuliya Rakhamimov face a maximum of 20 years in prison for each of 10 counts of distribution of oxycodone; and Elmar Rakhamimov and Zarakh Yelizarov face a maximum of 20 years in prison for each of 12 counts of money laundering. Elmar Rakhamimov also faces 10 years in prison for sale of a drug sample.
Salim Yusufov also faces a maximum of three years in prison for each of five counts of receipt and delivery of misbranded drugs, and for each of five counts of dispensing prescription drugs without a prescription.
Six of the defendants are scheduled to have initial appearances this afternoon in U.S. District Court in Baltimore. Shamil Novakhov and Ruslan Ykiew were arrested in New York and will have initial appearances this afternoon in the U.S. District Court for the Eastern District of New York.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Durham Man Sentenced to Twenty Years for Federal Firearm OffensesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced JASON LEMAR MEDLYN, 31, of Durham, North Carolina, to 240 months imprisonment followed by 3 years of supervised release.
Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, and the Raleigh-Durham Safe Streets Task Force comprised of the North Carolina State Highway Patrol, Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, North Carolina Alcohol Law Enforcement, Cary Police Department, and the Garner Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
On July 10, 2013 MEDLYN pled guilty to three federal charges: Conspiracy to possess stolen firearms and ammunition, in violation of Title 18, United States Code, section 371; Possession of firearm in a school zone; aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; Felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, MEDLYN and his co-conspirator, Ireshia Donte Summers broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by the homeowner. A Granville County Sheriff’s Deputy responding to the call regarding the residential break in, pursued two males from Durham, NC, later identified as MEDLYN and Summers. The passenger in the fleeing vehicle fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase in Wake County and the passenger then fired shots at the trooper.
The car sped through two school zones in Durham before crashing. Three hand guns were found near the vehicle along with a stolen television, nooks, and jewelry.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.Downsville Man Pleads Guilty to Receiving Child PornRead the Press Release
MONROE, La. – U.S. Attorney Stephanie A. Finley announced that Randy A. Powell, 33, of Downsville, La., pleaded guilty Tuesday before U.S. Magistrate Judge Karen L. Hayes to receiving child pornography.
According to evidence presented at the guilty plea, in February 2012, Ouachita Parish Sheriff’s Office deputies learned that Powell, who is a registered sex offender, was maintaining social media accounts under an alias, which is a violation of his sex offender registration requirements. Authorities arrested Powell February 23, 2013, and his home was searched. They found 1,041 images and 150 videos of prepubescent children. Approximately 50 of the videos/photos depicted children in bondage. Powell admitted to investigators that he used a file-sharing program to download the images. Powell has a previous conviction for attempted possession of child pornography.
Powell faces five to 40 years in prison, a $250,000 fine, and five years to life of supervised release for one count of receiving child pornography. Sentencing is set for April 7, 2014. The Federal Bureau of Investigation and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Monroe FBI office number is (318) 387-0773.
Defendant Who Supplied Three Rocket-Propelled Grenade Launchers Pleads Guilty in Manhattan Federal Court to Attempting to Provide Material Support to TerroristsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the Drug Enforcement Administration (DEA), announced that IOANNIS VIGLAKIS, a/k/a “Pablo,” pled guilty yesterday in Manhattan federal court to attempting to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), a Colombian terrorist organization. VIGLAKIS, a citizen of Greece, was arrested in Panama City, Panama, in coordination with Panamanian authorities during August 2012. He waived extradition and was subsequently turned over to the custody of the United States. VIGLAKIS pled guilty before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “By providing functioning rocket-propelled grenade launchers and other military-grade weapons to an individual he believed to be a FARC associate, Ioannis Viglakis was attempting to arm a known terrorist organization that he understood would use those weapons against Americans and Colombians. This Office will not stop its efforts to pursue and prosecute those who agree to provide weapons to a terrorist organization knowing that they might be used to attack American forces.”
DEA Administrator Michele M. Leonhart said: “This investigation clearly demonstrates DEA’s unique ability to disrupt and dismantle the arms-trafficking networks that supply weapons to the most significant global narco-terror organizations. DEA will continue to aggressively pursue international arms dealers and narco-terrorists who are focused on harming our nation's security.”
According to the Indictment previously unsealed in this case:
Beginning in November 2011, VIGLAKIS had a series of meetings with a DEA confidential source (the “CS”) who represented himself to be an associate of the FARC. During those meetings, which took place in Europe and Central America, the CS informed VIGLAKIS that he was seeking weapons for use by the FARC to attack American forces in Colombia. VIGLAKIS offered to provide the FARC with functional, bona fide, military-grade weapons – including assault rifles, rocket-propelled grenade (“RPG”) launchers and surface-to-air missiles – in exchange for cocaine and cash. During the meetings, VIGLAKIS and the CS also discussed the FARC’s use of these weapons to fight the Colombian and American governments, including by shooting down American aircraft in Colombia.
During the following months, VIGLAKIS indicated that he would provide the CS with several RPG launchers as a sample. On July 18, 2012, VIGLAKIS successfully arranged for the delivery in Europe of six live RPGs and three working RPG launchers, which were received by a DEA undercover agent.
VIGLAKIS, 53, pled guilty to one count of attempting to provide material support to the FARC. He faces a maximum sentence of 15 years in prison, and is scheduled to be sentenced by Judge Forrest on April 11, 2014, at 11:00 a.m.
Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA, as well as the DEA Panama Country Office, the DEA Madrid Country Office, and the DEA Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the Government of the Republic of Panama.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Michael Lockard are in charge of the prosecution.
U.S. v. Ioannis Viglakis S1 Indictment
December Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 21 indictments charging 22 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Abel-Davila, age 27, of Omaha, is charged with illegal reentry into the United States on or about October 11, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Fidelsi Alvarez, age 35, of Bellevue, Nebraska, is charged with illegal reentry into the United States on or about December 2, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Franklin A. Ansu, age 30, of La Vista, Nebraska is charged in a three-count Indictment. Count I of the Indictment charges Ansu with submitting a false document to the United States Air Force at Offutt Air Force Base in the District of Nebraska on or about May 16, 2011. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with submitting a false statement to the United States Office of Personnel Management Investigations Service at Offutt Air Force Base on or about May 24, 2011. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment. Count III of the Indictment charges Ansu with aiding and abetting the misuse of a Social Security Number from on or about December 31, 2009 through on or about September 25, 2010. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Richard Allen Brownrigg, age 58, of Winnebago, Nebraska is charged with resisting and interfering with a police officer of the Bureau of Indian Affairs on or about November 2, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Dana Lee Dick, age 57, of Macy, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with assault with a deadly weapon on or about October 27, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years supervised release, and a $100 special assessment. Count II charges the defendant with felony child abuse on or about October 27, 2013. The maximum possible penalty if convicted is imprisonment of 5 years, a fine of $10,000, 3 years of supervised release, and a $100 special assessment.
