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Wednesday 4 December 2013
Lake City Man Indicted on Federal Charges of Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that a federal grand jury in Jacksonville has returned an indictment against Ronald Charles Waters (65, Lake City) charging him with two counts of possessing child pornography. On each of these counts, he faces up to 10 years in federal prison and a potential life term of supervision. Waters was arrested on November 20, 2013 in Lake City, Florida. He was arraigned in federal court on December 4, 2013.
According to the indictment, on or about May 30, 2013 and on or about November 20, 2013, Waters knowingly possessed computer media containing minors engaged in sexually explicit conduct.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Jacksonville Sheriff’s Office, and the Lake City Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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."
Kyle Man Pleads Not Guilty to Assaulting A Federal OfficerRead 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 Assaulting, Resisting, and Impeding a Federal Officer.
Scotty Old Horse, age 18, was indicted on November 19, 2013. Old Horse appeared before U.S. Magistrate Judge Veronica L. Duffy on December 2, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an incident in Porcupine, South Dakota, when Old Horse resisted a law enforcement officer employed by the Oglala Sioux Tribe Department of Public Safety while engaged in the performance of his official duties.
The charge is merely an accusation and Old Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Old Horse was released on bond pending trial. A trial date has been set for February 4, 2014.
Justice Department Sues to Stop Somerville, N.J., Man from Preparing Tax ReturnsRead the Press Release
The United States filed a lawsuit yesterday in The District of New Jersey to bar Eric Majette of Somerville, N.J., from preparing federal tax returns, the Justice Department announced today. As alleged in the complaint, Majette owned and operated a tax preparation business named “Berrisford Group” with offices in Plainfield and Somerville.
According to the complaint, from 2006 until 2011, Majette prepared and filed tax returns that contained false or inflated itemized deductions for items such as medical and dental expenses, gifts, and business expenses that resulted in his customers receiving larger tax refunds than they were entitled. The complaint further alleges that Majette encouraged his customers to submit false documents, such as fraudulent charitable contribution receipts, to the Internal Revenue Service (IRS).
Earlier this year, Majette pleaded guilty to corruptly endeavoring to obstruct and impede the internal revenue laws and to preparing a false tax return. He was sentenced to serve 30 months in prison and one year of supervised probation upon release, and ordered to pay $123,440 in restitution. The civil complaint filed yesterday alleges that between 2009 and 2012, Majette prepared 1,853 tax returns for customers and 93 percent of these returns claimed tax refunds. According the complaint, the IRS examined 428 of these returns and determined that they understated the customers’ correct tax liability by a total of $838,837, an average of $1,960 per return. The complaint estimates that the total harm caused by the 1,723 tax refunds claiming returns could be as much as $3 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The IRS has some tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional. In the past decade, the department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Eric Majette
ComplaintJury Convicts Man of Second-Degree Murder While Armed in 2010 Killing of Acquaintance-Defendant Chased and Stabbed Victim After Argument at Gas Station-Read the Press Release
WASHINGTON – Richard Williams, 43, was found guilty by a jury today of second-degree murder while armed in the 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 following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of one count of carrying a dangerous weapon after having been convicted a felony, and two counts of committing offenses while on release in a pending criminal case. The Honorable Robert E. Morin scheduled sentencing for Jan. 31, 2014. Williams faces up to 70 years in prison for the murder count alone, and up to 30 years for each of the other three charges.
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, for reasons that remain unclear. 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 verdict, 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.
13-413Judge Sentences Drug Dealer to 14 Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., has been sentenced in federal court to 14 years in prison to be followed by five years supervised release, on his conviction of violating the federal narcotic laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Richard Hayes, 33.
According to information presented to the court, on Feb. 23, 2011, U.S. postal inspectors in Pittsburgh executed a search warrant for a suspicious package mailed from Rialto, Calif., to Pittsburgh which contained in excess of 20 pounds of marijuana. When Hayes attempted to pick up the package, he was arrested. Inside his wallet, agents found two receipts for other packages mailed from Rialto to Pittsburgh one day earlier.
On Feb. 24, 2011, inspectors located one of the other packages, secured a search warrant, and found nearly nine pounds of cocaine inside. The wholesale value in Pittsburgh of nine pounds of cocaine would be between $160,000 - $180,000, with a retail or "street" value well exceeding a half million dollars.
Assistant United States Attorney Gregory J. Nescott prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Richard Hayes.
Indictment: Wichita Restaurant Owner's Income Came from Drugs, Counterfeit ChecksRead the Press Release
WICHITA, KAN. - A Wichita restaurant owner has been charged with drug trafficking, firearms violations, bank fraud and money laundering, U.S. Attorney Barry Grissom said today.
Gerald Beasley, 58, Andover, Kan., was charged in June with one count of unlawful possession of a firearm after a felony conviction. A 23-count superseding indictment returned by a grand jury Wednesday in U.S. District Court in Wichita includes the following charges:
Three counts of unlawful possession of a firearm after a felony conviction.
Three counts of unlawful possession of a firearm in furtherance of drug trafficking.
One count of maintaining a drug involved premises at 1122 N. Piatt in Wichita.
One count of maintaining a drug involved premises at Tiara’s Place, a restaurant at 1339 N. Hillside in Wichita.
One count of possession with intent to distribute heroin.
One count of possession with intent to distribute cocaine.
One count of possession with intent to distribute crack cocaine.
One count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
One count of conspiracy to possess with intent to distribute 280 grams or more of crack cocaine.
One count of conspiracy to possess with intent to distribute one kilogram or more of heroin.
One count of conspiracy to commit bank fraud.
Five counts of bank fraud.
Two counts of money laundering.
One count of conspiracy to commit money laundering.The indictment alleges investigators monitored Beasley’s telephone calls and examined his tax records, bank records and real estate purchases to obtain evidence that he derived his income from criminal activities including drug trafficking and counterfeit checks. Law enforcement officers served search warrants in June and seized more than $229,000 from bank accounts and $346,000 in cash from residences and a business location. They also seized firearms, ammunition, controlled substances and drug trafficking paraphernalia.
Other allegations in the indictment include the following:- Tiara’s Place restaurant, owned by Beasley, reported $104,864 in gross receipts for July 1, 2003, through Dec. 31, 2012. The restaurant’s total gross income reported to the Internal Revenue Service during the same period was $493,707.
- Law enforcement officers determined Beasley operated a counterfeit check and identity theft operation locally and in other states. He made counterfeit checks, recruited people to cash the checks and then split the cash proceeds with the check passers. He provided cars he owned or rented for their use while passing counterfeit checks.
- Beasley unlawfully possessed firearms and ammunition despite being prohibited from doing so because of a prior felony conviction.
The government is seeking the forfeiture of all money and property representing the proceeds of the crimes including the following real estate owned by Beasley: 660 N. Estelle, 1322 N. Estelle, 1815 E. 23rd, 907 N. Wabash, 2341 N. Piatt, 618 Hedgewood (Andover), 2001 Colt Court (Andover), 2826 E. 23rd, 1648 N. Estelle, 907 and 907 1/2 N. Cleveland, 655 N. Estelle, 1118 N. Piatt, 1728 McFarland, 2244 N. Kansas, 1339 N. Hillside, 1343 N. Hillside, 3623 E. Funston, 1122 N. Piatt, and 1304 N. Grove.
Upon conviction, the alleged crimes carry the following penalties:
Unlawful possession of a firearm after a felony conviction, a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years -- consecutive to a sentence on the underlying drug charge -- and a fine up to $250,000.
Maintaining a drug involved premises: A maximum penalty of 20 years and a fine up to $500,000.
Possession with intent to distribute heroin: Not less than five years and not more than 40 years and a fine up to $5 million.
Possession with intent to distribute cocaine and crack cocaine: A maximum penalty of 20 years and a fine up to $1 million.
Conspiracy to possess with intent to distribute cocaine, crack cocaine and heroin: Not less than 10 years and a fine up to $4 million.
Conspiracy to commit bank fraud and bank fraud: A maximum penalty of 30 years and a fine up to $1 million.
Money laundering: A maximum penalty of 20 years and a fine up to $500,000.The following agencies worked on the case: Wichita Police Department, the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service and the Sedgwick County District Attorney’s Office. Assistant U.S. Attorney Debra Barnett and Special Assistant U.S. Attorney Michelle Jacobs are prosecuting.
OTHER INDICTMENTS
Sherrie Landell, 41, Erie, Kan., is charged with one count of embezzlement by an employee of a bank and two counts of making false entries in bank records. The indictment alleges Landell embezzled while she was an employee of Exchange State Bank, 408 N. 5th St. in St. Paul, Kan.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. The U.S. Secret Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.Ricardo Garcia-Chihuahua, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 7, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Richard W. Smith, 59, Augusta, Kan., is charged with one count of possession with intent to distribute anabolic steroids, one count of possession with intent to distribute Alprazolam, one count of possession with intent to distribute Diazepam, one count of possession with intent to distribute Meprobamate, one count of possession with intent to distribute Nitrazepam, one count of possession with intent to distribute Phenobarbital, one count of possession with intent to distribute Medazepam, one count of possession with intent to distribute Temazepam, one count of possession with intent distribute Oxycodone, one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of unlawful possession of a firearm by a user of controlled substances and one count of unlawful possession of a stolen firearm. The crimes are alleged to have occurred March 15, 2013, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute anabolic steroids: A maximum penalty of 10 years in federal prison and a fine up to $500,000.
Possession with intent to distribute Alprazolam, Diazepam, Meprobamate, Nitrazepam, Phenobarbital, Medazepam and Temazepam: A maximum penalty of five years and a fine up to $250,000.
Possession with intent to distribute Oxycodone: A maximum penalty of 20 years and a fine up to $1 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a stolen firearm: A maximum penalty of 10 years and a fine up to $250,000.Homeland Security Investigations, the Wichita Police Department and the Kansas Department of Revenue investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Codaniel A. Jones, 33, Independence, Kan., is charged with two counts of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of unlawful possession of a firearm by a user of controlled substances and one count of possession of marijuana. The crimes are alleged to have occurred in August and September 2013 in Montgomery County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to$1 million.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.Juan Vargas, 43, Yucaipa, Calif., is charged with possession with intent to distribute approximately five kilograms of methamphetamine. The crime is alleged to have occurred Nov. 9, 2013, in Thomas County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Howard Harden, 51, Liberal, Kan., and Ebony James, 20, Wichita, Kan., are charged with conspiracy to distribute crack cocaine. The crime is alleged to have occurred May 23, 2013, in Clark County, Kan.
If convicted, they face a penalty of not less than five years and not more than 40 years and a fine up to $2 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Fernando Fernandez, Jr., 23, Wichita, Kan., one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Nov. 10, 2013, in Sedgwick County, Kan.
If convicted he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department Investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Jacob Engstrom, 26, Wichita, Kan., and Tessa Bowler, 30, Wichita, Kan., are charged with conspiracy to distribute methamphetamine. In addition, Engstrom is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in February 2012 and May 2012 in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $4 million on the conspiracy count. In addition, if convicted, he faces a penalty of not less than five years – consecutive to the penalty for the drug count -- and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Anel V. Garcia-Estrada, 22, and Sandra Luz Estrada De Garcia, 44, are charged one count of conspiracy to commit money laundering and 17 counts of money laundering. The crimes are alleged to have occurred in 2010 and 2011 in Sedgwick County.
The indictment alleges the defendants conducted interstate financial transactions using funds derived from drug trafficking.
If convicted, they face a maximum penalty of 20 years and a fine up to $500,000 on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jose Armando De Luna, 34, Wichita, Kan., is charged in a superseding indictment with one count of distributing methamphetamine, three counts of unlawful possession of ammunition after a felony conviction, one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, two counts of unlawful possession of firearms after a felony conviction, and one count of unlawful possession of sawed off shotguns. The crimes are alleged to have occurred in September 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Distribution of methamphetamine: A maximum penalty of 20 years in federal prison and a fine up to $1 million.
Unlawful possession of firearms or ammunition after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Possession with intent to distribute amphetamine: Not less than five years and not more than 40 years and a fine up to $2 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a sawed off shotgun: A maximum penalty of 10 years and a fine up to $250,000.The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Alan Metzger is prosecuting
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Theft of Government FraudsRead the Press Release
Arvita Phillips-Henderson, 68, of Philadelphia, PA, was charged yesterday by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant applied for Supplemental Security Income from the Social Security Administration, and Housing Benefits from the Department of Housing and Urban Development, under her true Social Security Number while working. She, later, collected retirement benefits under a second Social Security Number. The defendant’s alleged actions resulted in a loss to the government of more than $87,000.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, a three year period of supervised release, restitution to the government of $87,827.25, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Philadelphia Housing Authority Office of Audit and Compliance. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525Houston Man Ordered to Prison for Wells Fargo RobberyRead the Press Release
HOUSTON - Willie Wright III, 32, of Houston, has been sentenced for his role in the robbery of the Wells Fargo Bank on Kirby Drive in Houston in December 2012, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Nancy Atlas sentenced Wright to 46 months for aggravated bank robbery as well as a consecutive seven years for brandishing a firearm during a crime of violence for a total of 130 months in federal prison.
