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31 January 2014
Mansfield Tax Preparer Sentenced to 36 Months in Federal Prison and Ordered to Pay More Than $1.6 Million in RestitutionRead the Press Release
FORT WORTH, Texas — At a sentencing hearing held today before U.S. District Judge John McBryde, Michelle Johnson was sentenced to 36 months in federal prison and ordered to pay more than $1.6 million in restitution, following her guilty plea in August 2013 to one count of aiding and assisting in the preparation of false tax returns. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the hearing, Johnson stated that she is a resident of Mansfield, Texas. According to the defense’s motion for downward variance, filed in December 2013, Johnson is 37-years-old and the owner of 3D Tax Services, a tax preparation business.
In January 2010, according to the factual resume filed in the case, Johnson prepared a 2009 federal tax return for an individual that was false and fraudulent in that it grossly inflated expenses associated with this individual’s auto detailing business. This individual’s business expenses were thousands of dollars less than what Johnson claimed on the Schedule C which she prepared and attached to the return without the taxpayer’s knowledge.
The case was investigated by Internal Revenue Service Criminal Investigation.
Man Sentenced to 35 Years in Prison for 2010 Killing of Acquaintance-Defendant Chased and Stabbed Victim After Argument at Gas Station-Read the Press Release
WASHINGTON – Richard Williams, 43, was sentenced today to 35 years in prison for the 2010 slaying of an acquaintance along the border of the District of Columbia and Prince George’s County, Md., U.S. Attorney Ronald C. Machen Jr. announced.
Williams, who has no fixed address, was found guilty by a jury in December 2013 of second-degree murder while armed following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, Williams was convicted of carrying a dangerous weapon after having been convicted of a felony and committing an offense while on release in a pending criminal case. He was sentenced by the Honorable Robert E. Morin.
According to the government’s evidence, Williams and the victim, Sean West, 37, knew each other and often spent time together at a gas station in Oxon Hill, Md., just over the border from the District of Columbia. On Aug. 27, 2010, at about 11:30 p.m., they got into an argument and shoving match at the gas station. A mutual acquaintance broke up the fight, and Mr. West walked across the street into the 4300 block of Wheeler Road SE, headed home.
Williams, however, proceeded to run after Mr. West. Upon catching up to him, he stabbed Mr. West once in the chest. Mr. West ran back across the street, into Oxon Hill, and collapsed inside a liquor store. He died about two hours later.
Williams fled the scene on foot and was arrested on Oct. 18, 2010. At the time of the murder, the defendant, a previously convicted felon, had a pending misdemeanor case for which he had been released on bond. He has been held without bond since his October 2010 arrest.
In announcing the sentence, U.S. Attorney Machen expressed appreciation for the work of those who investigated the case from the Metropolitan Police Department. He also commended those who worked on the case from the Prince George’s County, Md., Police Department and the District of Columbia Office of the Chief Medical Examiner. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Josh Ellen, Paralegal Specialist Sandra Lane, Victim/Witness Advocate Marcia Rinker, and Assistant U.S. Attorney Michael Liebman, who prosecuted the matter.
14-026Malone Man Convicted of Conspiring to Distribute MarijuanaRead the Press Release
Faces At Least Ten Years in Prison
SYRACUSE, NEW YORK – ALLAN PETERS, 42, of Malone, was found guilty of conspiracy to distribute more than 1,000 kilograms of marijuana by a jury yesterday following a four-day jury trial in Syracuse, New York before United States District Court Judge Glenn T. Suddaby, announced United States Attorney Richard S. Hartunian and James J. Hunt, Acting Special Agent in Charge of the Drug Enforcement Administration, New York Division (DEA). PETERS is scheduled to be sentenced on July 10, 2014 in Syracuse. He faces a maximum of life in prison and a $10,000,000 fine.
During trial, the government offered evidence that from at least 2005 through 2011, PETERS and many others smuggled thousands of pounds of marijuana into the United States and sent millions of dollars in drug proceeds back to Canada. They used property controlled by PETERS in Syne, Quebec, Canada on the Akwesasne Mohawk Indian Reservation as a staging area for the hockey bags of marijuana being smuggled into the United States. The bags, which normally contained 100 to 200 pounds of marijuana, were then transported into the United States.
Law enforcement officers seized marijuana from the smuggling organization on the following dates: (1) on May 8, 2009, the United States Border Patrol seized approximately 250 pounds of marijuana in North Hudson, New York; (2) on September 15, 2010, the Tribal Police Services and the New York State Police seized approximately 240 pounds of marijuana, after a high speed chase from the Akwsasne Mohawk Indian Reservation to Malone, New York; and (3) on March 1, 2011, the Akwesasne Mohawk Police Services and the United States Border Patrol seized approximately 100 pounds of marijuana in Hogansburg, New York.
The investigation and prosecution of PETERS was the result of a joint investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the United States Border Patrol (USBP), Air and Marine Operations (AMO), the New York State Police, the St. Regis Mohawk Tribal Police Department (SRMTPD) the Akwasasne Mohawk Police Services (AMPS), and the District Attorneys of Franklin and Clinton Counties.
Any questions may be directed to Assistant U.S. Attorney Daniel C. Gardner in Plattsburgh, New York at 518-314-7800.
Local Men Sentenced to Prison for Selling Fraudulent Gas Drilling RightsRead the Press Release
PITTSBURGH - Two Western Pennsylvania residents have been sentenced in federal court on their convictions of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed a sentence of 40 months in prison and three years supervised release on Derek A. Candelore, aka Dan Kun and Kevin Kelly, 34, of Jeannette, PA 15644, and a sentence of 20 months in prison and two years supervised release on William J. Ray, 30, of Verona, PA 15147. The court ordered restitution for both defendants totaling $2.4 million.
According to the information presented to the court, Candelore and Ray were employed by Penn-Star Energy, LLC of Butler County (hereinafter Penn-Star), as landmen. A landman contacts mineral rights owners on behalf of natural gas production companies to arrange for leases of mineral interests for oil and gas production. Penn-Star acquired mineral rights on behalf of Range Resources Corporation. The mineral rights for four separate blocks of land in Washington County consisting of one hundred or more acres were stolen by Candelore and Ray using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2011 and ended in June 2012. During the scheme Candelore and Ray set up several post office boxes and bank accounts in the names of companies they created. They arranged for deeds and other documents to be filed at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to the fake companies they had created. These deeds had forged signatures of several true owners and forged notary signatures and stamps. After they acquired what appeared to be ownership of the mineral rights, the fake companies owned by Candelore and Ray leased and/or sold the mineral rights to innocent and unsuspecting purchasers including local investors, out-of-state investment groups and Range Resources. Candelore exclusively ran two of the schemes and participated in the other two while Ray’s participation was limited to two of the four schemes. In the two schemes that Candelore and Ray did together, they split the money. The total loss to investors of investors was $2,400,144.77. Candelore pocketed $1,856,998.27, and Ray pocketed $543,146.50. The scheme began to unravel when one of the mineral rights owners hired an attorney to sell the mineral rights. The attorney discovered that one of the fake companies, Clark Lumber Company, owned the mineral rights by reason of a deed that bore the forged signature of the true owner.
Assistant United States Attorney Nelson P. Cohen prosecuted these cases on behalf of the government.
U.S. Attorney Hickton commended the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Candelore and Ray.
Local Businessman Sentenced for Tax Evasion and Unemployment Benefits FraudRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that James L. Quirin, 59, of Sauget, Illinois, was sentenced to 27 months in federal prison, to be followed by 3 years of supervised release, a $500 special assessment, and ordered to make restitution in the amount of $44,670.00 to the Illinois Unemployment Compensation Fund and $384,780.36 to the Internal Revenue Service. Quirin pled guilty to one count of Theft of Government Funds, three counts of Tax Evasion, and one count of Filing a False Tax Return.
“Mr. Quirin has finally been held accountable for his serial criminal activity. He is now a convicted felon, admitted liar and admitted tax cheat who will spend the next 27 months in a federal prison. Thereafter, he will be on federal supervised release for three years during which time he will be monitored closely and required to pay all of his debts to the government. Every time he stole from the unemployment program he took taxpayer monies that should have gone to legitimately unemployed persons who are trying to find jobs,” said United States Attorney Stephen R. Wigginton.
As revealed in court, these felony counts were based on the following conduct. Quirin applied for Unemployment Insurance benefits in February, 2009, even though he was a gainfully employed businessman receiving significant income. However, most of the payments he received were made out to the names of other business entities with which he was associated. In March 2009, in order to conceal his true income, he began converting these checks to cash at a money services business located at a tavern in St. Louis (over $900,000 through January 2013.) In order to receive the full benefit payments, the State of Illinois requires that beneficiaries report weekly that they looked for and were available to work, and that they had not worked. Quirin repeatedly and falsely informed the State of Illinois that he met these criteria, even though he had worked, had been paid, and on some occasions was unavailable to work because he was vacationing in Costa Rica.
State unemployment programs are funded by the federal government. During the period that Quirin claimed federally subsidized unemployment benefits, February 2009 through October 2010, Quirin fraudulently received government funds in the amount of $44,670.00.
On July 22, 2008, the Internal Revenue Service issued to Quirin a Notice of Federal Tax Lien Filing for the 2006 tax year in the amount of $93,844. Quirin did not pay the tax in spite of the substantial funds he was cashing through the tavern. On September 30, 2009, Quirin made a formal offer in compromise in the amount of $5,500 for his 2006 tax debt in which he claimed that his only income was unemployment compensation. Quirin also evaded payment of substantial income tax for 2008 and 2010.
On July 13, 2010, Quirin made and filed an income tax return for 2009 in which he understated the gross receipts of his business by over $100,000. The return was verified by a written declaration that it was made under penalties of perjury.
These matters were investigated by Special Agents of the Department of Labor, the Internal Revenue Service, and the Environmental Protection Agency. The case was prosecuted by Assistant United States Attorney Michael J. Quinley.
Leesburg Man Sentenced to 12 Years for Oxycodone Conspiracy That Led to Overdose DeathRead the Press Release
Defendant sold pills primarily to high school students and recent graduates
ALEXANDRIA, Va. – George Washington Crane V, 48, of Leesburg, Va., was sentenced today to 12 years in prison, followed by three years of supervised release, for conspiracy to distribute Oxycodone.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by United States District Judge Liam O’Grady.