* David C. Evans, age 35, of Omaha, is charged in a two-count indictment. Count I of the Indictment charges Evans with receipt of child pornography from on or about July 11, 2012 and continuing until November 14, 2012. The maximum possible penalty if convicted is imprisonment of not less than 5 years or more than 20 years, a $250,000 fine, supervised release for life, and a $100 special assessment. Evans is charged in Count II of the Indictment with possession of child pornography from on or about July 11, 2012, and continuing until November 14, 2012. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Brandon Lamar Ford, also known as Gotti, age 28, of Lincoln, is charged in a six-count indictment. Counts I, III and IV charges Ford with distribution of a mixture or substance containing cocaine base on or about August 23, September 10, and September 23, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, 3 years supervised release and a $100 special assessment for each count. Counts II and V charge Ford with distribution of a mixture or substance containing cocaine base within 1000 feet of an elementary school on or about August 28, 2013 and November 19, 2013. The maximum possible penalty if convicted is imprisonment of not less than 1 year or more than 40 years, a $2 million fine, 6 years of supervised release, and a $100 special assessment for each count. Count VI of the Indictment alleges that on or about November 19, 2013, Brandon Lamar Ford possessed a Ruger 9 millimeter pistol, during, in relation to, and in furtherance of the drug trafficking offense alleged in Count V. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to life to be served consecutive to any other sentence imposed, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count V of the indictment, including but not limited to: $437.00 in United States currency, should be forfeited to the United States.
* Loni Lee Frenchman, age 33, of Winnebago, Nebraska, is charged with assault with a dangerous weapon on or about October 23, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years supervised release, and a $100 special assessment.
* Luis Garcia-Guzman, age 29, is charged in a six-count Indictment. Count I of the indictment charges Garcia-Guzman with possession with intent to distribute 5 grams or more of actual methamphetamine on or about October 7, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release and a $100 special assessment. Counts II, and III and VI allege that on or about August 15 and 19, 2013 and September 27, 2013, the defendant distributed a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty if convicted for each count is imprisonment of up to 20 years, a $1 million fine, a 5 year term of supervised release and a $100 special assessment. Counts IV and V of the Indictment allege that on or about September 5 and 12, 2013 the defendant distributed 5 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Counts I through VI of this Indictment, including but not limited to $422.00 in United States currency seized from the defendant, should be forfeited to the United States.
* Jose Garcia-Martinez, age 37, of Omaha, is charged with illegal reentry into the United States on or about November 9, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Cristobal Gomez-Padilla, age 38, of Omaha, is charged with illegal reentry into the United States on or about November 19, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Mateo Heredia-Sanchez, age 33, of Omaha, is charged with illegal reentry into the United States on or about November 20, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Gaudencio Landa-Hernandez, age 32, of Omaha, is charged with illegal reentry into the United States on or about October 10, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Noah W. Marco, age 32, of Omaha is charged with conspiring with others to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine at least as early as July 1, 2013 up to August 8, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Jason Montgomery, age 31, of Omaha is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on November 7, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Count I of this Indictment, including but not limited to, United States currency seized from the defendant, should be forfeited to the United States.
* Roberto Sanchez Quiroz, age 28, of Sanger, California, is charged with possession with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin on or about November 20, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Count I of this Indictment, including but not limited to $14,598.78 in United States currency seized from the defendant, should be forfeited to the United States.
* Domingo Ramos-Ramos, age 30, of Omaha, is charged with illegal reentry into the United States on or about November 9, 2013, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Grace Roland, age 46, of Magnet, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges Roland with embezzling funds from the Magnet Post Office in Magnet, Nebraska on or about April, 6, 2013, in an amount of more than of $1000.00. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II alleges that on or about April 6, 2013, the defendant stole United States Postal Service Money Orders. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Arman Simonyah, age 31, and Vahe Akopyan, age 27, both of Glendale, California, are charged in a two-count Indictment. Count I of the Indictment charges both Simonyah and Akopyan with possession of 32 counterfeit Wal-Mart gift cards on or about November 15, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendants with illegal possession of a card-encoder on or about November 15, 2013. The maximum possible penalty if convicted is imprisonment of 15 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in Counts I and II of the Indictment, including but not limited to, $146,400.00 in United States currency seized from the defendants, should be forfeited to the United States.
* Lisa Kay Stork, age 53, of Tekamah, Nebraska, is charged in a two-count Indictment. Count I alleges that on or about December 28, 2009, Stork provided a false statement to the Social Security Administration. The maximum penalty if convicted is 5 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with Social Security fraud, specifically, it is alleged Stork received approximately $206,048.80 in Social Security Administration Disability Benefits to which she was not entitled beginning in or around September 22, 2002, and continuing without interruption until around May 1, 2012. The maximum penalty if convicted is 5 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Jose Luis Vergaro-Jimenez, age 43, of Wayne, Nebraska, is charged with illegal reentry into the United States on or about November 24, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
Court Prohibits S.C. Tax Return Preparer from Preparing Returns for OthersRead the Press Release
A federal district judge in Charleston, S.C., has permanently barred Jessica Geddis, of Summerville, S.C., from preparing federal income tax returns for others, the Justice Department announced today. Geddis consented to the entry of the injunction.
According to the government’s complaint, Geddis prepared federal income tax returns from her home and as a tax preparer at Smith’s Tax Service and, later, at MBM Tax and Accounting Services LLC. As alleged in the complaint, Geddis prepared returns that unlawfully overstated tax refunds through a household help scheme. The complaint alleged that Geddis prepared returns for herself and others that overstated income by reporting fictitious household help income in order to increase the amount of her customers’ refundable tax credits, including the Earned Income Tax Credit, Child Tax Credit and Making Work Pay Credit. The complaint further alleged that Geddis directed the Internal Revenue Service (IRS) to deposit all, or a portion of, her customers’ overstated refunds into bank accounts that she controlled. According to the complaint, the IRS reviewed Geddis’ bank records and determined that she received at least 148 tax refunds totaling $281,678 between January 2008 and May 2012.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dosen-Tax-Scams-for-2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
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United States v. Jessica Geddis
Permanent Injunction
Connecticut Pharmacies Pay $90,000 to Settle Allegations Under the Controlled Substances ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HOWE’S PHARMACY of Milford and NELSON’S PHARMACY of Naugatuck have each entered into a civil settlement agreement with the government to resolve allegations that they violated civil provisions of the Controlled Substances Act. Howe’s Pharmacy has agreed to pay a total of $50,000 and Nelson’s Pharmacy has agreed to pay a total of $40,000.
The allegations against Howe’s Pharmacy, located at 78 Broad Street in Milford, include claims that pharmacists filled prescriptions without exercising their corresponding responsibility to ensure that the prescriptions were issued for a medically appropriate reason, failed to verify that prescriptions issued for Schedule II controlled substances contained the signature of a prescribing physician, failed to ensure that a filled prescription contained the DEA number of the authorizing medical practitioner, filled a prescription for “office use” rather than issuing a prescription to an identifiable person and, in several instances, filled a postdated prescription.
The allegations against Nelson’s Pharmacy, located at 153 Maple Street in Naugatuck, include the failure to insure that prescriptions it filled contained an authorized practitioner’s DEA number, and the failure to account for accurate inventories of Oxycodone 10 mg. tablets, Oxycodone 15 mg. tablets, Oxycodone 30 mg. tablets and Endocet 10/325 tablets.