On Friday Dec. 28, 2012, Wright, along with Aaron Derrow, 43, Terrance Jackson, 35, and Justin Levar Taylor, 33, all of Houston, robbed the Wells Fargo Bank at 5202 Kirby Drive in Houston. All of the men were wearing various disguises, and Wright, Derrow and Taylor were armed with pistols. Jackson and Derrow jumped over the teller counter while Wright and Taylor controlled the lobby. Derrow threatened a male teller with his gun while filling a bag with money. After getting the money, the two jumped back over the teller counter and all four ran out of the bank to their getaway vehicle, a stolen white Toyota pickup truck. All were apprehended a short time later at a residence several miles away.
Derrow and Jackson both also pleaded guilty to aggravated bank robbery and will be sentenced later this month. Derrow also entered a plea of guilty to brandishing a firearm during a crime of violence. Taylor will be sentenced in January 2014 and was convicted of aggravated bank robbery and brandishing a firearm during a crime of violence.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Hoover Restaurant Owner Charged with Trafficking MarijuanaRead the Press Release
BIRMINGHAM -- The owner of Jubilee Joe's Restaurant in Hoover faces federal drug trafficking, firearms and money laundering charges, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
An eight-count indictment returned by a federal grand jury in October against KASHIF MOHAMMED SIDDIQUI, 32, of Birmingham, was unsealed today following his arrest. The indictment charges Siddiqui with conspiracy to distribute marijuana in Jefferson and Shelby counties between September 2012 and January 2013. The indictment also charges Siddiqui with two counts of distributing marijuana, once on Sept. 6, 2012, and again on Oct. 17, 2012.
The indictment further charges Siddiqui with transferring a Bushmaster .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Oct. 17, 2012, and with selling or loaning a Glock .45-caliber pistol to a convicted felon on Oct. 20, 2012. The indictment also charges Siddiqui with conspiring to conduct a financial transaction involving proceeds of illegal activity on Nov. 19, 2012; and with both possessing with intent to distribute marijuana and possessing a Colt .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Jan. 3, 2013.
The conspiracy and marijuana distribution charges each carry a maximum penalty of five years in prison and a $250,000 fine. Transferring a firearm in furtherance of a drug-trafficking crime and providing a firearm to a known felon both carry a maximum sentence of 10 years in prison and a $250,000 fine. The money-laundering conspiracy charge carries a maximum penalty of 20 years in prison and a fine of either $500,000 or double the amount laundered, whichever is greater. The charge of possessing a firearm in furtherance of a drug-trafficking crime carries a $250,000 fine and a prison term of five years to life in prison, which must be served after completion of any other sentence imposed for the crime.
ATF investigated the case, which Assistant U.S. Attorney E. Wilson Hunter is prosecuting.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Hoover Restaurant Owner Charged with Trafficking MarijuanaRead the Press Release
BIRMINGHAM -- The owner of Jubilee Joe's Restaurant in Hoover faces federal drug trafficking, firearms and money laundering charges, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
An eight-count indictment returned by a federal grand jury in October against KASHIF MOHAMMED SIDDIQUI, 32, of Birmingham, was unsealed today following his arrest. The indictment charges Siddiqui with conspiracy to distribute marijuana in Jefferson and Shelby counties between September 2012 and January 2013. The indictment also charges Siddiqui with two counts of distributing marijuana, once on Sept. 6, 2012, and again on Oct. 17, 2012.
The indictment further charges Siddiqui with transferring a Bushmaster .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Oct. 17, 2012, and with selling or loaning a Glock .45-caliber pistol to a convicted felon on Oct. 20, 2012. The indictment also charges Siddiqui with conspiring to conduct a financial transaction involving proceeds of illegal activity on Nov. 19, 2012; and with both possessing with intent to distribute marijuana and possessing a Colt .223-caliber semi-automatic rifle in furtherance of a drug-trafficking crime on Jan. 3, 2013.
The conspiracy and marijuana distribution charges each carry a maximum penalty of five years in prison and a $250,000 fine. Transferring a firearm in furtherance of a drug-trafficking crime and providing a firearm to a known felon both carry a maximum sentence of 10 years in prison and a $250,000 fine. The money-laundering conspiracy charge carries a maximum penalty of 20 years in prison and a fine of either $500,000 or double the amount laundered, whichever is greater. The charge of possessing a firearm in furtherance of a drug-trafficking crime carries a $250,000 fine and a prison term of five years to life in prison, which must be served after completion of any other sentence imposed for the crime.
ATF investigated the case, which Assistant U.S. Attorney E. Wilson Hunter is prosecuting.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Homestead Man Conspired to Distribute HeroinRead the Press Release
PITTSBURGH - A Homestead resident pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Hakeem Kirby, 21, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Kirby conspired to distribute and possess with the intent to distribute 100 grams or more of heroin, a Schedule I controlled substance.
Judge Bissoon scheduled sentencing for April 24, 2014. The law provides for a total sentence of up to 40 years in prison, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Hakeem Kirby.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Mexican citizen charged with illegal re-entry into U.S.
Alonzo Cid-Escatel, age 36, a citizen of Mexico found in Pipestone, Minnesota, is charged with one count of illegally re-entering the United States after previously being deported.
If convicted, Cid-Escatel faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Minneapolis man charged with possessing with intent to distribute methamphetamine
Isreal Landa-Leon, age 28, of Minneapolis, is charged with one count of possession with intent to distribute methamphetamine.
If convicted, Landa-Leon faces a potential maximum penalty of 40 years in prison. This case is the result of an investigation by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Arizona man charged with filing a false tax return
Brian Christopher Neary was charged with one count of filing a false tax return. If convicted, Neary faces a potential maximum penalty of three years in prison. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Garland, Texas, Man Sentenced to 120 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Evan Richards, 22, of Garland, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 120 months in federal prison, after pleading guilty earlier this year to an Information charging one count of transporting and shipping child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, a detective with the Garland Police Department, working online in an undercover capacity, identified a computer using a peer-to-peer program and the Internet to share images of child pornography. The investigation revealed that the computer belonged to Richards. A search warrant was executed at Richards’ residence on September 18, 2012, and law enforcement seized his computer. Richards admitted that he downloaded images and videos that he made available for sharing and that he believed there were approximately 2000 child pornography files on his computer. He admitted downloading child pornography for three to four years using file-sharing software.
Richards has been in custody since he entered his guilty plea in January 2013.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Ft. Lauderdale Attorney Convicted of Conspiracy to Commit Wire Fraud, Mail Fraud, and Money Laundering in Connection with $1 Billion MBC FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a Miami federal jury convicted local attorney Anthony Livoti, Jr. of conspiracy to commit wire and mail fraud, conspiracy to commit money laundering, and mail fraud, in violation of 18 U.S.C. Sections 1349, 1956(h), and 1341, respectively, after nearly a three-month trial before U.S. District Robert N. Scola.
The verdict was the result of Livoti’s participation in a scheme to defraud approximately 30,000 victims who invested in the viatical and life settlement company Mutual Benefits Corp. (MBC). The Indictment alleged that Livoti and others, including Steven Steiner a/k/a Steven Steinger, and Michael McNerney, raised more than $1.25 billion from these investor-victims before being shut down by federal regulators in May 2004. Livoti is scheduled to be sentenced by Judge Scola on February 21, 2014, at 8:30 a.m.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from the elderly, as well as persons suffering from AIDS and chronically ill. Thereafter, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investorv-victims. MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence presented at trial established that MBC misrepresented many important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Defendant Anthony Livoti, Jr., an attorney licensed by the State of Florida, was MBC’s premium trustee, and as a result was entrusted with millions of dollars of investor money placed in bank accounts under his control. Livoti was also the designated “trustee” of thousands of the insurance policies sold by MBC. Evidence showed that Livoti assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law office and encouraging them to purchase MBC investments.
Witnesses testified that new investor money was regularly used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In Ponzi-like fashion, Livoti and his co-conspirators were using new investor money to pay for earlier investor obligations. As the fraud continued, eventually investor money was required to prevent the MBC Ponzi from collapsing. Ultimately, investors lost more than $750 million.
Evidence at trial also showed that co-defendant Joel Steinger was the principal executive in charge of most major decisions made at MBC. Steinger’s trial in this case is currently set to begin April 2, 2014 before Judge Scola.
Defendant Steven Steiner, Joel Steinger’s brother, was also a founding principal of MBC, actively involved in MBC’s sales staff, and encouraged investors to buy MBC’s investments. On September 3, 2013, Steiner pled guilty to charges in this Indictment. His sentencing is set for December 16, 2013. Steiner was also found guilty by a federal jury in a related case, United States v. Steven Steiner, Case No. 11-20578-Cr-Williams. On August 16, 2013, U.S. District Judge Kathleen M. Williams sentenced defendant Steven Steiner to 15 years in prison in connection with money laundering and obstruction of justice related to the use and concealment of more than $15 million dollars in proceeds derived from the MBC fraud.
Michael McNerney pled guilty in this case and was sentenced to five years in prison for his criminal conduct. McNerney, an attorney licensed by the State of Florida, assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law offices and encouraging them to purchase MBC investments.
U.S. Attorney Wifredo A. Ferrer stated, “For nearly ten years, Anthony Livoti, Jr. used the prestige of his law license to further this massive, multi-million dollar fraud scheme. It is outrageous that an attorney would prey on investors by promising them their money was safe and secure when in reality he was misappropriating their funds.”
“This is another case of an attorney who instead of doing the right thing was motivated by his personal greed and assisted in defrauding thousands of investors out of hundreds of millions of dollars,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “An important part of the FBI’s mission is to investigate such financial frauds and hold perpetrators accountable, regardless of how elaborate or complex their scheme is.”
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. This case was tried by Assistant U.S. Attorneys Karen Rochlin and Roger Cruz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Spokane Indian Reservation Resident Sentenced to 30 Years for Child Sexual Abuse ConvictionsRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that United States District Court Judge Thomas O. Rice sentenced Valentin Cardenas Gonzales, age 75, formerly of Ford, Washington, to a 30 year term of imprisonment and a life term of court supervision upon release from Federal prison. As a condition of any such court supervision, Gonzales is required to register as a sex offender and will be subject to specific terms and conditions to prevent his access to or contact with children.
Gonzales faced several Federal charges relating to his involvement with three minor children from the Spokane Indian Reservation. Following a trial in September 2013, a jury returned guilty verdicts on two charges of Aggravated Sexual Abuse of a Minor and two charges of Abusive Sexual Contact with a Minor. Those guilty verdicts culminated with today's sentence.
Michael C. Ormsby stated: "I commend the efforts of the law enforcement officers with the Spokane Tribal Police Department and the Special Agents with the FBI who worked on this case. Their tireless efforts resulted in the successful prosecution of Valentin Cardenas Gonzales and prevented the minor victims from any possibility of being re-victimization. Prosecuting sexual abuse and sexual contact crimes are a priority for the United States Attorney's Office in the Eastern District of Washington. Today's sentence plainly reflects the seriousness of these sorts of crimes."
The Spokane Tribe of Indians has issued an order excluding Gonzales from entering or residing within the boundaries of the Spokane Indian Reservation. He was served with a copy of that order during the sentencing proceedings in Federal court today. While not a member of the Spokane Tribe, Gonzales had been residing on the Reservation when he committed the crimes.
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Tribal Police Department. This case was prosecuted by K. Jill Bolton, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-002-TOR
Former Medical Doctor Sentenced to 20 Years in Prison<br /> for Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
A former medical doctor was sentenced today to serve 20 years in prison for engaging in illicit sexual conduct with minors in Kenya.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr., and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
John D. Ott, 68, pleaded guilty in May 2013 before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Upon completion of his prison term, Ott will be placed on supervised release for the rest of his life. In addition, he will be required to register as a sex offender for the rest of his life.
According to court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania.
The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs as well as by personnel at the U.S. Embassy in Dar es Salaam, Tanzania, and the U.S. Customs and Border Protection National Targeting Center.
