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Thursday 14 November 2013
Former Owner of Morgan, N.J., Construction Company Admits Role in Bid-Rigging SchemeRead the Press Release
TRENTON, N.J. – A former owner of Tarheel Enterprises Inc., a heavy construction and paving company, admitted today to participating in a bid-rigging scheme, U.S. Attorney Paul J. Fishman announced.
George Chrysanthopoulos, 50, of Little Silver, N.J., pleaded guilty mid-trial to Count Three of an indictment, charging him with a scheme to defraud a private terminal operator at Port Elizabeth, N.J., of the honest services of one of its employees through bribes to rig a bid. Chrysanthopoulos entered his plea before U.S. District Judge Joel A. Pisano in Trenton federal court. The remaining six counts of the indictment are to be dismissed at sentencing.
According to documents and evidence admitted in this case and statements made in court:
Chrysanthopoulos was a vice-president and a co-owner of Tarheel, a heavy construction and paving company headquartered in Morgan, N.J. Between February 2011 and April 2011 Chrysanthopoulos schemed to bribe Donald Olesky, the former director of facilities Maintenance at Maher Terminals LLC, in exchange for the Olesky’s assistance in rigging Maher Terminals’ bid process for a construction project in favor of Tarheel. Unbeknownst to Chrysanthopoulos, Olesky was cooperating with law enforcement and recorded a series of meetings with Chrysanthopoulos, during which Chrysanthopoulos schemed to rig that bid. As part of the scheme, Chrysanthopoulos gave to Olesky a list of contractors to invite to bid on the project and also agreed to pay Olesky a $50,000 bribe in exchange for his assistance in rigging the bid process in favor of Tarheel.
Chrysanthopoulos, who was released on bond, faces a maximum prison term of 20 years and a maximum fine of $250,000. Sentencing before Judge Pisano is scheduled for March 26, 2014.
Donald Olesky previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to two counts of the use of mail and facilities in interstate commerce to promote commercial bribery. Olesky’s sentencing will be scheduled at a later date.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea. Fishman also thanked the N.J. Department of Transportation, Office of Inspector General, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Harvey Bartle, Attorney-in-Charge of the U.S. Attorney’s Trenton Office, and Vikas Khanna, of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Michael Critchley Esq., and John Vazquez Esq., Roseland
Chrysanthopoulos, George Indictment
Former MPD Officer Found Guilty of Felony Charges for Sexually Abusing 11-Year-Old Girl-Victim Came Forward Years Later-Read the Press Release
WASHINGTON - Wendel Palmer, 45, a former officer with the Metropolitan Police Department (MPD), was found guilty today of sexually abusing a child on numerous occasions between 2004 and 2006, U.S. Attorney Ronald C. Machen Jr. announced.
Palmer was found guilty by a jury in the Superior Court of the District of Columbia of three counts of first-degree child sexual abuse with aggravating circumstances, two counts of second-degree child sexual abuse with aggravating circumstances, and two counts of enticing a child with aggravating circumstances. The Honorable J. Herbert B. Dixon, Jr. scheduled sentencing for Jan. 31, 2014.
According to the government’s evidence, at the time of the offenses, Palmer was an MPD officer who was also the youth choir director at the Bethuel Temple Church of Christ Apostolic, Inc., in the 2400 block of Martin Luther King Avenue SE. The defendant’s family founded and operated the church. The victim’s family belonged to the church, and the victim was a member of the choir. The abuse began when the victim was 10 or 11 years old, and occurred at the defendant’s home in Maryland, at the church during breaks in choir rehearsals, and at other locations in the District of Columbia and in Maryland. The victim was afraid to report the abuse while it was occurring, in part because the defendant was a police officer. The victim reported the abuse in 2012, after she turned 18.
In announcing the verdict, U.S. Attorney Machen commended the work of the detectives from the Metropolitan Police Department’s Youth Division and Mobile Crime Division. He also expressed appreciation for the work of Victim/Witness Advocate Tracey Hawkins, Paralegal Specialists Jason Manuel and Kristy Penny, and the Litigation Support Staff. Lastly, he acknowledged the efforts of Assistant U.S. Attorneys Amy Zubrensky, who investigated, indicted and tried the case, and Sarah McClellan, who also investigated the case.
13-394Former Federal Contractor Sentenced for Disclosing National Defense Information and Distributing Child PornographyRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this morning that Donald J. Sachtleben, age 55, of Carmel, a former FBI bomb technician who later worked as a government contractor for the agency, has been sentenced to 140 months (11 years, 8 months) in federal prison after pleading guilty to possessing and distributing child pornography, as well as unlawfully disclosing national defense information relating to a disrupted terrorist plot.
“This case began as an investigation into images of child exploitation – but soon took investigators to Carmel, to Washington, to the Arabian Peninsula, and back again,” Hogsett said. “It doesn’t matter who you are, or what you have done in the past. If you choose to violate the sacred trust of the public, you will be caught, and you will be held fully accountable.”