Congress, with the passage of the Controlled Substances Act, took steps to attempt to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
This investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, and the Connecticut Department of Consumer Protection, Drug Control Division. The prosecutions were led by Assistant U.S. Attorney Alan M. Soloway.
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[email protected]Collin County Man Guilty in Foreign Currency Trading Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 54-year-old Plano, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kevin G. White pleaded guilty to committing mail fraud in connection with a commodity trading fraud scheme today before U.S. Magistrate Judge Don D. Bush.According to information presented in court, White operated Revelation Forex Fund (RFF), which was a fund that conducted foreign exchange currency trading. RFF had its offices in Plano. In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence. RFF received investments totaling over $7.4 million. White admitted to using approximately $1.8 million of investor funds for non-investment purposes. The loss to investors was approximately $4 million.
White faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Andy Williams.
Camden, N.J., Man Admits Conspiracy to Steal Checks from MailRead the Press Release
CAMDEN, N.J. – A Camden man today admitted his role in a scheme in which he and others stole business checks from the U.S. Mail in New Jersey, Pennsylvania, and Delaware, altered them, and cashed them at banks using a series of conspirators, U.S. Attorney Paul J. Fishman announced.
Derrick Warner, 29, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit bank fraud and one count of possession of a firearm by a previously convicted felon: Warner admitted to illegally possessing the weapon (a Smith and Wesson .44 Magnum handgun) after purchasing it for a conspirator.
According to documents filed in this case and statements made in court:
Warner and others stole checks from curbside U.S. mailboxes in business industrial parks in Burlington and Camden counties in New Jersey and in Pennsylvania and Delaware. Warner and his conspirators would then recruit a conspirator to cash the stolen checks. Once they identified a person to cash the check, Warner and others would alter the stolen checks so that the name of the “payee” of the check would match the name of the recruited check casher. Warner, the check casher, and often a conspirator would then travel to a bank where the check casher would cash the check.
Warner and his conspirators cashed or attempted to cash more than 45 stolen and altered business checks worth more than $200,000. The scheme resulted in a total loss of more than $100,000 to the victim banks.
Warner is also charged with being a felon in possession of a handgun in late March 2013. He admitted that he purchased the firearm in Camden on behalf of one of his conspirators.
The conspiracy to commit bank fraud to which Warner pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss resulting from the offense. The felon in possession of a firearm count is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for April 4, 2014.
U.S. Attorney Fishman credited special agents from the U.S. Postal Inspection Service, under the direction of Inspector in Charge David Bosch; and the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, for the investigation leading to today's guilty plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Richard Sparaco Esq., Cherry Hill, N.J.Warner Information
Business Owner Indicted for $1.2 Million Tax FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of an Independence, Mo., business has been indicted by a federal grand jury for failing to report more than $1.2 million in business income on her income tax returns.
Peggy Hennon, 55, of Independence, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 10, 2013. That indictment was unsealed and made public today upon Hennon’s arrest and initial court appearance.
Hennon was the owner of Peggy’s Tow. The federal indictment alleges that Hennon under-reported the gross receipts from her business from 2007 to 2009 in order to significantly reduce her income tax liability by approximately $308,368.
Peggy’s Tow purchased vehicles as scrap and sold them to scrap yards in the Kansas City metro area. After the vehicles were sold to the scrap yard, Hennon either deposited the check into one of her checking accounts or cashed the check at a gas station or bank.
According to the indictment, Hennon reported only part of her gross receipts on her 2007, 2008, and 2009 individual income tax returns. Hennon allegedly cashed the majority of checks she received from the sale of scrap vehicles (25 percent of the checks in 2007, 68 percent in 2008 and 98 percent in 2009). Hennon allegedly failed to include approximately $1,232,363 from the cashed checks on her tax returns for the 2007, 2008, and 2009 tax years.
Hennon is charged with three counts of making false statements on income tax returns. Hennon is also charged with attempting to interfere with the administration of internal revenue laws.
According to the indictment, Hennon provided expense records to IRS agents on three separate occasions in 2012 and 2013. Hennon allegedly provided false expense records to the IRS agents that had been altered to reflect higher business costs than the expense records that were used by her accountant to calculate expenses on her tax returns for 2008 and 2009. The majority of the alterations, the indictment says, involve a price which contained a “1” that was changed to a “4.”
The increased expenses of approximately $414,725 for tax years 2008 and 2009 would have reduced the amount of taxes due and owing by Hennon in the amount of approximately $163,857.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 Roseann Ketchmark. It was investigated by IRS-Criminal Investigation Missouri Dept. of Revenue and the Missouri State Highway Patrol.Bryant Man Pleads Guilty to Bank FraudRead the Press Release
Little Rock - LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Christopher Williams, age 33, of Bryant, plead guilty today to one count of bank fraud before United States District Judge Susan Webber Wright.
A federal grand jury indicted Williams in January 2013, alleging three counts of bank fraud and one count of aggravated identity theft. In pleading guilty to bank fraud, Williams admitted that after losing his job as a financial adviser at Charles Schwab in June 2012, he reestablished contact with a former client. During visits to the client’s Little Rock home, Williams obtained sensitive financial account information that he used to access the client’s online account at Bank of America and also deceived the client into signing personal checks made payable to third-party organizations under Williams’s control. Williams then used the client’s personal identifiers to create an E*TRADE online brokerage account to facilitate the transfer of money out of the client’s Bank of America account and opened credit cards in the client’s name for Williams’s own personal use. The scheme persisted until his arrest in December 2012.
Upon Judge Wright’s acceptance of the guilty plea to the bank fraud alleged in Count One, the United States successfully moved to dismiss the remaining bank fraud and aggravated identity theft charges pursuant to the plea agreement. Williams was not detained. Williams faces a possible sentence of up to thirty years’ imprisonment and a fine of up to $1 million.
The United States Attorney wishes to thank Special Agent Charles M. Briscoe of the Office of the Inspector General for the Social Security Administration, Special Agent Lee Wood of the United States Secret Service, and Special Agent Amy Hoffman of the United States Naval Criminal Investigative Service for their extraordinary work on this investigation. Assistant United States Attorney Alexander D. Morgan is prosecuting the case for the United States.
Brownsville Drug Dealer Gets Four Life SentencesRead the Press Release
BROWNSVILLE, Texas – Julio Cesar Cardenas, 40, has been given four life sentences in federal prison for his involvement in leading a drug trafficking organization for several years out of Brownsville, announced United States Attorney Kenneth Magidson. Cardenas was convicted by a federal jury following a two-week trial on May 31, 2013.
Today, Senior U.S. District Judge Hilda Tagle, who presided over the trial, handed down the sentence, noting her concern for the safety of the community due in part to his extensive criminal history. At the hearing, it was noted that this was the sixth felony conviction for Cardenas. He was further ordered to pay restitution in the amount of $1,700. Cardenas was sentenced on a total of 17 counts in two indictments and given other sentences ranging from five to 40 years to run concurrent with the life sentences. The life sentences imposed were for conspiracy to possess with intent to distribute more than five kilograms of cocaine, conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, possession with intent to distribute approximately 31 kilograms of cocaine and possession with intent to distribute approximately 20 kilograms of cocaine.