The case was prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia.
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 U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Medical Doctor Sentenced to 20 Years in Prison for Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
WASHINGTON – A former medical doctor was sentenced today to 20 years in prison for engaging in illicit sexual conduct with minors in Kenya, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr., and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
John D. Ott, 68, pled guilty in May 2013 before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Upon completion of his prison term, Ott will be placed on supervised release for the rest of his life. In addition, he will be required to register as a sex offender for the rest of his life.
According to filed court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania.
The case was prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia. The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs as well as by personnel at the U.S. Embassy in Dar es Salaam, Tanzania and by the U.S. Customs and Border Protection National Targeting Center.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
13-411Former Bank VP Heads to Federal PrisonRead the Press Release
HOUSTON - Shawn Nelson, 39, of Houston and a former vice-president at Members Choice Credit Union (MCCU), has been ordered to serve more than three years in prison for embezzling approximately $340,000 from the bank, announced United States Kenneth Magidson. Nelson entered a guilty plea on June 27, 2013.
Today, U.S. District Court Judge Keith P. Ellison, who accepted the guilty plea, handed Nelson a 37-month sentence. In handing down the sentence, Judge Ellison described Nelson’s misconduct as “grievous” and further ordered him to pay restitution of $340,000 – the amount Nelson stole from MCCU over a nine-year period. Following completion of his prison term, Nelson will be on supervised release for three years.
As part of his guilty plea, Nelson admitted he was a vice-president of Lending at MCCU. From 2001 through 2010, Nelson opened loan accounts in the names of his friends and family members, without their authorization. He then withdrew money from these accounts, again without their authorization. By the time the fraud was discovered, Nelson had stolen about $340,000 from the credit union.
Nelson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prison facility to be determined in the near future.
U.S. Secret Service investigated. The case was prosecuted by Assistant United States Attorney (AUSA) Sharad S. Khandelwal, while AUSA Kristine Rollinson is handling forfeiture matters.
Florida Man Pleads Guilty to Money Laundering, Involvement in Illegal Gambling RingRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CRAIG CAFFRO, 48, of Florida, pleaded guilty yesterday before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of money laundering and one count of operating an illegal gambling business. As part of his guilty plea, CAFFRO has agreed to forfeit $50,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, CAFFRO and 19 other individuals were charged with various offenses related to their involvement in multiple illegal gambling businesses in southern Connecticut controlled by the Gambino organized crime family, including a large-scale, Internet-based sports bookmaking operation based in Stamford that had penetrated New Haven County and parts of metropolitan New York.
The investigation, which included the use of court-authorized wiretaps, revealed that Dean DePreta headed a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. CAFFRO served as the bookmaking operation’s point person with the www.44wager.com website, and received regular payments from DePreta and co-defendant Richard Uva to pay for use of the website. At CAFFRO’s direction, one of these payments was laundered through the bank account of the elderly mother of one of CAFFRO’s associates living in New Jersey.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011. As of this date, 19 defendants have agreed to forfeit approximately $1.5 million in illegal proceeds.
CAFFRO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 26, 2014, at which time he faces a maximum term of imprisonment of 20 years.
DePreta and Uva each pleaded guilty to racketeering conspiracy. On October 9, 2013, DePreta was sentenced to 71 months of imprisonment and ordered to forfeit $300,000. On October 24, 2013, Uva was sentenced to 46 months of imprisonment and ordered to forfeit $250,000.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
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Tom Carson
(203) 821-3722
[email protected]Final Defendant Sentenced in Major Federal Gang and Drug Operation on the Ft. Apache Indian ReservationRead the Press Release
PHOENIX – On Dec. 2, 2013, approximately 18 months following a large gang and drug sweep on the Ft. Apache Indian Reservation, the last of over 20 defendants was sentenced in federal district court. Brandon Kasey, 24, of Whiteriver, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 48 months imprisonment, with credit for time served, followed by three years of supervised release. A list of related defendants and court numbers is below.
This community impact investigation was led by the Federal Bureau of Investigation’s Northern Arizona Safe Streets Task Force. The investigation resulted in the successful federal prosecution of over 20 defendants for various charges, including drug trafficking and firearms violations, as well as gang-related assault charges and domestic violence charges. The individual sentences ranged from probation up to 15 years imprisonment.
The investigation resulted in the seizure of a number of vehicles; in excess of $100,000 in cash; over 100 firearms, mostly military style weapons; and the dismantling of Whiteriver’s most organized street gang, the Diamond Creek Boyz.
The Federal Bureau of Investigation received substantial assistance from the Arizona Department of Public Safety, the Bureau of Indian Affairs, the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Flagstaff Police Department.
Name
CR #
Eric Altaha
12-8122- PCT-PGR
12-08114-PCT-NVW
Tashina Bonito
12-8137- PCT-NVW
David Boshane
12-8117- PCT-JAT
Ardy Cosay
12-8127- PCT-NVW
Arnold Cosay
12-8116- PCT-PGR
Robert Dayaye
12-8017- PCT-NVW
12-8098- PCT-GMSAmie Gloshay
12-8121- PCT-JAT
Feather Grimes
12-8139- PCT-GMS
Richard Grimes
12-8139- PCT-GMS
Robert Hinton
12-8098- PCT-GMS
Avalon Holden
12-8120- PCT-NVW
Jamie Johnson
12-8123- PCT-DGC
Renny Johnson
12-8123- PCT-DGC
Brandon Kasey
12-8098- PCT-GMS
12-8129- PCT-FJMCharles Larzelere
12-8124- PCT-JAT
Dakota Lupe
12-8125- PCT-GMS
Duane Massey
12-8128- PCT-GMS
12-8202- PCT-GMSMarcelena Minjarez
12-8126- PCT-DGC
Thomas Pacheco
12-8118- PCT-DGC
Estiven Quintana
12-8098- PCT-GMS
12-8115- PCT-GMS
12-8035- PCT-GMSChad Tessay
12-8110- PCT-JAT
Garrett Thompson
12-8189- PCT-GMS
RELEASE NUMBER: 2013-091a_Ft.ApacheTakedown
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Federal Jury Convicts Defendants in Greece Triple MurderRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal jury found three defendants guilty of committing a triple murder in the town of Greece on March 9th, 2010. Richard Anderson, Andrew Wright and Aston Johnson were convicted of the murders of victims Christopher Green, Robert Moncriffe and Mark Wisdom.
“Today’s verdict brings to a successful conclusion one of the one of the most vicious episodes in recent memory,” said U.S. Attorney Hochul. “As this case demonstrates, the violence associated with narcotics trafficking can occur anywhere. It also shows the ability of law enforcement to solve crimes and track killers across multiple jurisdictions and regions of the country. This office will not rest until all other violent criminal organizations are brought to justice.”
Specifically, Anderson, Wright and Johnson were convicted of possessing and discharging firearms and murdering the three victims in furtherance of a marijuana conspiracy. Each defendant faces a maximum of life in prison on each of the three murders. Anderson, Wright and Johnson were also convicted under a separate federal statute of intentionally killing the three victims while engaged in the marijuana conspiracy. They face maximum life in prison on each of those murder charges as well.
The defendants were also convicted of conspiring to possess with intent to distribute and to distribute at least 1000 kilograms of marijuana. Because of prior drug felony convictions, Richard Anderson and Andrew Wright face mandatory terms of life imprisonment on the conspiracy conviction. Aston Johnson faces a mandatory minimum term of imprisonment of 20 years and a maximum of life in prison on the conspiracy. In addition, the three men were also convicted of possessing three firearms in their drug storage house in Phoenix, Arizona, in furtherance of the marijuana conspiracy. They face a consecutive mandatory minimum term of imprisonment of five years and a maximum of life in prison on that conviction.
The federal jury trial lasted 10 weeks. The Government called a total of 65 witnesses to testify and introduced over 530 items of evidence. The trial was prosecuted by Assistant U.S. Attorneys Everardo (Andy) Rodriguez and Frank Sherman.
The verdict is the result of an investigation conducted by the Greece Police Department under the direction of Chief Todd Baxter; the Federal Bureau of Investigation under the direction of Special Agent in Charge Brian P. Boetig; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department under the direction of Chief James Sheppard; the U.S. Marshal?s Service under the direction of Marshal Charles Salina; the Monroe County District Attorney?s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff?s Department, under the direction Sheriff Patrick O?Flynn; the Monroe County Crime Analysis Center; the United States Postal Inspection Service, under the direction of Raymond Williams; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr,; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff?s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.
Richard Anderson will be sentenced on March 10, 2014 at 2:30 p.m.; Aston Johnson will be sentenced on March 11, 2014 at 2:15 p.m. and Andrew Wright will be sentenced on March 12, 2014 at 11:00 a.m., all before U.S. District Judge Charles J. Siragusa who presided over the trial of the case.Federal Grand Jury Charges Christian County Man with Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – A federal grand jury has returned an indictment charging a former Taylorville school bus driver, James Marshall Owens, 43, of Owaneco, Ill., with two counts of sexual exploitation of a minor and one count of receiving child pornography. The indictment, returned yesterday, also seeks criminal forfeiture of various computers and a telephone belonging to Owens.
The indictment alleges that for each of the two counts of sexual exploitation of a minor, Owens enticed individuals under the age of 18 to engage in sexual activity for which a person could be charged with a criminal offense. The indictment alleges that Owens committed the offenses from about Aug. 16, 2012, to May 23, 2013, and from about December 2012 to February 2013. Further, the indictment alleges that Owens received child pornography on or about May 27, 2013.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is a mandatory minimum of 10 years in prison and up to life in prison. For receiving child pornography, the penalty is five to 20 years in prison. The defendant may also be ordered to remain under supervised release for life following any term of imprisonment.
The charges are being investigated by the Federal Bureau of Investigation, the Illinois State Police, and the Christian County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gregory K. Harris with the cooperation of the Christian County State’s Attorney’s Office.Owens was previously charged in state court following his arrest in May 2013, and has remained in the custody of law enforcement since his arrest. A date for Owens to make his initial appearance in federal court will be determined by the U.S. Clerk of the Court.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Agents Arrest Operators of Loan Modification Scam That Targeted Struggling HomeownersRead the Press Release
Federal agents arrested yesterday Bryan D’Antonio, 47, of Brea, Calif., and Charles Wayne Farris, 53, of Aliso Viejo, Calif., for operating the Rodis Law Group and America’s Law Group, businesses that allegedly offered bogus loan modification assistance to struggling homeowners. Attorney Ronald Rodis, 49, of Irvine, Calif., surrendered today to federal agents on charges alleging that he participated in, and lent his name and the law license he formerly possessed to, the fraudulent operation. All three defendants were named in a federal indictment unsealed yesterday following an investigation by the FBI and IRS-Criminal Investigation.According to the indictment, as a result of the scheme run by D’Antonio, Farris and Rodis, more than 1,800 financially distressed homeowners lost a total of at least $12 million in fees they paid to the companies. Many homeowners also lost their homes to foreclosure. During a nine month period that began in October 2008, the Rodis Law Group and America’s Law Group allegedly defrauded distressed homeowners by making false promises and guarantees regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders, falsely representing that a “team of attorneys” would represent the homeowners and advising homeowners to cease making their mortgage payments.
“These arrests send a strong message to those who would prey on vulnerable homeowners during these tough financial times,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “If you defraud homeowners, you will be found and brought to justice.”
The Rodis Law Group, and its successor company, America’s Law Group, allegedly advertised loan modification assistance on radio stations nationwide. According to the indictment, many of these radio advertisements featured Rodis’ voice telling homeowners that a “team of experienced attorneys,” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance,” would negotiate with mortgage lenders. Sales staff hired and trained by Farris and D’Antonio allegedly told interested homeowners that Rodis Law Group was “100% successful,” “routinely lowered monthly payments” and obtained reduced principal balances. According to the indictment, once the defendants and their co-conspirators convinced homeowners to pay a fee of several thousand dollars, little to no effort was made to obtain loan modifications. After making their payments, homeowners who tried to get updates on the status of their cases were often unable to contact anyone at either company.
The indictment further alleges that D’Antonio committed these crimes after having been convicted of mail and wire fraud for his role in a previous telemarketing scheme. The previous scheme resulted in a civil case by the Federal Trade Commission and ultimately a court order, entered in 2001, which permanently banned D’Antonio from participating in future telemarketing operations. The indictment in this case alleges that D’Antonio committed criminal contempt of court by directing the telemarketing activities of Rodis Law Group and America’s Law Group and by misrepresenting the services they provided.