“We have seen a disturbing increase in the use of opiates and heroin by young people across Eastern Virginia,” said Acting U.S. Attorney Boente. “Crane’s decision to target young people and traffic Oxycodone, an extremely dangerous drug, warrants the 12-year sentence.”
“Drug suppliers, like Crane, ply their illegal trade in our neighborhoods and threaten the safety, health and well-being of citizens,” said Assistant Director Parlave. “The FBI and our law enforcement partners are focused on stopping the movement and illegal sale of controlled prescription drugs and will continue to diligently investigate those who sell them to protect our citizens from the illegal use of these dangerously addictive painkillers.”
“It is gratifying to see Crane held accountable for both drug distribution and the tragic and senseless death of William Huff. I thank our partners at the FBI and the U.S. Attorney’s Office for working with the Loudoun County Sheriff’s Office to bring this case to a successful conclusion,” said Sheriff Mike Chapman.
Crane pleaded guilty to conspiracy to distribute Oxycodone on Sept. 11, 2013. According to court documents, between 2008 and 2011, Crane purchased Oxycodone several times each week from sources on the street in Washington, D.C. and Baltimore, Md. Crane then brought the Oxycodone to Leesburg, Va. and distributed the pills primarily to high school students and recent graduates. Crane sold Oxycodone to multiple customers daily from his residence and car.
According to the statement of facts filed at the time of Crane’s guilty plea, Crane distributed Oxycodone on Aug. 7, 2010, to a conspirator who later provided it to William Huff. Huff, who was 20 years old, died at his home in Leesburg on Aug. 8, 2010, as a result of injecting the Oxycodone that Crane distributed.
This case was investigated by the FBI’s Washington Field Office and the Loudoun County Sheriff’s Office. Assistant United States Attorney Adam B. Schwartz prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Leader of Alleged Sports Betting Ring<br /> Pleads Guilty to Racketeering ChargesRead the Press Release
Joseph Vito Mastronardo Jr., 63, of Meadowbrook, Pa., pleaded guilty today to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, four counts of conspiring to launder money, eight counts of interstate travel in aid of racketeering, transmitting wagering information and aggravated structuring of cash deposits.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Zane D. Memeger of the Eastern District of Pennsylvania made the announcement.
The guilty plea stems from Mastronardo’s leadership of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation with bettors throughout the U.S. No sentencing date has been scheduled.
Mastronardo is one of 19 defendants charged in the case. Three defendants were charged by information and 16 defendants were charged by indictment. In the indictment, 15 of the 16 defendants were charged with conspiring to participate in a racketeering enterprise and conducting an illegal gambling business. With today’s guilty plea, 11 of the 16 defendants charged in the indictment have pleaded guilty.
At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. According to the indictment, between Jan. 1, 2005, and Jan. 1, 2011, the organization used websites ( www.betroma.com and www.betrose.com ) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing and other sporting events. Residents of Costa Rica staffed the websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2 million of cash that Mastronardo had hidden in and around his home, including in specially built secret compartments and in PVC pipes that were buried in his backyard.
Mastronardo ran the organization by using the Internet, telephone, Skype, e-mail, U.S. mail, and in-person communication. The Mastronardo Bookmaking Organization laundered the gambling proceeds by using a check cashing agency, two private bank accounts and numerous international bank accounts. On occasion, Mastronardo also provided instructions so a losing bettor could pay a gambling debt through a charitable donation.
Mastronardo supervised the agents, sub-agents and office employees and oversaw the websites. He laundered millions of dollars of betting proceeds, collected debts, and instructed others to collect debts. Other indicted defendants who have pleaded guilty include: Mastronardo’s son, Joseph F. Mastronardo, who worked as an office employee, collected debts and performed other financial duties; Eric Woehlcke, who worked as an office employee, collected debts and served as a sub-agent; Joseph and Anna Rose Vitelli, who owned J & A Check Cashing, which laundered the gambling proceeds; and Patrick Tronoski, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick and Ronald Gendrachi.
The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna of the Eastern District of Pennsylvania and Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section.Last Three People Sentenced in Drug Conspiracy RingRead the Press Release
United States Attorney Brendan V. Johnson announced that men from Kyle, Potato Creek, and Porcupine, South Dakota, who were all previously convicted of Conspiracy to Distribute a Controlled Substance, were sentenced this past week by Chief Judge Jeffrey L. Viken, U.S. District Court.
Edward Vocu, age 57, was sentenced to 120 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund, for Conspiracy to Distribute Methethamphetamine.
Moses Montileaux, Sr., age 62, was sentenced to 60 months in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund, for Conspiracy to Distribute Marijuana.
Zeno Little, age 57, was sentenced to 3 years’ probation, and a $100 special assessment to the Federal Crime Victims Fund, for Conspiracy to Distribute Marijuana.
The defendants were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on May 15, 2012. Little was found guilty by a federal jury on August 30, 2013. Montileaux, Sr. pled guilty on August 14, 2013, and Vocu pled guilty on August 16, 2013.
A drug conspiracy investigation began on or about October 2008, that resulted in federal charges against the following 18 individuals: Abraham Romero, Richard Marshall, Lorenzo Camacho Tarango a/k/a Lencho a/k/a Lecho, Reyes Chavez-Rojo, Billi American Horse, Jimmy Bravo, Elwanda Fire Thunder, Kimberly Janis, Zeno Little, Norton Little Spotted Horse, Moses Montileaux, Jr., Moses Montileaux, Sr., Whisper Montileaux, Stephanie Standing Soldier, Edward Vocu, Theresa Vocu, Cassie Winters, and Wesley Yellow Horse, Sr.
During the course of the conspiracy, Romero would receive marijuana, cocaine, and methamphetamine from Chavez-Rojo, Lencho, and other persons, and then the remaining above-named individuals and other persons conspired to distribute and/or distributed either marijuana, cocaine, or methamphetamine on the Pine Ridge Indian Reservation.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ted L. McBride and Special Assistant Laura A. Shattuck prosecuted the case.
Vocu and Montileaux, Sr. were immediately turned over to the custody of the U.S. Marshals Service.
Kyle Man Indicted for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse.
Palmier was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Benjamin Joseph Palmier, age 55, was indicted on January 22, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of imprisonment up to life and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment charges that Palmier engaged in two sexual acts with a women who was incapable of consenting to the acts.
The charges are merely accusations and Palmier is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Kentwood Pharmacy Owner and Thirteen Additional Employees Face Federal ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that a federal grand jury returned a Second Superseding Indictment levelling additional charges against Kim Mulder, the CEO of Kentwood Pharmacy, and thirteen employees of the pharmacy.
The indictment charges that Mulder conspired with Richard Clarke, Kentwood Pharmacy’s Director of Sales, and Lawrence Harden, Kentwood Pharmacy’s Chief Pharmacist, to return, restock and re-dispense drugs that were previously dispensed to nursing homes and adult foster care homes. By allegedly submitting claims for drugs that were misbranded, adulterated and dispensed in violation of federal and state laws, the indictment charges that the defendants defrauded Medicare, Medicaid and Blue Cross Blue Shield of Michigan. The indictment alleges that Kentwood Pharmacy received in excess of $70,000,000 from these health care benefit programs, and the government is seeking to forfeit more than $60,000,000 as a result of the alleged health care fraud. Conspiracy to commit health care fraud is punishable by up to ten years of imprisonment and a fine of $250,000 or twice the gross gain of the offense.
Mulder, Clarke, Harden and six other Kentwood Pharmacy employees also face a charge of conspiracy to misbrand drugs which was part of an earlier indictment. The conspiracy to misbrand drugs alleges that the defendants placed returned drugs into stock bottles, which bore incorrect lot numbers and expiration dates, and into amber pill vials which bore no lot numbers or expiration dates. The misbranding conspiracy also charges that a number of the defendants took actions to conceal this conduct by sorting returned drugs at unlicensed off-site locations, including a strip mall office and the basement of the chief pharmacist’s home. Conspiracy to misbrand drugs is punishable by up to five years of imprisonment and a $250,000 fine.
A third charge alleges that Mulder, chief pharmacist Lawrence Harden, and a billing manager conspired to create false prescription records. This charge is punishable by up to five years of imprisonment and a $250,000 fine.
Mulder also faces three counts of money laundering and a single count of structuring monetary transactions to avoid bank reporting requirements. The money laundering charges are each punishable by up to ten years of imprisonment and a $250,000 fine and the structuring charge is punishable by up to three years of imprisonment and a $250,000 fine.
In addition to the felony charges, the Second Superseding Indictment also charges five additional Kentwood Pharmacy Employees, who were allegedly involved with the sorting and packing of the returned drugs, with misdemeanor misbranding offenses punishable by up to one year of imprisonment.
In November 2013, U.S. District Judge Janet T. Neff sentenced three semi-retired pharmacists to fines ranging from $15,000 to $30,000 on charges of felony misbranding of drugs related to their part-time employment at Kentwood Pharmacy.
The ongoing investigation of this matter involves the FDA, FBI, DEA, HSS-OIG, IRS, and the Michigan State Police. Assistant U.S. Attorney Ray Beckering is the prosecutor.
The charges in any indictment are merely accusations, and these defendants are presumed innocent until and unless proven guilty in a court of law.
If Michigan residents or medical professionals suspect possible violations of law or other dangerous practices involving pharmacies or prescription drugs, they can contact: the FDA at http://www.fda.gov/ICECI/criminalInvestigations/default.htm, or the DEA at http://www.justice.gov/dea/ops/submit.php.
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Jury Finds Felon Illegally Possessed GunRead the Press Release
PITTSBURGH – On Jan. 30, 2014, after deliberating for three hours, a federal jury of six men and six women found Curtis Delay Brown guilty of one count of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Brown, 42, of Pittsburgh, Pa., was tried before United States District Judge Terrence F. McVerry in Pittsburgh, Pa.
According to Assistant United States Attorney Michael Comber, who prosecuted the case, the evidence presented at trial established that on or about July 7, 2012, Brown, being a convicted felon, illegally possessed a Taurus, Model 85 Ultra Lite, .38 Special caliber revolver. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Judge McVerry scheduled sentencing for May 6, 2014, at 9:30 a.m. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court revoked the defendant’s bond pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Curtis Delay Brown.
