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15 January 2014
Green Tree Woman Led Cross-Country Hydroponic Marijuana Distribution RingRead the Press Release
Wholesale Value of Marijuana Exceeded $16 Million
PITTSBURGH – The leader of a cross-country drug ring pleaded guilty on Tuesday in federal court to charges of conspiracy to violate the federal drug and money laundering laws, United States Attorney David J. Hickton announced today.
Jennifer Chau Chieu, 37, of Green Tree, Pa., pleaded guilty to conspiracy to distribute 1,000 kilograms (2,200 pounds) or more of high-quality hydroponic marijuana, and conspiracy to launder drug proceeds before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Chieu moved to Pennsylvania in 2010, and by October of that year was in the drug business, using her old contacts to ship her 10-20 pound packages of high-quality marijuana from California on a daily basis. Chieu then resold the marijuana for $2,400-$4,600 a pound, depending on quality, to a small network of dealers.
United States Postal Inspectors eventually identified more than 250 inbound drug packages, and in excess of 350 outbound parcels containing drug proceeds, with $12,000-$20,000 in each package. The total wholesale value of the marijuana was as much as $16 million, with the retail value being several multiples of that.
Postal inspectors and IRS and FBI special agents observed Chieu making deals out of her Green Tree home and a nail salon she owned on Liberty Avenue in the Bloomfield section of Pittsburgh.
Between January and April 2011, postal inspectors served nine search warrants on outgoing parcels suspected to contain drug proceeds. Each of the parcels contained between $12,000 and $20,000 in cash, with the total exceeding $143,000.
Wiretaps were approved for Chieu’s phones and several others between June and October 2011. Chieu and her co-conspirators spoke four languages on the wiretaps – Vietnamese, English, and two Chinese dialects - often switching languages in mid-sentence in an obvious attempt to hamper law enforcement agents and interpreters who might be listening.
More than a hundred hours of calls were intercepted between Chieu and her primary Oakland, Calif., drug supplier. On a daily basis, Chieu and her conspirator discussed how much marijuana he would be sending, the quality or “brand name” of the product, and how much Chieu would charge for it here and how many packages of cash she planned to send to California the next day.
About 3500 pounds of marijuana were distributed in the conspiracy. Large seizures of cash demonstrated the broad scope of this drug ring. In April 2012, Chieu and a conspirator were stopped in Utah for a traffic violation. Hidden within their car was more than one-half million dollars in cash. Both individuals refused to claim the cash, with Chieu telling officers she didn’t know how it got there.
Following the indictment of Chieu and 19 other individuals, Chieu was arrested in April 2012, at which time more than $70,000 was seized from her Green Tree home, and $100,000 from a safe deposit box. Another seizure in 2011 of drug proceeds from a van leaving Pittsburgh for California turned up $136,000 in cash. About a million dollars in cash was seized in this investigation, with homes and cars also seized for forfeiture to the government.
Eight of the 20 indicted individuals have now entered pleas of guilty and await sentencing, with six more defendants scheduled to plead guilty later this week.
On motion of the government, Jennifer Chieu’s bond was revoked and she was ordered detained pending sentencing on July 1, 2014. The law provides for a total sentence of not less than 10 years to life in prison, a fine of $10,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation were the lead agencies in this case, and were assisted by the Pennsylvania State Police in this investigation that led that led to the prosecution of Jennifer Chau Chieu.
Grand Junction Man Sentenced to Prison for Sending Interstate Threatening CommunicationsRead the Press Release
DENVER -- Kenneth Royal Wheeler, of Grand Junction, Colorado, was sentenced today by U.S. District Court Judge William J. Martinez to serve 40 months in federal prison for sending interstate threatening communications, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Securities Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Following his prison sentence, Judge Martinez ordered Wheeler to serve 3 years on supervised release. Wheeler appeared at the sentencing hearing in custody. He was remanded at the sentencing hearing’s conclusion.
Wheeler was found guilty of two counts of sending interstate threatening communications following a four-day jury trial before Judge Martinez. The jury deliberated for 75 minutes before reaching a verdict.
Wheeler was first charged by Criminal Complaint on March 20, 2012. He was indicted by a federal grand jury in Denver on March 22, 2012. A superseding indictment was obtained on May 21, 2013. The jury trial began on September 23, 2013. The verdict was handed down on September 26, 2013.
According to court documents, as well as facts presented to the jury during trial, a person called the Grand Junction Police Department to report threatening Facebook posts. The Grand Junction Police Department, working with Homeland Security Investigations, conducted an investigation and determined that the threatening posts were made by Wheeler. It was also determined the Wheeler was in Rome, Italy when he made the posts. In fact, one of the posts stated that Wheeler believed he could post anything he wanted and not be prosecuted because he was not physically in the United States.
Among Wheeler’s posts were instructions for people to kill children at a local Daycare. He also told his “followers” to kill specific police officers, as well as their families and children. In one post Wheeler said: “the americans cant punish me for what i say here in rome italy on facebook. so. kill cops. drown them in the blood of their children, hunt them down and kill their entire blood lines.”
Wheeler was arrested at the Grand Junction Airport, once he returned to the United States from Rome.“Regardless of where you are in the world, if you send a threatening communication and it crosses state lines or international boundaries, you can and will be held accountable,” said U.S. Attorney John Walsh. “The defendant thought that he could threaten people from afar, and return without consequences. He clearly learned that is not the case.”
“Individuals who make threats of violence overseas are not immune from prosecution in the United States,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Anyone who threatens law enforcement officers or their families is a serious threat to everyone.”
This case was investigated by Homeland Security Investigations and the Grand Junction Police Department.
The jury trial was handled by Assistant U.S. Attorneys Colleen Covell and David Tonini. Assistant U.S. Attorney Michelle Heldmyer in the U.S. Attorney’s Grand Junction branch office provided substantial assistance during the investigation and pendency of the case.
Freeport Physician Sentenced to 30 Years for Illegal PrescribingRead the Press Release
PENSACOLA, FLORIDA – Freeport physician Robert L. Ignasiak, Jr., 58, was sentenced to 30 years in prison yesterday for health care fraud, illegally distributing controlled substances, and failing to appear for trial. The sentence imposed by the court was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between 2001 and 2005, while operating the Freeport Medical Clinic, Ignasiak developed a reputation as a physician who freely prescribed highly addictive controlled substances. During that time, Ignasiak prescribed drugs such as hydrocodone, oxycodone, morphine, diazepam, and alprazolam in dosages and combinations that caused his patients to abuse and become addicted to the drugs. Ignasiak continued to prescribe these substances even after becoming aware that his patients were abusing them. He did this in spite of indications that his patients were not taking the medicines as prescribed, were stealing drugs, were “doctor shopping,” were taking the medicines with alcohol, were suffering overdoses, or were exhibiting other out-of-control behaviors. Ignasiak’s illegal prescribing practices resulted in the deaths of several of his patients.
Ignasiak was initially indicted on these charges in 2008. Following a jury trial in the fall of that year, Ignasiak was convicted of 12 counts of health care fraud and 31 counts of illegally distributing controlled substances. In 2012, Ignasiak’s convictions were reversed on appeal and he was released from custody pending a retrial. On October 31, 2012, Ignasiak faked his own suicide and fled. A warrant was issued for his arrest. He was arrested in Coral Springs, Florida in September 2013, and his retrial had been scheduled for December 2, 2013.
In October 2013, Ignasiak pled guilty to 12 counts of health care fraud, 29 counts of illegally distributing controlled substances, and one count of failing to appear for trial.
The charges were the result of a four-year joint investigation by the North Florida Health Care Fraud Task Force, comprised of the Federal Bureau of Investigation - Jacksonville Division, the Florida Department of Financial Services, the Florida Department of Law Enforcement, the Florida Attorney General’s Office, the Drug Enforcement Administration - Miami Division, the National Drug Intelligence Center Document Exploitation Division, the Defense Criminal Investigative Service, the Walton County Sheriff’s Office, and the State Surgeon General, Florida Department of Health.
Assistant U.S. Attorneys Karen Rhew-Miller and Alicia Kim prosecuted this case.
Former Taupa Lithuanian Credit Union CEO Charged for $15 Million FraudRead the Press Release
The former chief executive officer of Taupa Lithuanian Credit Union was charged today for engaging in a conspiracy that defrauded the credit union out of $15 million, some of which he used to build a home in Solon, obtain a luxury suite at Cleveland Browns games and buy multiple vehicles and firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Alex Spirikaitis, 51, was charged in a criminal information with one count of conspiracy to commit bank fraud. Spirikaitis personally embezzled about $4.2 million from Taupa between 2001 and 2013, according to the information.
“This defendant stole millions of dollars from credit union members who entrusted him,” Dettelbach said. “He lived a life of luxury based on stolen money and now he must own up for those actions.”
“Alex Spirikaitis spent more than a decade engaged in corrupt actions before fleeing from the home he purchased with credit union funds and hiding in Collinwood for 3 ½ months,” Anthony said. “The FBI thanks the public for their patience while the investigation continued and allowed us to bring this fraudster to justice.”
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last July and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis used the money he embezzled buy multiple firearms, which he stored at the credit union, and a suite for Cleveland Browns games. He used Taupa’s money to purchase nine vehicles for himself and his family between 2007 and 2012, according to the information.
He also used Taupa funds to write 26 checks between November 2011 and November 2012, totaling $1,655,000, to build a home on Liberty Road in Solon, according to the information.
He also engaged in a conspiracy with several other people and their actions led to a loss of approximately $15 million to the credit union and NCUA.
Michael Ruksenas, 33, of Naples, Florida, and John Struna, 51, of Concord Township, have previously been charged for their roles in the conspiracy.
Ruksenas worked as a teller from 1999 through 2006 at Taupa, which was located at 767 East 185th Street in Cleveland. Spirikaitis routinely reviewed the daily share draft report, circled names of certain members listed on the report with NSF checks, and instructed Ruksenas in his capacity as teller to honor and pay the NSF checks Spirikaitis had circled, according to the information.
After Ruksenas learned Spirikaitis honored overdrafts from certain accounts, he withdrew funds from his two accounts. Spirikaitis then transferred funds from Taupa directly into Ruksenas’ personal accounts to cover Ruksenas’ overdrafts, according to the information.
Also, Ruksenas worked as a home health aide for one of Spirikaitis’ relatives from 2007 through 2009, during which time Spirikaitis used credit union funds to purchase Ruksenas a Jeep Cherokee, according to the information.
As a result of that conspiracy, Taupa and the National Credit Union Association (which insures credit unions) lost approximately $481,000, according to the information.
Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitis in 2007, during which time Struna overdrew his accounts by approximately $2.5 million, according to the information.
Struna called Spirikaitis about twice a month and requested Spirikaitis’ approval to withdraw additional funds. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.
Spirikaitis caused Taupa to make approximately 38 false and fraudulent wire transfers into Struna’s personal accounts between 2007 and 2013. During that time, Struna repaid only approximately $15,000, according to the information.
In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. In 2012, he requested and received approximately $100,000 for an investment opportunity. At no time did Struna submit any credit applications or loan documents, according to the information.
As a result of that conspiracy, Taupa and the NCUA suffered a loss of approximately $2.5 million, according to the information.
The information also details similar conduct in which Spirikaitis transferred Taupa funds to cover overdrafts for others who worked at Taupa or had accounts there.
A person identified only as A.B. worked at Taupa between 1991 and 2013 and withdrew more than $1.3 million for which there were insufficient funds, according to the information.
A person identified only as G.C. withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.
A person identified only as P.B. withdrew approximately $1 million from accounts for which there were insufficient funds between 2001 and 2013. Spirikaitis made multiple transfers from Taupa’s internal accounts to cover the overdrafts, according to the information.
