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23 January 2014
Missouri Man and Woman Sentenced for Violating Civil Rights of Family in Racially Motivated ArsonRead the Press Release
Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division and U.S. Attorney Tammy Dickinson for the Western District of Missouri announced that a man and a woman, both from Independence, Mo., were sentenced in federal court today for violating the civil rights of an African-American family by setting fire to their residence.
On Aug. 28, 2013, Logan J. Smith, 25, and Victoria A. Cheek Herrera, 34, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiring to threaten and intimidate a family in Independence from exercising their constitutional right to reside in their home because of their race or color and one count of a civil rights violation for committing a racially-motivated arson. At the sentencing hearing today, Judge Wimes sentenced Smith to serve 63 months in prison and Cheek Herrera to serve 77 months in prison.
Smith and Cheek Herrera previously admitted that on June 26, 2008, they conspired to injure, oppress, threaten and intimidate an African-American couple and their children in the free exercise of their constitutional rights to occupy and rent their home in Independence, and that they committed this crime because of the victims’ race and color. According to the defendants’ plea agreements, the incident began when the defendants discussed their desire to set the victim family’s home on fire and they drew a swastika and wrote the words “White Power” on the driveway. The defendants then asked a juvenile acquaintance for gasoline and created a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. The defendants then lit the wick and threw the bottle into the side of the house, which set the residence on fire.
“Every person in America has the right to occupy a home free from racially-motivated violence and threats,” said Assistant Attorney General Samuels. “Today’s sentences reflect the Civil Rights Division’s commitment to work together with our United States Attorneys and the FBI to ensure that this right is aggressively enforced.”
“Today’s tough sentences send a strong message that racially-motivated violence and threats will not be tolerated in our community,” said U.S. Attorney Dickinson. “No American should feel unwelcome or unsafe in any neighborhood because of their race or color. We will bring to justice those who violate the civil rights of others and hold them accountable for their actions.”
This case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division. It was investigated by the FBI.
Leesville Man Pleads Guilty to Receiving Child PornRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Elliot R. Duke, 29, of Leesville, La., pleaded guilty before U.S. District Judge Patricia Minaldi, to receiving child pornography.
According to evidence presented at the guilty plea, after receiving information that child pornography was on Duke’s computer, law enforcement personnel searched Duke’s residence on May 14, 2013. The search revealed there was child pornography on Duke’s laptop, and upon further investigation, agents also discovered that Duke had been discussing and trading child pornography with other persons through email. A forensic examination of Duke’s laptop was conducted and revealed approximately 168 videos and 187 still images of child pornography.
Duke faces up to 20 years in prison, a $250,000 fine, forfeiture, and a lifetime of supervised release for receiving child pornography. He will also be required to register as a sex offender. Sentencing has been set for April 24, 2014.
Homeland Security Investigations, Louisiana State Police, and the Vernon Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case. 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Katy Man Indicted on Federal Hate Crime for Assault of Elderly African American ManRead the Press Release
HOUSTON – A grand jury in Houston has just returned a federal indictment against Conrad Alvin Barrett, 27, charging him with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
“Cases are brought to us from a variety of federal, state and local authorities when there has been a suspected violation of federal law,” said Magidson. “We consider each case on its merits, to include the overall evidence and sufficiency to prove guilt beyond a reasonable doubt in court. Criminal civil rights violations will continue to be high priority of this office.”
Barrett was initially charged by criminal complaint on Dec. 24, 2013. He was arrested two days later and subsequently appeared before U.S. Magistrate Judge Frances Stacy who ordered him held in custody pending further criminal proceedings. He is expected to make an appearance on the indictment before Judge Stacy next week.
Barrett, of Katy, is charged with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. According to court documents, on Nov. 24, 2013, Barrett attacked the elderly man because of the man’s race and color in what Barrett called a “knockout.”
According to the allegations, Barrett recorded himself on his cell phone attacking the man and showed the video to others. The indictment alleges Barrett made several recordings from his cell phone, one in which he identifies himself and another in which he makes a racial slur.
In one recording, Barrett claimed he would not hit “defenseless people” just moments before punching the elderly man in the face, according to court records. Barrett allegedly hit the man with such force that the man immediately fell to the ground. Barrett then laughed and said “knockout,” as he ran to his vehicle and fled, according to allegations. The victim suffered two jaw fractures and was hospitalized for several days as a result of the attack.
“Everyone is protected equally under the law when violent attacks are clearly motivated by race, religion or other bias,” said Morris. “We encourage reporting such crimes to the FBI. Reporting crime is the first step to ensuring justice!”
If you or someone you know has been the victim of a violent hate crime based on race, religion, sexual orientation or gender identity, the FBI may be able to help. The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act of 2009 gives the FBI authority to investigate violent hate crimes, including violence directed at the gay, lesbian, bisexual and transgender community. This federal civil rights law criminalizes willfully causing bodily injury (or attempting to do so with fire, a firearm, or other dangerous weapon) when:
(1) the crime was committed because of the actual or perceived race, color, religion, national origin, of any person, or
(2) the crime was committed because of the actual or perceived religion, national origin, gender, sexual orientation, gender identity, or disability of any person, and the crime affected interstate or foreign commerce, or occurred on federal property.If you or someone you know is a victim of a hate crime, or if you have direct knowledge of such a crime, please contact your local FBI office. This law protects all persons equally regardless of immigration status. Reporting the incident to the FBI is a necessary step to ensuring justice for all victims of violent hate crimes.
If convicted, Barrett faces a statutory maximum of 10 years in prison and a $250,000 fine.
The investigation was conducted by the FBI in cooperation with the Fulshear and Katy Police Departments as well as the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Ruben R. Perez and Joe Magliolo and Civil Rights Division Trial Attorneys Saeed Mody and Olimpia Michel in cooperation with Ft. Bend County District Attorney John Healey.
A defendant is presumed innocent unless proven guilty through due process of law.Justice Department Settles Immigration-Related Discrimination Claim Against Massachusetts Staffing AgencyRead the Press Release
The Justice Department reached an agreement today with SD Staffing LLC (SD Staffing), aka Atwork Personnel Services Inc., a company based in Methuen, Mass., resolving claims that the staffing company engaged in citizenship status discrimination in violation of the Immigration and Nationality Act (INA).
The department’s investigation, which was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS), found that SD Staffing required work-authorized non-U.S. citizens to produce specific documents in connection with SD Staffing’s use of the E-Verify program. E-Verify is an Internet-based electronic verification system used by employers and administered by USCIS that confirms an individual’s employment eligibility. The department’s investigation confirmed that SD Staffing requested unnecessary documents to work-authorized non-U.S. citizens, but not to similarly-situated U.S. citizens.
Under the settlement agreement, SD Staffing will identify and provide back pay to individuals who suffered lost wages between September 2011 and January 2014 as a result of the company’s alleged discriminatory documentary practices; pay $10,500 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; and be subject to monitoring of its employment eligibility verification practices for two years.
“Employers cannot create discriminatory hurdles for work-authorized non-U.S. citizens in the employment eligibility verification process, which includes the E-Verify program,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We commend SD Staffing for restructuring its hiring processes and documentary practices to ensure that it will no longer treat work-authorized new hires differently based on their citizenship status.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by OSC Trial Attorney Luz V. Lopez-Ortiz. For more information about protections against employment discrimination under immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship or immigration status or national origin should contact the above-mentioned worker hotline for assistance.
Jury Convicts Long Island Man of Conspiring to Murder Federal Judge and Federal ProsecutorRead the Press Release
BROOKLYN, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that a federal jury convicted Joseph Romano, 51, of Levittown, N.Y., of conspiring to murder the Assistant United States Attorney who prosecuted him for engaging in an eight-year, multi-million dollar fraud involving the telemarketing of coins. The jury also convicted the defendant of conspiring to murder the United States District Judge who sentenced him to 15 years in prison for that fraud. The defendant faces a maximum penalty of life in prison, a fine of $250,000, or both, in addition to forfeiture of over $200,000 when he is sentenced in March.
“A threat against a member of the criminal justice system, such as a Judge or an attorney, is nothing less than an attempt to subvert the system, and as such will not be tolerated,” said U.S. Attorney Hochul.
According to the Government’s trial evidence, the defendant agreed to pay $40,000 to an undercover police officer, whom he thought was a hit-man, to kill the federal judge and prosecutor. The defendant also requested that the hit-man cut off their heads in exchange for a “bonus.” Law enforcement authorities learned of the plot in August 2012 from another inmate at the Nassau County Correctional Center where Romano was being held. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Romano and co-conspirator, Dejvid Mirkovic, numerous times at locations on Long Island, including the Correctional Center.
At the first meeting, Romano offered to pay one of the undercover officers $3,000 to assault an individual with whom he had a financial dispute. Co-conspirator Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of the intended victim - in fact, a staged photograph and an identification card - Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer, relayed Romano’s instructions to murder the federal judge and prosecutor, and offered $40,000 for the commission of the two murders. In addition, Mirkovic indicated that Romano wanted the federal judge and prosecutor beheaded and the body of the prosecutor mutilated, and that he was willing to pay extra for those services. Over the following weeks, the undercover officer received $22,000 in cash down payments for the murders and was promised payment of the final $18,000 when the murders were completed. At the time of the arrests of Romano and Mirkovic on October 9, 2012, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun at Mirkovic’s residence in Lake Worth, Florida.In March 2013, Dejvid Mirkovic pleaded guilty to conspiracy to murder was sentenced to 24 years in prison in August 2013.
Today’s conviction was the latest development in an investigation handled by Special Agents and Task Force Officers of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.Jury Convicts Long Island Man of Conspiring to Murder Federal Judge and Federal ProsecutorRead the Press Release
BROOKLYN, N.Y. —U.S. Attorney William J. Hochul, Jr. announced today that a federal jury convicted Joseph Romano, 51, of Levittown, N.Y., of conspiring to murder the Assistant United States Attorney who prosecuted him for engaging in an eight-year, multi-million dollar fraud involving the telemarketing of coins. The jury also convicted the defendant of conspiring to murder the United States District Judge who sentenced him to 15 years in prison for that fraud. The defendant faces a maximum penalty of life in prison, a fine of $250,000, or both, in addition to forfeiture of over $200,000 when he is sentenced in March.
“A threat against a member of the criminal justice system, such as a Judge or an attorney, is nothing less than an attempt to subvert the system, and as such will not be tolerated,” said U.S. Attorney Hochul.
According to the Government’s trial evidence, the defendant agreed to pay $40,000 to an undercover police officer, whom he thought was a hit-man, to kill the federal judge and prosecutor. The defendant also requested that the hit-man cut off their heads in exchange for a “bonus.” Law enforcement authorities learned of the plot in August 2012 from another inmate at the Nassau County Correctional Center where Romano was being held. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Romano and co-conspirator, Dejvid Mirkovic, numerous times at locations on Long Island, including the Correctional Center.
At the first meeting, Romano offered to pay one of the undercover officers $3,000 to assault an individual with whom he had a financial dispute. Co-conspirator Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of the intended victim - in fact, a staged photograph and an identification card - Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer, relayed Romano’s instructions to murder the federal judge and prosecutor, and offered $40,000 for the commission of the two murders. In addition, Mirkovic indicated that Romano wanted the federal judge and prosecutor beheaded and the body of the prosecutor mutilated, and that he was willing to pay extra for those services. Over the following weeks, the undercover officer received $22,000 in cash down payments for the murders and was promised payment of the final $18,000 when the murders were completed. At the time of the arrests of Romano and Mirkovic on October 9, 2012, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun at Mirkovic’s residence in Lake Worth, Florida.
In March 2013, Dejvid Mirkovic pleaded guilty to conspiracy to murder was sentenced to 24 years in prison in August 2013.
Today’s conviction was the latest development in an investigation handled by Special Agents and Task Force Officers of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.