Jody Farnham Pleads Guilty to Embezzlement from UvmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jody Farnham, 55, of Burlington, pleaded guilty on January 28, 2014, in United States District Court in Rutland to a charge of federal program embezzlement. Chief Judge Christina Reiss released Farnham on conditions pending her sentencing, which has been set for June 16.
According to the information to which Farnham pled guilty, Farnham had been employed for a number of years by the University of Vermont, College of Agriculture and Life Sciences. Farnham was an office support specialist for the Vermont Institute for Artisan Cheese, which provided educational, research and technical consulting services to artisan cheese makers. VIAC offered courses and workshops in cheesemaking and enrollees paid tuition to UVM to attend the programs. According to the information, Farnham began embezzling money from UVM in about 2006 and, before the thefts were discovered in late 2012, she stole not less than $185,000. Farnham embezzled much of the money by altering checks given to her by VIAC enrollees.
Farnham changed the checks, which were made out to VIAC, to make her a co-payee. She then deposited the forged checks into her personal bank account. Farnham also stole some cash tuition payments, and misused UVM credit cards to make personal purchases. During the time period of the embezzlement, UVM received substantial amounts of federal funding.As part of her plea agreement, Farnham consented to the entry of a $185,000 forfeiture money judgment.
Farnham faces up to 10 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Farnham is represented by Robert Hemley. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Jackson Hospital Employee and Construction Company Operators Charged in Bribery SchemeRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of two Informations charging conspiracies to offer bribes, and to accept bribes, by persons associated with Jackson North Medical Center, a hospital and health care provider, which is part of Jackson Health System, popularly known in Miami-Dade County as Jackson Memorial Hospital, in violation of Title 18, United States Code, Sections 371 and 666(a)(1)(B).
The first of the two Informations charges Douglas Denton, 59, Cooper City, with conspiring with “V.S.” and “L.L.” to corruptly solicit, demand, accept, and agree to accept cash payments, intending that Denton would be influenced and rewarded in connection with transactions of Jackson Health System, involving at least $5,000, that is, vendor contracts to provide goods and services to Jackson Health System.
According to the Information, Denton was an employee at Jackson North Medical Center who solicited payments from the operators of a small business called Seico Construction Co., in return for awarding those operators contracts for construction jobs at Jackson North Medical Center. The Information identifies the operators of Seico as “V.S.” and “L.L.”. The Information further alleges that from 2010 through 2013 Denton received a total of $5000, in increments of $1,000, on five separate occasions from co-conspirators.
The second Information charges defendants Victor Seijas, 45, and Luis Ledesma, 50, both of Miami, with conspiring with “D.D.”, an employee of Jackson North Medical Center, to corruptly give, offer, and agree to give monetary payments, to an employee of Jackson North Medical Center, in connection with transactions of Jackson North Medical Center and Jackson Health Systems, involving more than $5,000. The Information alleges that the monetary payments were made by Seijas and Ledesma in order to obtain construction contracts at Jackson North Medical Center. The Information further alleges that Seijas and Ledesma operated a small business called Seico Construction Co. that obtained construction contracts from conspirator “D.D.” for construction jobs at Jackson North Medical Center in the time period 2010 through 2013.
The defendants are expected to make their initial appearances today, January 31, 2014, at 1:30 p.m. before U.S. Magistrate Judge Jonathan Goodman. If convicted, the defendants face a maximum sentence of five years in prison on the one count of conspiracy against each of them. They also face possible $250,000 fine, and payment of restitution.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Senior Litigation Counsel Michael P. Sullivan.
An Information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Illegal Alien Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced January 22, 2014, to more than 10 years in federal prison.
Hector Ramirez, 29, residing in South Sioux City, Nebraska, received the prison term after an October 25, 2013, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Ramirez admitted his involvement in a conspiracy that distributed more than 500 grams of methamphetamine from 2010 through May 2013. On April 24, 2013, law enforcement conducted a controlled buy with Ramirez who distributed over 25 grams of 100% pure methamphetamine.
Ramirez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ramirez was sentenced to 128 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4052.
Hazleton Man Charged in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton resident was indicted by a federal grand jury in Scranton on January 28, 2014 for participating in a drug trafficking conspiracy that distributed heroin and cocaine during July through October of 2013.
According to United States Attorney Peter J. Smith, the grand jury alleges that Willy Perez, age 36, conspired with others to distribute and possess with intent to distribute heroin and cocaine in the Hazleton and Scranton areas during a four-month time period.
The Indictment alleges that Perez and his co-conspirators arranged to obtain heroin and cocaine in New York City and distributed the drugs in the Hazleton and Scranton areas of northeastern Pennsylvania. The indictment alleges that Perez and his associates communicated with each other and drug customers by cell phones. Perez is also charged with possessing heroin with the intent to distribute it on October 24, 2013.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, Scranton Police, and detectives from the Lackawanna County District Attorney’s Office.
If the defendant is convicted of the charges, he faces up to 20 years in prison and a $1 million fine for each charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Four Defendants Plead Guilty in Fraudulent Prepaid Cards SchemeRead the Press Release
NEWPORT NEWS, Va. – Four defendants recently pleaded guilty in federal court to charges stemming from a wide-ranging scheme to defraud UniRush, LLC, a provider of prepaid stored value cards. A total of eight defendants thus far have entered guilty pleas as part of this investigation.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Richard W. Myers, Chief of Newport News Police, made the announcement after the last plea was accepted today by United States District Judge Raymond A. Jackson.
The four defendants who recently entered guilty pleas in this matter were Jamal Greene, 27, Knhesha Strickland, 27, Almira Dobson, 25, and Sam McGill, 36. Greene and Strickland reside in Hampton, Va., and Dobson and McGill reside in Newport News, Va.
Green pleaded guilty on Jan. 23, 2014, Dobson and McGill pleaded guilty on Jan. 28, and Strickland pleaded guilty today. All four defendants pleaded guilty to conspiracy to commit mail and wire fraud, which carries a maximum penalty of twenty years in prison. Greene also pleaded guilty to a charge of aggravated identity theft, which carries an additional mandatory term of two years in prison.
According to court records, from at least October 2010 through March 2012, the defendants and others engaged in a fraudulent scheme to obtain funds from UniRush, LLC, which does business as UniRush Financial Services. UniRush provides prepaid Visa debit cards in the United States (referred to as Visa “RushCards”), which are used to deposit money, withdraw cash, make purchases, shop online and pay bills. Through its RushCard program, UniRush allows customers to “reload” the RushCards in a number of ways, including by direct deposit, at MoneyGram locations and through various online means.
Green Dot Corporation offers prepaid debit or credit cards that work similarly to a RushCard. Green Dot also offers a product called a “MoneyPak” that can be purchased for a set amount (ranging from $20 to $500 at most retailers and up to $1,000 at Walmart stores). Individuals who purchase RushCards can use Green Dot MoneyPaks to “reload” money onto their RushCard.
Around March 2012, the Peninsula area of the Eastern District of Virginia experienced a surge in the purchase of Green Dot MoneyPaks from local retailers, including Walgreen’s, Rite Aid and 7-Eleven stores. Around April 2012, UniRush detected an error in its computer accounting system that allowed customers to make multiple fraudulent loads onto their RushCards using the same MoneyPak. In this way, certain customers obtained double the value of their MoneyPak.
Around October 2010, defendant Jamal Greene learned online about the fraudulent uploading scheme, and he then began conducting the scheme with others. From around October 2010 through March 2012, Greene and his confederates made hundreds of fraudulent uploads to their RushCard accounts by using Green Dot MoneyPaks. The transaction activity also revealed fund transfers between the defendants’ RushCard accounts and the accounts of other individuals who also engaged in the fraudulent uploading scheme.
The total loss to UniRush resulting from the fraudulent conduct was approximately $5.5 million from 2010 through March 2012, with $4.5 million of those losses occurring from December 2011 through March 2012.
Jamal Greene is scheduled to be sentenced on June 2, Almira Dobson is scheduled to be sentenced on June 9, Sam McGill is scheduled to be sentenced on June 10, and Knhesha Strickland is scheduled to be sentenced on June 11, 2014.
In addition to these four defendants, four other individuals—Andre Banks, Steven Banks, Erika Greene and Javon Whitaker—previously were convicted and sentenced in 2013 for their role in the RushCard scheme.
This case is being investigated by the United States Secret Service, the United States Postal Inspection Service and the Newport News Police Department. Assistant United States Attorney Brian Samuels is prosecuting the case on behalf of the United States.
The Newport News Financial Crimes Task Force is a partnership between local, state and federal law enforcement to combat financial crimes on the Virginia Peninsula. Created in July 2010, the task force is comprised of agents from the U.S. Postal Inspection Service, the U.S. Secret Service, the FBI, IRS-CID and other federal agencies, along with dedicated officers from the police departments of Newport News, Hampton, James City County, York County and Gloucester. Partners of the task force include Tidewater area financial institutions, credit card companies and the National White Collar Crime Center. Financial crimes with a federal nexus are brought to the attention of the task force by local law enforcement, and members of the task force investigate and refer appropriate cases to the U.S. Attorney’s Office for federal prosecution.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Four Brooklyn, N.Y., Men Indicted for Armed Robberies of Electronics Stores in New Jersey and New YorkRead the Press Release
NEWARK, N.J. – A federal grand jury returned a superseding indictment today against four Brooklyn, N.Y., men in connection with a spree of eight armed robberies of electronic stores in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.
Today’s indictment adds multiple defendants and counts to the original indictment returned on May 22, 2013. Carl Williams, 30, Eric Williams, 33, (no relation) Kajuan Crawley, 26, and Unique Randolph, 27, are charged with one count of conspiracy to commit Hobbs Act robbery in connection with eight armed robberies of electronic stores that took place between May 30, 2012, and Jan. 16, 2013, including robberies in Linden, Paramus, and Woodbridge, N.J.
In addition, Carl Williams and Eric Williams, both arrested on Feb. 14, 2013, are each charged with two counts of Hobbs Act robbery and two counts of using a firearm in furtherance of a crime of violence. Randolph, arrested July 24, 2013, and Crawley, arrested Oct. 2, 2013, are also each charged with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. All defendants have been detained since their arrest.
All defendants are scheduled to appear before U.S. District Judge Joel A. Pisano in Trenton federal court for an arraignment at a date yet to be determined.