“Posing as successful lawyers, these defendants offered struggling homeowners false hopes and bogus promises of quality legal representation,” said U.S. Attorney for the Central District of California André Birotte Jr. “The market offering loan modifications is rife with fraud, which is why we have redoubled our efforts to investigate and prosecute those who engage in financial crimes that target distressed homeowners.”“The unconscionable act of scamming homeowners already facing foreclosure is far too common,” said Assistant Director in Charge of the FBI’s Los Angeles Field Office Bill Lewis. “This indictment should send a clear message to anyone contemplating similar crimes, and should also remind potential victims to be cautious before paying fees to those offering financial rescue, regardless of whether the solicitor holds a law degree.”
D’Antonio, Farris and Rodis are each charged with 10 felony counts – nine counts of wire fraud and one count of conspiracy. Each of these counts carries a statutory maximum penalty of 20 years’ imprisonment. In addition, D’Antonio is charged with 13 counts of criminal contempt for violating the 2001 court order. Criminal contempt of court has no statutory maximum penalty.
This indictment was brought in coordination with the President’s Financial Fraud Enforcement Task Force’s Mortgage Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.govAn indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Deaths of Smuggled Aliens Lands Mexican National in Federal Prison for 10 YearsRead the Press Release
CORPUS CHRISTI, Texas – Idelfonso Garcia-Benitez, 20, of Michoacan, Mexico, has been ordered to prison for smuggling of a group of 14 Illegal aliens that left seven dead, announced United States Attorney Kenneth Magidson today along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
“The tragic loss of life in this case shows the very real risks that people face when they put their fate in the hands of a human smuggler,” said Moskowitz. “Smugglers place personal profit ahead of public safety and border protection. They are driven by greed with little regard for the health and well-being of their human cargo, and sadly, that can be a deadly combination.”
The indictment charged Garcia-Benitez with one count of conspiring to transport aliens, 14 counts of transporting an alien and one count of illegal re-entry after deportation. On Aug. 22, 2013, he entered a guilty plea to all counts as charged without a written plea agreement.
Today, U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Garcia-Benitez a total sentence of 120 months in federal prison and ordered him to pay $2,161,529.16 in restitution. In handing down the sentence, Judge Jack noted the loss of life and monetary costs that resulted from the crime. As an illegal alien, he is expected to face deportation proceedings following his release from prison.
On March 20, 2013, at approximately 11:00 p.m., a Kingsville Police Department officer observed a pick-up truck violate state traffic law by disregarding a stop sign. The officer attempted to conduct a traffic stop on this vehicle, but the vehicle fled, leading to a brief pursuit.
The driver crashed into a vehicle barrier on General Cavazos Avenue in Kleberg County that had been deployed by the Kingsville Naval Air Station. A total of 15 illegal aliens were discovered at the scene. Of those, Garcia-Benitez was identified as the driver. Seven were killed.
Garcia-Benitez was arrested at the scene of the accident. He has been in custody since that time, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by HSI and prosecuted by Assistant United States Attorney Jeffrey S. Miller.
Construction Executive Steven Pumper Sentenced to Eight Years in Prison for Paying Bribes to Public OfficialsRead the Press Release
A Cuyahoga Falls man was sentenced to more than eight years in prison and ordered to pay more than $2 million in restitution for paying bribes to public officials as part of the Cuyahoga County corruption investigation, law enforcement officials said.
Steven W. Pumper, 49, was sentenced to 97 months in prison by U.S. District Judge Sara Lioi. She also ordered Pumper to pay restitution in the amounts of $1.7 million to Phillips Health Care, $186,000 to Cuyahoga County, $117,000 to Maple Heights City Schools and $15,000 to Parma City Schools.
Pumper previously pleaded guilty to a nine-count information for charges including conspiracy to commit bribery of programs receiving federal funds, obstruction of justice, bribery, mail fraud, structuring and mail fraud.
Pumper, the former president and CEO of DAS Construction, admitted to paying bribes to public officials in return for official actions on his behalf. For example, Pumper provided $33,000 in cash to then-Cuyahoga County Commissioner Jimmy Dimora, and also provided free improvements to Dimora’s home worth tens of thousands of dollars. These actions were done in return for Dimora’s support on several projects in which Pumper was involved, including securing funding for development projects.
In another example, Pumper provided a political donation to the Cuyahoga County Democratic Party that was specifically to be used by the campaign of Parma School Board member J. Kevin Kelley. In return, Kelley helped Pumper’s company secure a $96,000 contract from the school district.
Dimora is currently serving a 28-year prison sentence while Kelley is scheduled to be sentenced later this month.
This case was prosecuted by Assistant U.S. Attorneys Ann C. Rowland and Antoinette T. Bacon following an investigation by the Federal Bureau of Investigation’s Cleveland office and the Internal Revenue Service – Criminal Investigation.
Childersburg City Councilwoman Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
BIRMINGHAM -- A Childersburg City Councilwoman pleaded guilty today in federal court to bank fraud and laundering nearly $1 million from SouthFirst Bank in Childersburg, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and IRS Criminal Investigation Supervisory Special Agent in Charge Veronica Hyman-Pillot.
Federal prosecutors charged BONNY JEAN CARTER in October with the nearly $1million embezzlement from SouthFirst Bank. According to the charge and her guilty plea before Senior U.S. District Judge Inge P. Johnson, Carter, 61, worked as an account clerk at SouthFirst Bank. In that position, between October 2002 and March 2013, Carter embezzled funds held by SouthFirst Bank by converting the money to personal savings accounts. Carter recorded journal entries to transfer money from various SouthFirst Bank general ledger accounts into personal accounts held in her daughter's name. She also skimmed amounts from checks made payable to SouthFirst Bank by depositing the funds into those personal accounts. Additionally, Carter issued debit transactions from SouthFirst Bank’s operating expense account to pay personal debts she owed.
As part of a plea agreement Carter entered with the government in October, she is responsible for repaying $951,787 to SouthFirst Bank. Her sentencing is scheduled March 11.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine, and the maximum penalty for money laundering is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and Internal Revenue Service investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Childersburg City Councilwoman Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
BIRMINGHAM -- A Childersburg City Councilwoman pleaded guilty today in federal court to bank fraud and laundering nearly $1 million from SouthFirst Bank in Childersburg, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and IRS Criminal Investigation Supervisory Special Agent in Charge Veronica Hyman-Pillot.
Federal prosecutors charged BONNY JEAN CARTER in October with the nearly $1million embezzlement from SouthFirst Bank. According to the charge and her guilty plea before Senior U.S. District Judge Inge P. Johnson, Carter, 61, worked as an account clerk at SouthFirst Bank. In that position, between October 2002 and March 2013, Carter embezzled funds held by SouthFirst Bank by converting the money to personal savings accounts. Carter recorded journal entries to transfer money from various SouthFirst Bank general ledger accounts into personal accounts held in her daughter's name. She also skimmed amounts from checks made payable to SouthFirst Bank by depositing the funds into those personal accounts. Additionally, Carter issued debit transactions from SouthFirst Bank’s operating expense account to pay personal debts she owed.
As part of a plea agreement Carter entered with the government in October, she is responsible for repaying $951,787 to SouthFirst Bank. Her sentencing is scheduled March 11.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine, and the maximum penalty for money laundering is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and Internal Revenue Service investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
California Couple Convicted of Federal Credit Card Fraud and Identity Theft ChargesRead the Press Release
ATLANTA - Elton Lee Flenaugh and Deje D. Silas have been convicted of federal credit card fraud and identity theft charges.
“This case highlights the need for aggressive federal investigation and prosecution of credit card fraud and identity theft crimes,” said United States Attorney Sally Quillian Yates. “We commend the U.S. Secret Service for synchronizing local law enforcement activities in multiple cities to bring this brazen, multi-state scheme to a halt, and these defendants to justice.”
“The defendants’ criminal actions reflect how advancements in digital technology can alternatively have a negative effect on our communities. The Secret Service will continue to collaborate with its law enforcement partners and the public and private sectors to actively investigate and arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court: Flenaugh and Silas had a romantic relationship dating back several years. On February 9, 2013, Flenaugh and Silas were scheduled to fly from Atlanta to Los Angeles. During the pre-flight security screening process, alert TSA security officers noticed a suspicious package in Flenaugh’s carry-on bag and, upon further inspection, found nearly 100 fraudulent credit cards secreted inside of a double-sealed manila envelope, which had been hidden inside of an empty, foil-lined Lay’s potato chip bag. 33 of the cards were embossed in Silas’ name, 28 were embossed in three different aliases used by Flenaugh, and 21 were blank and had not yet been embossed. Subsequent searches by the Atlanta Police Department revealed fraudulent driver’s licenses inside of the protective case attached to Silas’ cell phone, and underneath the removable insole of one of Flenaugh’s shoes in the carry-on bag.
Additional investigation revealed fraudulent credit cards, licenses, and stolen credit card account and identity information of hundreds of people. These were found in personal items seized from and during searches of Google e-mail accounts controlled by Flenaugh and Silas, an Apple iPad seized from them at the airport, and a 2007 BMW M6 automobile registered to one of Flenaugh’s aliases.
The investigation showed that the scheme began at least by early 2012 and continued until Flenaugh and Silas’ arrests in February 2013. The scheme involved obtaining credit and debit card account information of hundreds of people, which were then used to manufacture fraudulent credit cards. The cards were made to appear as if they had been issued by major financial institutions such as Chase Bank, U.S. Bank, and Capital One. The defendants also obtained personal identifying information -- including Social Security numbers, dates of birth, and credit information -- of dozens of people, which were used to create fraudulent driver’s licenses to use with the fraudulent credit cards. The fraudulent credit cards were then embossed with the names used on the fraudulent driver’s licenses. The issuing banks and the names embossed on the fraudulent credit cards were merely a front to make them appear legitimate. The magnetic stripes on those cards were encoded with the actual debit and credit card account information of account holders at dozens of financial institutions throughout the country, but primarily at credit unions located in California, Florida, Georgia, Oregon, and Washington.
In at least three instances identified to date, Flenaugh and Silas opened fraudulent credit card accounts in one of the stolen identities and made thousands of dollars in unauthorized charges. As part of his plea agreement with the United States, Flenaugh agreed that he is responsible for losses between $200,000 and $400,000.
Elton Lee Flenaugh, a/k/a Josh Ford a/k/a Ali Waheed, 34, of Richmond, Ca., and Deje D. Silas, 21, of San Francisco, Ca., were originally arrested and charged by the Atlanta Police Department at the airport on February 9th, and taken into custody by the Clayton County Sherriff’s Office.
On March 4, 2013, the U.S. Secret Service took Flenaugh into federal custody at the Clayton County Jail after Clayton County authorities indicated that Flenaugh had posted bond and would be released from custody in Clayton County. A federal complaint was filed against him later that day. On March 7, 2013, the court ordered Flenaugh detained as a flight risk and as a danger to the community, and he has remained in custody since then. A federal grand jury indicted Flenaugh on the instant charges on April 2, 2013.
Flenaugh pleaded guilty today to one count of possession of 15 or more counterfeit or unauthorized access devices, and one count of aggravated identity theft. The charge against him for possession of counterfeit or unauthorized access devices carries a maximum sentence of 10 years in federal prison, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in federal prison, which is required to be imposed consecutive to any sentence imposed on the possession charge. Each of the charges also authorizes a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Silas remained in Clayton County custody until May 8, 2013, when she agreed to waive indictment and appeared in federal court on a Criminal Information pursuant to a negotiated plea agreement. On May 21, 2013, she pleaded guilty to one count of conspiracy to possess 15 or more counterfeit or unauthorized credit cards. On August 28, 2013, the court sentenced Silas to three years, five months in federal prison in connection with the scheme. Silas is currently serving her sentence.
Sentencing for Flenaugh is scheduled for Feb. 27, 2014, at 2:00 p.m. before Senior United States District Judge Orinda D. Evans.
This case is being investigated by Special Agents of the United States Secret Service. Valuable assistance has been provided by the Hartsfield-Jackson Atlanta International Airport division of the Atlanta Police Department, the Office of the Chief Counsel of the Transportation Security Administration, the City of Atlanta Department of Aviation, the Miami-Dade State’s Attorney’s Office, the San Francisco Field Office of the Federal Bureau of Investigation, the Investigations Division of the California Department of Motor Vehicles, and the Oakland Police Department.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
Anyone who believes they may be the victim of identity theft is strongly encouraged to request and review their credit reports from the three nationwide consumer credit reporting companies; Equifax, Experion, and Trans Union, to be sure everything on the reports are authorized, and that they request a fraud alert from the companies. It is also suggested that they immediately close any accounts that have been compromised or opened fraudulently. Those who do online banking or manage other accounts online, check these accounts regularly and be sure passwords are strong. To report identity theft, contact the Federal Trade Commission at: http://www.consumer.ftc.gov/articles/0277-create-identity-theft-report or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Berlin Man Admits Running Investment Fraud SchemeRead the Press Release
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Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANK METE, 55, of Berlin, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to fraud and tax evasion offenses stemming from an investment fraud scheme.