Cardenas was convicted at trial on all 17 counts in which he was charged in the two indictments, including the aforementioned charges as well as operating an illegal money remitting business and numerous substantive marijuana and cocaine counts. He was also convicted for being a felon in possession of a firearm.
Cardenas was one of 13 people originally charged in an indictment returned in June 2012. According to the evidence and testimony presented in court, Cardenas led the drug trafficking organization whose aim was to distribute cocaine and marijuana through commercial freight lines to numerous states, including Texas, Florida, Georgia, Tennessee, Kansas, Missouri, Michigan, Ohio, Mississippi, South Carolina, Indiana and Illinois. After the marijuana and cocaine was sold in these states, Cardenas directed the illegal money remitting of the transportation costs and drug proceeds of the narcotics back to the Brownsville area by utilizing cash deposits in bank accounts in the names of other individuals and co-conspirators. Branch banks were utilized in the receiving states with the money to be withdrawn by the co-conspirators here in Brownsville on a regular basis.
Testimony at trial demonstrated that Cardenas engaged in numerous drug trafficking and illegal money remitting conversations in March, April and June 2011. The investigation led law enforcement to four separate seizures of large amounts of marijuana during these months. Cardenas was also convicted of several other historical seizures of cocaine and marijuana.Cardenas was arrested Sept. 13, 2012, at which time a weapon was found at his home. Evidence at trial established that within minutes of approximately 365 pounds of marijuana being seized at the house of co-conspirator, he had commented about the need to get a gun out of his house. Cardenas was convicted in three separate cases of delivery of cocaine in 1995 and is, therefore, prohibited by federal law from possessing a firearm.
The jury also heard that Cardenas had ties to the Gulf Cartel. Evidence established that Cardenas assisted in the possession of approximately 31 kilograms of cocaine in April 2011 that was supplied to a co-conspirator by an individual named “La Tia” from Matamoros. “La Tia” was identified by several cooperating witnesses as an alleged high ranking member of the Gulf Cartel.
Cardenas offered to help store and sell three kilograms of the total load of 31 kilograms. He also provided advice to the co-conspirator on how to deal with “La Tia” during the transportation of the cocaine to Chicago, Ill. The jury heard that Cardenas advised the co-conspirator to employ violence, such as kidnaping and the use of a bomb, in their dispute with “La Tia” regarding the seizure of the 31 kilograms of cocaine by the Cameron County Sheriff’s Office.
Law enforcement has identified “La Tia” as Idalia Ramos Rangel, 58. She is a fugitive and has been charged by the United States Attorney’s Offices in Brownsville and Little Rock, Ark., on separate narcotics trafficking indictments. She is considered innocent until proven guilty through due process of law.
The government also presented evidence that Cardenas received bank deposits in the names of co-conspirators in excess of $841,000. Cardenas was the leader of the co-conspirators in the indictment and, on one occasion, wanted to steal electricity from a neighboring church to power one of the warehouses he was using to ship and package narcotics.
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service-Criminal Investigation, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Cameron Country Sheriff’s Office, Police Departments in Brownsville and Harlingen as well as the Hidalgo and Cameron County High Intensity Drug Trafficking Area Task Forces and the Cameron County District Attorney’s Office.
Cardenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The 11 remaining defendants all pleaded guilty on various dates prior to the Cardenas trial. Emmanuel Leal Mancha, 36, was sentenced to 46 months for illegal money remitting and possession with intent to distribute approximately 82 kilograms of marijuana. Juan Gonzalez, 39, Pablo Torres, 22, and Ronny Robertson, 22, received respective sentences of 60, 37, and 24 months for possession with intent to distribute approximately 166 kilograms of marijuana. For his two convictions of conspiracy to possess with intent to distribute more than five kilograms of cocaine and more than 100 kilograms of marijuana, Byron Green, 33, was handed a 125-month sentence, while Guadalupe Vidaurri, 34, received 48 months for possession with intent to distribute approximately 194 kilograms of marijuana. Alejandro Trevino, 38, received credit for time served for illegal money remitting. Israel Avila was sentenced yesterday to 40 months, while four others - Juan Torres, Pablo Rodriguez and Carlos Lopez - are set for sentencing next year.
The case was prosecuted by Assistant U.S. Attorneys Jody Young and Angel Castro as part of the Organized Crime and Drug Enforcement Task Force Operation “Hips Don’t Lie.”
Brooklyn Man Who Broke into Pharmacy Sentenced to 65 Months in Prison for Conspiracy to Sell Stolen OxycodoneRead the Press Release
TRENTON, N.J. – A Brooklyn, N.Y., man was sentenced today to 65 months in prison for his involvement in a plot to burglarize a pharmacy in Marlboro Township, N.J., and sell the stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.
David Mordukhaev, 22, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Marlboro Township was burglarized shortly after 4:00 a.m. on June 17, 2012. Mordukhaev and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances.
The stock lost by the pharmacy was valued at approximately $335,000.
Mordukhaev admitted that he stole the drugs, and that he did so knowing they would be sold for profit.
In addition to the prison term, Judge Wolfson sentenced Mordukhaev to three years of supervised release and ordered him to pay $334,722 in restitution.
Two of Mordukhaev’s conspirators, James Zarbailov, 23, and Dzheykhun Avshalumov, 24, both of Brooklyn, have previously pleaded guilty to the same charge. Zarbailov was sentenced to 63 months’ imprisonment on Nov. 18, 2013. Avshalumov’s sentencing is scheduled for Dec. 19, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-459
Defense counsel: Lance Lazzaro Esq., Brooklyn, N.Y.Bluefield Pill Dealer Sentenced to More Than 5 Years in Prison as Part of Federal Prescription Drug CrackdownRead the Press Release
Six co-defendants have been convicted and sentenced to prison time in Bluefield Pill Initiative
BLUEFIELD, W.Va. – The lead defendant in a Bluefield pill distribution conspiracy was sentenced yesterday to five years and eleven months in prison after pleading guilty earlier this year to a federal drug charge, announced U.S. Attorney Booth Goodwin. Thirty-four-year-old Carlos R. Ivy, of Bluefield, previously pleaded guilty in August to distribution of oxycodone. On February 22, 2013, Ivy distributed oxycodone to an associate in exchange for cash. Ivy was charged with seven counts contained in a 51-count indictment returned in May.
The May indictment named a total of sixteen defendants who were charged with various drug-related felonies. Ivy, along with six co-defendants, have previously pleaded guilty to federal drug charges and sentenced to federal prison. The following defendants have also received prison terms:
- Elizabeth Ann Stewart, 30, of Matheny, Wyoming County, W.Va., was sentenced on Tuesday to six months in prison. Stewart previously pleaded guilty in August to distribution of oxycodone.
- Tonya Lynn Goode, 35, of Matheny, Wyoming County, W.Va., was sentenced on Tuesday to 2 years in prison. Goode previously pleaded guilty in August to distribution of oxycodone.