A person identified only as V.A., who worked at Taupa as a bookkeeper, withdrew approximately $120,000 from accounts for which there were insufficient funds, according to the information.
This case is being prosecuted by Special Assistant United States Attorney Derek Kleinmann and Assistant United States Attorney Robert J. Patton. The case was investigated by the Federal Bureau of Investigation.If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Sarcoxie School Board Member Pleads Guilty to Possessing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former member of the Sarcoxie, Mo., school board pleaded guilty in federal court today to possessing child pornography.
John R. Lewis, 68, of Sarcoxie, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 28, 2014, federal indictment.
According to court documents, Missouri State Highway Patrol troopers contacted Lewis as part of their investigation into allegations that he had exposed himself to a group of high school students who were working for Lewis on his farm outside of Sarcoxie. The troopers obtained a search warrant for Lewis’s residence and seized two desktop computers, a laptop computer and electronic storage devices.
Investigators determined that the computers contained 19 multimedia files of child pornography and 113 images of suspected child pornography. The multimedia files and images depicted children as young as five years old.
Under the terms of today’s plea agreement, Lewis will be sentenced to two years in federal prison without parole followed by 10 years of supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol, the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Owner of Connecticut Construction Company Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Romeo P. Cruz, of West Haven, Connecticut was sentenced by Senior U.S. District Judge Sylvia H. Rambo in Harrisburg in connection with his role in what the U.S. Department of Transportation (USDOT) has called the largest Disadvantaged Business Enterprise (DBE) fraud in the nation's history. Cruz was sentenced to 33 months’ imprisonment, $119 million in restitution to the USDOT and $79,450 in restitution to the IRS, and 2 years supervised release. He was ordered to surrender to the Bureau of Prisons on February 17, 2014 to begin service of his sentence.
On Monday January 13, 2014, Dennis F. Campbell, Schuylkill Products, Inc.'s (SPI) former Vice-President in charge of Sales and Marketing, was sentenced to 24 months’ imprisonment, $119 million in restitution to the USDOT and 2 years supervised release. Timothy G. Hubler, SPI's former Vice-President in charge of Field Operations, was sentenced to 33 months’ imprisonment, $119 million in restitution to the USDOT, $82,370 in restitution to the Internal Revenue Service, and 2 years supervised release.
Cruz was the owner of Marikina Construction Corporation, the DBE firm which operated as a front for SPI to gain lucrative DBE contracts, pleaded guilty to DBE fraud and tax fraud in 2008 and 2009. Cruz, Campbell and Hubler cooperated with the government's investigation which led to the conviction of the two former owners of SPI, Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI's former Vice-President and Chief Operating Officer, and Joseph W. Nagle, of Deerfield Beach, Florida, SPI's former President and Chief Executive Officer.
Fink pleaded guilty to DBE fraud in 2010. Nagle was convicted after a four-week jury trial in 2012 of 26 charges relating to the DBE fraud scheme. No sentencing date has been scheduled for Fink and Nagle.
"The sentence handed down today, in what is the largest reported DBE fraud case in USDOT history, serves as a clear signal that severe penalties await those who would attempt to subvert USDOT laws and regulations,” said Doug Shoemaker, OIG Regional Special Agent in Charge. “Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT Office of Inspector General. Prime contractors and subcontractors are cautioned not to engage in fraudulent DBE activity and are encouraged to report any suspected DBE fraud to the USDOT-OIG. Our agents will continue to work with the Secretary of Transportation, the Administrators of the Federal Highway, Transit and Aviation Administrations, and our law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes throughout Pennsylvania and the United States.”
According to U.S. Attorney Peter J. Smith, the DBE fraud lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone. SPI, using Marikina as a front, operated in several other states in the Mid-Atlantic and New England regions. Although Marikina received the contracts on paper, all the work was really performed by SPI personnel, and SPI received all the profits. In exchange for letting SPI use its name and DBE status, Marikina was paid a small fixed-fee set by SPI.
The scheme lasted as long as it did because of the numerous fraudulent steps the co-conspirators took to conceal the scheme. SPI personnel routinely pretended to be Marikina personnel by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI's logo on SPI vehicles.
SPI and its wholly-owned subsidiary, CDS Engineers, was sold in 2009 and was based in Cressona, Pennsylvania. SPI manufactured concrete bridge beams. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products. USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses owned and operated by disadvantaged individuals receive a fair share of these federal funds. The DBE fraud here involved SPI's use of Marikina's name and status to obtain DBE contracts that it was not entitled to receive.
The investigation was conducted by the FBI, the USDOT Inspector General's Office, U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the Internal Revenue Service. Senior Litigation Counsel Bruce Brandler handled the prosecution.
****Former Miami Real Estate Agents Sentenced for Roles <br /> in Multimillion-dollar Mortgage Fraud SchemeRead the Press Release
Two former Miami real estate agents were sentenced today for their roles in a $2.4 million mortgage fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Jose Filgueiras, 43, was found guilty at trial on Sept. 9, 2013, of three counts of bank fraud and was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida to serve 57 months in prison. Jose Filgueiras’s wife, Raquel Filgueiras, 39, was found guilty at trial on the same day of one count of bank fraud and was sentenced by Judge Zloch to serve 30 months in prison.
Three co-conspirators in the case were sentenced on Nov. 12, 2013. Jose Armando Alvarado, a former Miami area real estate agent and mortgage broker and Raquel Filgueiras’s father, was sentenced to serve 135 months in prison. Alberto Morejon, a former loan closer and title agent, was sentenced to serve 36 months in prison. Alvarado’s sister, Reyna Orts, a former mortgage broker and the mother of Morejon, was sentenced to serve 50 months in prison. Each of the co-defendants was convicted at trial of various counts of wire and bank fraud.
According to court documents and evidence presented at trial, Alvarado, along with his co-conspirators, operated a mortgage fraud scheme by controlling and operating three real estate entities in the Miami area: South Florida Realty; American Mortgage Lending, a mortgage broker; and Royal Atlantic Title, a title insurance agency. From February 2004 through November 2009, Alvarado and his co-conspirators used their control over these three companies to falsify and misrepresent important facts provided to financial institutions in order to fraudulently secure loans totaling more than $2.4 million. The loans were often obtained through submitting falsified supporting documentation, such as false tax returns, W2 forms, bank statements and employment verifications.
Evidence at trial showed that Alvarado and his co-conspirators subsequently enriched themselves by diverting loan proceeds, collecting brokerage fees and inflating real estate commissions generated by the sales of the properties. Alvarado and his co-conspirators obtained control of multiple properties during the real estate market boom with the intent to flip and sell them for a profit or control them as rental properties. The defendants used their knowledge and experience in the real estate industry to conceal the scheme by executing quit-claim deeds and failing to record, and falsely recording, mortgage deeds and other documentation with the State of Florida.
The case was investigated by the FBI’s Miami Field Office and the Miami-Dade Police Department. The case was prosecuted by Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section.Former Executive Director of Adoption Agency Pleads Guilty to Submitting False Information to Accreditation AgencyRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
WASHINGTON ---- The former Executive Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty yesterday to making false and fraudulent statements to the Council on Accreditation with respect to IAG’s accreditation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.
Mary Mooney, 57, of Belmont, North Carolina, admitted as part of her guilty plea that she made false statements to the Council on Accreditation (COA), which granted IAG accreditation to provide adoption services in certain countries. IAG marketed itself as a COA-accredited adoption services provider and numerous clients relied on IAG’s accreditation to confirm that IAG’s adoption services were ethical and in compliance with U.S. and foreign law. Mooney admitted that in support of IAG’s application for accreditation she made several false representations, including: falsely stating that IAG was in substantial compliance with the relevant regulations; intentionally failing to list her co-defendant, Alisa Bivens, as one of IAG’s employees providing adoption services; and intentionally failing to disclose that James Harding, another co-defendant, was the functional director and head of the company. All of these false and fraudulent statements were material to COA’s decision to accredit IAG to conduct intercountry adoptions for purposes of the Hague Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoptions. Without that accreditation, IAG would not have been legally permitted to facilitate intercountry adoptions from any country that was a party to that convention and numerous families would have never retained IAG to provide adoption services.
Mooney is the third defendant to plead guilty as a result of this investigation. Mooney pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina. A sentencing hearing will be scheduled at a later date.
This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State. The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.# # #
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Five Charged with $1.2 Million Worth of Food Stamp Frauds at Three Stores in YonkersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William G. Squires Jr., Special Agent-in-Charge, U.S. Department of Agriculture Office of the Inspector General (“USDA-OIG”), and Charles Gardner, Commissioner of the City of Yonkers Police Department, announced the unsealing of three Complaints yesterday charging five individuals with participating in three separate conspiracies to exchange food stamps for cash at three stores in Yonkers, New York, in violation of the terms of the Supplemental Nutrition Assistance Program (“SNAP”).
U.S. Attorney Preet Bharara stated: “Defrauding the SNAP program is tantamount to taking food from needy children and adults, all of whom need help to get adequate nutrition. As alleged, food stamps were being redeemed for a portion of their cash value. The scheme is cynical and illegal and those who practice it will be prosecuted to the full extent of the law.”
USDA Office of Inspector General, Special Agent-in-Charge William G. Squires Jr. stated: “SNAP was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Yonkers Police Department has brought to justice several individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our state and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”
Yonkers Police Department Commissioner Charles Gardner stated: “I would like to thank the members of our Street Crime Unit for their extraordinary investigative efforts in this case. It is yet another example of a successful collaboration between the Yonkers Police Department and our federal partners. This should be a warning to other business owners here in Yonkers that SNAP benefits should be processed as intended or you will be subjected to serious criminal charges.”
According to allegations in the Complaints unsealed in White Plains federal court:
AHMED ALSAMET, 35, the owner of SAM DELI GROCERY STORE in Yonkers, and SHOIAB AHMED, 22, an employee of SAM DELI GROCERY STORE, are charged with conspiring to exchange over $250,000.00 in food stamp benefits for cash. YOUSIF KASSIM, 30, the owner of 42 POST DELI GROCERY in Yonkers, and MUFID KASSEM, 36, an employee of 42 POST DELI GROCERY, are charged with conspiring to exchange over $200,000.00 in food stamp benefits for cash. GLORIA GARCIA, 51, is charged with conspiring to exchange over $800,000.00 in food stamp benefits for cash at a store in Yonkers.
Four of the defendants charged in the Complaints were arrested and presented in White Plains federal court before U.S. Magistrate Judge Paul E. Davison. MUFID KASSEM remains at large.
Each defendant, upon conviction, faces a maximum penalty of 5 years’ imprisonment.
Mr. Bharara praised the outstanding investigative work of the USDA-OIG and the City of Yonkers Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Ahmed Alsamet et al Complaint
U.S. v. Gloria Garcia Complaint
U.S. v. Yousif Kassem et al ComplaintFederal Inmate Charged with Possession of Hand-made WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an Indictment yesterday against Ronnie Perkins, age 23, an inmate incarcerated at the Federal Correctional Institute at Schuylkill yesterday.
According to United States Attorney Peter J. Smith, Inmate Ronnie Perkins is charged with being in possession of a hand-made stabbing weapon on prison grounds.
If convicted, Ronnie Perkins could be imprisoned for a total statutory maximum of up to five years’ imprisonment and a fine of $250,000.
The investigation was conducted by the FBI and the Bureau of Prisons and is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 5 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Essex County, N.J., Man Admits Role in Armed CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man today admitted his role in an armed carjacking in Newark on Nov. 8, 2012, U.S. Attorney Paul J. Fishman announced.
Nathaniel Tullies, 20, of East Orange, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
On Nov. 8, 2012, when an individual got out of a 2006 Chevrolet Impala to open a garage door, Tullies and an accomplice got on either side of the car, took it from the victim at gunpoint and drove away. The victim called police, who responded within minutes. A Newark police detective spotted the vehicle and a high-speed chase ensued, ending when the Impala crashed on the shoulder of Routes 1/9, the suspects fled on foot and the detective chased and captured Tullies.