According to the indictment and other documents filed in this case:
Crawley, Randolph, Carl Williams, and Eric Williams conspired to commit eight armed robberies of electronic stores as follows:
Date
Store
Location
Radio Shack
New Rochelle, N.Y.
June 11, 2012
T-Mobile
Hempstead, N.Y.
June 18, 2012
Radio Shack
Westbury, N.Y.
June 20, 2012
T-Mobile
West Hempstead, N.Y.
June 21, 2012
Radio Shack
Rockville Center, N.Y.
Sept. 20, 2012
T-Mobile
Linden, N.J.
Oct. 2, 2012
T-Mobile
Woodbridge, N.J.
Jan. 16, 2013
T-Mobile
Paramus, N.J.
The men used a similar routine for each of the robberies. One or two men would serve as lookouts while two or more men would enter the store, brandish a firearm, and tie-up the store employees at gunpoint. After tying up the employees, the men would steal cell phones and other electronic equipment and then flee in getaway cars.
The charges of conspiracy to commit a Hobbs Act robbery are punishable by a maximum potential penalty of 20 years in prison. The first count of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison. Any additional count carries a mandatory minimum prison term of 25 years and a maximum of life in prison. Each charge also carries a maximum fine of $250,000.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Linden, Paramus, and Woodbridge police departments in New Jersey, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-038
Defense counsel: Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Kajuan Crawley: Maria D. Noto Esq., Matawan, N.J.
Eric Williams: Aaron M. Goldsmith Esq., New York
Unique Randolph: Damian P. Conforti Esq., NewarkWilliams, Carl et al., Superseding Indictment
Fort Walton Beach Man Pleads Guilty to Million Dollar Tax Crime, Mail Fraud, and ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that Douglas Edward Henderson, 51, of Fort Walton Beach, Florida, pleaded guilty today to an Information charging him with five counts of submitting a false tax return, two counts of aiding in the preparation of a false tax return, one count of mail fraud, and one count of conspiracy to commit mail and wire fraud.
Henderson admitted that as the president of Henderson Electric Heat and Air Conditioning and Henderson Electric, Inc., both located in Okaloosa County, Florida, he caused personal expenses to be paid from the business accounts for the years 2008 through 2010, and caused their false classification as business expenses associated with contracts between his companies and MacDill Air Force base. These items were then falsely deducted on corporate tax returns and the personal income was never reported on Henderson’s individual income tax return. Following notification of an audit by the Internal Revenue Service, Henderson caused misclassified invoices to be presented to the IRS in an attempt to make these personal expenses paid by his businesses appear legitimate.
Henderson also admitted that he engaged in a fraudulent short sale of his condominium in Miramar Beach, Florida, using a family trust and the cooperation of a third party. Henderson and the third party arranged to make an offer of $664,000 to purchase the unit on which Henderson had a mortgage of more than $1.1 million. The mortgage company, Vericrest, agreed to this sale; however, it would not have allowed the sale had it known that the transaction was being conducted on behalf of Henderson and that he had actually provided the funding to make the purchase.
Henderson is scheduled to be sentenced by Chief U.S. District Court Judge M. Casey Rodgers on April 17, 2014 at 9 a.m. He faces maximum penalties of 5 years in prison for each of the tax violations and 20 years each for the mail fraud and mail and wire fraud conspiracy. Henderson faces up to a total of $1,200,000 in fines and forfeiture.
The charges are the result of an investigation by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Tiffany Eggers.
Fort Myers Man Charged with Possession of Child PornographyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Kevin Charles Kaszynski (48, Fort Myers) with possession of child pornography. If convicted, Kaszynski faces a maximum penalty of 10 years in federal prison.
According to the criminal complaint, from on or about April 2009 through June 2012, Kaszynski possessed child pornography. While going through boxes that had been stored in a leased storage unit, Kaszynski’s wife found a computer hard drive among other items belonging to her husband. On August 27, 2013, Kaszynski’s wife accessed the hard drive and opened a file which depicted a prepubescent girl in a sexual pose. The hard drive was turned over to law enforcement for further investigation. On September 5, 2013, agents obtained a search warrant for the external hard drive. A forensic analysis of the external drive revealed more than 7,000 images and more than 400 videos depicting child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Fort Myers Police Department. It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Fort Myers Couple Pleads Guilty to Producing Child PornographyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that North Fort Myers residents Alan Robert Johnson (35) and Jennifer A. Sparks (39) pleaded guilty earlier this week to production of child pornography. Johnson faces a mandatory minimum penalty of 25 years, up to a maximum penalty of 50 years in federal prison. Sparks faces a mandatory minimum penalty of 15 years, up to a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on or about May 12, 2012, in Lee County, Johnson and his girlfriend Jennifer Sparks knowingly used a 4 year-old girl to engage in sexually explicit conduct for the purpose of producing child pornography. On June 4, 2012, a private citizen turned the cellular telephone that Johnson and Sparks had used to produce the child pornography over law enforcement. The cell phone had been found in a shopping cart at a Lee County Wal-Mart, on or about June 2, 2012.
Further investigation revealed that Johnson was a registered sex offender. A subsequent search warrant was obtained for his residence, and another cellular phone was located in the bedroom shared by Sparks and Johnson. That cellular phone also contained sexually explicit images of the minor.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Task Force, which includes the Cape Coral Police Department and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former President and Vice President of Diamond Electric Agree to Plead <br /> Guilty to Participating in Auto Parts Price-fixing ConspiracyRead the Press Release
The former president and vice president of Osaka, Japan-based Diamond Electric Mfg. Co. Ltd. have agreed to plead guilty for their participation in a global conspiracy to fix prices of ignition coils installed in cars sold in the United States and elsewhere, the Department of Justice announced today. Ignition coils are part of a car’s fuel ignition system and release electric energy suddenly to ignite a fuel mixture.
Separate felony charges were filed today in U.S. District Court for the Eastern District of Michigan in Detroit against Shigehiko Ikenaga and Tatsuo Ikenaga. According to court documents, from at least as early as July 2003 until at least February 2010, the former executives participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of ignition coils sold to automotive manufacturers for installation in vehicles manufactured in the United States and elsewhere. The automotive manufacturers included Ford Motor Co., Toyota Motor Corp. and Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries.
Shigehiko Ikenaga, president of Diamond Electric during the relevant period, agreed to serve 16 months in a U.S. prison. Tatsuo Ikenaga, Diamond Electric’s managing director, and then vice president beginning in 2008, agreed to serve 13 months in a U.S. prison. Tatsuo Ikenaga also simultaneously served as president of Diamond Electric’s U.S. subsidiary during the relevant period. Additionally, the former executives have each agreed to pay a $5,000 criminal fine and to cooperate with the department’s ongoing investigation. Each of the Ikenaga’s plea agreements is subject to court approval. On Sept. 10, 2013, Diamond Electric pleaded guilty for its involvement in the conspiracy and was fined $19 million.
“The two former executives charged today once again demonstrate the Antitrust Division’s vigorous commitment to hold individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal, auto parts conspiracies.”Diamond Electric is a manufacturer of ignition coils and was engaged in the sale of ignition coils in the United States and elsewhere. According to the charges, the Diamond Electric executives and their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and communications to coordinate bids submitted to automobile manufacturers.
Each executive is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 28 individuals and 24 companies have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.
Today’s charges arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s pleas are the result of the National Criminal Enforcement Section with the assistance of the Detroit Field Office of the FBI. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html , or call the Detroit Field Office of the FBI at 313-965-2323.
Former Employee of Forty Fort GM Foodmart Store Charged with Distributing Synthetic MarijuanaRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has charged a 26-year-old New Jersey resident who worked at a GM Foodmart store in Kingston, Pennsylvania, with conspiracy to distribute synthetic marijuana.
According to United States Attorney Peter J. Smith, his office filed a criminal Information in U.S. District Court in Scranton today against Manjinder Singh, charging him with participating in a conspiracy to sell synthetic marijuana from the store during January 2012 and July 2012.
The Information alleges that Singh and/or his co-conspirators obtained synthetic marijuana from out-of-state suppliers and sold synthetic marijuana to customers from the GM Foodmart Store in Forty Fort. It further alleges that Singh distributed synthetic marijuana to others on six occasions.
The charge against Singh resulted from an investigation by the IRS Criminal Investigative Division, the Drug Enforcement Administration, and the Pennsylvania State Police. Mastan Mathan, the owner and operator of the store, recently pleaded guilty to a money laundering conspiracy involving proceeds from the sale of synthetic marijuana.
If convicted of the charge, Singh faces up to 20 years in prison and a $1 million fine.
A plea agreement was also filed in the case.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Developer of Condo-Hotels in Chicago and Florida Sentenced to Six Years in Prison for Federal Tax EvasionRead the Press Release
CHICAGO — The former manager of a defunct Chicago-based real estate company that acquired and managed hotels, including the Blake Hotel in Chicago and others in South Florida, was sentenced today to more than six years in federal prison for evading more than $1.7 million in federal income taxes. The defendant, ROBERT D. FALOR, siphoned millions of dollars from the Blake’s operations at the expense of a lender, city and state taxing authorities, union employees, and other creditors and vendors to support a lavish lifestyle that included multimillion dollar homes, luxury cars, boats, and planes.
Falor, 48, of Chicago and formerly of River Woods and Glencoe was “a one-man financial crime wave,” U.S. District Judge Virginia Kendall said in sentencing him to 74 months in prison and ordering him to pay $1,752,948 in restitution to the Internal Revenue Service. Falor has remained in federal custody since he was arrested in 2011. He pleaded guilty in May 2013 to two counts of federal income tax evasion.
Falor was the chief operator and manager of The Falor Companies, Inc. (TFC), which involved his brother and their father and, before it ceased operating in 2006, acquired and managed hotel properties through a complex network of limited liability corporations. Through various ventures before and after 2006, Falor attempted to convert hotels to condo-hotels by selling individual guest rooms to investors as separately titled condominium units, and renting them through a related hotel management company to other guests when the owner was not in residence, with the owner receiving a percentage of the rental fee. The companies operated multiple condo-hotel ventures in the mid-2000s, including the Blake Hotel, located at 500 S. Dearborn St., in Chicago, and the Tides Hotel on Ocean Drive in Miami Beach.