Romano Indictment
Jury Convicts Laredo Resident in Drug CaseRead the Press Release
LAREDO, Texas - Roberto Castillo, 34, of Laredo, has been found guilty of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. The federal jury returned the verdict very late yesterday after a two-day trial and approximately seven hours of deliberation.
During trial, the jury heard that on Nov. 6, 2013, law enforcement officers were conducting surveillance and observed a Ford Taurus and Ford Thunderbird drive past a suspected narcotics drop off location near the intersection of Abbeville and Allen Road in Laredo. The occupants met up at a nearby grocery store before the Thunderbird returned to the location where several individuals placed multiple large bundles inside the vehicle.
The driver of the Thunderbird bailed out of the vehicle as U.S. Border Patrol agents drove behind, at which time agents recovered five large bundles of marijuana weighing 172.7 kilograms. The driver was soon apprehended and identified as Eduardo Rodriguez, 24, of Laredo.
While the Thunderbird was being loaded with narcotics, agents also observed the Taurus driving in the same area. The vehicle failed to stop at a traffic light and was stopped by law enforcement. The occupants of the Taurus were identified as Gabriel Aguirre, 22, of Laredo, and Castillo.
Rodriguez and Aguirre both pleaded guilty in advance of trial.
Rodriguez admitted he was asked if he wanted to transport drugs, to which he agreed in exchange for payment of $800. He met with Aguirre and Castillo and followed them to a second location where he was instructed to get into the Taurus. While they drove to pick up the narcotics, Castillo and Aguirre communicated with what appeared to be smugglers from Mexico via cellular phone. He was driven to the Thunderbird and told to wait until he got the call that the area was clear. Rodriguez claimed Castillo and Aguirre said they were going to drive to the pick-up area and make sure there was no law enforcement presence. Soon after, he received a call from Aguirre to pick up the narcotic. He then drove to the area where several males came up to him carrying bundles of marijuana and placed them in his vehicle. He drove away with the bundles, but saw Border Patrol and decided to abandon his vehicle and hide.
U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, has set sentencing for April 8, 2014, at which time Castillo faces a minimum of five and up to 40 years in federal prison and a possible $5 million fine. Previously released on bond, Castillo was ordered into custody following return of the verdict where he will remain pending sentencing.
The case was investigated by Homeland Security Investigations and Webb County Sheriff’s Department with the assistance of Border Patrol. Assistant U.S. Attorney Raul Guerra prosecuted the case.
January Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 20 indictments charging 21 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Anthony Aranda, age 22, and Jamie Speelman, age 29, of Sioux City, Iowa, are charged in a three-count indictment. Count I of the indictment charges both defendants with carjacking a 2000 GMC pickup in the Omaha area on November 22, 2013. The maximum possible penalty, if convicted, is 15 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count II of the indictment charges both defendants with brandishing a rifle during the carjacking. The maximum possible penalty, if convicted of that charge, is 7 years to life imprisonment consecutive to the carjacking penalty, a $250,000 fine, 3 years of supervised release and a $100 special assessment. Count III of the indictment charges Speelman with being a felon in possession of a firearm. The maximum possible penalty, if convicted, is 10 years imprisonment, $250,000 fine, a 3 year term of supervised release and a $100 special assessment. In a separate indictment, Speelman is charged with interference with commerce by robbery for her involvement in the robbery of the Midtown Gas and Grocery, 1222 S. 24th Street, Omaha, also on November 22, 2013. The maximum possible penalty, if convicted, is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. She is also charged with brandishing a firearm during this robbery and, if convicted, faces a 7 years to life sentence consecutive to this robbery.
* Ruben James Buchanan, age 17, of Winnebago, Nebraska, is charged with aggravated sexual abuse on or about July 30, 2013. The maximum possible penalty if convicted is imprisonment of up to Life, a $250,000 fine, 5 years to life supervised release, and a $100 special assessment.
* Katiengnainin Coulibaly, age 26, of Bellevue, Nebraska, is charged with possession of fifteen or more counterfeit or stolen credit and debit cards on or about January 13, 2014. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Gregory Dreher, age 38, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about December 14, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release and a $100 special assessment.* Jorge Escobedo-Estrada, age 36, is charged with illegal reentry into the United States on or about July 27, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Juan Francisco Galarza-Galarza, age 38, of Omaha, is charged with illegal reentry into the United States on or about January 13, 2014, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Isidro Gonzalez-Chavez, age 34, of Harvard, Nebraska, is charged with illegal reentry into the United States on or about October 31, 2013, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Ivell M. Hagens, age 29, of Omaha, is charged with felon in possession of firearm on or about September 17, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Gene Howard, age 41, of Sterling, Colorado, is charged in a two count indictment. Count I alleges that on or about November 22, 2013, the defendant possessed with intent to distribute a mixture or substance containing a detectable amount of marijuana. The maximum possible penalty includes imprisonment of up to 20 years, a $1 million fine, a 3 year term of supervised release and a $100 special assessment. Count II alleges that on or about November 22, 2013, Gene Howard was in possession of a firearm, to wit: a Ruger .22 caliber semiautomatic handgun after having been convicted of a felony. The maximum possible penalty is imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Rafael Jaimes-Diaz, age 36, of Lincoln, Nebraska, is charged with illegal reentry into the United States on or about December 19, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Francisco Javier Lopez-Acosta, age 25, is charged with conspiring with others to distribute and possess with intent to distribute 1 kilogram or more of a mixture or substance containing heroin beginning on or about December 1, 2013 and continuing to on or about January 7, 2014. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Jose Lorenzo-Ignacio, age 29, of Omaha, is charged with illegal reentry into the United States on or about January 16, 2014, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Lorenzo Pedro Lorenzo-Lucas, age 49, of Omaha, is charged with illegal reentry into the United States on or about January 9, 2014, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Wilfredo Lorenzo-Ordonez, age 23, of Lexington, Nebraska, is charged with illegal reentry into the United States on or about October 16, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Anthony James Lovejoy, age 28, of Walthill, Nebraska, is charged with assault resulting in serious bodily injury on or about December 20, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Heriberto Negrete-Rojas, age 22, of Lincoln, Nebraska, is charged with illegal reentry into the United States on or about January 8, 2014, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Fernando Parra-Salmeron, age 32, of Fremont, Nebraska, is charged with illegal reentry into the United States on or about November 15, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Olman Rodas-Ramos, age 27, of Bellevue, Nebraska, is charged with illegal reentry into the United States on or about June 24, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Cesar Salazar-Rodriguez, age 23, of Omaha, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with illegal reentry into the United States on or about December 11, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about May 22, 2013, Salazar-Rodriguez misused a Social Security Card and a Permanent Resident Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about November 8, 2013, the defendant misused a Permanent Resident Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendant with misuse of a Social Security Number on or about May 22, 2013. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jerald Vrbas, age 60, of Palisade, Nebraska, is charged in a three-count Indictment. Count I of the Indictment charges Vrbas with production and manufacturing of child pornography on or about September 2012. If convicted, the maximum possible penalty is imprisonment of not less than 15 years nor more than 30 years, a fine of $250,000, 5 years up to life supervised release, and a $100 special assessment. Count II of the indictment charges Vrbas with receipt and distribution of child pornography from on and before September 6, 2013. If convicted, the maximum possible penalty is imprisonment of not less than 5 years nor more than 20 years, a fine of $250,000, 5 years up to life supervised release, and a $100 special assessment. The defendant is charged in Count III of the indictment with possession of child pornography from on or about October 22, 2013. The maximum possible penalty for this count if convicted is imprisonment of 10 years, a $250,000 fine, 5 years up to life supervised release, and a $100 special assessment.Home Health Agency Owner and Director of Nursing IndictedRead the Press Release
The operator and director of nursing of a home health agency based in Richmond, Texas, was arrested yesterday for her alleged role in a Medicare fraud scheme and a conspiracy to structure bank withdrawals. The owner and operator of the same home health agency was also arrested yesterday for his alleged role in the conspiracy to structure bank withdrawals.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Lucy Cruz of the Houston Field Office of the IRS-Criminal Investigation Division (IRS-CI), Special Agent in Charge William Fergus of the Chicago Regional Office of the United States Railroad Retirement Board-Office of Inspector General (RRB-OIG), Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
The director of nursing, Stella Maduka, 49, of Richmond, was charged with one count of healthcare fraud and eight counts of structuring withdrawals, which each carry a maximum penalty of 10 years in prison, and one count of making false statements relating to healthcare matters and one count of conspiracy to structure bank withdrawals to avoid reporting requirements, which each carry a maximum penalty of five years in prison. The owner, Felix Maduka, 54, of Richmond, who is also Stella Maduka’s husband, was charged with one count of conspiracy to structure bank withdrawals to avoid reporting requirements and eight counts of structuring bank withdrawals.
According to the indictment, Stella Maduka used a Texas-based billing service to bill Medicare for home health services that were never provided and, in many instances, not medically necessary. Stella Maduka also created phony medical records to perpetrate the healthcare fraud. Stella Maduka and Felix Maduka structured more than $100,000 in cash withdrawals from the bank accounts where they received Medicare payments to avoid detection by the federal government.
An indictment is merely a formal accusation. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, IRS-CI, RRB-OIG, HHS-OIG, and MFCU under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorney William S.W. Chang of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, Health and Human Services’ Centers for Medicare & Medicaid Services, working in conjunction with Health and Human Services-Office of the Inspector General, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov .Hollygrove Area Gang Member, Carey Jones, Sentenced to Life in Prison on Federal Rico, Drug, and Murder ChargesRead the Press Release
CAREY JONES, a/k/a “Bean,” 24 years old, a resident of New Orleans, was sentenced yesterday by U.S. District Judge Stanwood R. Duval, Jr. to serve the remainder of his life in prison for violating federal RICO, drug conspiracy, firearms conspiracy, and murder charges, announced U.S. Attorney Kenneth Allen Polite, Jr. JONES was a member of a gang from the Hollygrove area of the city that was involved in several shootings and murders in recent years. To date, all of the indicted members of this gang have pled guilty.
JONES had previously pled guilty to a superseding bill of information which charged him with participating in the RICO conspiracy, the non-fatal shooting of Larry Williams on December 24, 2007, the non-fatal shooting of Glin Butler on July 13, 2010, and the drive-by shooting that resulted in the murder of Ms. Eula Mae Ivey on June 14, 2010. He also admitted that he and the other gang members were street level dealers of crack cocaine.
A 34-count second superseding indictment was returned on November 16, 2012, charging Walter Conley, a/k/a “Ike Neezy”, Tyronne Stevenson, a/k/a “Duke”, Theron Golston, a/k/a “Thema”, Bernell Williams a/k/a “Bussy”, a/k/a “A-Boogie”, Norman Ratcliff, a/k/a “Turk”, and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Theron Golston was sentenced to life in prison on November 20, 2013, for his participation in the RICO conspiracy, the murder of Aaron Allen, and the drive-by murder of Ms. Eula Mae Ivey.
Co-defendants Tyronne Stevenson and Mark Glenn also pled guilty to various charges in the indictment. On December 11, 2013, Stevenson and Glenn were sentenced to serve 360 and 300 months, respectively.
Co-defendant Norman Ratcliff is scheduled to be sentenced on February 12, 2014, and co-defendant Walter Conley is scheduled to be sentenced on February 26, 2014.
“As a community, we are fed up with violence on our streets,” stated U.S. Attorney Polite. “The lengthy sentences imposed in this successful Multi-Agency Gang Unit (“MAG Unit”) investigation – including a life sentence for Mr. Jones – illustrates that our Office is effectively utilizing its prosecutorial resources to combat violent crime and restore peace in our neighborhoods.”
U.S. Attorney Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“A.T.F.”) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG Unit who worked on this case and renewed the USAO’s commitment to assist the MAG Unit in targeting these types of violent offenders.