The carjacking charge to which Tullies pleaded guilty is punishable by a maximum potential penalty of 15 years in prison. The firearms charge to which Tullies pleaded guilty is punishable by a minimum consecutive term of seven years in prison and a maximum consecutive term of life in prison. Each of these charges also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited detectives with the Essex County Prosecutor’s Office, under the Direction of Acting Prosecutor Carolyn A. Murray, and investigators in the U.S. Attorney’s Office with the investigation leading to today’s guilty plea. Sentencing is scheduled for April 28, 2014.
The government is represented by Assistant U.S. Attorneys Elizabeth M. Harris and Sara F. Merin of the Criminal Division in Newark.
14-020
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Tullies Information
Eastern Idaho Man Sentenced for Meth TraffickingRead the Press Release
POCATELLO – Emilio Raymond Martinez, 31, of Rigby, Idaho, was sentenced today in United States District Court to 80 months in prison followed by four years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. He appeared today before Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by designation as a district court judge. Martinez pleaded guilty to the charge on October 16, 2013.
According to court documents, on February 26, 2013, during execution of a search warrant at a residence in Bonneville County, officers found Martinez in possession of methamphetamine, which he intended to distribute, and paraphernalia.
Martinez’s co-defendant Sammy Joe Aguirre, 27, of Idaho Falls, pleaded guilty in November 2013 to possession with intent to distribute methamphetamine. He is scheduled to be sentenced on February 21, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. He faces up to 20 years in prison.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Idaho State Police, with assistance from the Idaho Falls Police Department and Bonneville County Sheriff’s Office. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Deputy Director of Hudson County Correctional Center Charged with Wiretapping Fellow WorkersRead the Press Release
NEWARK, N.J. – The deputy director of the Hudson County Correctional Center surrendered today to law enforcement and was charged by complaint with illegally wiretapping fellow employees, U.S. Attorney Paul J. Fishman announced.
Kirk Eady, 45, of East Brunswick, N.J. is charged by complaint with one count of intentionally intercepting the wire, oral or electronic communications of others. He is expected to make his initial court appearance today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the documents filed in this case and statements made in court:
Between March 2012 and July 2012, Eady used the services of a publically available website to place telephone calls to four Hudson County Correctional Center employees. The website allowed Eady to conceal the telephone numbers from where the calls originated and also call and record two people simultaneously and make it appear as those people, and not Eady, originated the call. Eady recorded these telephone conversations and did not inform the Hudson County Correctional Center employees that he was recording them. Eady admitted to a cooperating witness that he had recorded conversations with three employees.
The illegal interception offense with which Eady is charged is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office Special Prosecution’s Division.
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Defense counsel: Peter Willis Esq., Jersey City, N.J.Eady Complaint
Delaware Woman Sentenced to 63 Months for Role in Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Beverly Newton, age 52, of Middletown, Delaware, was sentenced yesterday by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, to 63 months imprisonment and full restitution. The defendant pleaded guilty to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud), in September 2013.
The defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 on account of the fraudulent returns. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant received more than $300,000 for her part in the scheme.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who conspire with others to file false claims against the United States Treasury will face significant penalties. My office is committed to working with the Internal Revenue Service to prosecute these cases, and I will seek incarceration wherever possible and appropriate.”
“The sentencing of Beverly Newton again emphasizes that IRS Criminal Investigation, the United States Attorney’s Office and its law enforcement partners will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system.” said Akeia Conner, IRS Criminal Investigation Special Agent in Charge. “Ms. Newton is being held accountable for her involvement in this elaborate criminal action.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, the Social Security Administration Office of the Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.Cuyahoga Falls Man Charged for Trying to Purchase 10-Year-Old GirlRead the Press Release
Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announce the federal arrest of Robert W. Thomas, age 36 of Cuyahoga Falls, Ohio.
On January 11, 2014, detectives from the Alliance Police Department arrested a man who was attempting to purchase a 10-year-old female child to keep and use for sexual purposes. The man had posted on an online site asking for anyone willing to arrange a “marriage” of their daughter to him. An Alliance Police Department officer, also assigned to the Ohio Internet Crimes Against Children Task Force, responded to the man’s posting and began a conversation.
Robert W. Thomas agreed to a meeting with the online undercover officer to purchase for $400 what he believed to be a 10-year-old child. Thomas and the officer, acting in an undercover capacity, met in a business establishment in Alliance and then went outside to complete the “transaction.” As the two approached the undercover officer’s vehicle, Thomas was arrested. At the time of arrest, Thomas had $400 cash in his hand. Thomas was taken into custody and was held in the Stark County Jail on a $2 million bond.
The FBI and the Cuyahoga Falls Police Department provided assistance to the Alliance Police Department during the arrest and the subsequent search warrant conducted at Thomas’ residence.
After intensive review with consideration given to the nature and the seriousness of the offense, the investigative team and prosecutors deemed it appropriate to file federal charges.
On January 14, 2014, a federal arrest warrant was authorized charging Robert W. Thomas with one count of Title 18 U.S.C. 2251 A(b)(2)(A), which is the selling or buying of children.
“This case is the result of outstanding investigative work completed by the Alliance Police Department and its partners,” Anthony said. “Mr. Thomas should be prosecuted to the fullest extent of the law and these federal charges will ensure justice is served. Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children.”
Dettelbach said: “The conduct laid out in these charges is disturbing. Our office remains committed to working with the FBI and all our law enforcement partners to defend our children and fight human trafficking.”
Jennifer L. Arnold, law director for the city of Alliance, said: “The Alliance Law Director’s office would like to commend all the agencies involved in this arrest. While the investigation moved quickly with the Alliance Police, the FBI, the Cuyahoga Falls Police Department, and Judge Lisa Coates of the Stow Municipal Court assisted to ensure that this matter was done with professionalism. This matter received the highest priority treatment by all agencies as warranted by a case of this nature.”
“This was a tremendously successful investigation and operation performed under the supervision of Lieutenant John Jenkins, Detective Bureau Commander,” said Chief Scott C. Griffith, Alliance Police Department. “Also playing integral roles were Detective Matt Shatzer and Officer Hope Rummell, who were assisted by Detective Mike E. Jones, Detective Robert Rajcan, and Officer Don Bartolet. We also appreciate all the assistance given our investigators by the FBI.”
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
Any questions regarding this news release can be directed to Special Agent Vicki D. Anderson at the Cleveland Office of the FBI, (216) 522-1400 or [email protected].
Colorado U.S. Attorney's Office Joins in Collections of over $100 Million in Civil and Criminal Actions and Asset Forfeiture in Fiscal Year 2013Read the Press Release
DENVER -- U.S. Attorney John Walsh announced today that in Fiscal Year 2013 the United States Attorney’s Office for the District of Colorado collected a total of $94,388,632.41 for the United States, composed of collections by the Office independently in Colorado and collections obtained jointly with other offices and Department of Justice components. Of the total, the U.S. Attorney’s Office in Colorado collected $85,344,392.38 in important national level cases working with other U.S. Attorney’s Offices and the Department of Justice, some of which are described below, and collected $9,044,240.03 independently in criminal and civil actions in Colorado. Of the Colorado-specific collections, $6,887,564.95 was collected in criminal actions and $2,156,675.08 was collected in civil actions. In addition to these substantial funds, the U.S. Attorney’s Office also collected $7,634,919.00 in asset forfeiture actions in Fiscal Year 2013. Total collections joined by the Colorado office and others in Fiscal Year 2013 exceeded $100 million, more than 6 ½ times the Colorado U.S. Attorney’s budget for Fiscal Year 2013, $15,414,747.00.
Attorney General Eric Holder recently announced that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents over three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“In addition to the many millions of dollars that the U.S. Attorney’s Office in Colorado collects year-in and year-out on our regular caseload, this office has taken the lead in national-level cases, working with other U.S. Attorney’s Office and the Department of Justice in Washington, DC. In Fiscal Year 2013 alone, our overall efforts resulted in the collection of over one hundred million dollars,” said U.S. Attorney John Walsh. “This is critical work on behalf of the taxpayers, who have reason to be proud of the efforts of our Colorado team on behalf of both Colorado and the entire country. Every year, this office is responsible for collecting far more money for the United States taxpayer than our own annual budget.”
Two national cases deserve emphasis. The Colorado U.S. Attorney’s Office, working with colleagues in the Eastern District of New York, the Southern District of Florida and the Eastern District of Michigan, resolved an action for civil penalties against Walgreens Pharmacies for its repeated violations of the Controlled Substances Act. Certain Walgreen stores repeatedly filled bogus prescriptions for highly addictive painkillers that they knew or should have known had no legitimate medical purpose. In addition, the office also worked with the Department of Justice’s Civil Division and other agencies to resolve allegations that NEK Advanced Securities, Inc. was overcharging for their work to develop and deploy teams of specialized personnel in Iraq and Afghanistan to combat improvised explosive devices.
In cases brought solely by the U.S. Attorney’s Office in Colorado, several have been notable. Shawn Merriman operated an investment fraud scheme for over 14 years. The Postal Inspection Service investigated the fraud scheme, determining that Merriman defrauded victim investors of over $20 million. In addition to criminal charges, the United States seized, forfeited and disposed of numerous assets belonging to Merriman. All of the assets were finally sold in 2013, and totaled $3,292,804.05 altogether. The United States was able to remit all of these funds to the victims in 2013.
In addition, in March 2013, Thomas Bader,one of the defendants involved in the College Pharmacy case, in which the defendant was illegally distributing human-growth hormone, was sentenced to 40 months in prison. In addition to his prison sentence, the Court entered a Final Order of Forfeiture, forfeiting to the United States a commercial building worth approximately $2 million, as well as ten other real properties. The Court had previously entered a $4.7 million money judgment against Mr. Bader. In fiscal year 2013, the United States collected $1,242,100.00 in the College Pharmacy case. Additional assets continue to be sold and liquidated. The United States is expecting at least an additional $2 million this next fiscal year.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's Office in Colorado, working with partner agencies and divisions, collected $7,634,919.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Asset Forfeiture and Treasury Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Child Pornography Charged Filed Against Four PeopleRead the Press Release
Child pornography charges were filed against four people in unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mark A. Steffee, 43, of Hartville, Ohio, was charged with enticement and possession of child pornography. The indictment charges that from on or about September 1, 2005, through on or about December 1, 2005, and again from on or about March 5, 2013, through on or about March 27, 2013, Steffee, knowingly used a computer connected to the Internet, to attempt to persuade, induce, entice and coerce a 14-year-old girl to engage in illegal sexual activity with him. The indictment also charges that on March 27, 2013, Steffee possessed a computer that contained child pornography.
Marcus W. Cover, 30, of from Midvale, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. The indictment charges that from on or about September 5, 2013, through on or about September 29, 2013, Cover knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on December 16, 2013, Cover possessed a computer that contained child pornography.
Kimberly Metzdorf, 23, of Ashtabula, Ohio, was charged with producing, receiving, distributing and possessing child pornography. The indictment charges that on or about July 8, 2013, July 12, 2013 and July 15, 2013, Metzdorf permitted a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, knowing that such visual depiction would be transported in interstate and foreign commerce. The indictment also charges that from on or about July 3, 2013, through on or about July 23, 2013, Metzdorf knowingly received and distributed in interstate and foreign commerce, numerous digital files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on December 17, 2013, Metzdorf possessed an iphone that contained child pornography.
Nicholas Gerhardt, 68, of Canton, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. The indictment charges that from on or about November 19, 2012, through on or about December 1, 2012, Gerhardt knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on February 13, 2013, Gerhardt possessed a computer and an external hard drive each that contained child pornography.