According to court documents and statements made in court, from approximately 2009 to November 2012, METE operated an investment fraud scheme in which he held himself out as a broker of hard money loans between investors and purported individual borrowers who were willing to borrow money at interest rates of 15 to 18 percent. In fact, there were no such borrowers. In order to induce the investors to extend loans to the purported borrowers through him as the broker, METE created false promissory notes, mortgage documents and other false records using the names of the fictitious borrowers. After receiving from the victim investors checks that were made out to the purported borrowers, he forged the signatures on the checks and deposited the funds into several bank accounts he opened in the borrowers’ names.
Through this scheme, METE defrauded investors of approximately $1,191,610.50. He used the funds to pay for various personal expenses.
METE also failed to file federal income tax returns from 2009 to 2012, causing a tax loss to the government of approximately $357,324.
METE pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.
This case is assigned to U.S. District Judge Robert N. Chatigny. A sentencing date has not been scheduled.
METE has been detained in state custody on unrelated charges since November 8, 2013.This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bergen County Woman Sentenced to 10 Years in Prison for Murder-For-Hire Plot Against RivalRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., woman was sentenced today to 120 months in prison for trying to hire a hitman to kill a romantic rival by shooting her in the head, U.S. Attorney Paul J. Fishman announced.
Nicole Faccenda, 44, of Lyndhurst, N.J., previously had pleaded guilty on Aug. 8, 2012 before U.S. Magistrate Judge Patty Shwartz to an information charging her with one count of using the mail and facilities of commerce with the intent of carrying out a murder-for-hire plan. Faccenda was charged in October 2011 with offering to pay someone to kill her ex-boyfriend’s new girlfriend. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Faccenda had been in a long-term relationship with a man who had fathered her child. The relationship ended when the man began seeing with another woman, with whom he also had a child. On Oct. 19, 2011, Faccenda contacted a person she knew and trusted in Florida and asked for help in finding someone to carry out a hit on her ex-boyfriend’s new girlfriend. She said she had a black dress ready to wear to the intended victim’s funeral and would “spit on the casket.”
The acquaintance contacted federal authorities, and the next day, spoke again with Faccenda – a conversation that was recorded by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The acquaintance told Faccenda he had found someone to do the murder. The acquaintance and an undercover ATF task force officer posing as a hitman then met with Faccenda at a Mahwah, N.J., supermarket parking lot to arrange the killing.
Faccenda agreed to pay the undercover hitman $5,000 in advance and $5,000 after the girlfriend was killed. In a number of recorded conversations, Faccenda said she wanted the new girlfriend to be gone, and her boyfriend to be miserable. She said she wanted the girlfriend shot in the head and that the boyfriend could be shot in the foot. If something happened to the girlfriend’s children, she said, “Oh, well, I’m sorry.”
On Oct. 24, 2011, Faccenda met with her acquaintance from Florida in a Secaucus, N.J., gas station parking lot and gave him an envelope with $2,000 for the purported hitman. Over the next few hours, she provided information, including a name, photo, work schedule and license plate number of the intended victim. Two days later, on Oct. 26, 2011, the friend called Faccenda and told her the victim had been shot in the head in what appeared to be a robbery. Faccenda was arrested at work by ATF agents a short time later.
In addition to the prison term, Judge Hochberg sentenced Faccenda to three years of supervised release and ordered her to pay restitution of $19,292.
U.S. Attorney Fishman credited special agents of the ATF under the direction of Acting Special Agent in Charge George Belsky with the investigation leading to today’s sentencing.
The government is represented by Special Litigation Counsel Serina M. Vash of the U.S. Attorney’s Office Criminal Division in Newark.
13-454
Defense Counsel: Peter Willis Esq., Jersey City, N.J.
Bergen County Woman Sentenced to 10 Years in Prison for Murder-For-Hire Plot Against RivalRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., woman was sentenced today to 120 months in prison for trying to hire a hitman to kill a romantic rival by shooting her in the head, U.S. Attorney Paul J. Fishman announced.
Nicole Faccenda, 44, of Lyndhurst, N.J., previously had pleaded guilty on Aug. 8, 2012 before U.S. Magistrate Judge Patty Shwartz to an information charging her with one count of using the mail and facilities of commerce with the intent of carrying out a murder-for-hire plan. Faccenda was charged in October 2011 with offering to pay someone to kill her ex-boyfriend’s new girlfriend. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Faccenda had been in a long-term relationship with a man who had fathered her child. The relationship ended when the man began seeing with another woman, with whom he also had a child. On Oct. 19, 2011, Faccenda contacted a person she knew and trusted in Florida and asked for help in finding someone to carry out a hit on her ex-boyfriend’s new girlfriend. She said she had a black dress ready to wear to the intended victim’s funeral and would “spit on the casket.”
The acquaintance contacted federal authorities, and the next day, spoke again with Faccenda – a conversation that was recorded by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The acquaintance told Faccenda he had found someone to do the murder. The acquaintance and an undercover ATF task force officer posing as a hitman then met with Faccenda at a Mahwah, N.J., supermarket parking lot to arrange the killing.
Faccenda agreed to pay the undercover hitman $5,000 in advance and $5,000 after the girlfriend was killed. In a number of recorded conversations, Faccenda said she wanted the new girlfriend to be gone, and her boyfriend to be miserable. She said she wanted the girlfriend shot in the head and that the boyfriend could be shot in the foot. If something happened to the girlfriend’s children, she said, “Oh, well, I’m sorry.”
On Oct. 24, 2011, Faccenda met with her acquaintance from Florida in a Secaucus, N.J., gas station parking lot and gave him an envelope with $2,000 for the purported hitman. Over the next few hours, she provided information, including a name, photo, work schedule and license plate number of the intended victim. Two days later, on Oct. 26, 2011, the friend called Faccenda and told her the victim had been shot in the head in what appeared to be a robbery. Faccenda was arrested at work by ATF agents a short time later.
In addition to the prison term, Judge Hochberg sentenced Faccenda to three years of supervised release and ordered her to pay restitution of $19,292.
U.S. Attorney Fishman credited special agents of the ATF under the direction of Acting Special Agent in Charge George Belsky with the investigation leading to today’s sentencing.
The government is represented by Special Litigation Counsel Serina M. Vash of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Peter Willis Esq., Jersey City, N.J.
Austin Attorney Marc G. Rosenthal Sentenced to Federal Prison in Connection with South Texas Bribery SchemeRead the Press Release
In Brownsville last night, United States District Judge Andrew Hanen sentenced 51–year-old Austin attorney Marc Garrett Rosenthal to 20 years in federal prison followed by three years of supervised release and ordered him to pay $13,288,984.00 restitution for his role in a South Texas bribery scheme announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Field Division, Internal Revenue Service-Criminal Investigation Acting Special Agent In Charge Bernard Butler and Brownsville Police Chief Orlando Rodriguez.
In February, jurors convicted Rosenthal of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.
“Marc Rosenthal and the public officials with whom he conspired not only betrayed their professional ethical obligations but actively sought to corrupt the very legal processes that were designed to do justice,” stated United States Attorney Robert Pitman. “Sadly, innumerable honorable acts performed by honest lawyers and public officials are undone in the eyes of the public when the Marc Rosenthals of our profession violate the public trust for personal gain.”
Evidence presented at trial revealed that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.
The evidence also revealed that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.
Rosenthal was convicted of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services. At sentencing, Judge Hanen set aside two of the counts of conviction, both mail fraud counts.
This investigation was conducted by the FBI, DEA, IRS-Criminal Investigation and the Brownsville Police Department. Former Southern District of Texas Assistant United States Attorney Michael Wynne and Southern District of Texas Assistant United States Attorney Oscar Ponce prosecuted this case on behalf of the Government.
Another Houston Man Sentenced in Area Armored Car RobberiesRead the Press Release
HOUSTON – Hendrick Dwayne Lynn, 30, of Houston, has been ordered to federal prison following his conviction in the robbery and attempted robbery of two armored cars operating in and around Houston, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Gray H. Miller handed Lynn a sentence of 60 months for his conviction of two counts of interference with commerce by robbery and one count of conspiracy to interfere with commerce by robbery. Lynn will be on supervised release for five years. Lynn will also be jointly and severally liable to pay back the money stolen from a Loomis Armored truck on Nov. 21, 2009.
Four others also charged in the case - Walter Keitric Freeman, 24, Chad Eric Haywood, 25, and Corinthians Lachell Phillips, 29, all of Houston, and Allen Moore Jr., 47, of Dallas – all previously also entered guilty pleas and were sentenced for their roles in the crimes. Haywood was convicted of two counts of interference with commerce by robbery and sentenced to 60 months in addition to a consecutive term of 120 months for discharging a firearm during a crime of violence for a total of 180 months. Freeman was sentenced to 57 months for his conviction of conspiracy to interfere with commerce by robbery as well as a consecutive sentence of 120 months for discharging of a firearm during the commission of a crime of violence for a total of 177 months. Phillips was convicted of the conspiracy charge and sentenced to 97 months. Moore, who was convicted of interference with commerce by robbery and discharging a firearm during a crime of violence will be sentenced in February 2014.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard, who has since recovered, had been filling an ATM machine, but it was already locked and, therefore, no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Alvarado Pharmacy and Owner Plead Guilty to Importing Unapproved Oncology Drugs and Fraudulently Billing MedicareRead the Press Release
United States Attorney Laura E. Duffy announced today that Alvarado Medical Plaza Pharmacy, Inc. (“Alvarado Pharmacy”) and its owner, William Burdine, pleaded guilty to healthcare fraud charges involving the illegal importation and sale of unapproved cancer drugs to Medicare patients in San Diego.
Alvarado Pharmacy and Burdine entered the pleas before U.S. Magistrate Judge Nita L. Stormes, and are scheduled to return to court on February 21, 2014, for a sentencing hearing before U.S. District Judge Janis L. Sammartino. The guilty pleas must be accepted by Judge Sammartino before becoming final.
In pleading guilty to a charge of Health Care Fraud, Alvarado Pharmacy admitted that between May 2010 and June 2011, it ordered $752,688.00 of unapproved prescription oncology drugs from a Canadian distributor, Quality Specialty Products (“QSP”). The drugs ordered from QSP were unapproved versions of drugs sold in the United States as Avastin, Eloxatin, Gemzar, Neupogen, Rituxin, Taxotere, and Zometa, and were shipped from Canada to Alvarado Pharmacy in San Diego. The pharmacy admitted that it was aware that the drugs were not intended for sale in the United States because (a) the packaging and shipping documents indicated that the drugs were shipped from outside the United States; (b) many of the invoices identified the origin of the drugs and intended markets for the drugs as countries other than the United States; (c) the labels did not bear the “RX Only” language required by the Food and Drug Administration (“FDA”); (d) the labels did not bear the National Drug Code numbers found on the labels of the drugs intended for the U.S. market; (e) many of the labels had information in foreign languages; (f) the drugs were purchased at a substantial discount; and (g) the packing slips indicated that the drugs came from Canada.
Alvarado Pharmacy further admitted that it supplied the unapproved foreign oncology drugs purchased from QSP to doctors pre-mixed, in an infusion bag, without advising the doctors that the drugs came from abroad and were not approved for use in the United States. The pharmacy admitted that it was aware that some of these drugs from QSP would be administered to Medicare patients, and doctors would bill Medicare for those drugs using the reimbursement code for the FDA-approved drugs. As Medicare provides reimbursement only for drugs approved for use in the United States, Alvarado Pharmacy caused scores of such false claims for Medicare reimbursement to be submitted by doctors. Indeed, between May 2010 and June 2011, Alvarado Pharmacy caused Medicare to be defrauded out of $1,004,284.04 in unapproved foreign drugs.
William Burdine, the owner of Alvarado Pharmacy and a pharmacist licensed in the State of California, also pleaded guilty today to unlawfully importing the unapproved oncology drugs into the United States. Burdine admitted that he ordered the unapproved oncology drugs from QSP in Canada, knowing that it was unlawful to import into the United States drugs that have not been approved by the FDA for use and sale in this country.