The MAG Unit is an N.O.P.D. led division which includes federal agents from A.T.F., the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Hazleton Man Sentenced to 100 Months in Prison for Robbing Three BanksRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge A. Richard Caputo sentenced Shawn Luther Kelley, age 35, of Hazleton, Pennsylvania, to 100 months’ imprisonment for his robbery of three financial institutions.
According to United States Attorney Peter Smith, Kelley appeared in Federal Court in Wilkes-Barre on October 21, 2013, and admitted to committing the following bank robberies: (1) the PNC BANK, located at 499 Susquehanna Boulevard, Hazle Township, Pennsylvania, on April 16, 2012; (2) the CHOICE ONE COMMUNITY FEDERAL CREDIT UNION, located at 983 North Sherman Court, Hazleton, Pennsylvania, on April 20, 2012; and (3) the CITIZENS BANK located at 40 West Broad Street, West Hazleton, Pennsylvania, on April 24, 2012.
Kelley was arrested shortly after the Citizens Bank robbery on April 24, 2012.
At the sentencing today in Wilkes-Barre, the defense attributed Kelley’s robberies to his need to obtain money to sustain a heroin addiction.
The case was investigated by special agents of the Federal Bureau of Investigation, Pennsylvania State Police, Hazleton Police Department and West Hazleton Police Department. Assistant United States Attorney John Gurganus prosecuted the case.
****Government and Contractors Seek to End Long-Running “A-12” LitigationRead the Press Release
The Boeing Company, General Dynamics Corporation, and the United States have formally asked the United States Court of Federal Claims to dismiss, as part of a settlement, their 23-year old dispute involving the Department of the Navy's 1991 default termination of a $4.8 billion contract awarded to Boeing's predecessor, McDonnell Douglas Corporation, and General Dynamics, to develop the A-12 carrier-based stealth aircraft. Under the settlement, the contractors will provide aircraft and services to the military valued at $400 millionand the government will not pay any money in connection with the contractors’ claims against the United States. The settlement was authorized as part of the National Defense Authorization Act for Fiscal Year 2014.
While performing the contract in the late 1980s, the contractors experienced significant schedule delays and cost overruns. After the secretary of defense declined to recommend that the president provide extraordinary relief to the contractors in early 1991, the Department of the Navy terminated the contract for default and sought the return of $1.33 billion which had been paid to the contractors under the terms of the contract. The contractors brought suit in the Court of Federal Claims to challenge the default termination, to retain the $1.33 billion paid and to assert a claim for an additional amount well over $1 billion, plus interest, for their purported unreimbursed performance costs.
After five trials and three appeals over two decades of litigation, including an appeal to the United States Supreme Court, the courts resolved most of the case. Litigation over one unresolved issue remained in the Court of Federal Claims.
“We are gratified that this decades-long litigation has been amicably resolved,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “The resolution provides value to the government and brings this protracted and complex dispute to an end. The Department of Justice thanks the Department of the Navy for its commitment and support in this long-running effort.”
“We are closing a 23-year-long chapter in the annals of naval aviation and further strengthening, through the contractors’ in-kind payment, the Navy’s capabilities and capacities,” said Secretary of the Navy Ray Mabus. “The litigation was protracted and difficult, but it saved the Navy billions of dollars. We thank the Justice Department for its superb representation over these many years.”
The contractors will each provide the Navy with approximately $200 million in goods or services under the agreement announced today. General Dynamics will provide a credit against a contract to build the DDG-1002 guided missile destroyer, and Boeing will provide three EA-18G aircraft and a credit for converting the existing multi-year contract to a firm-fixed price contract. The settlement was authorized as part of the National Defense Authorization Act for Fiscal Year 2014, which the President signed into law on December 26, 2013.
The government’s litigation team was staffed by the Department of Justice, Civil Division, Commercial Litigation Branch, and the Department of the Navy’s Office of the General Counsel.
The case is captioned The Boeing Co. (successor to McDonnell Douglas Corp.) and General Dynamics Corp. v. United States , No. 91-1204C (Fed. Cl.).General Electric Hitachi Nuclear Energy Americas Agrees to <br /> Pay $2.7 Million for Alleged False Claims Related to Design of <br /> Advanced Nuclear ReactorRead the Press Release
The Justice Department announced today that General Electric Hitachi Nuclear Energy Americas LLC (GE Hitachi) has agreed to pay $2.7 million to resolve allegations under the False Claims Act that it made false statements and claims to the Department of Energy and the Nuclear Regulatory Commission (NRC) concerning an advanced nuclear reactor design. GE Hitachi, a provider of nuclear energy products and services headquartered in Wilmington, N.C., is a subsidiary of General Electric Company (GE) that is also partially owned by Hitachi Ltd., a multinational engineering and manufacturing firm headquartered in Tokyo, Japan. GE is headquartered in Fairfield, Conn.
“Transparency and honesty are absolutely critical when dealing with issues relating to the design of a nuclear reactor,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Department of Justice will protect federal funds and the Nuclear Regulatory Commission’s crucial mandate of ensuring public safety.”
“Fraud involving government contracts will be zealously pursued in North Carolina,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. “We encourage our citizens to report fraud related to government contracts and our federal programs.”
GE Hitachi allegedly made false statements to the NRC and Department of Energy about a component of the advanced nuclear Economic Simplified Boiling-Water Reactor (ESBWR) known as the steam dryer. A steam dryer removes liquid water droplets from steam produced by the nuclear reaction that generates electricity in boiling-water type reactors. The NRC requires that applicants for nuclear reactor design certification, such as GE Hitachi, demonstrate that vibrations caused by the steam dryer will not result in damage to a nuclear plant. The government alleged that GE Hitachi concealed known flaws in its steam dryer analysis and falsely represented that it had properly analyzed the steam dryer in accordance with applicable standards and had verified the accuracy of its modeling using reliable data.Between 2007 and 2012, GE Hitachi received funding from the Department of Energy to cover up to half of the cost of developing, engineering and obtaining design certification for the advanced nuclear ESBWR. The NRC, which regulates the civilian use of nuclear power in the U.S., is responsible for determining whether to approve GE Hitachi’s application for the reactor design certification. The NRC is still reviewing the application and has not reached a final decision on the certification.
“The Nuclear Regulatory Commission supports the settlement and appreciates the Department of Justice’s close coordination during its investigation of these allegations,” said Director of NRC’s Office of New Reactors Glenn Tracy. “The NRC continues to rigorously review the ESBWR application in order to reach a final design certification decision, ensure compliance with NRC regulations and protect public health and safety.”
The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by LeRay Dandy, a former employee of GE Hitachi. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Dandy’s share of the settlement has not been determined.This case was handled by the Department of Justice Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Eastern District of North Carolina and the Offices of Inspector General for the Nuclear Regulatory Commission and the Department of Energy.
The lawsuit is captioned United States ex rel. Dandy v. General Electric Hitachi Nuclear Energy Americas LLC, General Electric Company, 7:12-cv-009 (E.D.N.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Four More People Charged Today with Sandy Fraud in EDNY.Read the Press Release
Gesuele Complaint
Scolnick Complaint
Ellis Complaint
Valentin ComplaintFour Indicted in Timeshare Telemarketing ScamRead the Press Release
Jacqueline Enid Acevedo, 30, of Cedar Hill, Texas; Nathan Scott Christian, 30, of Boynton Beach, Florida; Robert Joseph Lopicola, 43, of Doral, Florida; and Kyle Richard Robertson, 31, of Miami, Florida, were each indicted by a federal grand jury for one count of conspiracy to commit mail and wire fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Between late 2007 and approximately December 2009, approximately 25,500 consumers were victimized in all fifty states, the District of Columbia and Puerto Rico; all ten Canadian provinces and the Northwest Territory of Canada. Approximately $35 million was fraudulently collected by telemarketers involved in this scheme. At least sixty-eight (68) consumers in at least thirty (30) of the thirty-eight (38) counties comprising the Southern District of Illinois were victimized.
The indictments allege that between late 2007 and continuing until on or about November 2009, C&G Marketing Associates, LLC, a Florida corporation that defrauded consumers using the fictitious name, Premier Timeshare Solutions (“PTS”) by conducting a fraudulent timeshare resale scheme through the use of telemarketing. PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners throughout the United States, Canada, and elsewhere, falsely representing or implying that the company had found someone who wanted to buy their timeshare interest. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees.
In April 2013, Jose Goyos, was indicted for his role in this scheme. Mr. Goyos has pled guilty to the charge and is awaiting sentencing.
If convicted, each person is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
These cases were investigated by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service General’s office. The prosecutions of the cases are being handled by Assistant United States Attorneys Bruce Reppert and William E. Coonan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Former Stonington Resident Sentenced to More Than Seven Years in Prison for Investment Fraud SchemesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBERT PONTE, 59, of Denville, N.J., formerly of Stonington, was sentenced late yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by five years of supervised release, for his role in two investment schemes that caused a loss of more than $25 million to individuals and lending institutions.
According to court documents and statements made in court, between approximately June 2005 and April 2008, PONTE and Robert Rivernider of Wellington, Fla., conspired to defraud several victim investors by misrepresenting that the investors’ monies would be invested in legitimate, high-return investments. As part of the conspiracy, PONTE and Rivernider used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that Ponte established. With the “No More Bills” program, PONTE and Rivernider sought victim investors to invest monies with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.
PONTE and Rivernider misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, PONTE and Rivernider used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.
Through this first scheme, investors lost approximately $2.2 million.
In a second scheme, between approximately November 2006 and December 2007, PONTE, Rivernider and Loretta Seneca of Boynton Beach, Fla., engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. Seneca is Rivernider’s sister. As part of the scheme, PONTE, Rivernider and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. PONTE and Rivernider typically represented to borrowers that these properties would be passive investments and that PONTE and Rivernider would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that PONTE and Rivernider would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, PONTE and Rivernider frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. PONTE, Rivernider and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
PONTE, Rivernider, Seneca and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. Seneca, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by Rivernider to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions suffered more than $23 million in losses.
Judge Chatigny will issue an order within 90 days requiring PONTE to pay full restitution.
On February 25, 2013, Rivernider pleaded guilty to two counts of conspiracy and 16 counts of wire fraud, and Seneca pleaded guilty to one count of conspiracy and one count of wire fraud. On March 1, 2013, PONTE pleaded guilty to two counts of conspiracy, 14 counts of wire fraud and two counts of tax evasion. All three guilty pleas occurred during the middle of a trial.
On December 18, 2013, Rivernider was sentenced to 144 months of imprisonment and five years of supervised release. Seneca awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Christopher W. Schmeisser.
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(203) 821-3722 [email protected]Former Priest Sentenced for Distributing and PossessingChild PornographyRead the Press Release
Timothy Murray, 63, of Novi, who pleaded guilty to one count of distributing child pornography and one count of possession child pornography in July, 2013 was sentenced today to 188 months in federal prison, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller of the Department of Homeland Security (DHS) in Detroit.
According to court records, Murray used peer-to-peer software to trade child pornography with others, including an undercover DHS Homeland Security Investigations (HSI) special agent. A search warrant executed at Murray’s home recovered at least seven different computer devices containing videos and images of child pornography. Murray’s collection included over 650 movies and over 450 images of child pornography. Murray had previously served as a Catholic priest within the Archdiocese of Detroit before being removed from public ministry when substantiated allegations of Murray’s prior sexual abuse of a young boy came to light.
United States Attorney McQuade stated, “The hands-on sexual abuse that led to his removal from public ministry by the Catholic church had long-lasting effects on the defendant’s prior victim. Similarly, the victims depicted in his extensive collection of child pornography suffered greatly not only at the hands of their abusers, but by those, like the defendant, who collect and continue to view the permanent depictions of their abuse.”
"For a former priest to engage in the depraved activity for which he is being sentenced is reprehensible,” said Marlon Miller, special agent in charge of HSI Detroit. “Today’s sentencing will hopefully bring a measure of closure to those affected by his actions. Cases like these serve to strengthen HSI’s resolve to aggressively pursue child predators.”