If convicted, the sentences in these cases will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The Steffee case was investigated by the United States Secret Service, the Ohio Internet Crimes Against Children Task Force and the Hartville Police Department. The Cover case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department. The Metzdorf case was investigated by the Department of Homeland Security, Homeland Security Investigations. The Gerhardt case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department.
These cases are being prosecuted by Assistant United States Attorney Michael A. Sullivan.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Child Pornographer Sentenced to 25 Years for Sexually Exploiting MinorsRead the Press Release
Orlando, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Daniel Heffield (30, Orlando, Florida) to 25 years in federal prison for producing and possessing child pornography. The Court also ordered Heffield to serve a life term of supervised release, following his incarceration, and to register as a sex offender. As part of the sentence, Heffield was also ordered to forfeit his interest in the computers and camera that he used to commit the offenses.
Heffield pleaded guilty on August 29, 2013.
According to court documents, Heffield produced and attempted to produce between 25 and 30 sexually explicit videos of at least nine prepubescent and pubescent girls, while they used the bathroom at his home. Heffield had built a device to secure a camera in the bathroom vanity drawer, opposite the toilet. The victims took piano lessons from Heffield’s mother, at Heffield’s house, and were surreptitiously recorded when they used the bathroom during their lessons. Heffield posted the videos of what he considered to be the best shots of the children’s naked genitalia, on the Internet. Homeland Security Investigations special agents located one of the videos during a child pornography investigation in Maine, and subsequently were able to identify a six year-old child.
In an unrelated investigation, agents with the Federal Bureau of Investigation (FBI) discovered that Heffield was a prolific distributer of child pornography, after they downloaded compressed files containing thousands of images depicting the sexual exploitation of prepubescent and pubescent girls that Heffield had posted to a newsgroup. In April 2013, agents executed a search warrant at Heffield’s home and located over 1300 images of child pornography that Heffield had stored on three different hard drives. Heffield admitted to producing, distributing and possessing child pornography, and said that he had been viewing child pornography for about the past fifteen years. Heffield said that he uploaded child pornography to a newsgroup and encouraged and taught others to do the same because it was a faster and easier way to obtain child pornography.
"The exploitation of children is one of the most heinous crimes we investigate," said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. "Innocent, unsuspecting children are violated, and their images are traded online for eternity. Our special agents take crimes against children very seriously, and we ensure that child pornographers are sentenced to the fullest extent of the law."
FBI Special Agent in Charge Paul Wysopal said, “The facts of this case gives you a glimpse into the mind of a child predator, and the lengths to which such an individual will go in order to take advantage of our children. It is an ugly reminder to parents that these predators will exploit children while hiding in the shadows of restrooms and the Internet. It is our job as law enforcement officers to drag them out of the shadows and we will continue to do so.”“Investigations such as this require the ongoing cooperation of our law enforcement partners, as was demonstrated in this case,” said Acting U.S. Attorney Lee Bentley. “Partnerships like these allow us to bring the proper resources to bear against these egregious crimes.”
This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Charges Lodged in Aggravated Identity Theft CaseRead the Press Release
Liberado Peralta, 69, of Allentown, Pennsylvania, was charged today by indictment with one count of conspiracy to defraud the United States with respect to claims and three counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
In a related case, Florentina Peralta, a/k/a “Cindy Peralta,” Jose Peralta, a/k/a “Tony Peralta,” and Fayez Antonios were each charged today by information with the same offenses, and Jose Peralta was also charged with one count of making false statements to obtain a loan insured by the Department of Housing and Urban Development.
If convicted, each defendant other than Jose Peralta faces a maximum possible sentence of 16 years’ imprisonment, three years’ supervised release, a $1 million fine, and a $400 special assessment. Jose Peralta’s maximum sentence is 18 years’ imprisonment, 3 years’ supervised release, a $1.25 million fine, and a $500 special assessment.
The cases were investigated by the Internal Revenue Service and the Office of the Inspector General for the Department of Housing and Urban Development. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Carjacker Who Led Police on A High Speed Chase Exiled to over Three Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Correy Markel Janifer, age 21, of Washington, D.C., today to 46 months in prison followed by three years of supervised release for being a felon in possession of a gun and interstate transportation of a stolen vehicle.
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; and Acting Chief of Police Robert Maclean of the U.S. Park Police.
According to his plea agreement, at about midnight on January 29, 2013, a man wearing a ski mask pointed a handgun at the driver of a Honda Accord while the driver was sitting in his car in the northeast section of the District of Columbia. The man hit the driver in the back of the head with his gun and took the car.
Shortly afterwards, D.C. police in marked cruisers saw the stolen Honda driving on the streets and tried to stop the car. Janifer, the driver, did not stop, and led the police on a chase into Maryland and onto the Baltimore-Washington Parkway. U.S. Park Police officers took up the pursuit with their lights flashing and sirens activated.
Janifer drove on at about 90 miles an hour in the 45 mile speed zone. As Janifer approached the interchange with Route 410, he went through a red light and returned to the Parkway. Janifer braked hard, causing a Park Police officer to swerve into another lane to avoid a collision. Janifer then accelerated and struck the right rear of the officer’s marked cruiser. Janifer then drove up the ramp to Route 450, while a loaded pistol was thrown out of the Honda. Janifer continued on to westbound Route 450, speeding, fishtailing and weaving over the center line into the oncoming lane. Janifer lost control of the car and finally halted. When an officer positioned his cruiser to prevent the Honda from moving further, Janifer drove the Honda forward to collide with the officer’s car and rip off the front bumper.
Janifer got out of the Honda and fled, shedding his jacket as he ran. Soon after, Janifer was surrounded by police and arrested. The pistol that was thrown from the Honda was recovered. A ski mask similar to the one described by the carjacking victim was found in the pocket of the jacket Janifer had thrown down during the chase.
United States Attorney Rod J. Rosenstein commended the ATF and U.S. Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman, who prosecuted the case.
Brotherly Love Amblance EMT Pleads Guilty to Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Neel Jackson, 35, of Philadelphia, PA, pleaded guilty today to health care fraud in connection with a scheme involving Brotherly Love Ambulance, Inc. A sentencing hearing is scheduled for April 17, 2014.
In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer. Jackson, an Emergency Medical Technician (EMT) employed by Brotherly Love, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Jackson and others completed paperwork including “run sheets” representing that patients needed ambulance services, when he knew that they were able to walk or to be transported by public transportation or para-transit van. In addition, Jackson gave envelopes he understood to contain cash or other payments to induce patients to allow Brotherly Love to transport them and/or to induce them to remain with Brotherly Love. Finally, Jackson received payments for referring patients to Feda Kuran and/or Brotherly Love. As a result of Jackson’s actions, the Medicare program paid more than $200,000 in inappropriate bills. As a result of the overall scheme at Brotherly Love, the Medicare program paid more than $2 million in inappropriate bills.
The defendant faces a maximum possible sentence of 10 years of in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of restitution and forfeiture.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bonners Ferry Man Indicted for Violent ATM Theft in McCallRead the Press Release
BOISE — Nathan Paul Davenport, 34, of Bonners Ferry, Idaho, was indicted yesterday by a federal grand jury in Boise for bank larceny by use of a dangerous weapon and use of a deadly weapon during a felony offense, U.S. Attorney Wendy J. Olson announced.
The indictment charges that on January 10, 2014, Davenport broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. The indictment further alleges that using a Ruger assault rifle, he shot at responding law enforcement officers in connection with the offense.
“Those who use firearms to commit violent crimes will be vigorously investigated and prosecuted,” said Olson. “The FBI and U.S. Attorney’s Office will move swiftly and decisively where evidence shows that those individuals attempt to injure law enforcement officers who themselves are trying to keep our communities safe. Along with our local law enforcement partners, we will continue to investigate this incident.”
Davenport and another individual, Matthew Taber Annable, 39, were arrested without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men appeared in federal court in Salt Lake City on Monday afternoon on a Wyoming federal complaint charging them with an ATM theft in Douglas, Wyoming on December 8, 2013.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of use of a deadly weapon during the commission of a felony offense is punishable by a mandatory minimum of ten years up to life imprisonment, a maximum fine of $250,000, and up to five years supervised release.
The case is being investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Indictments and complaints are a means of charging a person with criminal activity. They are not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Beaver County Woman Admits Threatening Potential Federal Witnesses via FacebookRead the Press Release
PITTSBURGH – A Beaver County woman pleaded guilty in federal court to a charge of violating federal witness intimidation laws, United States Attorney David J. Hickton announced today.
Natalie Moskorisin, 23, of Ambridge, Pa., pleaded guilty to one count of witness intimidation before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court learned that Moskorisin sent a threatening Facebook message to potential witnesses in the federal narcotics case involving her boyfriend at the time, David Best. This message warned these potential witnesses not to cooperate with the Government in its investigation of David Best.
Judge Schwab scheduled sentencing for April 29, 2014, at 9:30 a.m. The law provides for a total sentence of up to 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Natalie Moskorisin.
Architect Arrested in Connection with Progreso Bribery SchemeRead the Press Release
McALLEN, Texas - Jesus Bustos, 57, has been arrested on charges of conspiracy and bribery associated with a federally-funded program, announced United States Attorney Kenneth Magidson.
Bustos was charged in a sealed superceding indictment, returned Jan. 8, 2014, and unsealed this morning upon his arrest. He is expected to make an initial appearance before U.S. Magistrate Judge Peter Ormsby at 9:00 a.m. in McAllen.
The superseding indictment alleges Bustos participated in a bribe paying scheme in Progreso. Bustos is accused of paying bribes to public officials in Progreso in order to obtain contracts on public construction projects for his architectural firm, IDEA Group LLC.
Also indicted are Jose Vela, the former director of maintenance and transportation for the Progreso Independent School District (PISD), and his sons - mayor of Progreso Omar Vela and former president of the PISD Board of Trustees Michael Vela. The Vela family defendants are accused of using their control of Progreso municipal government and the PISD Board of Trustees to extract bribes and kickbacks from contractors, including IDEA Group. PISD receives more than $1 million per year in federal funds from the United States Department of Education, according to the indictment.
Beginning in June 2004, the Vela family members allegedly conspired with Bustos and others to obtain bribes and kickbacks from IDEA Group and from a construction company that were both hired as contractors by the city of Progreso and PISD. According to the indictment, bribes were also paid by an attorney who was hired as local counsel to advise the PISD Board and by a company that supplied the city of Progreso and PISD with electrical and plumbing supplies.
The indictment alleges Jose Vela maintains political control in Progreso through his sons Omar and Michael. Jose Vela allegedly controls members of the PISD Board through a system of reward and retaliation in which board members who vote as Jose Vela directs are rewarded with bribe money, while those who do not follow his direction are retaliated against. Through this system of political control, the Vela family was able to obtain bribes from Bustos and other willing contractors.
If convicted, Bustos faces up to 10 years in prison and a possible $250,000 fine.
The FBI investigated the case and Assistant United States Attorney Robert S. Johnson is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Annapolis Cocaine Dealer Exiled to over 7 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Shawn Anthony Pollard, age 35, of Annapolis, Maryland, today to 92 months in prison followed by three years of supervised release for conspiring to distribute and possession with intent to distribute cocaine.
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; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Anne Colt Leitess.According to his plea agreement, on February 9 and 17, 2012, a confidential informant bought a total of 8.8 grams of cocaine from Pollard in Annapolis. On February 24, 2012, law enforcement officers executed a search warrant where Pollard lived and seized a loaded handgun, a digital scale containing cocaine residue, .3 grams of cocaine base from Pollard’s jacket and $34,790 which were the proceeds of drug sales. Text messages were also found on Pollard’s phone in which individuals were seeking to buy 1/8 kilogram of cocaine for $4,900 and a half of a kilogram for $18,200.