- Danny Lee Decker, 42, of Mullens, Wyoming County, was sentenced on Dec. 9 to one year and three months in prison. Decker previously pleaded guilty in July 30 to using a telephone to commit a drug crime.
- Kathy Burchett, 38, of Welch, McDowell County, W.Va., was sentenced on Dec. 3 to 1 ½ years in prison. Burchett previously pleaded guilty in August to using a telephone to commit a drug crime.
- Anthony Lee Madison, 23, of Bluefield, Va., was sentenced on Dec. 3 to 2 years and three months in prison. Madison previously pleaded guilty in July to using a telephone to commit a drug crime.
- Edgar Junior Ponce, 32, of Oceana, Wyoming County, W.Va., was sentenced on Dec. 3 to 2 years in prison. Ponce previously pleaded guilty in July to using a telephone to commit a drug crime.
The sentences were handed down by Senior United States District Judge David A. Faber in Bluefield.
The cases were brought as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation, the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.Bapchule Man Sentenced to 100 Months in Prison for Felon in Possession of A FirearmRead the Press Release
PHOENIX – On Dec.10, 2013, Mario Lee White, 27, a member of the Gila River Indian Community, was sentenced by U.S. District Judge James Carrto 100 months in prison after previously pleading guilty to two counts of felon in possession of a firearm on June 26, 2013.
On Jan. 22, 2013, White was driving a vehicle within the Ak-Chin Indian Community when he was pulled over for a traffic violation. Inside the vehicle officers found a firearm and drug paraphernalia. On March 6, 2013, White was driving a vehicle on the Gila River Indian Community when he fled from police at a high speed with two passengers in the vehicle. He eventually rolled the vehicle off the side of the road. Officers also found another firearm in the vehicle. White had previously been convicted of armed robbery and aid and abet.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Ak-Chin Police Department, and Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00367-PHX-NVW
RELEASE NUMBER: 2013-095_WhiteFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Alabama Shrimper Convicted for Shooting DolphinRead the Press Release
An Alabama man pleaded guilty yesterday in a federal court in Gulfport, Miss., to knowingly shooting a dolphin, the Justice Department announced.
Brent Buchanan, 38, of Bayou La Batre, Ala., pleaded guilty to one misdemeanor count of knowingly taking a protected marine mammal, a federal crime under the Marine Mammal Protection Act. In court documents, Buchanan admitted to knowingly shooting a dolphin with a shotgun while shrimping in the Mississippi Sound in July or August 2012.
A sentencing hearing is set for Feb. 24, 2014. The maximum penalty is one year in prison, a $100,000 fine, and a $25 special assessment.
The Marine Mammal Protection Act is a federal law which makes it illegal to harass, hunt, capture, or kill, or to attempt to harass, hunt, capture, or kill, any marine mammal in waters under the jurisdiction of the United States. The Act protects all species of dolphins, as well as other marine mammals such as whales and seals.
The case was investigated by the National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement, with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Customs and Border Protection Office of Air and Marine, the Alabama Marine Police, and Alabama Department of Conservation and Natural Resources, Marine Resource Division. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Mississippi and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
NOAA Office of Law Enforcement is actively investigating a number of other possible dolphin shootings along the northern Gulf Coast since 2012. Anyone possessing information relating to such an incident is requested to contact NOAA Office of Law Enforcement at 1-800-853-1964 or a state wildlife law enforcement agency.
17-Year Fugitives Voluntarily Surrender and Plead Guilty to Bank FraudRead the Press Release
SAN JOSE – Zahid and Riffat Ali, who have been wanted by federal authorities on bank fraud charges since 1996, surrendered to agents of the FBI at San Francisco International Airport yesterday when their flight from Pakistan arrived. This morning, they pleaded guilty in federal court in San Jose to bank fraud, United States Attorney Melinda Haag announced.
The Alis, husband and wife, were indicted by a federal grand jury in 1996 for bank fraud in violation of 18 U.S.C. § 1344. Before they could be arrested, they departed for their native Pakistan. Efforts to extradite them failed. Recently, in a deal worked out with prosecutors ahead of time, they agreed to voluntarily return.
According to the indictment, the Alis defrauded Home Savings of America of $438,866 by submitting a loan application that contained false statements, and by submitting false back up documents in support of the application. They submitted the application in the name of a third party, or “straw borrower”, to a relative, Mujeebullah Mujahid Khan, who was a loan officer at Home Savings. Khan pleaded guilty to bank fraud in 1997.
Today, the Alis pleaded guilty to bank fraud in front of The Honorable Lucy H. Koh, United States District Court Judge in San Jose. Both defendants were released after they each posted $50,000 bail.
In pleading guilty, both defendants admitted that during the summer of 1994 they owned a residence located at 1560 Bird Avenue in San Jose, California. Between approximately July 2, 1994, and September 9, 1994, they convinced a younger man who was living with them rent free to apply for a loan to purchase the 1560 Bird Avenue house from them. They admitted that they knew that his income and assets would not qualify him for a loan if the loan application had contained a truthful explanation of his circumstances. So they filled out a draft of the loan application that contained several falsehoods, including the following:
- They falsely claimed that Mr. Bhatt was earning $13,000 per month.
- They falsely claimed that he was employed by a company named Reffko, a company created by Mr.Ali.
- They also falsely claimed that Mr. Bhatt had $85,000 worth of stock.
Finally, in order to corroborate the Mr. Bhatt’s alleged income, they deposited $60,000 to $80,000 of their own funds into his bank account, and falsely confirmed his employment and income when Home Savings called to verify his employment at Reffko.
The sentencing hearing is scheduled for March 26, 2014, before The Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for bank fraud, in violation of 18 U.S.C. § 1344, is 30 years in prison, and a fine of $1 million, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gary G. Fry is the Assistant U.S. Attorney who is prosecuting this case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the by the Federal Bureau of Investigation.
(Ali indictment )
Tuesday 10 December 2013
Zeta Cartel Member Convicted in Conspiracy to Smuggle Firearms/Grenades into MexicoRead the Press Release
LAREDO, Texas – Richard John Medina aka “El Guero,” 40, of Laredo, has entered a plea of guilty to being a felon in possession of multiple firearms and grenades, announced United States Attorney Kenneth Magidson.
On Oct. 9, 2013, Medina was arrested at his Laredo residence in possession of five firearms and five grenades. As part of the plea, Medina admitted he attempted to traffic and export these items from the United States into Mexico, exclusively for the Mexican Zeta Cartel.
Medina was hired to export the weapons for $2,500. Medina was to receive half the payment upfront, with the remainder paid upon delivery of the weapons to a Zeta Cartel house in Nuevo Laredo, Mexico. On Oct. 9, 2013, Medina received the weapons and was subsequently arrested in the United States. Investigation revealed Medina was a convicted felon and did not have permission under the International Traffic in Arms Regulations to export these military defense weapons.
U.S. District Judge Diana Saldana will set a date for sentencing in the near future. At the time of the hearing, Medina will face up to 10 years in prison and a possible $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Laredo Police Department. Assistant U.S. Attorneys Sanjeev Bhasker and Homero Ramirez are prosecuting.