Murray was sentenced by the Honorable Victoria A. Roberts.McQuade praised the work of the HSI agents for their professionalism and dedication in their aggressive and thorough investigation of these cases.
Assistant United States Attorney Kevin M. Mulcahy prosecuted this case for the United States.
Former Normangee, TX Police Chief Enters Guilty Plea Resulting from Methamphetamine Trafficking InvestigationRead the Press Release
In Waco this afternoon, former Normangee Police Chief Joseph Ray “Jody” Navarro pleaded guilty to unlawfully obtaining information from a law enforcement computer system announced United States Attorney Robert Pitman.
Appearing before United States District Judge Walter S. Smith, the 41–year-old Madisonville, TX, resident pleaded guilty to one count of intentionally exceeding authorized access to a protected computer. By pleading guilty, Navarro admitted that in May 2013, he ran a background check on a license plate and name supplied to him by suspected methamphetamine trafficker and Normangee resident Brenda Antanette Evans, age 45. As a condition of his guilty plea, Navarro must relinquish his Texas peace officer’s license.
Should the Court accept Navarro’s guilty plea, Navarro faces up to one year in federal prison and a maximum $100,000 fine at sentencing scheduled for March 19, 2014.
Previously, Evans and co-defendant 25–year-old Joshua Troy Thomas of Normangee pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. According to court records, on April 26, 2013, during an undercover investigation, Evans purchased close to one ounce of methamphetamine from Thomas on behalf of an undercover agent for approximately $1,200. Earlier this month, Judge Smith sentenced Evans to five years in federal prison. Thomas, who faces up to 20 years in federal prison, is scheduled to be sentenced on February 12, 2014.
This investigation was conducted by the Texas Department of Public Safety Criminal Investigation Division, Leon County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Mary Kucera is prosecuting this case on behalf of the Government.Former East Haven Police Officer Sentenced to Five Years in Prison for Criminal Civil Rights ViolationsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Officer DENNIS SPAULDING, 30, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by one year of supervised release, for violating the civil rights of members of the East Haven community.
“Dennis Spaulding repeatedly violated the civil rights of Latino members of the East Haven community,” said U.S. Attorney Deirdre Daly. “He arrested people for no good reason, used cruel and excessive force causing physical injuries and executed illegal searches. His actions assaulted, intimidated, demeaned and humiliated decent and hardworking people who came to fear their own police department. Today’s sentence properly reflects that this defendant abused vulnerable victims, undermined the legitimacy of the East Haven Police Department and damaged the public’s trust in law enforcement. This is a difficult day, but we are reminded that every day the vast majority of officers in East Haven and throughout this country serve their communities bravely and honorably. As this case nears the end, we remain hopeful that the East Haven community will continue to heal and their police department will continue to rebuild.”
“Spaulding’s efforts to harass, intimidate, and humiliate members of the East Haven community violated the rights afforded to them by our Constitution,” said FBI Assistant Director-in-Charge Venizelos. “Furthermore, his unethical behavior and illegal conduct threatened the character of a law enforcement community whose members take an oath to protect and serve with honor and integrity. Today’s sentencing is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished.”
This matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, SPAULDING, Sergeant John Miller and Officers Jason Zullo and David Cari were charged with various civil rights offenses.
According to the evidence presented during the trial of SPAULDING and David Cari, from approximately 2007 through 2011, SPAULDING conspired to injure, threaten, and intimidate various members of the East Haven community in violation of their Constitutional rights. SPAULDING and other members of the East Haven Police Department maintained and perpetuated an environment where the use of unreasonable force and unreasonable searches and seizures was tolerated and encouraged. SPAULDING engaged in unlawful arrests and searches, including the baseless arrests of a Catholic priest and several Latinos who lived or worked in the community. Additionally, SPAULDING used excessive force during an arrest when the victim was unarmed, neither resisting nor interfering with the police. Certain victims were particularly vulnerable because they were undocumented aliens and thus unlikely to raise objection to the abuse.
The evidence at trial further revealed that SPAULDING intimidated, harassed and humiliated members of the Latino community and their advocates, and conducted unreasonable and illegal searches at Latino-owned businesses. Trial testimony established that in November 2008, SPAULDING used excessive force against an individual in the parking lot of a Latino-owned restaurant and bar. SPAULDING then arrested the individual under false pretenses to cover-up the assault and prepared a false report to justify the false arrest. Later, in January 2009 in the same parking lot, SPAULDING and another officer arrested three individuals under false pretenses. SPAULDING also prepared a false report to justify these arrests.
In February 2009, SPAULDING and David Cari illegally searched a vehicle parked outside of a Latino-owned grocery store. Inside the store, David Cari then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses. The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment. In the days following the arrest, Cari drafted various false versions of an arrest report to cover up the false arrest of the religious leader.
On October 21, 2013, SPAULDING was found guilty of one count of conspiracy against rights, one count of use of unreasonable force by a law enforcement officer, two counts of deprivation of rights for making arrests without probable cause, and two counts of obstruction of a federal investigation for preparing false reports to justify the false arrests.
SPAULDING, who has been released on a $300,000 bond since his arrest on January 24, 2012, was ordered to report to prison on March 4.
Cari was found guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report. On January 21, 2014, he was sentenced to 30 months of imprisonment.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On September 21, 2012, John Miller pleaded guilty to one count of violating an individual’s civil rights by using unreasonable force during the course of an arrest. He awaits sentencing.
This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office, and is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
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(203) 821-3722 [email protected]Former District of Columbia Schools Compliance Officer Pleads Guilty to Wire Fraud and Conflict-of-Interest ChargesDefendant’s Private Transportation Company Collected More Than $460,000 in Fraudulent PaymentsRead the Press Release
WASHINGTON – Donnie Dukes, a former compliance officer for the District of Columbia Public Schools, has pled guilty to charges in a scheme involving more than $460,000 in fraudulent payments to a private transportation company that he owned and controlled.
The plea was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Charles J. Willoughby, Inspector General for the District of Columbia, and Steven Anderson, Special Agent in Charge, Mid-Atlantic Regional Office, Office of Inspector General, U.S. Department of Education.
Dukes, 40, of Hyattsville, Md., pled guilty on Jan. 22, 2014, in the U.S. District Court for the District of Columbia, to wire fraud and conflict-of-interest charges. The Honorable Ketanji Brown Jackson scheduled sentencing for June 17, 2014. Under federal sentencing guidelines, the parties have agreed that Dukes faces a prison sentence of 27 to 33 months, as well as potential financial penalties. The plea agreement calls for Dukes to pay a total of $463,621 in restitution to the District of Columbia. He also has agreed to a forfeiture money judgment of $300,000.
According to the government’s evidence, Dukes worked from October 2008 until October 2010 as a compliance officer for the District of Columbia Public Schools (DCPS). His duties included making arrangements for transportation for the special needs students who received education services outside of the District of Columbia.
At the same time, however, Dukes owned and controlled a private company that provided, among other services, transportation to students who needed to travel from the District of Columbia to education centers outside of the District of Columbia for special services.
While working at DCPS, Dukes personally referred, or caused colleagues of his at DCPS to refer, 86 out-of-state student transports to his company, resulting in the firm receiving $325,000 in payments from the District of Columbia Office of the State Superintendent of Education. Of this, the government’s evidence showed, $163,621 involved illegitimate expenses.
Dukes was terminated from DCPS in October 2010 as part of an overall reduction in the workforce. He then schemed to obtain non-public lists of students needing transportation services from his former colleagues at DCPS. Dukes later used these lists to create false invoices and supporting documentation for payments to his company in the names of the students. Dukes created 60 false invoices and supporting documentation through this scheme, causing the District of Columbia Office of the State Superintendent of Education to pay his company $300,000 for transportation services that never were provided.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, Inspector General Willoughby, and Special Agent in Charge Anderson commended the work of those who investigated the case from the FBI’s Washington Field Office, the District of Columbia Office of Inspector General, and the U.S. Department of Education’s Office of Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Legal Assistant Nicole Wattelet and Assistant U.S. Attorney Seth B. Waxman, who is prosecuting the case.
14-021Former College President Indicted in Manhattan Federal Court for Campaign Finance FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today an Indictment charging DINESH D’SOUZA with violating the federal campaign finance laws by making illegal contributions to a United States Senate campaign in the names of others and causing false statements to be made to the Federal Election Commission in connection with those contributions. D’SOUZA is expected to be presented and arraigned tomorrow in Manhattan federal court before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara stated: “As we have long said, this Office and the FBI take a zero tolerance approach to corruption of the electoral process. If, as alleged, the defendant directed others to make contributions to a Senate campaign and reimbursed them, that is a serious violation of federal campaign finance laws.”
FBI Assistant Director-in-Charge George Venizelos stated: “Trying to influence elections through bogus campaign contributions is a serious crime. Today, Mr. D’Souza finds himself on the wrong side of the law. The Federal Election Campaign Act was written to limit the influence of money in elections; the FBI is fiercely committed to enforcing those laws to maintain the integrity of our democratic process.”
According to the allegations in the Indictment and statements made in court:
The Federal Election Campaign Act (the “Election Act”) is designed to limit financial influence in the election of candidates for federal office, including the Office of United States Senator, and provides for the public disclosure of the financing of federal election campaigns. In particular, the Election Act limits the amount and source of money that may be contributed to a federal candidate or that candidate’s authorized campaign committee. The Election Act specifically prohibits any person from making any contribution in the name of another, including reimbursing a third person, before or after that third person’s contribution, as inducement to make that contribution. The Federal Election Commission (“FEC”) is an agency and department of the United States with jurisdiction to compile and publicly report accurate information about the sources and amounts of election contributions.
In 2012, the Election Act limited both primary and general election campaign contributions to $2,500 for a total of $5,000 from any individual to any one candidate. In August 2012, D’SOUZA directed other individuals with whom he was associated to make contributions to the campaign committee for a candidate for the United States Senate (the “Campaign Committee”) that totaled $20,000. D’SOUZA then reimbursed those individuals for the contributions. By directing the illegal contributions to be made, D’SOUZA also caused the Campaign Committee to falsely report to the FEC the sources and amounts of those contributions to the campaign.
D’SOUZA, 52, of San Diego, California, is charged with one count of causing $20,000 in illegal campaign contributions to be made to a candidate for the United States Senate in calendar year 2012, which carries a maximum sentence of two years in prison. He also is charged with one count of causing false statements to be made to the FEC in connection with the illegal campaign contributions, which carries a maximum sentence of five years in prison.
The Indictment is the result of a routine review by the FBI of campaign filings with the FEC by various candidates after the 2012 election for United States Senator in New York. Mr. Bharara praised the investigative work of the FBI.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Rebecca Ricigliano are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Dinesh D'Souza Indictment
Former City of Sweetwater Mayor Sentenced in Corruption InvestigationRead 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 Investigations (FBI), Miami Field Office, announce that Manuel L. Maroño, the former Mayor of the City of Sweetwater, was sentenced to 40 months in prison and two years of supervised release by U.S. District Judge William J. Zloch for conspiring to commit honest services wire fraud involving a scheme to personally benefit himself through the use of his elected position as Mayor of Sweetwater.
U.S. Attorney Wifredo A. Ferrer stated, “The judge correctly likened political corruption to cancer. Today’s sentence sends a message to public officials: selling the public’s trust will put you in federal prison.”
"The sentence received by Manuel L. Marono today was not only for violating the law, but also for undermining the public’s trust in their elected official,” said Michael B. Steinbach, Special Agent in Charge of the Miami Division. "Marono was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force.”