United States Attorney Rod J. Rosenstein commended the ATF, Annapolis Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who prosecuted the case.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 29-year-old Palestine, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clifford Murray pleaded guilty on Nov. 6, 2013, to possession with intent to distribute approximately 11.6 grams of crack cocaine and was sentenced to 60 months in federal prison today by U.S. District Judge Michael H. Schneider. Murray was also ordered to pay a $20,000 judgment and submit to forfeiture of seized firearms and cash.
According to information presented in court, on Mar. 14, 2013, Murray was found at a residence on South Jackson Street in Palestine, Texas, in possession of crack cocaine, which he intended to distribute to others. Murray also admitted to possessing three pistols, a pistol-grip shotgun, ammunition and $8,907 in cash, all in connection with his drug trafficking activities.
This case was investigated by the Palestine Police Department, the Anderson County District Attorney’s Office, the U.S. Drug Enforcement Administration, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Ambridge Woman Passed Fake Painkiller Scripts, Drove Getaway Car in Pharmacy BurglaryRead the Press Release
PITTSBURGH - A resident of Ambridge, Pa., pleaded guilty in federal court to a charge of violating federal narcotics and burglary laws, United States Attorney David J. Hickton announced today.
Katie Adams, 28, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that Adams conspired with others to possess with the intent to distribute and distribute oxycodone, a Schedule II controlled substance. In that regard, the Court learned that Adams passed a number of fraudulent oxycodone prescriptions at pharmacies in the Western District of Pennsylvania. Adams then provided the obtained oxycodone to charged co-defendant David Best, who later resold this oxycodone. In addition, law enforcement from the Pennsylvania Attorney General’s Office conducted a controlled buy of oxycodone from Adams in July, 2013.
Further, the Court was advised that Adams conspired with others to burglarize the Med-Fast pharmacy in Baden, Pa., on Sept. 26-27, 2012, and from that pharmacy, stole controlled substances, including oxycodone and oxymorphone. In that regard, the Court learned that Adams conspired together with separately charged defendants David Best and Carlos Martinez to burglarize the pharmacy. On the evening of Sept. 26, 2012, Adams drove Best and Martinez to the pharmacy. Best first broke into the Chinese restaurant next door to the pharmacy, and from there, bore through the wall of the restaurant and into the pharmacy. Once inside the pharmacy, Best stole the controlled substances. While Best was inside the pharmacy, Martinez served as a “lookout” outside the pharmacy. Best then left the pharmacy, and Katie Adams, the “getaway” driver, drove Martinez and Best away from the pharmacy. The three persons later split the obtained narcotics amongst themselves. Carlos Martinez has previously pled guilty to burglarizing the pharmacy. David Best has pleaded not guilty to the charges against him.
Judge Schwab scheduled sentencing for April 30, 2014, at 10:30 a.m. The law provides for a total sentence on each count of up to 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Katie Adams.
Alleged Illegal Alien Indicted for Failure to DepartRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an Indictment yesterday against Sergey Ryzhenkov charging failure to depart the United States.
According to United States Attorney Peter J. Smith, Sergey Ryzhenkov, age 30, a native and citizen of Russia, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued.
If convicted, Sergey Ryzhenkov faces up to four years imprisonment.
The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines
14 January 2014
Windsor and Bellows Falls Men Sentenced for Trading Handguns to Frank Caraballo for DrugsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that two men who separately traded different handguns to convicted drug dealer Frank Caraballo, of Holyoke, Massachusetts were recently sentenced by Chief Judge Reiss of the United States District Court in Rutland.
Chief Judge Reiss sentenced Robert Cappiallo, 29, of Windsor, Vermont, to 52 months in prison to be followed by two years of supervised release. Judge Reiss previously sentenced Thomas Parrott, 33, of Bellows Falls, Vermont, to 58 months in prison to be followed by three years of supervised release.
According to court records, including testimony in the trial of United States v. Frank Caraballo, in July 2011, a few weeks before Caraballo caused the murder of Melissa Barratt on July 28, 2011 in Dummerston, Vermont, Parrott traded a Glock 9mm handgun to Caraballo for several grams of crack cocaine. This trade occurred late one evening in the Hannaford’s parking lot in Brattleboro, Vermont. According to the forensic evidence introduced at Caraballo’s trial, a Glock 9mm was used to murder Barratt.
According to court records, including testimony in the trial of United States v. Frank Caraballo, in early July 2011, Cappiallo stole a Desert Eagle .357 handgun from his brother-in-law in Windsor, Vermont. Cappiallo later traded this firearm in Ludlow, Vermont to Caraballo to pay off a drug debt for heroin and crack cocaine and to obtain additional drugs. This firearm was never recovered.
In the past few years, the United States Attorney’s Office has prosecuted several other individuals who obtained handguns for drug dealers, including drug addicts who traded such firearms for drugs, as well as the drug dealers who obtained such firearms. These firearms are often used to commit additional crimes. For example, in United States v. Jewel Hurt, a handgun (Cobra .380 pistol) traded to Jewel Hurt in Rutland by a drug addict for a few grams of crack cocaine in 2010 was later stolen from Hurt by Lamont James (aka “Supreme”) in an armed home invasion in Rutland. On October 28, 2010, in the Stewart’s parking lot in Rutland, James displayed this firearm in a threatening manner and was fatally shot by a Vermont State Trooper. Jewel Hurt was sentenced to 100 months imprisonment by United States District Court Judge J. Garvan Murtha.
In another gun-for-drug trade, pertaining to the cases of United States v. Gregory Gosselin, and United States v. Michael Norrie, Norrie traded a .22 handgun he stole from his father in Sheffield, Vermont, to Greg Gosselin for marijuana and money. Soon afterwards, on October 19, 2009, Gosselin and Scott Tobyne used this handgun to rob a young female McDonald’s employee in Lyndonville,Vermont who was making a night deposit at a Lyndonville bank. Judge Reiss sentenced Gosselin to 49 months imprisonment, Norrie to 56 months imprisonment, and Tobyne to 39 months imprisonment.
United States Attorney Tristram Coffin stated that: “these cases tragically illustrate that firearms conveyed to drug dealers are often used to commit violent crimes. These cases also show that it is unlikely that firearms illegally traded to drug dealers are used for lawful sporting purposes. The United States Attorney’s Office, with our partners at the Bureau of Alcohol, Tobacco, Firearms and Explosives, will continue to vigorously prosecute those who trade guns for drugs, purchase guns for drug dealers, or otherwise unlawfully put firearms in the hands of criminals.”
The Parrott and Cappiallo cases were jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Vermont State Police, and the Vermont Drug Task Force. The United States is represented in these cases by Assistant U.S. Attorneys Paul Van de Graaf and Joe Perella. Robert Cappiallo is represented by Jordana Levine of White River Junction. Thomas Parrott is represented by Thomas Sherrer of Burlington
Williamston Felon Sentenced for Possessing A FirearmRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced TERRANCE DISHON DANIELS, 21,of Williamston, North Carolina, to 57 months in prison followed by 3 years of supervised released for possessing a firearm after having been convicted of a felony. DANIELS previously pled guilty to this charges on September 30, 2013.
DANIELS was arrested on December 18, 2012, by the Williamston Police Department after DANIELS fired several shots from a .38 caliber revolver while sitting in a car parked on Middle Street in Williamston. The investigation revealed that DANIELS and another person were trespassing through the backyards of residences on West Main Street. After several residents told DANIELS and the other person to leave their yard, DANIELS and the other person ran to a Ford Taurus parked on Middle Street. DANIELS fired several shots after entering the car. Officers from the Williamston Police Department, the Martin County Sheriff’s Office and the North Carolina Highway Patrol found DANIELS in Holly Ridge Mobile Home Park after DANIELS exited the Taurus. The firearm fired by DANIELS, a Tiger Titan .38 caliber revolver, was found on the ground near the Taurus. DANIELS was prohibited from possessing a firearm by virtue of his prior felonious assault conviction.The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Williamston Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Webb City Woman Sentenced for Embezzling $114,000 from her EmployerRead the Press Release
SPRINGFIEFLD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Webb City, Mo., woman was sentenced in federal court today for embezzling more than $114,000 from her employer.
Roxanna Sue Rindom, 47, of Webb City, was sentenced by U.S. District Judge Beth Phillips to 18 months in federal prison without parole. The court also ordered Rindom to pay $114,814 in restitution.
On Sept. 4, 2013, Rindom pleaded guilty to two counts of bank fraud and one count of credit card fraud.
Rindom, who was employed by Neal Group Construction, LLC, in Joplin, Mo., admitted that she forged 68 checks on her employer’s bank account that were made payable to herself. In order to conceal the forgeries, Rindom made fictitious entries into the company’s accounting system, QuickBooks. The majority of the entries are written as fictitious company-related expenditures. Rindom also designated on some of the checks that it was a payroll check for a certain pay period, when in fact it was not a lawful payroll check.
Rindom also admitted that she made 174 unauthorized purchases on the company’s credit card. In addition, Rindom made five unauthorized alterations to the direct deposits made to her bank account. There were also several unauthorized purchases made by Rindom on the Neal Group Construction’s account at the Lowe’s store in Joplin.
Rindom’s criminal conduct was discovered on May 23, 2012, when she attempted to make an unauthorized $2,179 wire transfer from her employer’s bank account to pay her daughter’s student loan payment. This attempted theft prompted the company to conduct a detailed audit of the checking account. The loss for Rindom’s criminal conduct totals $114,814.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the FBI.Vendor Admits to Conspiring to Pay Bribes of $40,000 to NJ Transit EmployeesRead the Press Release
NEWARK, N.J. – A vendor admitted today to conspiring to pay bribes of approximately $40,000 to NJ Transit employees to obtain snow removal contracts, U.S. Attorney Paul J. Fishman announced.
Edward O’Neill, 53, of Toms River, N.J., pleaded guilty to an information charging him with one count of conspiracy to commit bribery. O’Neill entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and a related case and statements made in court:
O’Neill was the president of PPW Contracting Inc. (PPW), which provided professional powerwashing and snow removal services for NJ Transit, an agency that received more than $10,000 in federal funds. Thomas Braden, 55, also of Toms River, worked at PPW as its vice president and secretary.
From September 2011 to March 2012, O’Neill and Braden agreed to give, and gave, a cooperating witness (the “CW”) who was an NJ Transit employee, approximately $20,000 in exchange for the CW’s assistance with securing the 2011-2012 snow removal contract for the Trenton, N.J., train station. From September 2012 to April 2013, O’Neill and Braden agreed to give the CW another $20,000, $8,000 of which was to go to an NJ Transit supervisor, in exchange for their assistance with securing the 2012-2013 snow removal contract.
On Dec. 28, 2013, Braden pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of bribery.
The conspiracy to commit bribery charge to which O’Neill pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for O’Neill is scheduled for April 22, 2014. The bribery charge to which Braden pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. Braden is scheduled to be sentenced on March 25, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, Superintendent, for the investigation leading to today’s guilty plea. He also thanked the N.J. Attorney General’s Office under the direction of Attorney General John Hoffman and Elie Honig, director of the N.J. Division of Criminal Justice, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Special Assistant U.S. Attorney Michael A. Monahan, the chief of the Financial and Computer Crimes Bureau, Division of Criminal Justice, in the N.J. Office of the Attorney General.13-014
Defense counsel: Robert L. Galantucci Esq., Hackensack, N.J.
O'Neill, Edward Information
Braden, Thomas InformationUnited States Supreme Court Holds Oral Argument in Criminal Firearms Case from West TennesseeRead the Press Release
Memphis, TN – On Wednesday morning, the United States Supreme Court will hear oral argument in United States v. Castleman, a federal criminal case originating in the Western District of Tennessee, announced U.S. Attorney Edward L. Stanton III.