Individuals who are concerned about oncology drugs they may have received from Alvarado Pharmacy or William Burdine are encouraged to contact their treating physician.
DEFENDANTS Criminal Case No. 13cr4295-JLS Alvarado Medical Plaza Pharmacy, Inc.
William Burdine SUMMARY OF CHARGESAlvarado Medical Plaza Pharmacy Inc.
Health Care Fraud, in violation of Title 18, United States Code, Section 1347.
Maximum Penalty for a corporation: 5 years’ probation, a $500,000 fine and $400 special assessment.William Burdine
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545.
AGENCY
Maximum Penalty: 10 years in custody, $250,000 fine and a $100 special assessmentU.S. Food and Drug Administration, Office of Criminal Investigations
Tuesday 3 December 2013
Wise Attorney Sentenced on Felony ChargesRead the Press Release
ABINGDON, VIRGINIA – An attorney from Wise, Va., was sentenced this morning in the United States District Court for the Western District of Virginia in Abingdon on four felony drug charges.
Stuart Collins, 42, of Wise, Va., previously pleaded guilty to four counts of obtaining controlled substances by fraud.
“This case is yet another example of the ways in which the scourge of prescription drug abuse affects people at all levels of society,” United States Attorney Timothy J. Heaphy said today. “Mr. Collins’ addiction led him to illegally obtain prescription medication, and to obstruct justice when his crimes were discovered. The 20-month sentence handed down this morning reflects this office’s priority on the pill problem, and on punishing obstruction wherever it occurs.”
Collins had previously admitted that on multiple occasions he received pharmaceutical drugs from a local doctor. Collins deliberately did not inform that doctor that he was receiving pharmaceutical drugs from another doctor. The United States asserted that Collins’ tampering with witnesses was a basis for the sentence imposed today.
The investigation of the case was conducted by the Bristol Office of the Federal Bureau of Investigation with the assistance of the Virginia State Police, Southwest Regional Drug Task Force, Wise County Sheriff’s Office and Wise Police Department. Assistant United States Attorneys Jennifer Bockhorst, Donald Wolthuis and Randy Ramseyer prosecuted the case for the United States.
Willowick Woman Sentenced to 4 1/2 Years in Prison for Tax ConvictionRead the Press Release
Margaret Monone Greenaway was sentenced today to 54 months imprisonment for claiming false income tax refunds totaling $5,271,794 for the years 2010 and 2011, said Steven M. Dettelbach, United States Attorney. The sentence was imposed by United States District Judge David D. Dowd, Jr., who also imposed a three-year term supervised release following Greenaway’s incarceration.
Greenaway pleaded guilty to the two-count indictment against her on October 17, 2013. In her written plea agreement, Greenaway admitted to filing income tax returns under her name during a prior marriage, Margaret M. Demaria-Susevich, using a “single” filing status, on which she claimed refunds to which she was not entitled of $1,326,671 for 2010 and $3,945,123 for 2011. The claimed refunds were based on purported wages and withholding reflected in fake W-2 forms she attached to the returns. She fabricated the W-2 forms by using the employer information on W-2 forms issued to her husband and inserting made-up amounts of wages and withholding purportedly paid to her. Greenaway never worked for that employer. Greenaway received the requested $3.9 million refund check for 2011 and deposited it into new bank accounts she opened. The bank, however, alerted law enforcement authorities of possible fraud involving the check, enabling the IRS to retrieve the funds before she could spend them.
Greenaway, age 53, resided in Willowick, Ohio, until being placed in pre-trial detention in early July 2013. After being arrested on the indictment on May 16, 2013, she was initially released on bond. Judge Dowd revoked her bond, however, after finding that she had violated the terms of her release. She has been in federal custody since that time, including a period in which she was evaluated for mental competency to stand trial. After a hearing in which he found Greenaway to be competent, Judge Dowd scheduled the case for trial. Greenaway pleaded guilty the day before her trial was set to begin.The case was prosecuted by Assistant United States Attorney John M. Siegel following an investigation by the Internal Revenue Service – Criminal Investigation, Cleveland, Ohio.
Valentin Valdes-Ayala Arrested for Bankruptcy FraudRead the Press Release
SAN JUAN, Puerto Rico – On November 26, 2013, a federal grand jury in the District of Puerto Rico returned a 31-count indictment against Valentin Valdés-Ayala, charging him with bankruptcy fraud, destruction, alteration or falsification of records in bankruptcy, wire fraud, aggravated identity theft and contempt of court, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations, in collaboration with the US Trustee, is in charge of the investigation.
According to the indictment, the purpose of the fraudulent scheme was to obtain financial gain and to hinder, delay, and obstruct collection efforts by the Commonwealth of Puerto Rico, through ASUME, and/or by child support pension beneficiaries against child support debtors who had failed to comply with their child support obligations.
Valdés-Ayala incorporated a non-profit organization called Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic] with the alleged purpose of defending the principles and dignity of every father convicted for failure to make child support payments and obtaining and promoting the release of all inmates as well as defending father-child relationships. He also created Tears in Prison, Inc., a for-profit corporation that was incorporated with the stated purpose of preparing bankruptcy petitions.
The defendant, through Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic], solicited individuals who were incarcerated or facing incarceration for failure to comply with their child support payments, promising those individuals that – in exchange for fees paid to him and/or his entity -- they would be released from prison and/or avoid imprisonment without first having to make any payments towards their child support debt. Valdés-Ayala at times also promised that he would obtain the elimination and/or reduction of child support debt.
The defendant would then file or cause to be filed Chapter 13 bankruptcy petitions which allowed the debtors to be released from prison without first having to pay overdue child support to ASUME due to the operation of bankruptcy’s automatic stay against collection actions.
With respect to his fees, Valdés-Ayala indicated to his prospective clients that his fee included legal representation (even though he is not a lawyer), filing fees, and a term membership in his entity, which would guarantee them legal representation in their child support case throughout the duration of their term membership. Upon receipt of payment the defendant would coordinate a meeting with the individual subject to incarceration and/or his or her family member(s) and provide a receipt.
The defendant prepared and filed and/or caused to be filed Chapter 13 bankruptcy petitions in the clients’ names. The Chapter 13 petitions were not filed for the purpose of having the clients engage Chapter 13 reorganization of their debts, but for the improper purpose of using the United States bankruptcy laws to collect fees by promising relief from incarceration.
It was further part of the scheme to defraud that Valdés-Ayala assisted hundreds of debtors with the filing of false and fraudulent Chapter 13 bankruptcy petitions. From August 2010, up to November 2013, 412 applications for credit counseling certificates were processed through Valdés-Ayala’s account with the Credit Advisors Foundation.
“The U.S. Attorney’s Office in Puerto Rico will continue to investigate and prosecute cases involving bankruptcy fraud”, said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The defendant defrauded not only his clients, but also child support beneficiaries and the government Puerto Rico, and he did so by using the United States Bankruptcy courts. Valdés-Ayala sought to obtain as much money as possible, for as long as possible, from his clients. When the fraudulent bankruptcy petitions ultimately were dismissed by the bankruptcy courts, the defendant ceased contact with his clients, who again faced imminent incarceration for past due child support payments.”
“The bankruptcy process is based on the honor system and when used appropriately allows many debtors to get a fresh start. However, when this trust is abused by debtors intentionally making false statements to the bankruptcy court, the FBI will work with the U.S. Attorney’s Office and Bankruptcy Trustee to hold them accountable to ensure the public’s continued trust in the bankruptcy process,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
The case is being prosecuted by Assistant U.S. Attorney Mariana Bauzà. If convicted, the defendant could face a maximum of 30 years in prison and a mandatory consecutive sentence of two years for each of the two aggravated identity theft charges. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
United States Attorney Announces Sentencings in Two Bankruptcy Fraud CasesRead the Press Release
SAN FRANCISCO – United States Attorney Melinda Haag announced that defendants in two unrelated cases were sentenced to terms of imprisonment for committing bankruptcy fraud.
In the first case, Patricia Bonavito was sentenced on November 13, 2013, to six months in prison for giving false statements in a bankruptcy proceeding.
Bonavito pleaded guilty on August 20, 2013 to making numerous false statements, under the penalty of perjury, in furtherance of a bankruptcy petition through which she sought relief of $308,249.00 in debts. According to the plea agreement, Bonavito admitted to knowingly making these false statements concerning matters material to the determination of whether the Bankruptcy Court would forgive her debt. The false statements included the following: Bonavito denied that anyone owed her any money, when in fact someone owed her a 50% interest in a $150,000 promissory note; she denied having any other income or transferring any property during the two years prior to filing her bankruptcy petition, when in fact she had received more than $500,000 from the sale of properties in San Francisco and New York; she denied that her name was on any real property not listed on her original petition, when in fact she purchased a property in New York for $385,000 shortly after filing for bankruptcy in San Francisco; finally Bonavito denied giving any money to friends or relatives in the year prior to filing, when in fact she had transferred $200,000 to her daughter mere months before filing.
Bonavito, 59, formerly of San Francisco and currently from New York City, was indicted by a federal Grand Jury on April 17, 2013. She was charged with eight counts of false statements in bankruptcy proceedings, in violation of 18 U.S.C. § 152(3), and one count of false testimony under oath in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(2).
Bonavito’s sentence was handed down by The Honorable Judge William H. Alsup, United States District Court Judge, in San Francisco following a guilty plea on four counts of false statements in bankruptcy proceedings, in violation of 18 U.S.C. § 152(3). Judge Alsup also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on January 7, 2014.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the Bonavito case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation with assistance from the United States Bankruptcy Trustee.
In a second case, Walter Bruce Harrell was sentenced on November 26, 2013, to ten months in prison for bankruptcy fraud and for giving false statements in a bankruptcy proceeding.
Harrell pleaded guilty on August 2, 2013 to filing bankruptcy petitions in furtherance of a scheme to defraud creditors owning mortgages and to making false statements in a bankruptcy petition. According to the plea agreement and indictment, the defendant operated a scheme in which he would pay individuals to file bankruptcy petitions in U.S. Bankruptcy Court. At the same time, the defendant had his clients – who were homeowners facing foreclosures of their properties – deed fractional interests in those properties to the bankruptcy filers. When the bankruptcy petitions were filed, Harrell would notify the creditors who were seeking to foreclose on his clients’ properties that the properties were part of a bankruptcy. Because of the “automatic stay” provisions of the U.S. Bankruptcy Code, the creditors were prohibited from proceeding with any foreclosure sales. Instead, the creditors were required to have their attorneys file motions to lift that automatic stay in the Bankruptcy Court. Although these motions were invariably granted, Harrell’s actions caused delays in the foreclosure process and caused the creditors to incur attorneys’ fees in moving to lift the automatic stay.
Harrell, 72, of Montara, was indicted by a federal Grand Jury on February 14, 2013. He was charged with eight counts of bankruptcy fraud, in violation of 18 U.S.C. § 157, and two counts of making false statements in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(3).
“The integrity of evidence received by our bankruptcy courts is critical to the courts’ ability to function effectively,” United States Attorney Melinda Haag stated. “This office will vigorously prosecute people who intentionally submit false and misleading information in federal bankruptcy proceedings.”
Harrell’s sentence was handed down by The Honorable Judge Susan Illston, United States District Court Judge, in San Francisco following a guilty plea on one count of bankruptcy fraud, in violation of 18 U.S.C. § 157, and one count of making false statements in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(3). Judge Illston also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on January 31, 2014.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the Harrell case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Alameda County District Attorney’s Office, with assistance from the United States Bankruptcy Trustee.
(Bonavito indictment )
(Harrell indictment )
United States Agrees to Comprehensive Settlement with Suffolk County Police Department to Resolve Investigation of Discriminatory Policing Against LatinosRead the Press Release
The Civil Rights Division of the U.S. Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York announced today that they have tentatively agreed to a settlement with the Suffolk County Police Department (SCPD) which calls for SCPD to implement new and enhanced policies and procedures to ensure nondiscrimination in the provision of police services to Latino communities in Suffolk County. The agreement, which the Department of Justice has agreed to, requires approval of the Suffolk County Legislature before it will be formally executed by the parties.