According to documents filed with the court, in late November 2011, Maroño and his co-conspirator, Jorge Forte, a lifelong friend of Maroño and a lobbyist, agreed to aid a company known as Sunshine Universal to obtain federal grant funds for the stated reason of preparing an economic development study for Sweetwater, all in exchange for cash kickbacks to Maroño and Forte. Although Maroño and Forte were unaware, Sunshine Universal was, in fact, an undercover FBI entity. To aid the scheme, Maroño caused the passage of a resolution in Sweetwater that authorized the undercover agents’ company to apply for federal grant moneys using the authority of the City of Sweetwater. After the resolution was passed, Maroño and Forte personally met and negotiated with the undercover agents and accepted a series of cash payments in exchange for Maroño’s official actions in support of the grant scheme. During these negotiations and meetings, Forte acted as the front man for Maroño.
To further the scheme and avoid detection, Maroño also participated in what he believed to be audit telephone calls from the federal government to confirm the grantees’ performance on the grant. During two separate audit calls, both of which were recorded, Maroño lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. For their corrupt actions, Maroño and Forte received $45,000.
Mr. Ferrer commends the investigative efforts of the FBI. This case was prosecuted Assistant U.S. Attorneys Jared E. Dwyer and Robert K. Senior.
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.
Florida Man Sentenced in IRS Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Tampa, Florida, man convicted of Conspiracy to Defraud the United States and Aggravated Identity Theft was sentenced on January 17, 2014, by U.S. District Judge Karen E. Schreier.
Adams was involved in a scheme to defraud the United States by using personal identifying information, including names, Social Security numbers, and dates of birth of other individuals to file bogus income tax returns showing tax refunds due. The requested refunds total approximately $1 million, and the IRS paid fraudulent claims of over $400,000 before the fraud was discovered.
Charlie Frank Adams, age 23, was sentenced to 30 months in prison on the conspiracy charge and 24 months on the ID theft charge, to be served consecutively. Upon release from prison, he will be on supervised release for 3 years. Adams was also ordered to make restitution to the Internal Revenue Service (IRS) and ID theft victims in the total amount of $421,832.83.
Adams and 10 others were indicted on the above charges by a federal grand jury on May 8, 2013. Adams pled guilty on October 29, 2013.
Several of Adams’ co-defendants attended the University of South Dakota in Vermillion and are former members of the football team.
As his part in the conspiracy, Adams filed bogus tax returns using stolen identifying information received from a co-conspirator, kept the co-conspirator informed as to whether the returns were accepted by the IRS and, if so, to which address the refunds would be mailed. He also provided stolen identifying information to his co-conspirators.
This case was investigated by the Vermillion Police Department, the South Dakota Division of Criminal Assistance, and the IRS Criminal Investigation Division. Assistant U.S. Attorney John E. Haak prosecuted the case.
Adams was immediately turned over to the custody of the U.S. Marshals Service.
Florida Man Sentenced for Sending Interstate Threatening Communications to CEO of U.S. Anti-Doping AgencyRead the Press Release
DENVER – Gerrit Kuechle Keats, age 72, of Clearwater, Florida, was sentenced this afternoon by U.S. District Court Judge R. Brooke Jackson to serve 3 years’ probation for sending threatening communications via email to the Chief Executive Officer of the U.S. Anti-Doping Agency, Travis Tygart, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. In addition, Judge Jackson ordered Keats to pay a $5,000 fine and serve at least 540 hours of community service throughout probation. Keats was also ordered to undergo psychological treatment.
Keats was indicted by a federal grand jury on July 10, 2013. He pled guilty before Judge Jackson on October 7, 2013. He was sentenced today, January 23, 2014.
According to the stipulated facts contained in the plea agreement, in 2012, the United States Anti-Doping Agency (USADA) had been investigating allegations that cyclist Lance Armstrong had achieved his prodigious record by cheating; by “doping” and using drugs and other improper means to win. As the investigation heated up in the summer of 2012, Chief Executive Officer of USADA, Travis Tygart, received a barrage of negative public comment, mostly via emails, about USADA’s investigation. In August 2012, it was anticipated that USADA would announce its findings, including that Lance Armstrong would banned from cycling for life. On August 23, 2012, Lance Armstrong released a press statement that he would not challenge USADA’s findings. The negative emails intensified. On August 24, 2012, USADA, as predicted, made the announcement that Lance Armstrong would be banned from cycling for life and disqualified of all his competitive results from August 1, 1998, through August 24, 2012. This disqualification included being stripped of his seven Tour de France titles.
Among the members of the public who were angry over USADA’s methods and conclusions was the defendant, Keats. On October 24, 2012, Keats made threats to Tygart and his family. The email read, in part: “ . . . Travis Tygart is a f*&#ing pig who should be nailed to a tree and skinned while he watches his toady staff and filthy children being castrated.” The threatening email further said: “The greatest service I could do to mankind is kill that f*&#ing pig.”
As a result of the threatening emails, Mr. Tygart hired private security for himself and his family, and moved his family to a secure location while the FBI investigated the source of the threat.
In an unrelated case, Robert Hutchins of Sandy, Utah, pled guilty on November 4, 2013 to sending threatening communications over the internet to Mr. Tygart for similar reasons. Hutchins is scheduled to be sentenced by Chief U.S. District Court Marcia S. Krieger on February 10, 2014.
“When someone, such as the defendant, uses email to send a threat, the recipient has no way of knowing if the threat is real, resulting in severe stress,” said U.S. Attorney John Walsh. “Emailed threats are not anonymous. Law enforcement has the tools to determine who sent them, and will act to hold those responsible accountable.”
"Today's decision reaffirms the FBI's vigilance to pursue those who hide behind a computer and make death threats," said FBI Denver Special Agent in Charge Thomas P. Ravenelle.
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant was prosecuted by Assistant U.S. Attorney Valeria Spencer.
Five Indicted for Participation in Timeshare Telemarketing ScamRead the Press Release
Chedna Charles, 25; James Richard Currey, 54; Christopher Robert Garten, 23; Osvaldo Gonzalez, 39; all of Orlando, Florida, and Amber Lynn Jones, 27, of Rome, Georgia, were indicted by a federal grand jury for their roles in a nationwide telemarketing scheme which defrauded persons throughout the United States and Canada, including victims in seven counties in the Southern District of Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The grand jury charged the six with conspiracy to commit mail and wire fraud. If convicted, each is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The five were telemarketers who worked for National Solutions and related companies located in Orlando, Florida. The scheme operated under more than a dozen business names including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International.
Telemarketers for National Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. The company solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that were to be refunded to the owner at closing. Many timeshare owners were told that their closings would occur within a matter of days.
Despite collecting fees from these victims, the National Solutions companies were not successful in selling a single timeshare unit and indeed made little effort even to market the properties for sale. All advance fees collected were pocketed by the telemarketers.
Participation in the scheme began in April 2008 and continued through July 13, 2011, when the Federal Trade Commission raided the business pursuant to a court order.1 From 2007 to 2011, over 2,500 timeshare owners across the country were scammed by the National Solutions businesses to the tune of more than $6 million.
After being found guilty by a jury after a four-day trial in September 2013, Kathryn Garten was sentenced to 14 years in prison and ordered to pay $909,278.00 in restitution for her role in this scheme.
These prosecutions follow an investigation by the Midwest Region Office of the Federal trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. Theses prosecutions will be handled by Assistant United States Attorneys Michael J. Quinley and William E. Coonan.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Federal Charges Filed in Multi-Million Dollar Telemarketing OperationRead the Press Release
On January 22, 2014, John C. Nicosia, 55, of Rochester, New York, was named in a one-count indictment for conspiracy to commit wire fraud and mail fraud in violation of Title 18, United States Code, Section 1349 the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. If convicted, Nicosia is subject to a term of imprisonment of up to 25 years, a fine of $250,000 and five years of supervised release.
The charge arose out of a telemarketing scam which operated in Las Vegas, Nevada, which the indictment alleged bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve (12) victims in nine (9) of the thirty-eight (38) counties comprising the Southern District of Illinois. The indictment alleges that the scheme operated from December 5, 2006 until January 24, 2012.
The indictment alleges that Nicosia was a telemarketer at a telemarketing company, called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada. The indictment alleges that the company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The indictment alleges that the purported sales did not occur and that Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and is awaiting sentencing.
This case is one of several cases recently prosecuted by the United States Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud. The prosecution of the case is being handled by Assistant United States Attorney Bruce E. Reppert and Special Assistant United States Attorney Stuart J. Zander.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Father, Son Sentenced to Prison for Bank Fraud and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that two former residents of Destin, Florida, Gary Wayne Thomas, 64, of Daphne, Alabama, and Brian Keith Thomas, 40, of Birmingham, Alabama, were sentenced by Chief U.S. District Court Judge M. Casey Rodgers to serve time in a federal prison. Gary Wayne Thomas was sentenced to 72 months in prison and Brian Keith Thomas was sentenced to 24 months in prison.
Both men were charged with conspiracy to structure cash withdrawals and structuring cash withdrawals to avoid the Currency Transaction Reporting (CTR) requirement, conspiring to commit bank fraud, and conspiracy to commit money laundering. Gary Thomas was also charged with money laundering, failure to appear, possession of a firearm and ammunition by a person under indictment, and possession of a firearm and ammunition by a fugitive from justice.
Brian Thomas, the son, went to trial during the week of July 22, 2013, before Chief U.S. District Judge M. Casey Rodgers and was convicted of all counts. The father, Gary Thomas, pled guilty to all charges on October 30, 2013.
The evidence showed that between January 1, 2008, and November 1, 2008, Gary Thomas and Brian Thomas caused approximately $4,550,000 to be deposited into their domestic bank accounts and then wired to offshore bank accounts in the Cayman Islands and Belize. Shortly thereafter, Gary Thomas stopped making payments on the loans he and his various entities had obtained from New South Federal Savings Bank, now known as Beal Bank. The total amount of the loans was approximately $56 million. In the summer of 2009, the bank filed civil suits against Gary Thomas on these loans.
In a three-year period between 2010 and 2013, Gary Thomas wired approximately $2,150,000 from the offshore banks into several domestic accounts including five accounts that Brian Thomas opened in Destin banks. Thereafter, the father and son conspired to structure withdrawals of cash under $10,000 to avoid the CTR requirement and to hide Gary Thomas’s interest in the funds from his creditor bank. The structured withdrawals were done on roughly 194 occasions and totaled more than $1.6 million.
Gary Thomas used some of these funds to purchase five airplanes, numerous vehicles, and homes in Destin, Florida, and Fairhope, Alabama. Thus far, the government has successfully forfeited the five airplanes; approximately $387,413 in cash, which represents the proceeds of the sale of the home in Fairhope, Alabama; and a $60,000 Hyundai Equus. The government has also obtained monetary judgments of forfeiture against Gary and Brian Thomas in the amounts of $4,970,000 and $1,197,148 respectively.
Ms. Marsh credited the successful prosecution of this case to the joint efforts of the Internal Revenue Service – Criminal Investigation, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
Fairfax Man Indicted for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Padraic Collins, 46, of Fairfax, Va., was indicted today by a federal grand jury in the Eastern District of Virginia for production of child pornography after Collins allegedly was found to be in possession of child pornography videos while crossing the border into Canada.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the grand jury returned the indictment to United States Magistrate Judge T. Rawles Jones, Jr.
Collins faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison if convicted.
According to court documents, HSI Washington received information from HSI Toronto regarding Collins, a Fairfax resident, at the Lansdowne, Canada Port of Entry. Collins was arrested by the Canadian Border Services Agency for importing and possessing child pornography files on a handheld video camera and a laptop. The videos allegedly show Collins engaging in sexual activity with an underage girl. HSI Washington, in coordination with HSI Toronto and the Ottawa Provincial Police, determined the identity of the 11-year-old female in the videos. The victim identified Collins as her abuser and confirmed the details of the sexual abuse, including that it took place in Springfield, Va.
The investigation was conducted by HSI Washington, with assistance from HSI Toronto, HSI Buffalo, U.S. Customs and Border Protection, the Ottawa Provincial Police and the U.S. Marshals Service. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
This prosecution is 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Erath Woman Pleads Guilty to Wire FraudRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Hue Bui, 27, of Erath, La., entered a guilty plea on Wednesday before U.S. Magistrate Judge C. Michael Hill, to one count of wire fraud involving theft from Walk-On’s Bistreaux and Bar in Lafayette.