From 2006 through June 2008, the Blake generated hundreds of thousands of dollars per month in revenues. But instead of paying debts to the Blake’s creditors, Falor plundered approximately $5.7 million from the hotel and diverted the cash to himself. Falor also failed to pay state income taxes, as well as city and state hotel occupancy taxes, bringing the total tax loss he caused to more than $4.1 million.
In July 2008, Accelerated Assets, LLC, a Birmingham, Mich., lender foreclosed on a mezzanine loan to renovate the Blake, ousted the Falors, took over management, and assumed its debts, which included occupancy taxes of more than $500,000 to the City of Chicago and more than $1.4 million to the State of Illinois.
Falor’s father, DAVID R. FALOR, 73, who was a principal in TFC, formerly of Chicago and Miami Beach, was extradited last year from Italy. He also pleaded guilty to tax evasion and was sentenced last month to two years in federal prison. David Falor converted $779,000 in payments that were recorded as loans from TFC, but which became taxable income when the companies went out of business and David Falor used the funds for personal expenses.
Robert Falor’s brother, CHRISTOPHER FALOR, a consultant to the condo-hotel projects, is scheduled to be sentenced on March 5 after pleading guilty to mail fraud and tax counts.
Today’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Assistant U.S. Attorneys Ryan S. Hedges and Barry Jonas.
Defendants convicted of tax offenses remain civilly liable to the Government for any and all back taxes, as well as a civil fraud penalty of up to 75 percent of the underpayment plus interest.
Former Agriprocessors' Manager Hosam Amara Sentenced for Role in Alien Harboring ConspiracyRead the Press Release
Former Agriprocessors’, Inc., manager Hosam Amara was sentenced today to more than three years in federal prison. Amara, age 49, received the prison term after an August 30, 2013, guilty plea to one count of conspiracy to harbor undocumented aliens for profit.
In a plea agreement, Amara admitted he was a manager of the poultry side of Agriprocessors’ Postville facility. Amara admitted that, during at least the five years leading up to May 2008, he and several other Agriprocessors’ managers knowingly and willfully conspired to harbor undocumented alien workers at Agriprocessors’ Postville facility. Among Amara’s coconspirators was Agriprocessors’ Chief Executive Officer (CEO). Amara admitted the conspiracy was for the purpose of commercial advantage.
In the plea agreement, Amara also admitted that, in the Fall of 2007, an immigration agent warned Agriprocessors’ human resources manager that certain expired versions of resident alien cards should no longer be accepted as proof that alien employees were authorized to work in the United States. The human resources manager stopped accepting the cards, and Agriprocessors soon had a shortage of workers. Amara complained to the CEO about the worker shortage, and the CEO began causing new undocumented alien workers to be placed on the payroll of a separate company, Hunt Enterprises, to make it appear the undocumented aliens were not Agriprocessors’ employees. Knowing this, Amara told existing undocumented alien workers to encourage their family members to come to Agriprocessors for work.
In the plea agreement, Amara also admitted he fled to Israel in the wake of a May 12, 2008 immigration enforcement action at Agriprocessors in Postville. The CEO encouraged Amara to leave, telling him, “[j]ust go ahead and leave and forget about everything here.” The CEO gave Amara $4,000 to use for expenses including airfare. Amara was extradited to the United States in April 2013.
Amara was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Amara was sentenced to 41 months’ imprisonment – a sentence at the top of the sentencing range recommended by the United States Sentencing Guidelines -- to be followed by a 3-year term of supervised release. There is no parole in the federal system. Amara is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Peter Deegan, C.J. Williams, and Matthew Cole. The investigation was led by Homeland Security Investigations with assistance from the Federal Bureau of Investigation. Prior assistance was provided by the United States Marshals Service; United States Postal Inspections Service; Iowa Department of Public Safety; Iowa Department of Transportation; Federal Protective Service; Internal Revenue Service B Criminal Investigations; United States Department of Labor; Public Health Service; United States Department of Agriculture; United States Environmental Protection Agency; Iowa Department of Natural Resources; Drug Enforcement Administration; Waterloo Police Department; and Postville Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 08-1324 LRR.
Florida Man Sentenced to 140Months for Brownsville, Tennessee Bank RobberyRead the Press Release
Memphis, TN – Jeffrey Mack Traywick, 48, of Ocala, FL, was sentenced on Wednesday by Chief U.S. District Judge J. Daniel Breen to 140 months in federal prison for the robbery of the First South Bank in Brownsville, TN, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed in the indictment and during court hearings, Traywick entered First South Bank on June 28, 2013 and passed a note to a teller demanding money. He also acted in a manner to indicate that he had a gun. He was arrested by members of the Brownsville Police on July 3, 2013.
Traywick pleaded guilty on October 25, 2013. In addition to the prison sentence, Judge Breen ordered Traywick to pay $1,450 in restitution to First South Bank and serve two years of supervised release.
This case was investigated by FBI and the Brownsville Police Department. Assistant U.S. Attorney Victor L. Ivy represented the government.Florida Man Sentenced in Counterfeit Money SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Orlando, Florida, man convicted of Passing Counterfeit Obligations of the United States was sentenced on January 27, 2014, by U.S. District Judge Karen E. Schreier.
Rafiq McDonald, age 22, was sentenced to 6 months in custody (concurrent with a state sentence he will serve in Wisconsin), to be followed by 2 years of supervised release. He was also ordered to make restitution in the amount of $400.
McDonald was indicted for Conspiracy to Pass Counterfeit Obligations of the United States and four counts of Passing Counterfeit Obligations of the United States by a federal grand jury on March 13, 2013. He pled guilty to one count of Passing Counterfeit Obligations on November 6, 2013.
McDonald and two co-defendants, Macquillie Isaac Woodard, age 22, of Minneapolis, Minnesota, and Timothy Oben, age 22, of Eau Claire, Wisconsin, passed counterfeit $100 bills at various businesses in Sioux Falls in December 2012. Woodard and Oben also pled guilty to one count of Passing Counterfeit Obligations and were previously sentenced to10 months and 24 months in custody, respectively. They were also ordered to make restitution.
This case was investigated by the Sioux Falls Police Department and the U.S. Secret Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
McDonald was immediately turned over to the custody of the U.S. Marshals Service.
First Assistant United States Attorney Kenneth P. Madden Retires After Nearly 28 Years as Federal ProsecutorRead the Press Release
PROVIDENCE, R.I. – First Assistant United States Attorney Kenneth P. Madden, a federal prosecutor for nearly twenty-eight years, is retiring from public service today after serving a total of thirty-eight years as a local prosecutor. Mr. Madden served as a Rhode Island state prosecutor for ten years prior to his appointment as an Assistant United States Attorney in 1986.
Since joining the United States Attorney’s office in January 1986, Mr. Maddenhas served at various times as Chief of the Organized Crime Drug Enforcement Task Force, Chief of the Organized Crime Strike Force, Senior Litigation Counsel and First Assistant U.S. Attorney. From 1975 until January 1986, Mr. Madden served as a Special Assistant Rhode Island Attorney General and an Assistant Rhode Island Attorney General. Mr. Madden is a 1972 graduate of Providence College and received his law degree from St. John’s University in 1975.
“During my four-plus years as United States Attorney, I have turned to Ken Madden nearly every day for his advice and counsel. There has never been a finer First Assistant United States Attorney. His combination of experience, wisdom and grace cannot be replaced,” said United States Attorney Peter F. Neronha.
United States Attorney Neronha added, “All Rhode Islanders should be grateful for the nearly forty years that Ken has worked tirelessly and with great distinction on their behalf. If the story of Ken Madden and his public service is ever written, those who have never met Ken will surely wish that they had.”
First Assistant United States Attorney Kenneth P. Madden was recently recognized by United States Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett with a 2013 Director’s Award, the most prestigious individual award presented jointly by the United States Attorney General and EOUSA.
First Assistant Kenneth P. Madden remarked, “I am very grateful to United States Attorney Peter F. Neronha for the faith and trust he had in me to appoint me as his First Assistant, and I consider myself very fortunate to have worked alongside so many dedicated federal and state prosecutors, support staff and law enforcement officers these many years.”
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Contact: 401-709-5357
[email protected]Federalsburg Man Sentenced to 40 Years in Prison for Producing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Scott Zalewski, age 31, of Federalsburg, Maryland, today to 40 years in prison followed by lifetime supervised release for two counts of producing child pornography. Judge Motz ordered that upon his release from prison, Zalewski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.
According to the plea agreement, on at least three occasions from July through August 2011, Zalewski took sexually explicit photographs of a minor female, under 12 years of age, including several photographs documenting his sexual abuse of the girl, which he then emailed to another person. On January 2, 2013, the Zalewski’s live-in girlfriend provided police with photographs that contained sexually explicit images of the victim, which she reported finding in Zalewski’s email account.
Police arrested Zalewski later on January 2, 2013. A search warrant subsequently executed on Zalewski’s email account recovered digital copies of the sexually explicit pictures of the victim being sent to another individual. More than a dozen other emails were also seized, dating from July and August 2011, in which Zalewski was trading sexually explicit images of other children with other individuals.
A hard drive recovered from Zalewski’s house, and a laptop Zalewski’s ex-girlfriend previously turned over to police were also searched pursuant to a federal warrant. The hard drive contained forty-five images of child pornography, dating from approximately April 2008. On the laptop were records of chats in which the defendant discussed and exchanged child pornography with others, dating from approximately December 2006 through October 2007.
Text messages recovered from Zalewski’s cellular telephone showed discussion of child pornography with others on December 31, 2012, and January 1, 2013. Some text messages had image attachments, but the images were deleted and could not be recovered.Zalewski previously pleaded guilty in Caroline County Circuit Court to a second degree sex offense and to rape in the second degree and was sentenced to a total of 40 years in prison on those charges. Zalewski’s state and federal sentences will be served concurrently.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Caroline County Sheriff’s Office, and Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Justin S. Herring, who prosecuted the case.
Ex-Metlife Employee Pleads Guilty in Phony Expense SchemeRead the Press Release
BOSTON - A former employee of MetLife, the New York-based insurance company, pleaded guilty today to defrauding the company of more than a quarter of a million dollars by submitting bogus expense reports.