As part of his petition to plead guilty, Sachtleben admitted his role in the two national security charges as well as the two child pornography offenses. U.S. District Judge William T. Lawrence sentenced the defendant to a total of 140 months of incarceration, including a 43-month prison term for the national security offenses and a consecutive 97-month term for the pornography charges.
Child Pornography Case:
According to a criminal complaint filed in Indiana in May 2012, federal and state investigators became aware of an individual trading images of child pornography online in September 2010. An extensive investigation into that individual led to the arrest of a defendant in Illinois in January 2012. Upon arrest, a forensic search of that defendant’s computer equipment and email accounts allegedly revealed that he had been actively trading the explicit materials online with numerous other people.
Based on that information, law enforcement traced the alleged online activity to Sachtleben’s home in Carmel. After conducting several days of surveillance, a search warrant was executed on May 11, 2012, by law enforcement officers from the Indiana State Police and the FBI Cyber Crime Task Force. Sachtleben was charged in the Southern District of Indiana with possession and distribution of child pornography.
An initial forensic examination of Sachtleben’s laptop computer revealed the presence of approximately 30 images and video files containing child pornography. A number of files identified during this initial search matched those that had been found while investigating the Illinois defendant. Sachtleben’s laptop hard drive was found to contain references to other files known to have been in the possession of the Illinois defendant.
National Security Case:
On May 2, 2012, nine days before Sachtleben was arrested in Indiana on child pornography charges, Sachtleben knowingly and willfully disclosed national defense information to a reporter for a national news organization not entitled to receive it. Sachtleben has admitted that he had reason to believe that this information could be used to the injury of the United States and to the advantage of a foreign nation. He was also charged and plead guilty to willfully retaining documents relating to the national defense without authorization.
Sachtleben worked for the FBI from 1983 through 2008. During his career, he was a Special Agent Bomb Technician and was assigned to work on many major cases involving terrorist attacks. In his work as an FBI employee, Sachtleben held a Top Secret security clearance and had regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community.
In 2008, Sachtleben retired from the FBI and was rehired as a contractor. Because of his official responsibilities, he maintained his Top Secret security clearance as an FBI contractor. As a result, he continued to have regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community. As a contractor, he routinely visited the FBI Lab in Quantico, Virginia.
One of the criminal charges addressed Sachtleben’s contacts with the reporter relating to the disruption of a plot to conduct a suicide bomb attack on a U.S.-bound airliner by the Yemen-based terrorist organization Al-Qaeda in the Arabian Peninsula and the recovery by the United States of a bomb in connection with that plot. As a result of Sachtleben’s disclosure of national defense information to the reporter, the national security of the United States was compromised, a significant international intelligence operation was placed in jeopardy, and lives were put at risk.
Sachtleben was employed as an FBI contractor until on or about May 11, 2012. The following day, he was arrested in Indiana and charged by complaint with the federal child pornography charges.
The national security investigation was conducted by the FBI’s Washington Field Office with assistance from the FBI’s Indianapolis Field Office. The prosecution is being handled by Assistant U.S. Attorneys Jonathan M. Malis and G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division. Assistance was provided by Assistant U.S. Attorney Mona N. Sahaf of the U.S. Attorney’s Office for the District of Columbia, and Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office for the Southern District of Indiana, who is also prosecuting the child pornography case.
The child pornography investigation 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more on Project Safe Childhood, visit www.projectsafechildhood.gov.
Florida Pair Charged as "Felony Lane" Crew Members in Check Cashing SchemeRead the Press Release
PHILADELPHIA - Brandon James, 23, and Lenardo Nicolas, 25, both of Florida, were charged today by Indictment with participating in an illegal check cashing scheme that involved cashing fraudulent checks using the drive-through teller lane at victim banks. It is alleged that the defendants and other co-conspirators from Florida, known and unknown to the grand jury (“crew members”), stole identifications, checks, bank cards, and credit cards from women’s wallets and purses usually left inside the victims’ cars in unattended parking lots. In order to carry out the scheme, the defendants and other crew members recruited female co-conspirators (“workers”) who could impersonate the victims’ identifications. The defendants and other crew members specifically instructed the workers to use the drive-through teller lane, known to law enforcement as the “felony lane”, to cash the fraudulent checks. The defendants carried out the alleged scheme between December 2012 and September 2013. The indictment charges each defendant with one count of conspiracy, two counts of bank fraud and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the indictment, James, Nicolas and other crew members rented cars for the female workers to use during the course of the scheme. It is alleged that the defendants and other crew members covered the rental car’s license plate usually with a stolen license plate to conceal the identity of the car as it was in the bank drive-through lane. After a fraudulent check was successfully cashed, the workers would meet the defendants and other crew members, who waited close by to the bank in another rental vehicle, and then give them the money from the illegally cashed check. The workers would then receive another fraudulent, stolen check or checks and stolen identification to use at the next victim bank. The indictment alleges that the defendants and other crew members perpetrated this scheme in different states around the country. The victim bank locations in Pennsylvania included Montgomery and Chester Counties.