According to evidence presented at the guilty plea, from February 2012 to August 2012, while employed as a server at Walk-On’s, Bui stole approximately $30,222. She devised a scheme using $25 prepaid American Express, VISA, and Master Card gift cards that she bought herself. During her shift, she would create a fake food or beverage order costing approximately $25, pay for the fake order with the gift card, write in a gratuity amount on the bill, and collect the tips at the end of her shift. When the credit card companies realized the $25 limit was exceeded, they charged the transactions back to Walk-On’s.Bui faces 20 years in prison, a $250,000 fine, restitution, and three years of supervised release for the count of wire fraud. A sentencing date of May 16, 2014 was set.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.Elkton Man Pleads Guilty to Solicitation to Commit KidnappingRead the Press Release
Baltimore – Andres Dorantes Flores, age 43, of Elkton, Maryland pleaded guilty today to soliciting others to kidnap a 10 year old boy.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Cecil County Sheriff Barry A. Janney, Sr.; and Cecil County State’s Attorney Ellis Rollins.According to his plea agreement, beginning in at least July 2012 Flores solicited others to kidnap a 10 year boy. The families of Flores and the boy had been friends. Flores approached an acquaintance and suggested kidnaping the boy and demanding a $300,000 ransom from the boy’s father. Flores continued to solicit the acquaintance to help with the kidnapping in subsequent meetings. Flores provided pictures of the boy and his family to the acquaintance.
On August 15, 2012 Flores arranged a meeting with the acquaintance and two men that Flores believed were from Philadelphia who had come to kidnap the victim as part of Flores’ plot. Flores told the men that he had thought the plan through and provided them with instructions to carry out the kidnapping. Flores arranged for the men take the boy from his home in Maryland to Philadelphia where Flores believed the men resided. Flores told the men that after they received the $300,000 ransom, they would each get $75,000. Flores was arrested following the meeting.
Flores and the government have agreed that if the Court accepts the plea agreement Flores will be sentenced to 175 months in prison followed by three years of supervised release. U.S. District Judge William D. Quarles has scheduled sentencing for May 8, 2014 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Cecil County Sheriff’s Office and Cecil County State’s Attorney’s Office for their work in the investigation and thanked the New Castle County, Delaware Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Eagle Butte Woman Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Kenna Bridwell, age 28, was indicted on January 14, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Bridwell is alleged to have assaulted a woman in November 2013 as a result of a car crash near Eagle Butte. The charge is merely an accusation and Bridwell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bridwell was released on bond pending trial. A trial date has not been set.
Drug Trafficker to Serve 13 Years in PrisonRead the Press Release
Oklahoma City, Oklahoma – Today, OMERO CORDOVA, 32, of Oklahoma City, was sentenced by United States District Judge Joe Heaton to serve 156 months in federal prison for money laundering, drug trafficking and gun charges, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Following an extensive investigation, a search warrant was executed at 2412 SW 78th Street, a residence owned by Cordova, and police located multiple handguns, large amounts of cash, and marijuana. Cordova was indicted and charged with six counts: (1) distribution of less than 50 kilograms of marijuana, (2) possession of marijuana with intent to distribute, (3) possession of firearms in furtherance of a drug trafficking crime, (4) maintaining a drug-involved premises, (5) falsifying a material fact, and (6) money laundering. A jury trial was held in September of 2013 and, after three days of evidence, the jury deliberated less than three hours before finding Cordova guilty of all counts.
Today, Judge Heaton sentenced Cordova to serve 156 months in prison, followed by three years of supervised release. He was immediately remanded into custody to begin serving his sentence.
This case is the result of a joint investigation including IRS Criminal Investigation, the Oklahoma City Police Department, Oklahoma County District Attorney’s Office, and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Edward J. Kumiega.
Denver Man Who Promoted Credit Services Scheme to Fraudulently Obtain Business Lines of Credit Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A Denver man who billed himself as “The Credit Line Millionaire” was sentenced today to 21 months in federal prison as a result of his role in a scheme to obtain lines of credit worth hundreds of thousands of dollars through a host of misrepresentations and falsified documents.
Christopher Robert Wise, 35, was sentenced today by United States District Court Judge John Kronstadt in Los Angeles. Wise has been in federal custody since his arrest by the United States Secret Service at Los Angeles International Airport last August after he arrived on a flight from Mexico.
Wise pled guilty in October to conspiracy to commit bank fraud, admitting that he conspired to fraudulently obtain lines of credit from Wells Fargo Bank, Union Bank and City National Bank.
According to prosecutors, Wise maintained a significant online presence, which included his websites www.creditlinemillionaire.com and http://chriswise.com/, and he billed himself as a credit guru who could help clients obtain loans for their small- and medium-size businesses. Wise referred his clients to several co-conspirators who controlled Inland Empire companies and who promised to help acquire financing.
As part of his guilty plea, Wise admitted attempting to obtain business lines of credit for himself through loan applications submitted to the victim banks on behalf of one of his companies. Wise also admitted he used a co-conspirator as a “credit partner” to pose as a “personal guarantor” for the loans – in essence, using a “straw borrower” to apply for loans in exchange for giving the credit partner a percentage of the loan proceeds.
At sentencing, prosecutors relied on an online video of defendant speaking at one of his seminars where he summarized his scam, saying, among other things:
“My credit is messed up. I’m getting over a million dollars. I have leveraged over a million dollars in the past. I’m getting ready to get another million dollars in one shot . . . My business doesn’t qualify for the revenue documentation, because as a business owner I like to write everything off. Right, that is one of the advantages of being a business owner. And so when you go to the bank and you show them everything is written off, they don’t really like to see that. So my business doesn’t qualify. And so by leveraging other people’s credit and by leveraging other people’s entities, I’m now in the process of getting a million dollars line of credit.”
Previously in this investigation, five co-conspirators pleaded guilty, four of whom are pending sentencing. Last month, Avedis Abraham Hagopian was sentenced to two years in federal prison for his role in the scheme.
This case is the result of an investigation by the United States Secret Service.
Release No. 14-009
Columbia Man Sentenced for Arsons at Mu, Stephens CollegeRead the Press Release
JEFFERSON CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for two arsons that caused more than $1 million in damages to the Ellis Library at the University of Missouri–Columbia and a building on the Stephens College campus in Columbia.
Christopher Curtis Kelley, 28, of Columbia, was sentenced by U.S. District Judge Beth Phillips to six years and six months in prison without parole. The court also ordered Kelley to pay $591,114 in restitution.
On April 24, 2013, Kelley was found guilty of two counts of arson. Evidence presented during the trial indicated that Kelley deliberately set fires at 10 different locations inside the Ellis Library, which is the main library at the University of Missouri, at approximately 3:30 a.m. on Sept. 10, 2011. Some of the fires didn’t take or caused minimal damage, while other fires caused significant damage. Kelley also used a metal pipe to destroy and vandalize property at the library, including computer monitors, security cameras and windows. Human feces and urine were found on top of one of the study desks.
The overall cost to repair the damage to the library was estimated between $750,000 and $1 million. Cleanup costs alone have amounted to $531,294, and property loss amounts are still being determined. As a result of the fire, university faculty, staff, students, and the public in general suffered a major disruption in services. Employees lost personal possessions and were displaced while repairs were made. Users were denied access and services for a total of 43 lost hours. Reference services were unavailable for 35 hours. International student instruction classes were cancelled. Library staff spent numerous hours moving bottom shelves of reference books away from damaged and wet floors.
In addition, the Ellis Library building houses the Missouri State Historical Society, which serves as the repository for books, maps and other documents with historical importance. That area of the library suffered extensive water damage as a result of the fires. Property damage to that area was separately estimated to be between $60,000 and $75,000. The Society was completely closed to the public for three days following the fires. Society employees put in thousands of hours packing, cleaning, moving and rearranging work space as the Society was renovated. Members of the public were unable to conduct research, and many individuals who had traveled to conduct research were turned away. Five staff members, whose desks and computers were water-damaged, had to pack up their work areas and move across campus to be housed in temporary work space for approximately four months. Additional staff members had to be relocated for several months due to the damage. Tens of thousands of journals and periodicals had to be boxed up and relocated because of renovations required from the water damage, and countless staff hours were expended drying original, primary-source documents. Each page/sheet had to be individually dried with blotting paper to save the documents and prevent the formation of mold. Approximately 1,000 hours were spent taking down, repairing and replacing the art/exhibit panels that were in the corridor gallery.
The Ellis Library also operates a federal documents repository, which suffered major disruption as a result of the arson.
Photos taken from the library’s security cameras were distributed to the media and the college community. Law enforcement officials received several telephone calls in response from individuals who identified Kelley. At about noon on the same day as the arson, Kelley turned himself in to the University of Missouri Police Department.During the investigation into the Ellis Library arson, law enforcement officers recovered stolen computer equipment at Kelley’s residence that had been taken from Stephens College during an earlier arson on that campus.
Kelley was also convicted of starting a fire in a classroom of the Audrey Webb Child Study Center on the Stephens College campus at approximately 4 a.m. on May 18, 2011. The Audrey Webb Learning Center is an educational facility, providing a laboratory to train students to become educators.
Kelley broke into the school and stole a computer after starting the fire. The building sprinkler system malfunctioned; however, firefighters quickly responded to the alarm and extinguished the fire before the entire structure burned. There was moderate smoke damage in the basement area directly below the classroom. Damages to the Audrey Webb Child Center amounted to $54,819.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the University of Missouri Police Department, the Columbia, Mo., Police Department, the Columbia, Mo., Fire Department, the Stephens College Security Department, the University of Missouri Ellis Library Security Department, the U.S. Department of Education and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Cocaine Trafficker Pleads to Drug ChargeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tremec Jeffries, 38, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Jeffries and others purchased large quantities of powder cocaine that they processed into crack cocaine, packaged, and resold it in various quantities in the City of Rochester. Jeffries was arrested on August 1, 2013 after he was surveilled by officers arriving at 35 Wakefield Street in Rochester operating his 2004 Chevrolet Avalanche. The defendant unlocked the location with a key and entered. Officers then raided the location and Jeffries, the only person inside, was arrested after attempting to jump out a second story window.
Inside the residence, officers seized 50 grams of crack cocaine, 31 grams of powder cocaine, processing and packaging paraphernalia, a .12 gauge shotgun, and a loaded, Glock .45 caliber semi-automatic pistol that had been reported stolen out of North Carolina in 2010. Jeffries had $1,640 in U.S. currency on his person and the Avalanche contained $15,000 in U.S. currency bundled in $1,000 increments. The cash has been forfeited by the Drug Enforcement Administration as drug money.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Jamie J. Hunt, New York Field Division, with assistance provided by the Greater Rochester Area Narcotics Enforcement Team (GRANET), and the Rochester Police Department under the direction of Acting Chief Michael Ciminelli, the Monroe County District Attorney’s Office, under the direction of Sandra Doorley, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge, Scott Heagney.
Sentencing is scheduled for May 21, 2014 at 3:00 pm before Judge Larimer.Child Molestation Draws Ten Year SentenceRead the Press Release
The United States Attorney's Office announced that on Wednesday, January 22, 2014, during a federal court session in Billings, Senior District Judge Donald Molloy sentenced AARON ROSS TURNSPLENTY, JR, of Crow Agency, to 10 years in prison and three years supervised release for molesting a young girl in 1996.
According to an offer of proof filed by Assistant United States Attorney Laura Weiss, Turnsplenty sexually abused the victim, who was under 12-years-old, in the basement of a friend's home in Pryor, Montana, on the Crow Indian Reservation. The victim was playing by herself with toys when Turnsplenty "came out of nowhere." He molested her then threatened to hurt her family if she told anyone.