Meredith Mandracchia, 32, of Brighton, pleaded guilty to wire fraud. The statutory maximum penalty for wire fraud is 20 years in prison, three years of supervised release and a $250,000 fine. United States Senior District Judge Mark L. Wolf scheduled sentencing for May 2, 2014.
From 2005 until 2010, Mandracchia, a former senior marketing consultant for MetLife, charged a wide variety of personal expenses to her corporate American Express card, including purchases at retailers such as Banana Republic, J. Crew, and Victoria’s Secret; payments to tanning salons, nail salons and grocery stores; and numerous calls to psychic hotlines. Mandracchia then fabricated invoices from legitimate MetLife vendors for conference sponsorships, membership fees, and other charges, prompting the company to make payments to Mandracchia’s corporate American Express account. In fact, however, those payments simply satisfied Mandracchia’s personal charges. In addition, Mandracchia submitted fabricated invoices for company expenses she claimed to have charged to her personal credit card, causing the company to reimburse her directly for those fake charges. The loss to MetLife totaled $230,000.
United States Attorney Carmen M. Ortiz; Kevin Niland, Postal Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
East Tennessee Residents Indicted in Counterfeiting ConspiracyRead the Press Release
GREENEVILLE, Tenn.-- On Jan. 14, 2014, a federal grand jury in Greeneville returned a three count indictment against Jordan Johnson, 20, Shannon Hawkins, 21, Tyler Monroe, 18, Ruben Suarez, 20, and Kayla White, 21, all of Kingsport, Tenn., charging them with conspiracy to defraud the United States; counterfeiting; and possessing counterfeited obligations.
Suarez was arrested on Jan. 27, 2014, and pleaded not guilty to the charges in U.S. District Court on Jan. 30, 2014. He was released on bond pending his trial date, which has not yet been set. Both Jordan and White are currently in state custody and will appear in U.S. District Court on Mar. 6, 2014, to enter pleas to the charges contained in the indictment.
Neither Hawkins nor Monroe has been arrested. As their current locations are unknown to law enforcement authorities, the Kingsport Police Department and U.S. Secret Service request anyone who has knowledge of either of their whereabouts to please contact the Kingsport Police Department at 423-229-9111.
This indictment is the result of an investigation by the U.S. Secret Service and Kingsport Police Department. Assistant U.S. Attorney Christian Lampe will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Downingtown Man Charged with Possessing ExplosivesRead the Press Release
Istvan Merchenthaler, 43, of Downingtown, PA, was charged by indictment, unsealed today, with one count of possession of unregistered firearms and one count of being a fugitive in possession of a firearm and ammunition, announced United States Attorney Zane David Memeger. Specifically, Merchenthaler is charged with possessing approximately 60 plastic PVC pipe improvised explosive devices (“IEDs”), approximately 400 cardboard tube IEDs, a 9mm Cobray M-11 semi-automatic machine pistol, and ammunition. Merchenthaler has been in federal custody since February 16, 2013.
If convicted of both counts, Merchenthaler faces a maximum possible sentence of 20 years in prison, a $500,000 fine, 3 years of supervised release and a $200 special assessment.
On September 23, 2013, the federal grand jury in the District of Maryland issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device.On August 6, 2013, the federal grand jury in the Eastern District of North Carolina issued an indictment charging Merchenthaler with two (2) counts of being a fugitive in possession of firearms and ammunition and one (1) count of possessing an unregistered destructive device.
On March 7, 2013, the federal grand jury in this District issued a superseding indictment charging Merchenthaler with four (4) counts of wire fraud, two (2) counts of aggravated identity theft, four (4) counts of money laundering, two (2) counts of filing false tax returns, and two (2) counts of interstate transportation of stolen goods. According to the superseding indictment, from at least about May 2006 to about February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones. Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club. Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme.
Both the Maryland and North Carolina prosecutions of Merchenthaler have been transferred to this District. All of the above cases have been consolidated before United States District Judge Robert F. Kelly.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, and the Chester County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to 56 Months in Prison for Attacking Two People in Robberies Last Fall-One Victim Is A Senior Citizen, the Other Is A News Producer-Read the Press Release
WASHINGTON – Shabazz Thompson, 20, of Washington, D.C., was sentenced today to 56 months in prison on charges stemming from two robberies that took place in Northeast Washington within a three-week period last fall, U.S. Attorney Ronald C. Machen Jr. announced.
Thompson pled guilty in December 2013 to robbery and other charges in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, the first attack took place on Sept. 27, 2013 at about 3 p.m. Thompson approached an 81-year-old woman at a check-cashing store in the 600 block of H Street NE. The victim, who suffers from arthritis, had just cashed her retirement check. As she was collecting her belongings, Thompson robbed her of her money, grabbing $789. The victim fell down when she tried to prevent him from escaping.
The second attack occurred at about 4:20 a.m. on Oct. 17, 2013. The victim, a producer for CNN, was walking to work in the 800 block of First Street NE when Thompson and an unidentified male approached him. Thompson punched the victim in the face, and he and the other male took his belongings, including his wallet, cell phone, and backpack, which contained his laptop. The victim fell to the ground, bleeding profusely; his jaw had been fractured and his sinus was crushed, leading to severe nasal injuries.
About 25 minutes after the robbery, Thompson used the victim’s credit card at a convenience store. Surveillance video shows him using the card. Thompson was arrested in both cases on Oct. 31, 2013.
Thompson pled guilty to attempted robbery in the first attack. He pled guilty to charges of robbery and assault with significant bodily injury in the second attack.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), especially the detectives from the First Police District who investigated the case. He also acknowledged the efforts of those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond and Assistant U.S. Attorney James A. Petkun, who prosecuted the matter.
14-025District Man Sentenced to 25 Years in Prison for Sexually Assaulting Woman at Apartment Complex-Defendant Was Identified Through Video Surveillance-Read the Press Release
WASHINGTON – Jahlani Brown, 21, of Washington, D.C., was sentenced today to 25 years in prison for sexually assaulting a rental office employee last year at an apartment building in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Brown pled guilty in October 2013, in the Superior Court of the District of Columbia, to first-degree sexual abuse. He was sentenced by the Honorable John Ramsey Johnson. In addition to prison time, Brown will be subject to 10 years of supervised release and will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on Sept. 17, 2013, at about 9 a.m., the victim reported to her office in the Shaw area of Northwest Washington and began preparing for her workday. Brown, who was captured on video surveillance, entered the office and locked the door. He sexually assaulted, threatened, and robbed the victim before leaving the office.
The Metropolitan Police Department (MPD) released surveillance images to the media in hopes of generating information, and neighboring businesses and community members cooperated with law enforcement in getting the word out about the attack. Brown was arrested two days after the assault and has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key, Victim/Witness Advocate Lezlie Richardson and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-027Desperado's Co-owner Pleads Guilty to Benefiting from Prostitution at ClubRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Dipvak Vora, 70, of Baton Rouge, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote, to a one count bill of information on a charge of engaging in interstate travel in aid of racketeering by receiving illegal proceeds from prostitution at the now closed Desperado’s Cabaret in Carencro, La. Desperado’s used facilities in interstate commerce to operate, which included shipment of alcohol and other goods, internet advertisements, and negotiation of debts through credit cards and checks.
According to evidence presented at the guilty plea, Vora is the property owner of the building and land that formerly operated as Desperado’s Cabaret. Vora formed Desperado’s of Acadiana with business partner and operator of Desperado’s Cabaret, James Panos.
Vora admitted that he knew Desperado’s engaged in prostitution as early as 2006, and that between 2006 and 2011, he was paid cash totaling $500,000 in illegal proceeds from Desperado’s.
Vora, Panos, and eight others were charged on May 15, 2013, in an indictment alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
Vora is the fifth person to plead guilty in the case. He faces up to five years in prison, a $250,000 fine, and three years of supervised release for one count of interstate and foreign travel or transportation in aid of racketeering enterprises. As part of the plea agreement, Vora agreed to forfeit $500,000 of illegal proceeds and to forfeit the Desperado’s property. A sentencing date of June 11, 2014 was set.
The U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Department of Homeland Security Investigations, Louisiana State Police, and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy are prosecuting the case.
Denver Paving Company Sentenced for Violating the Law by Hiring Illegal AliensRead the Press Release
DENVER – Premier Paving, Inc., a Denver corporation, was sentenced by U.S. Magistrate Judge Michael J. Watanabe on January 28, 2014 to pay $184,916.58 in forfeiture of criminal proceeds for their criminal practice of hiring illegal aliens. The money will go to the Department of Transportation federal highway fund.
Premier Paving was charged by misdemeanor Information on August 21, 2013. An executive, Russ Otterstein, on behalf of the corporation, signed an agreement on October 9, 2013, where the company pled guilty to engaging in the practice of hiring illegal aliens. On January 28, 2014, the corporation was sentenced.According to the stipulated facts contained in the plea agreement, the defendant is a Colorado corporation. From January 2007 through September 2012, the defendant hired and continued to employ aliens knowing that some of those aliens were not authorized to work in the United States. During this period, PPI hired aliens who lacked the documents required by law to complete an employment eligibility verification form (I-9). In 2007, ICE audited Premier Paving’s employment records, finding violations of hiring employees not authorized to work in the U.S. That investigation resulted in the company entering a settlement agreement with ICE on June 8, 2008 where the company agreed to pay $11,000. The agreement also stated that Premier Paving “can hire only United States citizens and aliens authorized to work in the United States.”
Subsequent to entering into that settlement agreement with ICE, Premier Paving, working with a Denver entity known as Servicios de Migracion Para Todos. As a result of that relationship, Premier Paving again began employing aliens unauthorized to work in the U.S. Another review by ICE in September 2012 determined that the company employed unauthorized workers, and failed to adequately complete I-9 forms for a number of employees hired between January 1, 2011 and September 20, 2012. Some of the employees performed work on federal transportation contracts. After ICE conducted a criminal investigation, the misdemeanor charges were filed in U.S. District Court in Denver. Premier Paving has established new procedures to ensure compliance with federal immigration-related employment laws as a result of this prosecution.
“This is the second time Premier Paving has had to pay for knowingly employing illegal aliens since 2008,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Homeland Security Investigations helps ensure that these unscrupulous employers don’t gain an unfair advantage over their competition by knowingly hiring illegal workers who are paid less.”