The United States commenced an investigation of SCPD in 2009 in the wake of the killing of Marcelo Lucero, an Ecuadorian national, who was murdered by a group of teenagers in Patchogue, N.Y., as he was walking home on the evening of Nov. 8, 2008. The United States’ investigation, pursuant to the Violent Crime and Law Enforcement Act of 1994 and the Omnibus Crime Control and Safe Streets Act of 1968, focused on discriminatory policing allegations, including claims that SCPD discouraged Latino victims from filing complaints and cooperating with the police, and failed to investigate crimes and hate crime incidents involving Latinos. The United States issued a Technical Assistance letter on Sept. 13, 2011, which recommended a wide range of reforms to improve policing by the SCPD, and primarily focused on promoting trust between SCPD and the Latino community. The County cooperated with the United States’ investigation, and has already instituted a number of the recommendations from the Technical Assistance letter. The agreement announced today memorializes those recommendations and commits SCPD to significant changes in how it engages the Latino community.
Specifically, the agreement calls for SCPD to ensure that it polices equitably, respectfully and free of unlawful bias. Other highlights include enhanced training and investigation of allegations of hate crimes and bias incidents, meaningful access to police services for individuals with limited English proficiency (LEP), strengthened SCPD outreach efforts in Latino communities, and the development and maintenance of a true Community Oriented Policing Enforcement (COPE) program throughout the county. The United States will monitor compliance with the agreement, which terminates only when SCPD has substantially complied with all of the requirements for at least one year.
“We look forward to working alongside the Suffolk County Police Department and Suffolk County to implement our agreement,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “By working together, our goal is for all Suffolk residents -- existing and future -- to know that SCPD is there to serve and protect them and that they stand equal with their neighbors before the law.”
“All residents of Suffolk County deserve full and unbiased police protection, regardless of national origin, race, or citizenship status,” said U.S. Attorney Loretta E. Lynch for the Eastern District of New York. “When people feel they cannot turn to the police for protection, they have lost one of our most basic rights – the right to feel safe in one’s community. Law enforcement also suffers when it does not hear from everyone under its umbrella of protection. I commend Suffolk County and SCPD for its cooperation with the United States’ investigation and its willingness to ensure fairness and equal treatment for all.”
The case was handled by Assistant U.S. Attorney Michael J. Goldberger, Chief of Civil Rights in the Civil Division of the U.S. Attorney’s Office; Special Litigation Counsel Laura Coon in the Special Litigation Section of the Civil Rights Division; and Trial Attorneys Silvia Dominguez and Jack Morse in the Special Litigation Section.
United States Agrees to Comprehensive Settlement to Resolve Its Investigation of the Suffolk County Police Department for Discriminatory Policing Against LatinosRead the Press Release
WASHINGTON, D.C. and BROOKLYN, NEW YORK – The Civil Rights Division of the U.S. Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York today announced that they have tentatively agreed to a settlement with the Suffolk County Police Department which calls for SCPD to implement new and enhanced policies and procedures to ensure nondiscrimination in the provision of police services to Latino communities in Suffolk County. The agreement, which the Department of Justice has agreed to, requires approval of the Suffolk County Legislature before it will be formally executed by the parties.
The United States commenced an investigation of SCPD in 2009 in the wake of the killing of Marcelo Lucero, an Ecuadorian national who was murdered by a group of teenagers in Patchogue, New York, as he was walking home on the evening November 8, 2008. The United States’ investigation, pursuant to the Violent Crime and Law Enforcement Act of 1994, 42 U.S.C. ' 14141, and the Omnibus Crime Control and Safe Streets Act of 1968, 42 U.S.C. ' 3789d, focused on discriminatory policing allegations, including claims that SCPD discouraged Latino victims from filing complaints and cooperating with the police and failed to investigate crimes and hate-crime incidents involving Latinos. The United States issued a Technical Assistance letter on September 13, 2011, which recommended a wide range of reforms to improve policing by the SCPD, focused particularly on promoting trust between SCPD and the Latino community. The County cooperated with the United States’ investigation, and has already instituted a number of the recommendations from the Technical Assistance letter. The agreement announced today memorializes those recommendations and commits SCPD to significant changes in how it engages the Latino community.
Specifically, the agreement calls for SCPD to ensure that it polices equitably, respectfully, and free of unlawful bias. Other highlights include enhanced training and investigation of allegations of hate crimes and bias incidents, meaningful access to police services for individuals with limited English proficiency (LEP), strengthening of SCPD’s outreach efforts in Latino communities, and developing and maintaining a true Community Oriented Policing Enforcement (COPE) program throughout the county. The United States will monitor compliance with the agreement, which terminates only when SCPD has substantially complied with all of the requirements of the agreement for at least one year.
Loretta E. Lynch, United States Attorney for the Eastern District of New York stated,
“All residents of Suffolk County deserve full and unbiased police protection, regardless of national origin, race, or citizenship status. When people feel they cannot turn to the police for protection, they have lost one of our most basic rights – the right to feel safe in one’s community. Law enforcement also suffers when it does not hear from everyone under its umbrella of protection. I commend Suffolk County and SCPD for its cooperation with the United States’ investigation and its willingness to ensure fairness and equal treatment for all.”The case was handled by AUSA Michael J. Goldberger, Chief of Civil Rights in the Civil Division of the U.S. Attorney’s Office; Laura Coon, Special Litigation Counsel in the Special Litigation Section of the Civil Rights Division; and Silvia Dominguez and Jack Morse, Trial Attorneys in the Special Litigation Section.
Two Retailers Plead Guilty to Food Stamp FraudRead the Press Release
Baltimore, Maryland – Amara Cisse, age 50, and his wife Fanta Keita, age 45, both of Windsor Mill, Maryland, pleaded guilty today to food stamp fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.Cisse owned Simbo Food Mart, a convenience store located at 2103 West Pratt Street in Baltimore. Keita worked at the store with her husband. According to their plea agreements, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Cisse completed the required government form in May of 2010 to become an authorized retailer in the program, certifying that he understood that it was a violation of SNAP regulations to trade cash for SNAP benefits. From November 1, 2010 to May 2013, Cisse and Keita exchanged SNAP benefits for cash at less than face value of the EBT benefits, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills.
The indictment alleges that Cisse and Keita obtained more than $600,000 in payments for food sales that never occurred. According to the plea agreement, the Court will need to determine the actual amount of the financial loss for the purpose of calculating the sentencing guidelines and restitution.
Keita faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett scheduled her sentencing for March 3, 2014, at 3:00 p.m. Cisse and the government have agreed that if the Court accepts his plea agreement Cisse will be sentenced to 27 months in prison. Judge Bennett has scheduled his sentencing for March 6, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Two Luzerne County Men Charged with Sex Trafficking of Children and Producing and Transporting Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Pittston residents were indicted by a federal grand jury in Scranton today for sex trafficking of children and producing and distributing child pornography.
According to United States Attorney Peter J. Smith, the indictment alleges that Gregory Boone, age 29, and Randy Coleman, Jr., age 33, conspired to use minor females to engage in prostitution during August and September 2013 and used cell phones to produce and transmit images of child pornography which were used in “escort services” advertisements on a website.
The indictment alleges that Boone, Coleman, and others whose identities are known to the grand jury, recruited at least three minor females–and attempted to recruit a fourth–to engage in prostitution in Luzerne, Lackawanna, and Dauphin Counties, took photographs of the minors and posted them on the website, rented motel rooms for customers to meet with minors for sex, and shared in the profits of the prostitution activities.
Both defendants are charged with conspiracy to commit sex trafficking of children; sex trafficking of children as aiders and abettors; conspiracy to produce child pornography; three counts of producing child pornography as aiders and abettors; conspiracy to transport and ship child pornography; and three counts of transporting and shipping child pornography as aiders and abettors.
The charges stem from an investigation by the U. S. Department of Homeland Security(HSI) Immigration and Customs Enforcement(ICE), the Pennsylvania State Police, the Pittston Police, and the Luzerne County District Attorney’s Office. 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, each defendant faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment on the child pornography production charges; a mandatory minimum sentence of 10 years’ imprisonment and a possible life imprisonment sentence on the sex trafficking of children offenses; and a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment on the transporting child pornography charges.
In addition to a prison sentence, both defendants also face 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat 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 and click on the tab “resources.”
Two Forsyth City Councilmen Sentenced for Accepting BribesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that two former Councilmen of the City of Forsyth, Georgia, James Edward Calloway and Desi Surtane Hansford, were sentenced by the Honorable Marc T. Treadwell in United States District Court in Macon, Georgia today for accepting bribes in connection with the performance of their official duties.The defendants entered guilty pleas on September 3, 2013. Facts stipulated in the written plea agreements of the two men show the following:
Mr. Calloway had been a Councilman for twenty-two years and Mr. Hansford for five. Both served on the Combined Utilities Committee of the Council, which oversees electric, water, sewer and telecommunications for the City of Forsyth.
On December 27, 2012, Mr. Calloway solicited a bribe from a water and waste treatment company of $20,000 to guarantee the votes to give it the water waste contract for the City. That company immediately notified the Federal Bureau of Investigation (FBI) of the solicitation and cooperated fully and actively with that agency throughout the investigation, which revealed that at least in part Mr. Calloway’s motive in soliciting the payment was to help Councilman Hansford rescue his home from foreclosure.
A representative of the water and waste treatment company, cooperating with the FBI, met with the two councilmen on January 18, 2013, at a truck stop off I-75 in Jackson, Georgia, and paid them $10,000 in currency provided by the FBI while secretly recording the meeting per FBI instructions. Mr. Calloway assured the company representative that the company would recover the amount of the bribe through a future project on which the company would be employed. Following this meeting and payment Mr. Calloway and Mr. Hansford split the money equally.
A second $10,000 payment was delivered to Mr. Calloway one week later, January 25, 2013, under similar circumstances to the first, after which he was immediately arrested and subsequently confessed. He also admitted receiving four Atlanta Falcons playoff tickets from the company, which he and Mr. Hansford shared.
Mr. Calloway then cooperated with the government and participated in paying an additional $5000 (half of the second $10,000 payment) to Mr. Hansford, who was then also arrested.
Mr. Calloway was sentenced to serve 24 months in prison. He was also ordered to pay a $7,500 fine.
Mr. Hansford received a sentence of 18 months in prison. He was also ordered to pay restitution in the amount of $3000.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Sonja Profit.
“When people entrust elected officials with public office, they have a right to expect that those positions of authority will be used for the public good, not for personal gain. By prosecuting these offenses, I hope that we remind other public officials that they are not above the law and that we restore the public’s confidence in the many government officials who choose to serve so that they can truly make a positive impact,” said United States Attorney Michael J. Moore.
Ricky Maxwell, Acting Special Agent in Charge, FBI, Atlanta Field Office, stated, “While most individuals, elected or otherwise, who choose to serve the public do so admirably and honorably, the need to be vigilant for corrupt or criminal activity remains. The FBI continues to carry its Public Corruption Program as its # 1 criminal investigative priority due to the vast potential for harm that exists. We ask that anyone with information regarding public corruption related matters please contact their nearest FBI field office.”
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Two Foreign Nationals Plead Guilty in <br /> Puerto Rican Identity Trafficking ConspiracyRead the Press Release
A Dominican national and a Mexican national each pleaded guilty today in connection with their roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Jorge Luis “Daniel” Mendez, 37, formerly of San Juan, Puerto Rico, and Enrique Rogelio Mendez-Solis, 37, formerly of Seymour, Ind., pleaded guilty before U.S. District Judge Juan M. Pérez-Giménez in the District of Puerto Rico to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and three counts of aggravated identity theft. They face a maximum sentence of 15 years in prison for conspiracy to commit identification fraud, 10 years in prison for conspiracy to commit alien smuggling for financial gain, and two years in prison for each aggravated identity theft count when they are sentenced on April 28, 2014.
Both defendants were charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, 53 individuals have been charged for their roles in the identity trafficking scheme, 49 defendants have been arrested, and 49 have pleaded guilty.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that these identity brokers in the United States ordered the identity documents from the document suppliers in Savarona on behalf of their customers by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority, or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, DeKalb and Aurora, Ill.; Seymour, Columbus and Indianapolis, Ind.; Hartford, Conn.; Clewiston, Fla.; Lilburn and Norcross, Ga.; Salisbury, Md.; Columbus and Fairfield, Ohio; Dorchester, Lawrence, Salem and Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington and Hickory, N.C.; Hazelton and Philadelphia, Penn.; Houston; Abingdon and Albertville, Ala.; and Providence, R.I.
Mendez admitted that he operated as a Savarona supplier. Mendez-Solis admitted that he operated as an identity broker in the Seymour, Ind., area.