Although the crime occurred in 1996, the United States Attorney's Office was able to prosecute this case after the victim's disclosure in 2012 because federal sex abuse statutes were revised to allow prosecution of certain crimes against children before the standard statute of limitations based upon when the violation was disclosed. For most federal crimes, an indictment must be brought within five years of the commission of the offense regardless of when the crime is made known to law enforcement authorities.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Turnsplenty will likely serve all of the time imposed by the court. In the federal system, Turnsplenty does have the opportunity to earn a limited reduction in time served for (good behavior(; a reduction for good conduct while incarcerated will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Chief of Mount Pleasant Police Department Arrested for Possession of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Office of the United States Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), announced today the arrest of BRIAN FANELLI for possession of child pornography. FANELLI, the Chief of the Mount Pleasant, New York, Police Department, was arrested by HSI agents today at his residence in Mahopac, New York and presented in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Preet Bharara stated: “Given the allegations, this case is particularly disturbing and sad. A senior law enforcement officer, sworn to uphold the law, stands accused of breaking the law. And it is the law designed to protect the youngest and most vulnerable of our population from vile exploitation.”
HSI Special Agent-in-Charge James T. Hayes, Jr. stated: “Police officers – and especially police executives – are understandably held to a higher standard of conduct than ordinary citizens. The defendant’s alleged acquisition and viewing of sexually explicit images of children irrevocably breached the trust the public had in him. The widespread exploitation of children in the United States is nothing short of an epidemic that requires the coordinated focus of law enforcement agencies, prosecutors, and the general public alike. HSI is committed to devoting the necessary resources to protect the children in our communities from those intent on victimizing them.”
According to the allegations in the criminal Complaint filed today in White Plains federal court:
From at least as early as October 2013, through in or about January 2014, FANELLI used a Peer-to-Peer File Sharing Program (“the “P2P Network”) to download more than 120 files containing images and videos believed to be child pornography and made those files available to other P2P Network users through his computer’s shared folder on the P2P Network program. Additionally, on three occasions, DHS agents acting in an undercover capacity and using the P2P Network downloaded from FANELLI’s computer files containing images and videos believed to contain child pornography.
Acting pursuant to a search warrant, DHS agents searched FANELLI’s residence today and located three computers. During the execution of the search warrant, FANELLI was advised of his Miranda rights, after which he voluntarily told DHS agents, among other things, that he has taught sexual abuse awareness classes to elementary and middle school-age students for more than one year, and that approximately one year ago, he began viewing child pornography from his home using the P2P Network – at first as research for the classes he was teaching, but shortly thereafter for personal interest.
FANELLI, 54, of Mahopac, New York, is charged with one count of possessing child pornography, which carries a maximum sentence of 10 years in prison. The count also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security. He added that the investigation is continuing.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com
The prosecution is being overseen by the Office’s White Plains Division and the Public Corruption Unit. Assistant United States Attorneys Andrew D. Goldstein and Lee Renzin are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Brian Fanelli Complaint
Canadian Man Pleads in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Parminder Sidhu, 39, of Brampton, Ontario, pleaded guilty to conspiracy to export from the United States five kilograms or more of cocaine before Chief U.S. District Judge William M. Skretny. The charge carries a minimum sentence of 10 years in prison, a maximum of life, a $10,000,000 fine or both.
“This case stands for more than the largest seizure of cocaine in this District’s history,” said U.S. Attorney Hochul. “Of equal importance, this prosecution demonstrates that American and Canadian law enforcement partners can work seamlessly together to protect the citizens of both countries. For while it may have be true that crime knows no borders, now criminals should realize that our ability to apprehend them also has no geographic limitations.”
“Investigations of this scope and caliber would not be possible without the partnerships we have built under the Border Enforcement Security Task Force model, including with our Canadian law enforcement partners,” said James C. Spero, Special Agent in Charge of HSI Buffalo. “With these guilty pleas, the Buffalo BEST team and the Peel Regional Police Service have dismantled one of the biggest cocaine smuggling organizations to have ever operated in Western New York.”
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2009 and May 10, 2011, the defendant conspired with Michael Bagri and Ravinder Arora to export cocaine from the United States to Canada. In September 2010, Sidhu hired defendant Bagri to travel to California to pick up cocaine. Defendant Bagri then hid 97 kilograms of cocaine in a false compartment in the floor of a tractor trailer. The tractor trailer was then driven to Cheektowaga, N.Y. where it was turned over to defendant Ravinder Arora. Defendant Arora then proceeded to Canada. At the Lewiston-Queenston Bridge, Special Agents with the Department of Homeland Security and Customs and Border Patrol seized the 97 kilograms of cocaine from the false compartment during a secondary inspection.
On May 1, 2011, Sidhu directed defendant Bagri to travel once again to California. After hiding another 26 kilograms of cocaine in another tractor trailer, the rig was driven to a truck stop in Pembroke, N.Y. The tractor trailer was then picked up by a driver hired by Parminder Sidhu. As the driver exited the truck stop, Bagri followed behind in another vehicle. Agents later stopped the tractor trailer and Sidhu’s vehicle and seized the 26 kilograms of cocaine.
During the execution of a search warrant at Sidhu’s residence in Canada, agents discovered drug ledgers which detailed nine addition smuggling trips in 2009 and 2010. These trips involved approximately 1,617 kilograms of cocaine being transported from the United States into Canada.
Defendants Ravinder Arora and Michael Bagri have been convicted of similar charges and are awaiting sentencing which is scheduled for April 9, 2014.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Randy Howe, Acting Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.
Sidhu will be sentenced on May 28, 2014, at 9:00 a.m. before Chief Judge Skretny.California Man Conspired to Distribute MethRead the Press Release
PITTSBURGH - A resident of Elk Grove, Calif., pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Joseph Rojas, 28, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Rojas conspired to distribute in excess of 50 grams of methamphetamine.
Judge Conti scheduled sentencing for 10 a.m. on May 15, 2014. The law provides for a total sentence of not less than 10 years or more than life in prison, a fine of $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.
Pending sentencing, the court revoked Rojas’s bond and ordered him to be detained.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Rojas.
Cahokia Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Karashia A. Tabbs, 46, of Cahokia, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
Tabbs was sentenced to five years’ probation, a special assessment of $100, and ordered to pay restitution in the amount of $4,594. Tabbs previously pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Tabbs was submitting bills claiming to care for a person who was at the time residing in the state of Texas, while Tabbs was living in Cahokia, Illinois.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Bunch Man Sentenced to 48 Months for Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JEFFERY A. LOPEZ, age 30, of Bunch, Oklahoma, was sentenced to 48 months imprisonment, followed by 24 months of supervised release for being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Oklahoma Highway Patrol and the Department of Homeland Security Investigations. The defendant was indicted in April, 2013 and pled guilty in September, 2013.
The Indictment alleged that on or December 11, 2012, within the Eastern District of Oklahoma, the defendant, JEFFERY A. LOPEZ, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Winchester model 1897 pump shotgun, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing.
Assistant United States Attorney Kyle Waters represented the United States.
Brockport Financial Advisor Indicted on Mail Fraud and Bankrupcy Fraud ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a two-count indictment charging Eduardo Galan, 63, of Brockport, N.Y., mail fraud and bankruptcy fraud. The charges carry a maximum sentence 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Galan promised to invest $75,000 for a client in a private mortgage loan through his business, S&G Unlimited Services. In fact, the defendant spent the money for his own benefit to repay creditors and on other expenses. After the client obtained a civil judgment against Galan and S&G Unlimited Services, the defendant misused his Chapter 7 bankruptcy proceeding to try to obtain a discharge for the debt, falsely characterizing the debt as a personal loan.
This indictment is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Bonanno Family Captain Vincent Asaro Indicted for Participation in the 1978 Lufthansa $5 Million Robbery at JFK Airport and the Murder of Paul Katz Who Disappeared in 1969Read the Press Release
Five Defendants Arrested and Charged Variously with 45-Year Racketeering Conspiracy, Including Predicate Acts of Murder, Solicitation to Murder, Robbery and Extortion, and Other Crimes
BROOKLYN, NY – Earlier today, an indictment was unsealed charging five members of the Bonanno organized crime family of La Cosa Nostra (the “Bonanno family”) variously with racketeering conspiracy, including predicate acts of murder, conspiracy to commit murder, solicitation to murder, robbery and extortion, and other crimes.1 Bonanno family administration members and captains Vincent Asaro and Thomas Di Fiore, Bonanno family captain Jerome Asaro, Bonanno family acting captain Jack Bonventre, and Bonanno family soldier John Ragano were arrested earlier today and are scheduled to be arraigned this afternoon before U.S. Magistrate Judge Marilyn D. Go at the federal courthouse in Brooklyn.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“As alleged, Vincent Asaro devoted his adult life to the Bonanno crime family, with a criminal career that spanned decades. Far from a code of honor, theirs was a code of violence and brute force. Those suspected of cooperating with law enforcement paid with their lives. Asaro helped pull off the 1978 Lufthansa robbery - still the largest bank robbery in New York history. Neither age nor time dimmed Asaro’s ruthless ways, as he continued to order violence to carry out mob business in recent months. The arrests and charges announced today are a testament to the relentless pursuit of justice by law enforcement,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the FBI for its extraordinary work in bringing these defendants to account for the charged crimes.
“These ‘goodfellas’ thought they had a license to steal, a license to kill, and a license to do whatever they wanted. However, today’s arrests of the five members of the Bonanno crime family brings an end to their violent and ruthless ways. As alleged in the indictment, Vincent Asaro and his co-conspirators were not only involved in typical mob activities of extortion and murder, but Asaro himself was in on one of the most notorious heists - the Lufthansa robbery in 1978. It may be decades later, but the FBI’s determination to investigate and bring wiseguys to justice will never waver,” stated FBI Assistant Director-in-Charge Venizelos.
As alleged in the indictment and a detention memorandum filed by the government, over the last 45 years Vincent Asaro and various co-conspirators, including his son Jerome Asaro, engaged in a pattern of violence and threats of violence in order to profit from their illegal activity and evade prosecution. The indictment announced today is the result of a long-term investigation by the Federal Bureau of Investigation that utilized, among other law enforcement techniques, consensual recordings, cooperating witnesses and confidential sources, and electronic and visual surveillance.
1978 Lufthansa Heist
Vincent Asaro is charged for his participation in the 1978 robbery at the Lufthansa Terminal at John F. Kennedy Airport of over $5 million in United States currency and approximately $1 million in jewelry. Asaro, Lucchese crime family associate James “Jimmy the Gent” Burke, and their co-conspirators each expected to receive approximately $750,000 in cash and large quantities of gold jewelry from the proceeds of the robbery.
Murder of Paul Katz
Vincent Asaro is charged with the murder of Paul Katz, who disappeared in 1969, and Asaro and his son Jerome are also charged with accessory after the fact for their roles in moving Katz’s body to prevent its discovery by law enforcement. Vincent Asaro and Burke allegedly strangled Katz with a dog chain because they believed he was cooperating with law enforcement. They then buried his body in the basement of a vacant home in Queens, New York, where it remained until the mid-1980s when, alerted to a state law enforcement investigation into Katz’s murder, Vincent Asaro directed Jerome Asaro and another individual to dig up Katz’s body and move it. Almost 35 years later, in June of 2013, the FBI executed a search warrant at the Queens residence, which was still owned by the Burke family, and recovered remnants of Katz’s remains buried in the basement. Katz’s identity was confirmed through DNA testing.
Solicitation to Murder
Vincent Asaro and Jerome Asaro are charged with solicitation to murder their cousin, identified in the indictment as “John Doe #1,” because he was perceived to be a “rat” for testifying against another family member in a federal trial on fraud charges.
Armed Robberies
Vincent Asaro and Jerome Asaro are charged variously with participating in additional armed robberies and armed robbery conspiracies, including the robbery of approximately $1 million in gold salts.