In 2001, James Castleman was convicted of misdemeanor domestic assault in state court in Carroll County, Tennessee. The state indictment alleged that Castleman intentionally or knowingly caused bodily injury to the mother of his child.
In 2008, law enforcement agents discovered that Castleman and his wife were allegedly buying firearms from dealers and selling them on the black market. In August 2009, a federal grand jury in Memphis charged Castleman with two counts of possessing a firearm after having been convicted of a misdemeanor crime of domestic violence, in violation of 18 U.S.C. § 922(g)(9).
The district court granted the defendant’s motion to dismiss these federal charges in April 2010, on the basis that defendant’s prior Tennessee domestic assault conviction was not “a misdemeanor crime of domestic violence,” as that term is defined in federal law.
The United States appealed, and in September 2012 the U.S. Court of Appeals for the Sixth Circuit affirmed the district court’s ruling, with each Judge of the divided three-member panel writing separately. The government sought rehearing by the en banc Court of Appeals, but the court declined to reconsider its decision.
In May 2013, the United States filed a petition for a writ of certiorari from the Supreme Court. The Court granted that petition on October 1, 2013. The question presented before the Supreme Court is whether Castleman’s Tennessee conviction for misdemeanor domestic assault by intentionally or knowingly causing bodily injury to the mother of his child qualifies as a “misdemeanor crime of domestic violence” under federal law. The case has important implications for federal prosecutions of domestic abusers who arm themselves with firearms.
Assistant U.S. Attorney Daniel French and Criminal Appellate Chief Kevin G. Ritz represented the United States during the proceedings in the lower courts. The Office of the Solicitor General is representing the government in the Supreme Court. Arguing for the United States is Assistant to the Solicitor General Melissa Arbus Sherry. A decision in the case is expected before the end of June.USP Hazelton Inmates Enter Pleas and Are SentencedRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that the following individuals appeared before Judge Irene M. Keeley.
VICENTE CHAVEZ, age 34, JOSE RODRIGUEZ-ZAVALA, age 39, ANDRES TORALES-MEDINA, age 31, and LUIS ALBERTO GARCIA, age 33, entered pleas of guilty to “Assault with a Dangerous Weapon with Intent to Do Bodily Harm.” CHAVEZ, RODRIGUEZ-ZAVALA, TORALES-MEDINA and GARCIA, who are members of the Surenos gang, participated in an assault on members of MS-13 gang. CHAVEZ was sentenced to 12 months in prison to run consecutive to his current 216-month sentence; RODRIGUEZ-ZAVALA was sentenced to 12 months in prison to run consecutive to his current 86-month sentence; and, TORALES-MEDINA was sentenced to 12 months in prison to run consecutive to his current 33-month sentence. GARCIA will be sentenced at a later date.
RYAN FIELDS, age 37, entered a plea of guilty to “Possession of a Prohibited Object” when staff found a homemade weapon or shank in FIELDS’ pants pocket. FIELDS was sentenced to 12 months in person to run consecutive with his current 540-month sentence.
MAKISHEA BOBBI WILLS, age 32, entered a plea of guilty to “Assault with a Dangerous Weapon with Intent to Do Bodily Harm.” WILLS was sentenced to 15 months in prison to run consecutive with her current 210-month sentence.
These cases were prosecuted by Assistant U.S. Attorney Brandon S. Flower and investigated by the Special Investigative Services Staff at USP Hazelton.
U.S. Attorney’s Office in the Middle District of Alabama Collects over $2.4 Million in Civil and Criminal Actions in 2013Read the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck, Jr. announced today that the Middle District of Alabama collected over $2.4 million in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,332,163 was collected in criminal actions and $69,688 was collected in civil actions.
Additionally, Middle District of Alabama worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $150,753 in criminal actions pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During this time of hard economic times, these collections are more important than ever,” said U.S. Attorney Beck. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for victims of crime as well as for the federal treasury. We will continue to hold accountable, both civilly and criminally, those who seek to make money from illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617U.S. Attorney's Office Prosecutes Record Number of Sex Trafficking Cases in 2013Read the Press Release
Portland, Ore. — U.S. Attorney Amanda Marshall announced today that the U.S. Attorney’s Office for the District of Oregon prosecuted a record number of sex trafficking defendants in 2013. In 2012, the U.S. Attorney’s Office created the “Gang and Sex Trafficking Unit” which included additional prosecutorial resources to fight sex trafficking in Oregon. The following year, the office filed thirteen federal indictments, more than triple the number of sex trafficking indictments filed in any prior year. The past year, 2013, fourteen defendants were charged with federal sex trafficking crimes in the District of Oregon. In addition, thirteen defendants were convicted or sentenced in the district for sex trafficking crimes in 2013, also a record.
"Every day traffickers are recruiting our teenage girls in shopping malls, on public transportation, and on the street, and every night these children are being raped by johns in hotel rooms across Oregon,” said U.S. Attorney S. Amanda Marshall. “This is modern day slavery, and we will not rest until every victim is rescued, and every trafficker sent to prison.”
Most of the new federal cases involved the sex trafficking of children, ranging in age from 13 to 17. Others involved the sex trafficking of young adult women through force, fraud, or coercion. Three of the charged sex traffickers were women. For the first time in this district, the federal grand jury also charged a consumer of a sex trafficked child, commonly referred to as a “john,” under the federal sex trafficking laws.
All of the trafficked victims in these new cases were local girls or young women, living in Oregon or Washington at the time of recruitment.
Under federal law, the mandatory minimum sentence for a defendant convicted of sex trafficking a child (aged 14-17 years old) is ten years in prison, or fifteen years in prison if the child is less than 14 years old. The mandatory minimum sentence for a defendant convicted of sex trafficking through force, fraud, or coercion, is also fifteen years in prison. The statutory maximum sentence for these crimes is life imprisonment.
The United States Attorney’s Office works closely with the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force (CETF) to combat the commercial sexual exploitation of children in the district. The CETF marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and rescue victims. The CETF partners with local law enforcement agencies, to include the Portland Police Bureau, Tigard Police Department, Beaverton Police Department, and Vancouver Police Department.
Two Newark, N.J. Men to Appear in Federal Court, Charged with Armed CarjackingsRead the Press Release
NEWARK, N.J. – Two Essex County, N.J., men arrested in connection with two gunpoint carjackings and an attempted carjacking in December 2012 are expected to make their initial appearances today in Newark federal court, U.S. Attorney Paul J. Fishman announced.
Jamie Manning, 28, and Corey Thermitus, 21, both of Newark, are each charged in a superseding complaint with one count of conspiracy to commit theft of a motor vehicle by force, violence and intimidation (carjacking); two counts of carjacking; and one count of attempted carjacking. Additionally, Thermitus is charged with one count of discharging of a firearm in furtherance of a crime of violence, and Manning is charged with one count of brandishing a firearm in furtherance of a crime of violence. Manning and Thermitus are scheduled to appear this afternoonbefore U.S. Magistrate Judge Joseph A. Dickson.
Manning was arrested on Jan. 5, 2013, and has been in custody in Essex County since that time; he was taken into federal custody today to face these charges. Thermitus has been in custody since his arrest by Newark police officers on Dec. 29, 2012, and was previously charged by federal complaint with offenses related to a carjacking he allegedly committed the previous day. A superseding complaint charging both men was recently filed in Newark federal court.
According to documents filed in this case and statements made in court: During the early morning hours of Dec. 26, 2012, Manning and Thermitus approached two individuals entering a parked 2002, four-door Nissan Altima on a street in Newark. Manning pointed a firearm at one of the victims and both Manning and Thermitus ordered the victims to get out of the car. After robbing and threatening the victims, Manning and Thermitus fled the area in the carjacked vehicle.
On Dec. 28, 2012, Thermitus approached an individual sitting in a 2011, four-door Honda Accord that was parked in the driveway of a home in Newark. Thermitus pointed a firearm at the victim and ordered the victim to get out of the car. After threatening to shoot the victim, Thermitus, Manning and another man fled the area in the victim’s car.
Later that night, Thermitus, Manning and a third man drove in the carjacked Honda Accord to a residential area in Newark. Thermitus and Manning approached two individuals, one of whom was a young child, who were sitting in a parked 2006, four-door Nissan Pathfinder in the driveway of a residence. Thermitus pointed a gun at the driver of the vehicle while Manning approached the rear passenger side of the vehicle, but the driver managed to escape in the car. As the assailants fled in the Honda Accord, Thermitus fired a gun in the direction of an individual who had come outside of a residence to investigate.
The conspiracy count carries a maximum potential penalty of five years in prison. The carjacking and attempted carjacking counts each carry a maximum potential penalty of 15 years in prison. The charge of brandishing a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. The charge of discharging a firearm in furtherance of a crime of violence carries maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the leadership of Director Samuel A. DeMaio and Chief Sheilah A. Coley with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the superseding complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
14-021Defense counsel: Corey Thermitus: Assistant Federal Public Defender Peter Carter, Newark
Jamie Manning: Frank Arleo Esq., West Orange, N.J..Thermitus, Corey and Manning, Jamie Superseding Complaint
Two Joplin Men Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Joplin, Mo., men have been sentenced in federal court, in separate and unrelated cases, for fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Andy Eric Brownlee, 32, and Leslie Lynn Williams, 54, both of Joplin, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes on Monday, Jan. 13, 2014. Brownlee and Williams were each sentenced to two years in federal prison without parole. The court also ordered Brownlee to pay $2,750 in restitution and ordered Williams to pay $1,196 in restitution.
On Aug. 5, 2013, Brownlee pleaded guilty to making materially fraudulent statements and representations to FEMA in connection with his application for disaster assistance. Brownlee completed a FEMA application for disaster assistance on May 26, 2011, claiming that his Joplin residence had been damaged by the tornado. Brownlee received a payment of $2,750. However, Brownlee admitted that the address he used in his FEMA application was actually the address of the Lazarus Ministries Halfway house, which was not his residence at the time of the tornado. Brownlee previously resided there, but moved out prior to the tornado.
Williams pleaded guilty on March 8, 2013, to making materially fraudulent statements and representations to FEMA in connection with his application for disaster assistance. Williams admitted that when he filed for disaster relief on May 27, 2011, he listed a Joplin address as his primary residence and claimed that it had been damaged by the tornado. FEMA authorized a $1,196 payment to Williams. Williams admitted, however, that he was not living at that address at the time of the tornado, but had moved out in February 2011.
These cases were prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. They were investigated by the U.S. Department Homeland Security, Office of the Inspector General (DHS-OIG), the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.Two Idaho Falls Men Sentenced for Violating Federal Drug LawsRead the Press Release
POCATELLO – Saul Arellano-Alvarado, 41, and Jaime Meza-Gonzalez, 47, both of Idaho Falls, were sentenced today in United States District Court in Pocatello on charges related to methamphetamine trafficking, announced U.S. Attorney Wendy J. Olson. Arellano-Alvarado was sentenced to 70 months in prison followed by four years of supervised release for distributing five grams or more of methamphetamine. Meza-Gonzalez was sentenced to 12 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine, aiding and abetting. Both appeared before Judge N. Randy Smith of the Ninth Circuit Court of Appeals, sitting by special designation as a district court judge.
Arellano-Alvarado and Meza-Gonzalez pleaded guilty to the charges on September 25, 2013. According to the plea agreements, on November 16, 2010, an individual contacted Meza-Gonzalez for the purpose of purchasing methamphetamine. Meza-Gonzalez directed the individual to Arellano-Alvarado. The next day Arellano-Alvarado made arrangements to distribute methamphetamine to the individual at a parking lot in Idaho Falls, and subsequently sold the person in excess of five grams of methamphetamine.