Wisconsin Leader of Texas Based Drug Trafficking Organization Sentenced to over 10 Years in PrisonRead the Press Release
United States Attorney James L. Santelle announced today that United States District Judge Rudolf Randa sentenced Randy Martinez a.k.a Robin Lee Martinez, (age:30) of Sheboygan to ten years and four months in prison for his role in the Balderas Organization drug trafficking activities involving kilos of cocaine and marijuana transported from Texas to Wisconsin. Martinez, who pled guilty to these charges, was arrested on May 29, 2012 and detained in federal custody.
According to documents filed in court, beginning in the mid 1990's, the Balderas Drug Organization transported cocaine and marijuana from Texas to Wisconsin, where the price was much higher than in Texas. Instrumental in the Balderas Organization’s ability to sell drugs in Wisconsin was Randy Martinez’s role as leader of the organization in Wisconsin. The Balderas Organization was involved in conspiring to transport over 5 kilograms of cocaine and over 1,000 kilograms of marijuana to Wisconsin, including Sheboygan and Manitowoc Counties and the surrounding areas.
The Balderas Organization used different techniques to transport marijuana and cocaine from Texas to Wisconsin. One of the techniques utilized relied on the use of two cars; one would be filled with the narcotics, and the other would have members of the organization follow behind and make sure nothing went wrong with the load. The Balderas Organization would fill a car with hidden narcotics in Texas and have it driven to Wisconsin by individuals often recruited by Randy Martinez to act as couriers. The individuals recruited were persons they thought would not raise suspicions at the border crossings in Texas, with the hope that they would be able to cross the border and not be stopped by authorities.
With the help of Randy Martinez, the Balderas Organization devised a complex and successful system to conduct their illegal affairs. Members of the Balderas Organization would get vehicles in Texas, either by renting them, buying them, or using vehicles belonging to others and would have them loaded with under 50 pounds of marijuana, (as such loads, if found in Texas, were often just seized, and those involved in the transport were released without charges). The loads were then transported by others (often by individuals Randy Martinez recruited in Wisconsin) and contained marijuana and/or cocaine. The Balderas Organization also used the bus service, postal service and others forms of transportation to bring drugs to Wisconsin. Regardless of the method used, Randy Martinez was instrumental to finding the workers, supervising them, and making sure they did their jobs.
Randy Martinez also shielded some of the members of the Balderas Organization from being linked to the organization; he controlled the Wisconsin distribution of narcotics, and played an integral part in the money laundering of funds for the Balderas Organization. When a load was brought from Texas to Wisconsin, Randy Martinez would cut up the narcotics, and distribute it to customers for the Balderas Organization. In addition, Randy Martinez was involved in recruiting individuals to receive packages mailed from Texas to Wisconsin, and for the distribution in Sheboygan and Milwaukee. He was also in charge of deposits made into various bank accounts controlled by the Balderas Organization from Wisconsin to Texas. Randy Martinez would direct individuals to send payment via wire transfer, bulk cash smuggling, and on their person to various individuals and accounts in Texas so as to help the Balderas Organization receive its profits. Bank records support that through a complex bank account scheme, the Balderas Organization was able to launder, at least $300,000.00 and up to $500,000.00 dollars.
At sentencing Assistant United States Attorney Karine Moreno-Taxman described Randy Martinez as the key participant in Wisconsin and that he was responsible for making sure the Balderas Organization was viable in Wisconsin.
This investigation was successful because of a cooperative effort by the Sheboygan County Metro Drug Enforcement Group, the Manitowoc County Metro Drug Enforcement Group; the Manitowoc District Attorney’s Office, and the Drug Enforcement Administration and the Criminal Division of the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
# # # # #Winston-Salem Man Sentenced for Gun Smuggling and Firearm OffensesRead the Press Release
Lengthy prison term orderedGREENSBORO, N.C. – A Winston-Salem man was sentenced to 157 months in prison for his role as the leader of a smuggling ring funneling firearms and ammunition to Mexico from North Carolina, announced United States Attorney Ripley Rand.
Angel Medel Lorenzo, 56, of Winston-Salem, North Carolina, had pleaded guilty to conspiring to smuggle firearms and firearm accessories to Mexico and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced by Chief United States District Judge William L. Osteen, Jr., to 157 months imprisonment followed by 5 years of supervised release.
During an investigation conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Winston-Salem Police Department (WSPD), officers seized multiple firearms, firearm scopes, and hundreds of rounds of ammunition. As part of a drug investigation by the WSPD’s Special Investigations Division, detectives searched Medel Lorenzo’s residence on October 19, 2011, and found multiple handguns, rifles, ammunition, cocaine, digital scales and rifle scopes. In July 2012, a reliable FBI Confidential Informant (CI) provided information that Medel Lorenzo was organizing a load of firearms to be smuggled into Mexico from Winston-Salem, NC. Thereafter, law enforcement monitored a meeting between Medel Lorenzo, the CI, and other members of the smuggling conspiracy concerning the planned shipment of a 16-gun load of firearms to Guerrero, Mexico.
On July 24, 2012, authorities executed a federal search warrant at the residence of co-defendant Ramiro Alejandro Garcia Roman on East Sprague Street in Winston-Salem and recovered a shipment of 16 firearms, hundreds of rounds of ammunition, and other firearms accessories wrapped in plastic and black electrical tape. The investigation revealed that Medel Lorenzo had been smuggling firearms to Mexico since February of 2011 and that he used his teenage children to assist in packaging the firearms for transport. Co-defendants Ramiro Garcia Roman and Medel Lorenzo’s daughter, Inocensia Medel Banos, were each sentenced in July of 2013 to 46 months in federal prison for their roles in the smuggling conspiracy.
“The drug cartels of Mexico have shown countless times they have very little regard for human life,” said Special Agent in Charge Brock D. Nicholson, head of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas. “Without question, the defendant was trying to get the weapons and ammunition seized in this case into Mexico to be used by these same cartel members. We are thankful for the help from the FBI, ATF, the Winston-Salem Police Department and the U.S. Attorney’s Office in putting a dangerous man in prison and in stopping this smuggling scheme.”
“This prosecution is a testament to the results that can be achieved through coordinated investigative efforts by the law enforcement community,” said United States Attorney Ripley Rand. “Choking off the illegal export of firearms by prosecuting smugglers is important in reducing the threat that the guns will be used in violent crime. HSI, FBI, ATF and the Winston-Salem Police Department all played critical roles in exposing this gun smuggling network, enabling our office to successfully prosecute this organization.”
This case was prosecuted by Assistant United States Attorney Randall S. Galyon.
West Virginia Man Convicted of Cocaine Trafficking, Operating Dog Fighting VentureRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
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MARTINSBURG, WEST VIRGINIA – A Piedmont, West Virginia man has pleaded guilty to three felonies, including one tied to the operation of a dog fighting venture.
United States Attorney William J. Ihlenfeld, II announced that TIMOTHY PAUL STEWART, age 34, of Piedmont, entered pleas of guilty to “Conspiracy to Distribute Crack Cocaine,” “Felon in Possession of a Firearm,” and “Possession of Dogs for Dog Fighting.” U.S. Magistrate Judge James E. Seibert accepted the pleas in Martinsburg federal court.