“This sentencing sends a clear message of the severe penalties in store for those who act in a criminally irresponsible manner,” said Max Smith, U.S. Department of Transportation Office of Inspector General regional Special Agent in Charge. “Both DOT and the OIG are committed to ensuring fair competition for parties seeking to do business with the Department. We will continue to vigorously investigate and work with our law enforcement and prosecutorial colleagues to see that those who violate criminal laws are punished to the fullest extent of the law.”
This case was investigated by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the U.S. Department of Transportation Office of the Inspector General (DOT OIG).
The corporation was prosecuted by ICE Special Assistant U.S. Attorney Beth Gibson and Assistant U.S. Attorney Tonya Andrews handled the forfeiture.
Dallas Man Arrested on Federal Drug and Counterfeiting Charges to Remain in Federal CustodyRead the Press Release
DALLAS — Following a hearing this afternoon in federal court, a Dallas man, who is charged in a federal complaint with attempting to possess anabolic steroids and falsely making, forging, counterfeiting and altering a U.S. Marshals Service seal, was ordered detained by U.S Magistrate Judge Irma C. Ramirez pending further order of the court. Nicholas Todd Freed, 39, was arrested this week by a task force officer assigned to Homeland Security Investigations (HSI), after it was discovered Freed was claiming packages containing anabolic steroids from a postal center in Dallas. As Freed was being apprehended, law enforcement also observed that he possessed a counterfeit U.S. Marshals Service (USMS) credential and badge. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.
According to the filed criminal complaint, the investigation began in early January 2014 when U.S. Customs and Border Protection (CBP) in San Francisco identified a U.S.Postal Service Express Mail parcel, arriving from Singapore, as suspicious. Its contents were identified as Boldenone Undecylenate, an anabolic steroid and Schedule III controlled substance. CBP seized the parcel, which was addressed to JPEG Press, 3100 Main Street #1, Dallas, Texas 75226, the true address of the Deep Ellum Postal Center. HSI in Dallas was notified about the parcel and its contents.
The ensuing investigation determined that the account for the rental box at the postal center was opened with fictitious information, and the box frequently received similar packages. The investigation ensued, and on January 28, 2014, when the HSI task force officer approached Freed, who was at the postal center to pick up the package, he discovered Freed was carrying a silver-colored USMS badge and apparent counterfeit USMS credentials identifying him as a USMS Chief Inspector. Freed was also carrying a credit card knife, handcuff key and several driver licenses with his photo, but different names on them. In addition, Freed’s vehicle had several items on it or in it consistent with an equipped police vehicle, including emergency flashing lights mounted on the grill, siren, rear flashing red tail lights, spotlight, front push bumper and handcuffs.
During a consensual search at Freed’s residence, law enforcement located several computers, laminating materials, blank plastic cards the size of a Texas driver license, pages of magnetic strips for the back of the cards, ink consistent with that of the Texas seal on the license and identification cards, a press to laminate the cards, pages with hologram material of official federal and government seals, pages of names and identities used to produce the cards, several computer related files of identification cards Freed had previously made, head-shot photos on the computer, and other materials necessary to manufacture and produce fraudulent government identifications, specifically Texas driver licenses, a picture of a Texas Motor Vehicle Inspection sticker on the computer, Texas identification cards, state school identification cards, military identifications and a USMS identification card.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense, as charged, of knowingly, intentionally and unlawfully attempting to possess with the intent to distribute anabolic steroids is 10 years in federal prison and a $500,000 fine. The maximum statutory penalty of the offense, as charged, of falsely making, forging, counterfeiting and altering the seal of a department and agency of the U.S., is five years in federal prison and a $250,000 fine.
The ongoing investigation is being conducted by HSI, CBP, the Balch Springs Police Department and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
Criminal Complaint Unsealed Today in EDNY Federal Court Charging Four Members for Transnational Sex Trafficking RingRead the Press Release
Criminal Complaint
Crack Cocaine Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I.– Ulicssye Towns, aka Voomp, 35, of Providence, was sentenced in U.S. District Court on Thursday to 60 months in federal prison for trafficking crack cocaine, announced United States Attorney Peter F. Neronha, J Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Providence Police Chief Colonel Hugh T. Clements, Jr.
Towns was arrested by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Providence Police in May 2012, following an undercover investigation into his drug trafficking activities.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also sentenced Towns to serve 5 years supervised release upon completion of his prison term. Towns pleaded guilty on November 6, 2013, to one count of possession with the intent to distribute 28 grams or more of cocaine base.
According to information presented to the court at the time of Towns’ guilty plea, a lengthy investigation into Towns’ drug trafficking activities resulted in at least five purchases of crack cocaine from Towns by a confidential source who was working at the direction of ATF agents and Providence Police. As a result of those purchases, and additional information gathered by law enforcement, ATF agents and the U.S. Atorney’s Office obtained a court authorized federal search warrant for Towns’ Providence residence and his vehicle. A search of the residence and vehicle on May 2, 2012, resulted in the seizure of nearly 16 grams of crack cocaine found stuffed inside a shoe inside the residence and more than 19 grams of crack cocaine stashed in the housing surrounding the emergency parking break inside of Towns’ vehicle.
Towns has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Cordova Man Sentenced to 78 Months in Prison for Identity Theft and Filing False Tax ReturnsRead the Press Release
Memphis, TN – Bryan Gardner, 31, of Cordova, TN, was sentenced yesterday by U.S. District Judge S. Thomas Anderson to 78 months in federal prison for stealing government funds through the filing of false income tax returns and identity theft, announced United States Attorney Edward L. Stanton III.
According to the Indictment and facts discussed in court, at different times between August 19, 2010 and November 15, 2011, Gardner and other individuals obtained the names, dates of birth and Social Security numbers of individuals without their knowledge or consent. He then provided this information to his brother, Jeremy Lasane, and other associates who filed taxes claiming refunds using this information. Gardner and Lasane opened bank accounts and directed the U.S. Department of Treasury Tax refunds associated with the false tax returns to be electronically deposited into these accounts. Over $135,000 of refunds were deposited into Gardner’s accounts.
Lasane was sentenced last year to serve 12 years in prison for a related tax fraud scheme. In addition to the prison sentence, Lasane was ordered to pay over $791,000 in restitution, and his vehicles, including a Maserati and Mercedes-Benz, were forfeited to the United States Government.
In addition to the prison sentence, Judge Anderson ordered Gardner to pay restitution in the amount of $135,595.26.
The case was investigated by the United States Secret Service and IRS-Criminal Investigative Division. These cases were prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Coatesville Man Charged with Dealing Explosive MaterialsRead the Press Release
Ryan Joseph Hribick, 32, of Coatesville, Pennsylvania, was charged yesterday by indictment with one count of possession of unregistered firearms, one count of manufacturing and dealing explosive materials, one count of conspiracy to obstruct justice, and one count of witness tampering, announced United States Attorney Zane David Memeger.
According to the indictment, Hribick possessed, manufactured, and dealt cardboard tube improvised explosive devices (“IEDs”) for several years. After federal agents searched his home, Hribick allegedly instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury. In addition, the indictment alleges that Hribick attempted to influence the testimony of a federal grand jury witness regarding the destruction and concealment of evidence.
This case has been assigned to United States District Judge Robert F. Kelly.
If convicted of all counts, Hribick faces a maximum possible sentence of 60 years in prison, a $1 million fine, 3 years of supervised release and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.Click here to view the indictment
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chesterfield Man Sentenced to 48 Months for Defrauding Military Personnel and Their DependentsRead the Press Release
RICHMOND, Va. – Vernon Matthews, 42, of Chesterfield, Virginia, was sentenced to 48 months’ in prison today for his role in defrauding military personnel and their dependents and stealing more than $200,000 through an investment fraud scheme. Matthews previously pleaded guilty to Mail Fraud on September 3, 2013.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office; and United States Postal Inspection Service, Richmond Inspector in Charge Keith Fixel made the announcement after the sentence was imposed today by United States District Judge Henry E. Hudson.
In connection with his guilty plea, Matthews admitted to operating First Capital Group (FCG), located at 4624 Pembroke Boulevard, Suite 102, Virginia Beach, Virginia. He solicited United States Military personnel and their dependents to make investments with FCG, with misrepresentations about how the investment funds would be used, the security of the investments, and the promised amount of returns, which he represented ranged from 4% to 300%. The defendant also misrepresented his affiliation with reputable investment companies and funds, including HB Group and American Funds. Matthews did not have any relationship with HB Group or American Funds, and no investor funds were provided to either of those companies or any other investment-type company. Instead, the defendant misappropriated the investors’ money, causing it to be used for his own personal use and benefit and to the investors’ detriment.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
The charged mail fraud centered around the defendant’s acts in defrauding investor A.G., a graduate of the U.S. Naval Academy who was attending medical school. Through various communications, Matthews led A.G. to believe her investment monies would be transferred to a mutual fund with a guaranteed 7.27% rate of return. That promised return was later revised to a higher amount (10%-12%), provided A.G. invested additional monies with the defendant. A.G., in turn, invested the following amounts with FCG: $20,000 (12/21/2010); $3,500 (5/18/2012); and $6,000 (10/20/12). Although Matthews had promised that these funds would be put in an investment fund, he did not transfer any of A.G.’s money to that promised destination. When A.G. later tried to withdraw her investment funds, the defendant delayed returning her funds and later mailed her a refund check in the amount of $32,328.55. Upon receipt of the mailing, A.G. attempted to cash the check, but it bounced.
Overall, from about July 2010 until about May 2013, Matthews received over $235,600 in funds from the victim investors. The defendant did not invest any of those monies as promised and used the funds for his own benefit and to repay other investors. Judge Hudson ordered the defendant to pay the outstanding balance of $204,465 in restitution to the victim investors.
The investigation was jointly coordinated by the Richmond office of the FBI and the Richmond office of the United States Postal Inspection Service. Assistant United States Attorney Michael Gill prosecuted the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Chesapeake Man Sentenced for Possession of Child PornographyRead the Press Release
NORFOLK, Va. – Patrick Ryan Hudson, 23, of Chesapeake, Va., was sentenced today to 97 months in prison, followed by 180 months of supervised release for possession of child pornography.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Charles T. May Jr., the Naval Criminal Investigative Service (NCIS) Acting Executive Assistant Director for Atlantic Operations; and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Hudson pleaded guilty to a criminal information on October 29, 2013. According to court documents, in late 2012 Hudson was an active duty Navy sailor stationed in Hampton Roads. Undercover agents of Homeland Security Investigations discovered Hudson sharing child pornography through an online peer-to-peer file sharing service. The Naval Criminal Investigative Service also downloaded contraband images from Hudson’s computer. NCIS and HSI special agents executed a federal search warrant at Hudson’s Chesapeake residence and recovered a computer belonging to Hudson containing hundreds of videos and images of child pornography. Hudson admitted to investigators that he had amassed a collection of child pornography on his computer through a peer-to-peer file sharing program.