The third defendant, Roberto Carlos Camarena, 25, of Sugar City, Idaho, is a fugitive. A warrant has been issued for his arrest.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Federal Bureau of Investigation (FBI), Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Twenty from Akron Indicted in Heroin Case, Including One for Providing Heroin That Resulted in Fatal OverdoseRead the Press Release
Twenty people were indicted for their roles in a conspiracy that brought heroin and other drugs to Akron and an Akron was charged with providing heroin that resulted in an overdose death, law enforcement officials announced today.
The indictment includes a death specification enhancement against Garland V. Phelps, Jr. The indictment alleges that a person fatally overdosed on Dec. 25, 2012, on heroin distributed by Phelps.
Eighteen Akron residents were charged with conspiracy to possess with intent to distribute heroin. Two other people, also of Akron, were indicted on related charges.
The indictment describes a conspiracy that took place from 2011 through 2014, in which heroin was brought to Akron from Atlanta, Chicago and other cities. It also details discussions between some conspirators about shooting, robbing and killing rival drug dealers and discussions about killing people they suspected of being informants to law enforcement.
“These defendants profited off people’s addictions, and in one case directly contributed to an overdose death,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to aggressive prosecute heroin dealers while working with medical and treatment professionals in an effort to thwart this epidemic.”
U.S. Drug Enforcement Administration Acting Special Agent in Charge James Van Allen stated: “Heroin use has become one of the largest drug abuse problems in Ohio and across the United States. This joint operation is a clear demonstration of the ongoing commitment the law enforcement community throughout Northeast Ohio has on working together to fully investigate those individuals and drug trafficking organizations that choose to endanger our community by trafficking in heroin and other illegal drugs.”
“This is an example of the fine working relationship between law enforcement in Summit County and out continued attack on drug trafficking,” said Akron Police Chief James Nice.
Summit County Sheriff Steve Barry stated, “This successful operation was made possible by the collaboration between federal, state, and local law enforcement. We will continue investigating and dismantling this drug operation with our law enforcement partners.”
The following individuals were indicted:
Name
Age
Garland V. Phelps Jr., aka “Felix”
36
33
Willie L. Sanders Jr.
27
Larry P. Dorsey
27
James M. Porter
24
Larry L. Sullivan Jr.
42
Brian A. Proctor
35
Cortez L. Davis
28
Matt E. Shocklee
56
Aaron S. Farrey
31
Garland J. Thompson, aka “Chill”
27
Antonio V. Dorman
24
Tramontay D. McWain
27
Jermaine D. Freeman
41
Antonia D. Easter
24
William D. Robinson
27
Denay M. Webb
29
Michaelas F. King
35
Quinntin R. Chatman
35
Marcus D. Mitchell
42
All of the defendants, with the exception of Quinntin R. Chatman and Marcus D. Mitchell, are charged in Count 1 with conspiracy to distribute and to possess with the intent to distribute heroin.
In Counts 2-17, various defendants are charged with substantive distributions of heroin, methamphetamine, cocaine and crack cocaine.
Phelps obtained multi-ounce and larger quantities of heroin from various suppliers, including Sykes, Sanders and a person identified only as Conspirator 1. Phelps, Sykes and Sanders distributed the heroin to various dealers, including Dorsey, Porter, Sullivan, Proctor, Davis, Shocklee, Thompson, Dorman, McWain, Easter, Robinson and King, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force, which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecuted resources.
This case is being prosecuted by Assistant U.S. Attorneys Samuel A. Yannucci and Teresa Dirksen following an investigation was by the Drug Enforcement Administration, in partnership with the Akron/Summit County High Intensity Drug Trafficking Area initiative, the Federal Bureau of Investigation Safe Streets Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Summit County Drug Unit is comprised of members from the Summit County Sheriff’s Office, New Franklin Police Department, Stow Police Department, Copley Police Department, Cuyahoga Falls Police Department, Akron Police Department, FBI, DEA, Reminderville Police Department, Springfield Police Department, University of Akron Police Department, and the Barberton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Togiak Area Man Sentenced to Prison for Wasting Walrus, Illegally Transporting Tusks and Firearms ViolationsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that Togiak area resident Jessie Anariak, age 50, was sentenced by the Hon. Sharon L. Gleason, United States District Court Judge, to a term of 15 months imprisonment for his actions arising from the illegal take of a walrus on Round Island in May, 2011.
Anariak, along with codefendant Sixty Arkanakyak, was indicted in December, 2012. The indictment alleged that on May 9, 2011, Anariak and Arkanakyak, departed from the village of Togiak, Alaska in a Lund skiff. After leaving Togiak, the men are alleged to have motored to and beached the skiff on Round Island, an island located within the Walrus Islands State Game Sanctuary and accessible to the public only by permit. In December, 2012, Arkanakyak plead guilty to the illegal taking of a walrus from Round Island, as well as being a felon in possession of a firearm. He was later sentenced in August, 2013, by the Hon. Sharon L. Gleason to a term of 30 months imprisonment.
The U.S. Fish and Wildlife Service Office of Law Enforcement, and Refuge Law Enforcement investigated this case with the assistance of the Alaska Wildlife Troopers.
The indictment alleges that while on the beach, Arkanakyak and Anariak approached a herd of walrus which were hauled out on the beach. Both men, armed with .12 gauge shotguns, began shooting walrus and wounded approximately five. The herd stampeded and four wounded walrus escaped into the sea. Arkanakyak and Anariak then corralled one walrus against a cliff on the beach and shot it in the head with their shotguns until it died. The men then hacked the tusks off the walrus’s skull and returned to their skiff without taking any of the meat or anything else from the killed walrus. Arkanakyak and Anariak then departed Round Island, taking the tusks with them and leaving the walrus on the beach to waste in violation of the Lacey Act, the Marine Mammal Protection Act and the Conspiracy statute. At sentencing, Anariak received credit for time already served in federal and state custody, which amounted to over a year.Three Sentenced in Vast Oxycodone ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 13, 2014, Jason Curtis Jones, 36, of Elizabethton, Tenn., was sentenced to serve 78 months in prison; Michael Lelon Sharp, 50, of Blountville, Tenn., was sentenced to serve 72 months in prison; and Donnie Ray Horne, 55, of Kingsport, Tenn., was sentenced to serve 71 months in prison by the Honorable J. Ronnie Greer, U.S. District Court Judge, for their participation in an oxycodone conspiracy centered in and around the Sullivan County area.
A total of 17 individuals, including the three sentenced today, were indicted for their roles in this oxycodone trafficking conspiracy. Many of the pills were obtained from Michigan, Florida and Georgia and transported back to the Eastern District of Tennessee for resale. Jones and Sharp stipulated that they conspired to distribute at least 6,544 and 4,300 oxycodone pills respectively in the Eastern District of Tennessee. Horne was also convicted of engaging in a money laundering conspiracy used to further the oxycodone trafficking. Horne assisted his son, Devin Horne, 24, of Blountville, Tenn., who was also indicted, in collecting drug debts, selling oxycodone, wiring money to drug suppliers in Michigan and smuggling drugs into jail. Devin Horne is scheduled to be sentenced in April 2014.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent convictions of Jones, Sharp and Horne include the Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office, Kingsport Police Department, Bristol Tennessee Police Department and Elizabethton Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “We are pleased with the sentences in these case and believe they reflects the seriousness of the crimes committed.”
Texas Mexican Mafia General Heads to Federal Prison for Nearly 13 YearsRead the Press Release
HOUSTON - Eric Gomez aka Valla, a general in the Texas Mexican Mafia prison gang, has been ordered to prison for his role in the distribution of heroin, announced United States Attorney Kenneth Magidson. Gomez, 37, of San Antonio, pleaded guilty Sept. 11, 2013.
Gomez was charged along with 25 members or associates of the notorious Texas Mexican Mafia (TMM) prison gang with trafficking in heroin, cocaine and methamphetamine as well as firearms violations, distributing explosive materials and violent crimes in aid of racketeering in October 2012. Court records showed the TMM gang made money by trafficking heroin, cocaine and methamphetamine and by selling firearms.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Gomez a sentence of 151 months in federal prison. In handing down the sentence, Judge Atlas noted that the heroin quantity was as significant as any case in her 18 years on the bench.
The TMM formed in the early 1980s in the Texas Department of Criminal Justice. During a four-year-period from 2008 through October 2012, the TMM procured illegal drugs and distributed the drugs to numerous associates involved in drug trafficking in order to carry out the business of the gang. Gang members also sold numerous assault rifles and other guns to FBI sources as well as detonation cord. Gomez himself facilitated the sale of 5.5 kilograms of heroin to a FBI confidential source from December 2011 - January 2013.
In addition to Gomez, 22 others have also pleaded guilty in the case to date. Among those include Houston residents Robert Arechiga, 35, Francisco Galvan, 47, Alexander Garcia, 41, George Maldonado, 46, Carlos Romero, 32, and Juan Sarmientos, 46. Also convicted include Valentin Ayala-Gutierrez, 52, Gilbert Gonzalez, 43, Jose Cerda, 27, and Enrique Bravo, 39, all of San Antonio; Ruben Esparza, 36, of Robstown; Jorge Montemayor, 37, and Michael Villarreal, 33, both of Baytown; Alvin Valadez, 43, of Seguin; and Ernesto Villarreal, 36, of Corpus Christi. Also pleading guilty were Juan Deluna, 43, Adam Guzman, 45, Jorge Montemayor, 37, Johnny Reyes, 52, Ricardo Sanchez, 34, Tony Valdez, 38, and Armando Villarreal III, 25.
Gomez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The case was investigated by the FBI with assistance from Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, Harris County Sheriff’s Office, police departments in Baytown and Houston and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Tim S. Braley and Mark Donnelly are prosecuting.
Texas Businessman Pleads Guilty to Federal Charge in Nearly $1.7 Million Fraud Scheme-Defendant Kept Proceeds of Business Loan for Personal Benefit-Read the Press Release
WASHINGTON – Arnold Rojas Rivas, 46, a businessman from San Antonio, Texas, pled guilty today to a federal charge stemming from a scheme in which he defrauded a federal agency and a private company of nearly $1.7 million, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director of the FBI’s Washington Field Office.
Rojas pled guilty in the U.S. District Court for the District of Columbia to wire fraud. The Honorable Robert L. Wilkins scheduled sentencing for May 14, 2014. Under federal sentencing guidelines, he faces a likely range of 33 to 41 months of incarceration as well as a fine of up to $75,000. Under the plea agreement, he also must pay restitution. Finally, he is subject to an additional forfeiture money judgment in the amount of at least $1,655,925.
According to the government’s evidence, Rojas was the director of Corporativo Papelero y De Suministros Basicos, S.A. DE C.V. (COPASBA), a company based in Mexico that produced toilet paper and napkins for the Mexican market by converting large rolls of raw paper into final products. The company applied for, and obtained, access to a $10 million credit facility from a finance company based in Hartford, Conn. At the time that COPASBA applied for the credit facility, it was the fifth biggest producer of toilet paper and napkins in Mexico. Funds borrowed from this credit facility were supposed to be used to build a warehouse to house COPASBA’s product and to assist with the company’s general operations.
The credit facility was guaranteed by the Overseas Private Investment Corporation (OPIC), an agency of the U.S. government which has as one of its missions providing insurance, guarantees, financing, and reinsurance for projects in less developed countries and areas. Under the terms of the guarantee agreement, OPIC guaranteed 97.5% of any losses.
In order to obtain access to the funds, Rojas had to submit requests explaining how COPASBA would use the funds, and these requests required Rojas to make a number of representations about COPASBA’s financial condition. In mid-2006, COPASBA requested and received more than $6 million from the facility. In the months after receiving the last of these funds, COPASBA’s position weakened significantly: the company’s cash-on-hand plummeted, workers went on strike, and suppliers began refusing to do business with the company. The company’s condition became so bad during this time that Rojas ordered workers to disassemble the machines the company used to make its paper goods so the machines could be sold. By June 2007, COPASBA had essentially ceased functioning as a company.