Extortion
All five defendants, including Thomas Di Fiore, the highest ranking member of the Bonanno family at liberty, are charged with using and conspiring to use extortionate means to collect an extension of credit from a Bonanno family associate. During an April 26, 2013, consensual recording of Vincent Asaro and John Ragano, Ragano asked Asaro, “When do we stab this guy [ ] in the neck? That’s what I want to know.” Asaro responded, “Stab him today.” Asaro continued, “I told you to give him a [ ] beating. Give him a [ ] beating, I told you that. Listen I sent three guys there to give him a beating, already, so it won’t be the first time he got a beating from me.”
The case has been assigned to United States Senior District Judge Allyne R. Ross. If convicted, Vincent Asaro faces life imprisonment, and each of his co-defendants faces a statutory maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Nicole M. Argentieri and Alicyn Cooley.
The Defendants:
VINCENT ASARO
Age: 78
Howard Beach, New York
JEROME ASARO
Age: 55
Bethpage, New York
JACK BONVENTRE
Age: 45
Campbell Hall, New York
THOMAS DI FIORE, also known as “Tommy D”
Age: 70
Commack, New York
JOHN RAGANO, also known as “Bazoo”
Age: 52
Rockaway, New York
E.D.N.Y. Docket No. 14-CR-26 (ARR)
1 The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Asaro Indictment
Asaro Detention Memo
Biomat USA Employee Sentenced for Identity Theft ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Bridgette Williams, aged 31, of Macon, Georgia, was sentenced by Chief U.S. District Court Judge C. Ashley Royal on Thursday, January 23, 2014, to serve six (6) months imprisonment in a case of conspiracy to commit fraudulent claims, identity theft and receiving stolen government property. Ms. Williams was also ordered to make restitution to the Internal Revenue Service.Ms. Williams entered a plea of guilty to the charges on April 18, 2013. As part of her plea agreement, Ms. Williams admitted that she was an employee of BioMat USA, a facility where individuals donate blood plasma for compensation. From January to June 2012, she obtained the personal identification information for more than 130 BioMat USA clients and transferred that information to co-conspirators. The co-conspirators would then create false W-2 forms using the personal information and file false income tax returns in the names of the clients. Ms. Williams’ address was used as the address on the false tax returns. Refund checks were mailed to her at that address. Ms. Williams admitted that the total amount of fraudulent tax returns wrongfully obtained from BioMat USA was $191,985.00. The total amount of fraudulent refunds actually issued by the Internal Revenue Service was $23,879.86.
“Identity theft is an increasing problem. Those who engage in this type of criminal activity should know that it will be investigated and prosecuted with increased vigor,” said U.S. Attorney Michael Moore.
“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat theft and fraud against the United States Treasury and will continue to support these types of investigations along with our law enforcement partners,” said John L. Phillips, Assistant Inspector General for Investigations.
“IRS Criminal Investigation will remain proactive in the investigation of individuals and groups who commit crimes and ruin the lives of innocent citizens,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Today’s sentence clearly demonstrates that taking advantage of, manipulating, and stealing from the American people will not be ignored or go unpunished.”“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who steal from unsuspecting victims. Those nefarious individuals ultimately affect us all,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
The investigation of the case was a joint effort by the Federal Bureau of Investigation, United States Secret Service, Internal Revenue Service – Criminal Investigations, U.S. Treasury Office of Inspector General and Bibb County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Graham A. Thorpe.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Bank Robber SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Kyle Clemons, aged 38, of an unknown address in Macon, Georgia, was sentenced by Chief U.S. District Court Judge C. Ashley Royal on Thursday, January 23, 2014, to serve sixty three (63) months in federal prison for bank robbery.Mr. Clemons entered a plea of guilty to the charge on September 26, 2013. As part of his plea agreement, Mr. Clemons admitted that on August 5, 2013, he entered the State Bank located at 614 Shurling Drive in Macon, Georgia where he asked a bank teller if robbing a bank was a federal offense, slammed a book on the counter and demanded money. The teller gave approximately $620 to Mr. Clemons who then fled the bank.
“My office takes bank robbery seriously, even if the robber only gets a small amount of cash. It is the act of committing the crime, not the amount stolen, that has sent Mr. Clemons to federal prison,” said U.S. Attorney Michael Moore.
The case was investigated by Bibb County Sheriff’s Office. Assistant United States Attorney Michael T. Solis prosecuted the case for the government.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Baltimore Felon Sentenced to 10 Years in Prison for Illegal Possession of A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Malick Green, age 30, of Baltimore, today to 10 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to Green's plea agreement, on March 17, 2012, Baltimore City Police Detectives were observing the area around the 1800 block of North Broadway in Baltimore, and saw Malick Green enter an alley in that area. Green was holding his waistband as he ran through the alley to the rear yard of 1812 Register Street. Detectives observed the defendant move a piece of plywood that covered the rear basement stairs to 1812 Register, place a metallic object that officers believed to be a handgun on the steps, and return the plywood to its original location. Green then continued south down the alley.
Detectives located Green on Register Street and detained him as they went to the rear yard of 1812 Register. Detectives moved the plywood and found a.45 caliber handgun, loaded with a magazine containing six rounds of .45 caliber ammunition. Green was prohibited from possessing a firearm and ammunition due to previous felony drug convictions
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Attorney General Eric Holder Urges Congress to Pass Bipartisan 'Smarter Sentencing Act' to Reform Mandatory Minimum SentencesRead the Press Release
U.S. Attorney General Eric Holder on Thursday urged Congress to pass the bipartisan Smarter Sentencing Act, introduced by Senators Dick Durbin and Mike Lee. A copy of the Attorney General's statement, which was recorded as an online video, appears below: “Our criminal justice system works only when all Americans are treated equally under the law.
That’s why, in 2010, Congress passed the landmark Fair Sentencing Act, marking the culmination of persistent efforts – with the leadership of President Obama – to reduce unjust disparities in sentencing for similar offenses involving different types of drugs.
More recently, President Obama took another step by commuting the sentences of eight individuals who were sentenced under the outdated sentencing regime.
And at the Justice Department, we’ve announced additional reforms – under our “Smart on Crime” initiative – to ensure that individuals accused of certain low-level federal drug crimes no longer face excessive mandatory minimum sentences that are out of proportion with their alleged conduct – and serve no deterrent purpose.
These reforms have the potential to help make our criminal justice system not only fairer, but also – by reducing the burden on our overcrowded prison system – more efficient.
And now, we have the opportunity for leaders from both parties to come together to do even more.
Today, I’m urging Congress to pass common-sense reforms like the bipartisan Smarter Sentencing Act, introduced by Senators Dick Durbin and Mike Lee – which would give judges more discretion in determining appropriate sentences for people convicted of certain federal drug crimes.
This bill would also provide a new mechanism for some individuals – who were sentenced under outdated laws and guidelines – to petition judges for sentencing reductions that are consistent with the Fair Sentencing Act.
Thanks to the leadership of Senators Durbin and Lee – along with Chairman Patrick Leahy and Senator Rand Paul – it’s clear that these and similar proposals enjoy bipartisan support on Capitol Hill.
These reforms would advance the goals of the Smart on Crime initiative – and other efforts that are currently underway – by fundamentally improving policies that exacerbate, rather than alleviate, key criminal justice challenges.
And such legislation could ultimately save our country billions of dollars in prison costs while keeping us safe.
I look forward to working with members of both parties to refine and advance these proposals in the days ahead.
And I pledge my own best efforts – and those of my colleagues throughout the Justice Department – to continue to strengthen America’s criminal justice system, and to build the more just society that everyone in this country deserves.”
The full video message can be viewed online at: http://www.justice.gov/agwa.php.
Atlantic Iowa Resident Sentenced to 122 Months in Prison for Distributing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On January 22, 2014, Paul William Jessen, a 44 year-old resident of Atlantic, Iowa, was sentenced by United States District Court Judge Stephanie Rose to 122 months in prison followed by four years of supervised release for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt.
On September 4, 2013, Jessen pled guilty to the charge which was the result of an investigation conducted into methamphetamine distribution in and around the Atlantic, Iowa area. Jessen was part of a drug trafficking group who distributed methamphetamine obtained from a source in Omaha, Nebraska.
The investigation was conducted by the Atlantic, Iowa, Police Department, the Cass County Sheriff’s Office and the Iowa Division of Narcotics Enforcement.
(Download Press Release )
Armed Career Criminal from Corrales Sentenced to Fifteen Years in Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Walter Lee Deiter, 55, of Corrales, N.M., was sentenced this morning to 15 years in federal prison followed by five years of supervised release for being a felon in possession of a firearm, announced Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Allen Banks of the Albuquerque Police Department.
Acting U.S. Attorney Steven C. Yarbrough said that Deiter was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Firearms in the hands of convicted felons are a serious threat to public safety. A big thanks to the law enforcement community and the U.S. Attorney’s Office for making our communities safer and putting Walter Deiter where he belongs,” Said 2nd Judicial District Attorney Kari E. Brandenburg.
Deiter was indicted in March 2010, and charged with unlawfully possessing a firearm and ammunition on Nov. 12, 2009, in Bernalillo County, N.M. At the time, Deiter was prohibited from possessing firearms or ammunition because he previously had been convicted of 13 felony offenses, including burglary, grand theft, drug trafficking and bank robbery offenses in Florida; a drug trafficking offense in Oklahoma; and being a felon in possession of a firearm in federal court in New Mexico. Deiter was on supervised release after having served a 46-month prison sentence for his first federal conviction when he was arrested in this case.
A federal jury convicted Deiter in Aug. 2012, after a four-day trial. According to the evidence at trial, when Albuquerque Police Department officers responded to a domestic violence call to 911 made by Deiter’s wife shortly after midnight on Nov. 12, 2009, they observed a man, later identified as Deiter, and a woman standing outside in the cold. When Deiter and the woman saw the officers approaching, they separated and began walking in opposite directions. Although the officers attempted to speak to Deiter, he continued to walk away from them. Moments later, an officer observed Deiter, who was standing on the second floor balcony of a nearby apartment complex, bend down and place something on the balcony floor. Deiter then complied with the officers’ orders to come down from the balcony. When an officer started towards the apartment complex to check the balcony, Deiter became visibly nervous and bolted away from the officers. After Deiter was apprehended, an officer went up to the balcony and found a revolver in a holster on the balcony floor. Deiter’s DNA subsequently was found on both the revolver and the holster.
Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives said, “Today’s sentencing of Deiter should serve as a harsh reminder to habitual criminals that gun crime will equal hard time. ATF will not tolerate the illegal possession of firearms by prohibited persons. I want to commend Acting U.S. Attorney Steven Yarbrough and Chief Allen Banks of the Albuquerque Police Department for their partnership and support.”
“The Albuquerque Police Department would like to thank the U.S. Attorney and his dedicated staff for the successful prosecution of this career criminal,” said Chief Allen Banks of the Albuquerque Police Department. “Today’s sentencing sends a clear message to habitual criminals that local law enforcement is working closely with federal prosecutors will find a way to hold them accountable for their crimes in our community. The sentence handed down today is also a victory for victims of domestic violence everywhere, showing that their aggressors will face significant jail time when they commit their crime while being a prohibited possessor of a firearm.”
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office and was prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and Kimberly A. Brawley.
Amherst Woman Pleads Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Amanda Hollmer, 36, of Amherst, N.Y., pleaded guilty to bank fraud before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that Hollmer executed what is sometimes referred to as a “check kiting” scheme between December 2009 and December 2010 which defrauded various financial institutions. Specifically, the defendant opened up various checking accounts at local banks and deposited checks from other checking accounts that either had no funds or had been closed. By then withdrawing cash from the institution before the bank could learn of the insufficient funds underlying the deposit, Hollmer stole funds, or attempted to steal funds from at least seven different financial institutions. In total, the financial institutions incurred a total loss of $27,552.
Sentencing is scheduled for April 29, 2014, at 1:00 p.m. before Judge Arcara.
The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.