The case was investigated by the Naval Criminal Investigative Service and Homeland Security Investigations. The Chesapeake Police Department assisted with the search warrant. Special Assistant United States Attorney Christopher A. George prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Charleston Crack Dealer Sentenced to 262 Months in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold cocaine base, commonly known as crack cocaine, to an informant in January of 2012 on Central Avenue in Charleston was sentenced today to 262 months in federal prison, U.S. Attorney Booth Goodwin announced. Marvin Lee Garrett, 33, was convicted at trial in October of 2012 for distributing crack cocaine. Garrett is a career offender, having at least two prior convictions for drug offenses and crimes of violence.
The case was prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative. The DMI initiative was launched in February 2012 by Charleston Police Chief Brent Webster and U.S. Attorney Booth Goodwin, in collaboration with other federal, state, and local law enforcement agencies, as well as leaders representing several West Side community organizations. The DMI initiative was initiated in Charleston as a strategic problem-solving effort aimed at closing down open-air drug markets that breed crimes of violence and disorder. The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys William King and Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Chamberlain Woman Charged with False Statements and FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, woman has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
Marcella His Law, a/k/a Michelle His Law, age 45, was indicted on January 15, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 5, 2013, His Law, in a matter involving a health care benefit program, knowingly and willfully presented a falsified prescription for Hydrocodone, a Schedule III controlled substance, to the Indian Health Services Pharmacy in Ft. Thompson, South Dakota.
The charges are merely accusations and His Law is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General, Office of Investigations. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
His Law was released on bond pending trial. A trial date has not been set.
California Man Sentenced to Federal Prison for Child Exploitation OffensesRead the Press Release
David Michael Thompson, a 27-year old resident of Temecula, California, was sentenced today in United States District Court for transporting child pornography and for traveling in interstate commerce to engage in illicit sexual conduct with a minor child. Thompson was sentenced to a total of 210 months in federal prison (sentences of 210 and 180 months ordered to run concurrently) announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
According to court documents, on October 24, 2012, a trooper with the Illinois State Police (ISP) conducted a traffic stop on a 2008 white Honda Civic owned and driven by Thompson. The passenger of the vehicle was determined to be a sixteen year old female who had been reported missing from the Cincinnati, Ohio area. According to the victim, she and Thompson met on internet social networking sites. Thompson and the victim communicated over the internet using a computer and other electronic equipment capable of accessing the internet for several years.
Between September 23, 2012, and October 22, 2012, Thompson and the victim agreed that Thompson would drive from California to Ohio to pick the victim up and the two would drive back to California where the victim would move-in with Thompson. On October 20, 2012, Thompson left his home in California. Thompson picked the victim up two days later. The two traveled to Indiana where they spent the night and engaged in sexual intercourse. The following morning, Thompson and the victim drove from Indiana into Illinois with the intent of driving to Thompson’s home in California until they were stopped by the ISP. At all times during Thompson’s car trip, he knew he had on his person his iPhone 5, which he knew stored two photographs visually depicting the victim engaging in sexually explicit conduct. These photographs constitute child pornography.
In addition to the prison sentence, Thompson was sentenced to a lifetime of supervised release when he gets out of prison, and ordered to pay a $4,383.00 fine. According to United States Attorney, “The facts of this case are particularly disturbing and highlight the necessity to educate our children about online child predators. I urge parents to be aware of where their children are on the internet and to know who their children are communicating with. My office remains committed to prosecuting dangerous criminals who prey on children. Keeping the children of this district safe is a top priority.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the ISP, the FBI Cyber Crimes Task Force, Springfield Division, the FBI Cincinnati Field Division, and the Greater Cincinnati ICAC Task Force. Law enforcement received assistance from the FBI-Los Angeles Division, Collinsville, Illinois Police Department, Milford, Ohio, Police Department, and the Riverside County, California, Sheriff’s Department. Assistant United States Attorney Monica A. Stump prosecuted the case in coordination with Assistant United States Attorney Christy Muncy, Southern District of Ohio.
Bridgeport Man Sentenced for Role in Narcotics Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SEAN THOMPSON, 36, of Bridgeport, was sentenced today by U.S. District Stefan R. Underhill in Bridgeport to approximately one month of imprisonment, time already served, followed by five years of supervised release, the first eight months of which THOMPSON must spend in home confinement, for his role in a southwestern Connecticut narcotics trafficking ring. THOMPSON was also ordered to perform 100 hours of community service during his supervised release.
This matter stems from “Operation There It Is,” a six-month wiretap investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, a total of 20 individuals have been charged in federal court with various narcotics offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, between December 2012 and February 2013, THOMPSON regularly purchased ounce quantities of powder cocaine from a co-defendant and distributed it in smaller amounts to customers in the Bridgeport area.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The United States Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
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(203) 821-3722 [email protected]Boone Man Sentenced to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and possessed a firearm in furtherance of the drug conspiracy was sentenced January 30, 2014, to more than 10 years in federal prison.
James Edward Poole, 34, from Boone, Iowa, received the prison term after an August 13, 2013, guilty plea to one count of conspiring to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
At the guilty plea, Poole admitted his involvement in a conspiracy from 2012 through January 2013 that distributed more than 1000 grams of mixed methamphetamine which contained at least 150 grams of actual (pure) methamphetamine. On January 8, 2013, officers conducted a traffic stop of a vehicle occupied by Poole and his wife, Shannon Poole. During a search of the vehicle, officers located and seized about over 134 grams of actual (pure) methamphetamine, $377.74 in U.S. Currency, and a loaded handgun (namely a Kel-Tec .380). Poole admitted he had just obtained the methamphetamine from his source near Webster City, Iowa, and planned to distribute it to other person(s).
Poole was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Poole was sentenced to 126 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Poole is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Webster City Police Department, Hamilton County Sheriff’s Office, Wright County Sheriff’s Office, Iowa State Patrol, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov /cgi-bin/login.pl. The case file number is 13-3003.
Bartlett Man Sentenced on Child Pornography ChargeRead the Press Release
CONCORD, N.H. – Jonathan Tanguay, 42, of Bartlett, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire to 84 months in prison, announced United States Attorney John P. Kacavas.
In February of 2010, a search warrant executed at Tanguay’s home revealed a laptop computer, external hard drive and compact disc containing child pornography images. Tanguay was convicted of knowingly possessing those images in October 2013 after a three-day jury trial.
Special Agent Phil Bleezarde led the investigation for the Department of Homeland Security, Immigration and Customers Enforcement Division, and Concord Police Detective Mark Dumas, a member of the New Hampshire Internet Crimes Against Children Task Force, was the lead computer forensic examiner on the case. This case was prosecuted by Assistant United States Attorneys Seth R. Aframe and Nick Abramson.
This case was being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Appeals Court Affirms Life Sentence for Drug TraffickerRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the sentence of life imprisonment imposed by Senior U.S. District Court Judge James M. Munley on Krishna Mote for his participation in a drug trafficking conspiracy that was responsible for distributing large amounts of crack cocaine in the Lehighton area of Northeastern Pennsylvania between 2005 and 2007.
According to United States Attorney Peter J. Smith, Mote, age 44 who resided in the Allentown-Bethlehem area during the time of the conspiracy, was convicted by a jury after a three-day trial in December 2012. The jury returned guilty verdicts on both drug-related charges in the indictment.
Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
In upholding the jury’s verdict, the Court rejected Mote’s claims that the indictment was duplicitous and the evidence proved two conspiracies instead of a single conspiracy. The Court noted that Mote engaged in the drug trafficking enterprise “with the same individuals during most of the period in question, and worked with a number of people who had an overlapping involvement over the entire time span” of the drug conspiracy. The Court concluded that there was “overwhelming evidence at trial” that Mote conspired with others to distribute more than 280 grams of crack cocaine.
In affirming the sentence, the Court explained that “with three prior felony drug convictions, the District Court properly sentenced [Mote] to a mandated life imprisonment.”
Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.
****Apopka Man Sentenced to 7 Years in Federal Prison for $3 Million FraudRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell sentenced Salvatore Ciccarello, Jr. (31, Apopka) to 7 years in federal prison for wire fraud. Ciccarello was also ordered to serve 3 years of supervised release and to pay more than $3 million in restitution to his victims.
On October 10, 2013, Ciccarello was convicted by a federal jury of 15 counts of wire fraud.
According to court documents and evidence presented at trial, Ciccarello’s companies (Workalition, Inc. and Workalition of America, LLC) entered into a “factoring” arrangement with AGR Advisors, Inc. "Factoring" is a financial transaction by which a business sells its invoices to a third party (called a factor) at a discount. The factor provides financing to the seller of the invoice in the form of a cash advance, often 70% to 85% of the amount of the invoice. Once an invoice has been factored, the business will arrange to have the client pay the factor directly.
From May 2011 until December 2011, Ciccarello submitted a series of factoring invoices falsely representing that Ciccarello’s companies were owed millions of dollars for providing temporary and permanent staffing for several businesses. In fact, Ciccarello’s companies were not owed that money, and many of the employees identified on the invoices were fictitious. To deceive AGR into funding the invoices, Ciccarello forged documents and directed his employees to keep a second set of books, to forge documents, and to prepare invoices that included the fictitious employees. As a result of his scheme, Ciccarello defrauded AGR out of more than $3 million.
Further, in August 2012, Ciccarello signed an agreement with TS Staffing, by which that company agreed to fund four Workalition payrolls. After those payrolls were funded, Ciccarello was supposed to begin paying back some of what he owed. Instead, he sent emails whereby he represented that he had deposited checks into TS Staffing’s account. In response, TS Staffing released more money, only to learn later that Ciccarello had actually put a stop payment on the checks. Ciccarello was able to defraud TS Staffing out of $106,000 through this scheme.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.