The charges are the result of Operation Island Express, an ongoing, nationally coordinated investigation led by the ICE Homeland Security Investigations’ (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2), as well as various ICE, USPIS, DSS and IRS-CI offices around the country, provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .Two Conneaut Men Indicted for Stealing Firearms from Lake County StoreRead the Press Release
A federal grand jury returned a two-count indictment charging Jory Rhodes, age 26, and Brandon Haley, age 28, both of Conneaut, Ohio, with theft of firearms from a Federal Firearms Licensee and possession of a stolen firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on October 25, 2012, Rhodes and Haley stole a firearm from a Federal Firearms Licensee, Great Lakes Outdoor Supply, in Madison Township. Specifically, it is alleged that Rhodes and Haley visited the Great Lakes Outdoor Supply with the intent to steal something of value, and that when the employees were not looking, Rhodes reached into a display case and stole a $1,129 Remington Arms .45 caliber pistol while Haley acted as lookout.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Adam Hollingsworth.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Cabot Residents Indicted on Federal Drug ChargesRead the Press Release
Dodson faces three counts of assault with a deadly weapon
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Mark Lyle Dodson, age 53, and Mary Olszak, age 52, both of Cabot, Arkansas, were indicted today by a federal grand jury. The nine-count indictment charges Dodson and Olszak with one count of conspiring to distribute five grams or more of methamphetamine, also known as “ice”. Dodson faces three additional counts of assault with a deadly weapon for firing at officers aiding federal agents and three related counts of possession of a firearm in relation to a crime of violence. Olszak was indicted on two additional counts of distributing methamphetamine.
The weapons charges against Dodson stem from the shooting that occurred during execution of a search warrant in Cabot on November 22, 2013. According to the indictment, Dobson fired a 16-gauge shotgun at three members of the Jacksonville Police Special Response Team, who were assisting Special Agents of the Drug Enforcement Administration (DEA).
If convicted, the methamphetamine conspiracy exposes the defendants to between five and forty years’ imprisonment, and methamphetamine distribution counts subject Olszak to up to twenty years’ imprisonment. For his part, Dodson also faces twenty years’ imprisonment on each of the three counts of assault on an officer assisting federal agents. Related counts charging Dodson with possession of a firearm in connection with a crime of violence trigger mandatory imposition of a consecutive sentence of ten years’ to life imprisonment on the first count, and consecutive sentences of twenty-five years’ to life imprisonment on any additional count(s).
The Drug Enforcement Administration, Little Rock Field Office; Jacksonville Police Department; and Pulaski County Sheriff’s Office are investigating this matter. Assistant United States Attorney Alexander D. Morgan is prosecuting the case for the United States.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Three Patient Recruiters for Miami Home Health Company<br /> Plead Guilty for Roles in $48 Million Fraud SchemeRead the Press Release
Three patient recruiters for a Miami health care company pleaded guilty today for their participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami residents Marianela Martinez, 45; Omar Hernandez, 48; and Celia Santovenia, 49, pleaded guilty before U.S. District Judge Donald L. Graham in the Southern District of Florida to one count each of conspiracy to receive health care kickbacks. Sentencing has been scheduled for Feb. 11, 2014.
According to court documents, Martinez, Hernandez and Santovenia were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Santovenia also worked for Good Quality Home Health Care Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, the defendants would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Three Jasper County Residents Indicted on Methamphetamine Related ChargesRead the Press Release
David C. Halterman, 44, Ashley M. Attaway, 28, and Rebecca A. Moore, 36, all of Yale, IL, were indicted on December 3, 2013, on methamphetamine related charges in a three count Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charged that from April 2013, until on or about October 12, 2013, in Jasper County, within the Southern District of Illinois, the State of Indiana, and elsewhere, Halterman, Attaway, and Moore did knowingly combine, conspire, and agree with others known and unknown to the Grand Jury, to knowingly and intentionally distribute methamphetamine. The amount involved in the conspiracy was 500 grams or more of methamphetamine.
Count 2 charged that on October 11-12, 2013, in Jasper County, Halterman did knowingly and intentionally possess with the intent to distribute methamphetamine. The total amount of methamphetamine involved was 50 grams or more.
Count 3 charged that from April 2013, until on or about October 12, 2013, in Jasper County, Moore did knowingly maintain a place, namely a residence located [in] Yale, Illinois, for the purpose of using and distributing a mixture and substance containing methamphetamine.
With respect to Count 1, all three persons face penalties of 10 years to life in prison, up to a $10,000,000 fine, and at least 5 years supervised release to follow incarceration.
With respect to Count 2, Halterman faces penalties of 5-40 years in prison, up to a $5,000,000 fine, and at least 4 years supervised release to follow his incarceration.
With respect to Count 3, Moore faces penalties of up to 20 years in prison, up to a $500,000 fine, and up to 4 years supervised release to follow his incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Jasper County Sheriff’s Department, the Crawford County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, and Firearms. The Jasper County State’s Attorney’s Office has assisted in the investigation in this case.
The case is being handled by Assistant United States Attorney George Norwood.
Three Area Men Sentenced to Prison Terms for Series of Violent RobberiesGroup Targeted Victims in Adams Morgan and Near Metro Stations, Sold Stolen Phones to Eco-ATM Machines for ProfitRead the Press Release
WASHINGTON – Three men, all from the Washington D.C. area, were sentenced today to prison terms for multiple robberies and other crimes committed in a series of attacks on city streets and at a Metro station, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The men - Anthony J. Doggett, 21, Desean Floyd, 19, and Dominique C. Jones, 20 – pled guilty to conspiracy, robbery, and other charges in September 2013 in the Superior Court of the District of Columbia. They were sentenced by the Honorable Stuart G. Nash. Doggett was sentenced to a total of 13 years in prison. Floyd was sentenced to eight years of incarceration, and Jones was sentenced to a seven-year prison term. Upon completion of their prison terms, the men will be placed on five years of supervised release.
Doggett, Floyd and Jones admitted actively participating in a group that committed crimes in the Adams Morgan, L’Enfant Plaza, and Stadium Armory areas. Since at least Jan. 1, 2013, the group’s members canvassed the areas looking for targets of opportunity and teamed up to rob their victims. Members went out in groups of two or more and looked for potential victims who might have expensive cell phones, such as iPhone5s, or other property of value. The men would then work together as a team to steal the property. When they encountered resistance, the men assaulted the victims until someone in the group escaped with the property. The defendants sold stolen phones for a profit, on the street or to an Eco-ATM machine, and split the proceeds.
Doggett, of Suitland, Md., pled guilty to one count each of conspiracy, robbery, attempted robbery, accessory after the fact to armed robbery, unauthorized use of a vehicle, and contempt. Floyd, of Oxon Hill, Md., pled guilty to one count each of conspiracy, robbery, attempted robbery, accessory after the fact to armed robbery, and attempted perjury. Jones, of Washington, D.C., pled guilty to one count each of conspiracy, robbery, possession of a firearm during a crime of violence, and attempted robbery.
As part of their plea agreements, the defendants admitted participating in various crimes, including these incidents:
-Jan. 20, 2013: Robbery in the 1400 Block of Pennsylvania Avenue SE
Jones admitted to taking part in the robbery of a woman during the late morning hours in the 1400 block of Pennsylvania Avenue SE. As the victim was about to get into her car, Jones and another individual approached and cornered her. They then demanded that she give them her purse and her car keys. The woman did so against her will, and Jones and the other individual then fled with her property. About a week later, Doggett and another individual returned to the area with the woman’s stolen car keys and stole her car.
Jones pled guilty to attempted robbery and Doggett pled guilty to unauthorized use of a vehicle for their roles in these crimes.
-Feb. 3, 2013: Robbery in the 1300 Block of Q Street NW
Doggett and Floyd admitted to taking part in the robbery of a man in the 1300 Block of Q Street NW. As the victim was walking down the street, Doggett, Floyd and another individual decided to rob him. The defendants approached the victim and began to assault him, causing him to fall to the ground. When the victim attempted to defend himself, the defendants repeatedly punched him in his head and body. They then took the victim’s iPhone and wallet and fled the scene. Doggett sold the stolen iPhone to an Eco-ATM machine at the Pentagon City Mall and received $300 for the phone. The defendants split the proceeds from the sale of the stolen phone.
Doggett and Floyd each pled guilty to robbery for their roles in this crime.
-Feb. 5, 2013: Armed Robbery at 19th Street and Constitution Avenue NE
Doggett, Floyd, and Jones admitted to taking part in crimes related to the armed robberies of multiple victims at 19th Street and Constitution Avenue NE. Jones and another individual went out into the street with a gun at about 8 p.m. and began to look for targets they could rob. They observed a young couple walking down the street. Jones and the other individual held the young couple at gunpoint, ordering them to get down on their knees and to surrender their property. A third victim was walking down the street and walked into this armed robbery-in-progress. Jones and the other individual robbed the third victim at gunpoint as well. Jones and the other individual then fled the scene with the property of the three victims.
Jones and the other individual went to a nearby abandoned house, where they met Doggett and Floyd. Jones told Doggett and Floyd that they had just committed an armed robbery. Doggett and Floyd then began to help Jones and the other individual “wipe” the stolen phones, meaning that they cleared the personal settings on the phones and set the phones back to factory settings. Doggett and Floyd also served as look-outs to see whether the police were following them. Doggett and Floyd did this in order to prevent the arrest of Jones and the other individual and ensure that the police would be unable to track the stolen property.
Jones pled guilty to robbery and possession of a firearm during a crime of violence, and Doggett and Floyd each pled guilty to accessory after the fact to armed robbery for their roles in these crimes.
-Feb. 10, 2013: Robbery at L’Enfant Plaza Metro Station
Doggett and Floyd admitted to taking part in an early-morning robbery at L’Enfant Plaza Metro Station, located at 600 Maryland Avenue SW. The men saw the victim, who was on the platform waiting for the Metro and looking at his iPhone, which he held in his hand. The men decided to steal the phone from the victim. One of the men snatched the phone out of the victim’s hands, while others intentionally got in his way. When the victim attempted to follow them, a third individual began to punch him. Doggett later sold the victim’s stolen iPhone to an Eco-ATM machine at the Pentagon City Mall and received $300 for the phone. Doggett, Floyd and the third individual split the proceeds from the sale of the stolen phone.
Doggett and Floyd pled guilty to attempted robbery for their role in this crime.
-Feb. 10, 2013: Contempt of Court
Doggett was under court order to observe a 24-hour home confinement on Feb. 10, 2013. On that same date, he intentionally left his home to commit the above robbery at L’Enfant Plaza, and then traveled to Virginia to sell the stolen phone to an Eco-ATM machine. Doggett pled guilty to contempt of court for his role in this crime.
-March 14, 2013: Perjury
Floyd testified before a grand jury of the Superior Court of the District of Columbia on March 14, 2013. He took an oath that he would testify truthfully. Floyd willfully and knowingly testified about matters which were not true and which he knew or believed to be false, including that he denied knowing about particular crimes in which he was involved and denied knowing one of his co-conspirators. Floyd pled guilty to attempted perjury for his role in this crime.
In announcing the sentences, U.S. Attorney Machen and Chief Lanier commended the work of the officers, detectives and crime scene technicians who worked on the case for the MPD. They also expressed appreciation for the efforts of the Metro Transit Police Department, which assisted in the investigation. Finally, they praised the work of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Clare Pozos, who prosecuted the matter.
13-410Texas Man Sentenced in Idaho Federal Court for Tax FraudRead the Press Release
Defendant Will Pay Over $1.4 Million in Restitution for Conspiring to File False Claims
for IRS Tax RefundsPOCATELLO – Lawrence Sikutwa, 34, of Dallas, Texas, was sentenced today in United States District Court to 21 months in prison for conspiracy to file false claims for a refund, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Sikutwa to serve three years of supervised release and pay $1,466,799 in restitution to the Internal Revenue Service. He pleaded guilty to the charge on August 28, 2013.
According to the plea agreement, Sikutwa operated a tax preparation business in Dallas. He entered into an agreement with various co-conspirators in Pocatello and elsewhere to solicit clients for him. The co-conspirators contacted persons who needed tax preparation services, obtained their tax documents from them, and then shipped the information to Sikutwa to prepare the tax returns. Sikutwa added false dependents and false income, falsely claimed head-of-household status, and made other entries to increase the amount of the refund. According to the plea agreement, Sikutwa distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Sikutwa admitted that he was aware the tax returns were false.
According to the plea agreement, during 2006, Sikutwa filed 168 tax returns for tax year 2005, resulting in refunds of $654,368. In 2007, he filed 124 tax returns for tax year 2006, resulting in refunds of $588,982. Under the name of Harris Tax Services, Sikutwa prepared and filed 99 returns for tax year 2007, resulting in refunds of $456,888.
The case was investigated by Internal Revenue Service-Criminal Investigation.