According to U.S. Attorney Ihlenfeld, in October of this year agents served a federal drug trafficking indictment upon STEWART at his Mineral County home. During this process, officers observed seven firearms in plain view. After securing STEWART, officers then obtained a federal search warrant and returned to seize controlled substances, the seven firearms, and ammunition. During the execution of the search warrant, officers entered the basement of the residence where they observed evidence of an animal fighting venture including dogs, dog pelts, cages, and training equipment for the dogs. A new search warrant was obtained for the residence in order to seize the evidence of the animal fighting operation. Officers also seized approximately 25 grams of cocaine base and $3,968.00 in U.S. Currency.
STEWART, who is in custody pending sentencing, faces up to 45 years in prison. As part of his plea, STEWART must forfeit the firearms and the U.S. currency. The case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
Five other cases were heard by Judge Seibert, as follows:
STACEY L. WILLIAMSON, age 48, of Flintstone, Maryland, entered a plea of guilty to “Theft of Government Funds.” From March of 2013 to July 31, 2013, WILLIAMSON, who was a U.S. Postal Service employee, admitted to converting $1,737.49 to her own use. WILLIAMSON, who is free on bond pending sentencing, faces up to 10 years in prison. This case was investigated by the United States Postal Inspection Service.
The STEWART and WILLIAMSON cases were prosecuted by Assistant United States Attorney Jarod J. Douglas.
CARL CHANEY, age 60, of Springfield, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” CHANEY, who is free on bond pending sentencing, faces up to 10 years in prison.
DONNIE COLLINS, age 28, of Martinsburg, entered a plea of guilty to “Felon in Possession of a Firearm.” COLLINS, who is in custody pending sentencing, faces up to life years in prison due to four prior felony convictions from Baltimore, Maryland.
The CHANEY and COLLINS cases were handled by Assistant United States Attorney Paul T. Camilletti and investigate by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Berkeley County Sheriff’s Office and the West Virginia State Police.
CHARLES F. WADDELL, age 37, entered a plea of guilty to “Failure to Register as a Sex Offender.” WADDELL, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the United States Marshals Service.
Finally, MICHELLE BROWN, age 34, of Martinsburg, West Virginia, entered a plea of guilty to “Distribution of Crack Cocaine.” BROWN, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant United States Attorney David J. Perri and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
Washington State Man Sentenced in Federal Hate Crime for Attack on Sikh ManRead the Press Release
WASHINGTON – The Justice Department announced today that U.S. District Court Judge John C. Coughenour sentenced Jamie Larson in connection with the racially-motivated assault of a 50-year-old Sikh man. Larson, 50, who pled guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, was sentenced to 40 months incarceration. Judge Coughenour said the sentence should send the message that this kind of conduct “is absolutely unacceptable…. Larson used the most disgusting, ugly and racist language that I have heard in 30 years on the bench.”
According to information presented in court, the victim, a taxi driver, drove an intoxicated Larson to a private residence in Federal Way, Washington on October 17, 2012. After arriving at the residence, Larson grabbed the victim by his beard, and struck him in the face and shoulder many times before pushing him to the ground. Larson then repeatedly stomped on the victim’s stomach. During the incident, Larson called the victim a “raghead” and a “towelhead.” He also screamed various comments to the victim, such as “what are you doing here?” and “why did you come to my country?” Larson admitted that he attacked the victim, who is from India and a follower of the Sikh religion, because Larson believed the victim was of Middle Eastern descent or ethnicity.
Larson was arrested at the scene of the attack after a witness called 911. The victim was immediately taken to a hospital and suffered bruising, a loose tooth, sprains and strains to his back and shoulder, and acute kidney failure from the prolonged assault.
“The Department of Justice is fully committed to using all resources at its disposal to thoroughly investigate and vigorously prosecute racially-motivated attacks,” said Acting Assistant Attorney General for the Department’s Civil Rights Division Jocelyn Samuels. “Violence based on a person’s race or ethnicity should be an unfortunate vestige of the past, but when these bias-motivated attacks occur, the Civil Rights Division will stand ready to swiftly bring justice for the victims.”“No one in our community should face hate-based danger. We will use all federal tools to hold defendants accountable,” said U.S. Attorney Jenny A. Durkan, Western District of Washington. “The Pacific Northwest is a diverse community and we will continue to focus our efforts on making sure that diversity is respected and celebrated.”
The Shepard-Byrd law criminalizes acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
In addition to the prison term, Larson was sentenced to three years of supervised release. He also owes restitution to the victim in an amount to be determined at a later date.
The matter was investigated by the Seattle Division of the FBI. The Federal Way Police Department provided significant support in this prosecution. The case is being prosecuted by Assistant U.S. Attorney Bruce F. Miyake of the U.S. Attorney’s office for the Western District of Washington and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division, Criminal Section.
Wanblee Man Pleads Not Guilty to Making False Statements to Obtain Controlled SubstancesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substances by Fraud.
Robert George Quiver, age 22, was indicted on December 3, 2013. Quiver appeared before U.S. Magistrate Judge Veronica L. Duffy on December 4, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund on each charge. Restitution may also be ordered.
The charges relate to Quiver presenting a falsified prescription for Hydrocodone, a Schedule III controlled substance, to the Indian Health Services Pharmacy in Wanblee on July 11, 2013.
The charges are merely accusations and Quiver is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Quiver was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Utah Resident Pleads Guilty to Filing False Claims for Tax Refunds Totaling $653,884Read the Press Release
SALT LAKE CITY - Stanley J. Wardle, 65, of Spanish Fork, Utah, pleaded guilty Monday in U.S. District Court in Salt Lake City to nine counts of filing false claims for income tax refunds, the Justice Department and Internal Revenue Service (IRS) announced. Wardle, who was indicted on Feb. 15, 2012, is scheduled to be sentenced before U.S. District Judge Dee Benson on Feb. 27, 2014.
According to the indictment, on or about Jan. 22, 2009, Wardle prepared and filed a false U.S. Individual Income Tax Return for the year 2008, in which he claimed a tax refund of $32,115. In addition, between Dec. 8, 2008 and May 13, 2009, he caused additional false claims for tax refunds to be made on behalf of others. In total, Wardle was involved in false claims for refunds totaling $653,884.
Wardle faces a statutory maximum sentence of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the defendant for each false claim charge.
Assistant Attorney General Kathryn Keneally for the department’s Tax Division commended the special agents of IRS - Criminal Investigation who investigated the case, and Tax Division Trial Attorneys Michael Romano and Stuart Wexler, who prosecuted the case.
United States Attorney Announces Conviction, Sentencing of Evansville-area Tax PreparerRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Steve W. Pirnat, age 61, of Evansville, has been convicted and sentenced to 37 months in federal prison after admitting that he conspired for three years to submit false tax claims to the Internal Revenue Service. All told, the scheme cost taxpayers more than $222,000 in fraudulent tax refunds.