Nevertheless, Rojas requested another disbursement of over $1.8 million for COPASBA, failing, in violation of the credit agreement, to inform the finance company or OPIC of the many problems the company had encountered. Unaware of the fact that COPASBA had ceased functioning, the finance company released over $1.8 million from the credit facility to COPASBA. Within moments of COPASBA receiving the funds, Rojas transferred nearly $1.7 million to his personal account. He used these funds for his and his family’s personal benefit.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, Lenisse Edloe, and Shanna Hays; former Assistant U.S. Attorney Matthew C. Solomon, who investigated the matter, and Assistant U.S. Attorney Diane Lucas, who handled forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Matt Graves and former Acting Deputy Chief Glenn S. Leon and former Trial Attorney Mary Ann McCarthy of the Department of Justice’s Fraud Section, who investigated and prosecuted the matter.
14-010Statement Regarding the Death of Brandon ColemanRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, released the following statement today:
“In October 2013, the United States Attorney’s Office opened a preliminary inquiry regarding the death of Brandon Coleman, who was fatally shot last May. The inquiry was opened at the request of the NAACP following the declination of criminal prosecution by the Boone County, Mo., Prosecuting Attorney. The FBI, the U.S. Attorney’s Office and the Department of Justice's Civil Rights Division have thoroughly examined the evidence to determine whether a federally prosecutable criminal civil rights violation or other federal criminal offense occurred. The preliminary inquiry is now closed and no further federal action is warranted. No criminal charges have been filed and no federal civil action will be pursued.
“It is the policy of the Department of Justice that we shall not respond to questions about the status or existence of an investigation. However, due to the substantial publicity received by the allegations in this case, and in light of the fact that the request for our office to investigate became a matter of public concern, I have determined that this release of information is in the public's interest.
“This is in accordance with the United States Attorneys Manual, Section 1-7.530, Disclosure of Information Concerning Ongoing Investigations: ‘In matters that have already received substantial publicity, or about which the community needs to be reassured that the appropriate law enforcement agency is investigating the incident, or where release of information is necessary to protect the public interest, safety, or welfare, comments about or confirmation of an ongoing investigation may need to be made.’
“No additional comment will be made regarding this issue.”
South Portland Man Sentenced to over Thirteen Years for Armed Robbery ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today
Joseph Morrill, 24, of South Portland, Maine was sentenced yesterday in U.S. District Court by
Judge D. Brock Hornby to 161 months in prison and five years of supervised release for federal armed robbery and federal firearms offenses. Morrill pleaded guilty to the charges on August
19, 2013.
Court records reveal that a Glock pistol and a badge belonging to a law enforcement detective were stolen from a motor vehicle in South Portland, Maine on September 21, 2012. On
April 17, 2013, Morrill, who was driven by Michael Platts, used the stolen pistol to steal approximately $182 in cash during a robbery of the Cumberland Farms store located on Cottage
Road in South Portland, a business engaged in interstate commerce.
On April 22, 2013, Morrill used the same pistol to steal approximately $5,612 during a robbery of the TDBank on Market Street in South Portland. On June 14, 2013, the execution of a federal search warrant at a Broadway residence in South Portland resulted in the stolen handgun being recovered.
Seven years of Morrill’s sentence was imposed as a consecutive mandatory minimum for his use and carrying the stolen pistol during and in relation to the TD Bank robbery, a crime of violence. Following his incarceration, Morrill will be on federal supervised release for five years.The investigation was conducted by the South Portland Police Department and the
Federal Bureau of Investigation.Sioux Falls Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Possession of Child Pornography was sentenced on January 9, 2014, by U.S. District Judge Karen E. Schreier.
Maksim Mehiolvich Stefanyuk, age 22, was sentenced to 24 months in custody, to be followed by 5 years of supervised release.
Stefanyuk was indicted for possessing child pornography by a federal grand jury on October 4, 2011. He pled guilty on October 23, 2013.
On April 28, 2011, law enforcement officers with the Internet Crimes Against Children Task Force executed a search warrant at Stefanyuk’s residence in Sioux Falls. Officers seized Stefanyuk’s computer. When it was examined, images of child pornography were discovered that had been downloaded from the internet using a file-sharing program. Stefanyuk admitted knowing that he possessed the images on his personal laptop computer.
This case was investigated by the Minnehaha County Sheriff’s Department, the Sioux Falls Police Department, the Internet Crimes Against Children Task Force, and the U.S. Department of Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Stefanyuk was immediately turned over to the custody of the U.S. Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Second Conspirator Pleads Guilty in Bank Fraud SchemesRead the Press Release
Stole Checks from Mailboxes
Greenbelt, Maryland –Paul Essel, age 26, of Laurel, Maryland, pleaded guilty today to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
“Stealing mail to commit identity theft and bank fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Gary Barksdale, U.S. Postal Inspection Service - Washington Division. “With our partner law enforcement agencies, Postal Inspectors will continue to aggressively investigate these crimes.”
According to his plea, from June 14, 2010 to March 11, 2013, Essel and Nelly Dadson opened bank accounts in their own names and in the names of shell corporations that they controlled. Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Essel deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel also provided checks to Dadson with instructions to deposit these counterfeit checks into accounts that she controlled, withdraw the funds and provide the funds to Essel, for which Essel paid Dadson.In addition, from June 14, 2010 to November 13, 2012, Essel and Dadson conspired to defraud Home Depot. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied a debit card number of a conspirator, including Essel and Dadson, requesting that the refund for the order be placed on the conspirator’s debit card. At Essel’s request, Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Essel paid Dadson $600 to $800 per transaction. Essel also received at least three credits to his bank accounts totaling approximately $8,902.96, which he withdrew.
The total loss caused by Essel’s conduct is between $400,000 and $1 million, and involved between 10 and 50 victims.
Essel faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Essel has agreed to pay forfeiture and restitution of at least $418,435.48. U.S. District Judge Paul W. Grimm scheduled his sentencing for May 13, 2014.
Nelly Dadson, age 23, of Baltimore, previously pleaded guilty to her participation in the schemes and is scheduled to be sentenced on January 24, 2014 at 9:30 a.m. Dadson has agreed to pay forfeiture and restitution of at least $251,745.52.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Bryan Foreman and Christen A. Sproule, who are prosecuting the case.
San Diego Company Admits to Defrauding Defense Department of MillionsRead the Press Release
United States Attorney Laura E. Duffy announced today that San Diego-based Vector Planning & Services, Inc. (“Vector”) entered into an agreement with the United States Attorney’s Office in which it admits to criminally defrauding the Defense Department, and in which it agrees to pay restitution. Vector, which also has offices in Chantilly, Virginia, entered the agreement this afternoon in federal court in San Diego before U.S. Magistrate Judge William McCurine, Jr.
As part of the agreement, referred to as a deferred prosecution agreement, Vector admitted that its former CEO and majority owner submitted five years’ worth of false cost claims to the Defense Department, resulting in losses to the Defense Department of over $3.6 million.
The case concerns Vector’s accounting practices in connection with certain cost-reimbursement contracts that it held with the Defense Department. Under a cost-reimbursement contract, a contractor is entitled to reimbursement for both its direct allowable costs, such as the cost of labor on that contract, and a prorated portion of its indirect allowable costs, such as the cost of rent for the contractor’s office space. Because indirect costs must be pro-rated across multiple contracts, they cannot be precisely determined until the end of the fiscal year. Accordingly, under a cost-reimbursement contract, a contractor initially submits claims for indirect costs based on “provisional” or estimated rates, and later submits its actual indirect costs to the government for review, reconciliation, and approval. This later submission, known as an “Incurred Cost Submission” or “Incurred Cost Proposal,” reflects what the contractor certifies were its actual allowable costs for the prior fiscal year.
In this case, Vector admits that after claiming and being paid for direct costs in connection with other, firm-fixed-price and time-and-materials contracts, Vector systematically reclassified these same costs in its accounting system to make it appear as if the costs were indirect costs that were incurred in connection with its cost-reimbursement contracts, thereby inflating its indirect cost rates. These inflated rates were then used by Vector to justify the rates claimed in its Incurred Cost Proposals submitted to the Navy. The effect of these fraudulent submissions was, in essence, to pay Vector twice for the same expenses, amounting to “double dipping” or “double billing” at government expense.
Vector admits to submitting these false Incurred Cost Proposals for costs incurred in 2005 through 2009, with a total loss to the Defense Department of $3,672,756. As described in Vector’s agreement, Vector made these false submissions in 2010, 2011, and 2012.
When faced with a Defense Department audit in late 2011, Vector falsified its electronic accounting entries, and prepared and backdated fake invoices in order to support those falsified accounting entries. Vector admits that the direction for the fraud came from its then-CEO, who is now deceased.
As part of the agreement, Vector agrees to make payments in the amount of $6.5 million, which includes restitution to the Defense Department for losses Vector caused. Vector also agrees to maintain a 3 compliance and ethics program. In exchange, the United States Attorney’s Office has agreed to postpone a prosecution for felony false claims against Vector for a period of three years; in the event Vector complies with all the terms of the agreement, the criminal case will be dismissed at the end of that period.
In addition to the criminal deferred prosecution agreement, Vector is entering into a civil settlement with the Civil Division of U.S. Attorney’s Office and the Justice Department’s Civil Division. In all, Vector will pay $6.5 million to resolve its criminal and civil cases. These criminal and civil settlements are the result of a coordinated effort involving, as investigative agencies, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Naval Criminal Investigative Service.
U.S. Attorney Laura E. Duffy stated, “Those companies that choose to defraud our nation’s armed services will be found and held accountable.” Duffy praised the close cooperation of the investigative agencies on this case.
FBI Special Agent in Charge, Daphne Hearn, commented, “This case involved several complex fraudulent schemes to defraud the Department of Defense and ultimately American taxpayers. If not for the outstanding investigative efforts by agents and prosecutors in this matter, these schemes would have gone undetected and millions of dollars of taxpayer's dollars wasted. Today's settlement is an example of the FBI's continued commitment to working with our law enforcement partners to ensure our precious tax dollars are protected from waste, fraud and abuse.”
Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service, Western Field Office said, “We are extremely pleased at this outcome, which yet again sends the message that fraud will be vigorously investigated and violators held accountable. Whether it is a complicated manipulation of accounting rules or a straight theft of DoD funds, fraud of this nature harms our national security and erodes public confidence. The Defense Criminal Investigative Service and our law enforcement partners will use all tools available to protect taxpayers' interests.”
DEFENDANT Vector Planning & Services, Inc. SUMMARY OF CHARGESFalse claims, in violation of Title 18, United States Code, Section 287 - Maximum penalties for corporate defendant: Five years of probation, fine, restitution and $400 special assessment.
INVESTIGATING AGENCYFederal Bureau of Investigation
Defense Criminal Investigative Service
Defense Contract Audit Agency
Naval Criminal Investigative ServiceRochester Man Pleads Guilty to Obstructing Tax LawsRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Anthony Cerame, 64, of Fairport, N.Y., pleaded guilty to obstructing the administration of the tax laws, before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of three years in prison, a fine of $250,000, or both.
Assistant United States Attorney John J. Field, who is handling the case, stated that Cerame engaged in a decades-long campaign to avoid paying approximately $270,000 federal income taxes, and sought to impede Special Agents of the Internal Revenue Service from performing their duties. Among other acts, the defendant used trusts and aliases to hold assets, concealed income, claimed improper deductions, instructed witnesses to withhold information from the government, and destroyed evidence. After Cerame learned of the government’s criminal investigation, he paid $200,000 of his unpaid tax obligation.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Toni M. Weirauch.
Sentencing is scheduled for May 23, 2014 at 2:00 p.m. before Judge Larimer.