“This scheme didn’t just target unsuspecting people in the Evansville area – in this case, every Hoosier taxpayer was a victim of fraud,” Hogsett said. “That is why we are working with our law enforcement partners to aggressively combat this culture of corruption. We owe it to those who play by the rules to hold fully accountable those who try and fleece the system.”
From 2009 until 2011, Pirnat provided tax preparation services in Vanderburgh County, charging a fee for his services. According to court documents, Pirnat was not a registered tax preparer with the Internal Revenue Service and did not have an identification number that would allow him to file tax returns on behalf of other people. Instead, Pirnat would file the tax returns he prepared and classify them as self-prepared. In this way, it would appear to the IRS that no tax professional was involved in preparing the returns.
On July 26, 2011, the IRS Criminal Investigation Division received a complaint from a taxpayer who had retained Pirnat to prepare her tax returns for 2009 and 2010. The taxpayer had received an audit notice from the IRS in June of 2011 notifying her that she needed to provide information to support her claim that she had a dependent as listed on her 2010 tax return. The taxpayer did not have any dependents, and was not aware that any dependent had been listed on her tax return. The copy of the return that Pirnat provided to her did not list a dependent.
The taxpayer contacted Pirnat about the audit and the defendant offered to deal with the IRS on her behalf. The taxpayer met with Pirnat in person and decided to record her conversation with him due to her concerns about the situation. At the meeting, the defendant gave the taxpayer an amended 2010 return without a dependent on it for the victim to file, and explained that he had falsified her tax return to “help out a lady he knew.”
IRS records showed that the taxpayer was issued a total refund related to her 2010 return in the amount of $5,633 and that the refund was split up and deposited into more than one account. Only $1,815 was deposited into the taxpayer’s bank account. The $1,815 refund amount was the amount listed on the copy of the tax return that Pirnat gave to the victim. The remaining $3,818 of the refund was electronically deposited into a bank account controlled by Pirnat.
After receiving the taxpayer’s complaint, an investigation by the IRS revealed a pattern of tax filings from Pirnat’s computer that contained fraudulent dependent information. The total amount of fraudulent refunds generated through Pirnat’s scheme was calculated to be $222,740 by IRS auditors.
IRS Criminal Investigation Special Agent in Charge, James Lee stated, “IRS Criminal Investigation focuses on protecting revenue by identifying, investigating, and recommending prosecution of abusive return preparers like Mr. Pirnat. Mr. Pirnat was sentenced to 37 months in prison for his role in conspiring to submit false claims and assisting in the preparation of false tax returns. With tax season quickly approaching, this sentence should send a message to the unscrupulous tax preparers thinking of engaging in such activity, this activity will not be tolerated.” Furthermore, Special Agent in Charge James Lee wanted to warn taxpayers that they should choose carefully when hiring a tax preparer.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Pirnat was ordered to fully repay the loss to taxpayers, and must serve three years of federally-supervised release at the end of his prison term. Under federal law, the defendant is required to serve at least 85% of his prison term within a federal correctional facility.
U.S. Jury Convicts Bolingbrook Man of Sex Trafficking Four Victims, Including A MinorRead the Press Release
CHICAGO — A federal jury today convicted a Bolingbrook man of running a sex trafficking ring between at least late 2009 and November 2010 that forced into prostitution at least four victims, including a minor who was 17 at the time. The defendant, McKENZIE CARSON, was found guilty on one count of sex trafficking a minor by force, fraud, and coercion, and three counts of sex trafficking by force, fraud, and coercion. The jury deliberated less than two hours following a trial that began Dec. 2 in U.S. District Court.
All four victims testified in the trial, which showed that Carson, 41, also known as “Casino” and “Joe Taylor,” was a pimp who chose vulnerable, young victims, including the minor who he knew was only 17, and used violence and threats of violence to exploit them sexually.
“This was not a business relationship, but a relationship between predator and prey,” Assistant U.S. Attorney Bethany Biesenthal said in her closing argument. In her rebuttal argument, Assistant U.S. Attorney Jennie Levin told jurors “the victims bared their souls and told you they were frightened for their lives.”
Carson has remained in federal custody without bond since he was arrested on Jan. 3, 2012. He faces a mandatory minimum sentence of 15 years in prison and a maximum of life imprisonment on each count. No sentencing date was immediately set but U.S. District Judge Elaine Bucklo scheduled a status hearing for May 2, 2014.
The evidence showed that Carson recruited his victims and forced them to engage in commercial sex acts. He used fraud to recruit and groom his victims, sometimes concealing that he was a pimp, and used drugs to control them. He frequently provided them with heroin and exercised control over how much and when each victim was allowed to use drugs.
Carson also used threats and physical beatings to enforce rules that left him with a control over his victims. When they broke the rules or disobeyed him, he threatened them or beat them, or raped them. He required his victims to commit commercial sex acts and to give him the money they made. The evidence included numerous photographs of Carson’s victims that he used to solicit their services on the Internet, as well as the advertisements that he posted to promote his prostitution business.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation. FBI special agents led a multi-agency task force that included the Cook County Sheriff’s Office, the DuPage Metropolitan Enforcement Group, and the Alsip, Bolingbrook, Channahon, Downers Grove, Joliet, Lansing, Marseilles, Naperville, Oswego, Romeoville, Shorewood, and Westmont police departments. The government was represented by Assistant U.S. Attorneys Jennie Levin and Bethany Biesenthal.
Two Top "Hoover Crips" Street Gang Members Indicted for the Murder of A Federal WitnessRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams, Sr., for the Northern District of Oklahoma announced today that a federal grand jury indicted two top members of the “Hoover Crips” street gang for the murder of a federal witness.
The Fourth Superseding Indictment charges, Lorell Antonio Battle, 30, Gaywone Dekeith Blades, 18, Paul Edward Battle, 32 , Thomas Layeffeta Jackson, 28, all of Tulsa, with conspiracy and drug related crimes. Additionally, Lorell Battle and Gaywone Blades are charged with conspiracy to commit murder, murder of federal witness, and the use of a firearm during and in relation to a violent crime in retaliation against a federal witness.
In addition to the drug related charges, the Fourth Superseding Indictment alleges that, in April 2013, Lorell Battle and Gaywone Blades premeditated the murder of a federal witness in retaliation for his being a federal trial witness and providing to law enforcement information about gang activities and other crimes. The indictment alleges Lorell Battle shot the victim thirteen (13) times at close range with a 9mm semi-automatic pistol.
“This indictment reflects our vigorous and unwavering efforts to seek justice for the victim and curb gang violence in the Northern District of Oklahoma,” said U.S. Attorney Williams. “Those who commit acts of violence here will be held accountable to the fullest extent of the law. We will continue to work alongside our law enforcement partners in the fight against drug trafficking and violent gang activities.”
The Superseding Indictment is the result of a two-year investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) into the “Hoover Crips” street gang and its criminal activities of drug dealing, extortion, and violence, including shootings.
The case is being investigated by the Tulsa Police Department’s Special Investigations Division assisted by the Federal Bureau of Investigation, Drug Enforcement Administration, and the Tulsa County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Robert T. Raley, Allen J. Litchfield, and Catherine Depew on behalf of the United States.
A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.