If convicted, James and Nicolas each face a maximum possible sentence of 67 years in prison, a $2.5 million fine, a five year period of supervised release and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Hatfield Township Police Department, the Willistown Township Police Department, and the Upper Uwchlan Township Police Department and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry and Special Assistant United States Attorney Peter Hobart.
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, 215-861-8525Florida Man Pleads Guilty to Conspiring to Defraud InvestorsOver 100 Investors Lost More Than $11 MillionRead the Press Release
ORLANDO, FLA. - Damien L. Bromfield, 37, of Ocoee, Fla., pled guilty today to a federal charge stemming from his role in an investment fraud scheme in which more than 100 investors lost over $11 million, announced U.S. Attorney Ronald C. Machen Jr. and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS- Criminal Investigation.
Bromfield pled guilty in the U.S. District Court for the Middle District of Florida to a charge of conspiracy to commit wire fraud. No sentencing date was set.
The conspiracy charge carries a maximum of 20 years imprisonment and financial penalties. The parties agreed that, under the federal sentencing guidelines, Bromfield faces a range of between 78 and 188 months in prison and a fine of between $12,500 and $175,000. He also will be required to pay restitution to the investors of between $6,752,000 and $8,541,102.
“This defendant used fraud and deception to trick more than 100 people into investing in a fund they believed was financially sound,” said U.S. Attorney Machen. “His conduct led to millions in losses and now he himself is paying the price with a criminal prosecution. This case demonstrates the resolve of law enforcement to hold fraudsters accountable for carrying out such investment schemes.”
“Illegal activity involving the investment industry has brought financial ruin to many Americans,” said Special Agent in Charge Robnett. “IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust.”
According to facts presented to the Court by Assistant U.S. Attorney Ephraim (Fry) Wernick, who is designated to prosecute the case as a Special Attorney in the Middle District of Florida, Bromfield worked between January 2007 and September 2008 as the director of operations for Capital Blu Management, LLC, a Florida corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. He partnered with two others to operate Capital Blu Management: one as the director of trading operations, and the other as the managing member primarily responsible for soliciting investors.
In or about September 2007, Bromfield and the two other men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Investors, who resided both inside and outside of Florida, were induced to invest in the CBM FX Fund based, among other things, on the Capital Blu Management and CBM FX Fund’s advertised trading results, which posted only positive monthly returns.
In or about January 2008, Bromfield and his two partners knew that the CBM FX Fund sustained significant trading losses, and that the CBM FX Fund had lost approximately 30 percent of its value by the end of that month. At or about that time, Bromfield and his two partners agreed and conspired to post a positive monthly return to the CBM FX Fund’s investors for the month of January 2008. The positive performance results were provided to the CBM FX Fund’s investors on Capital Blu Management’s website, via email, and U.S. mail.
Although Bromfield and his two co-conspirators knew that performance numbers were false, they hoped that Capital Blu Management would make up the losses to the CBM FX Fund, which the three co-conspirators referred to as, the “gap,” through better trading performance in the future. Bromfield and his two co-conspirators also knew that if they reported the losses to the investors, then the investors would have removed their money from the CBM FX Fund. Bromfield and his co-conspirators agreed upon a gap catch-up plan which included “keep[ing] the upcoming performance numbers as low as possible, but still enough to achieve confidence in our client base and future client base.”
Between January and August 2008, Bromfield and his co-conspirators implemented their gap catch-up plan, but failed to make up the losses to the CBM FX Fund. During this time, Bromfield and his co-conspirators continued to provide investors with false monthly performance statements which reported only false positive monthly returns. In addition, during this time, Bromfield and his co-conspirators diverted investors’ money from the CBM FX Fund to pay for Capital Blu Management’s operational expenses. These expenses included, among other things, salaries of approximately $15,000 per month for Bromfield and his co-conspirators, thousands of dollars per month for their luxury car payments, and over $50,000 per month for their use and partial ownership of a private airplane. Bromfield and his co-conspirators also agreed to divert new investors’ funds from the CBM FX Fund to pay redemptions to other investors in order to conceal their fraudulent misrepresentations to investors about the value of their investments.
In or about August 2008, the CBM FX Fund sustained losses of approximately $4 million. Nevertheless, Capital Blu Management again reported a positive monthly return to investors for that month. Soon thereafter, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, visited Capital Blu Management and suspended the company’s trading operations. Between August 2007 and September 2008, over 100 investors invested approximately $16.6 million into the CBM FX Fund. By September 2008, the investors had lost a total of about $11.8 million.
As part of his plea agreement, Bromfield acknowledged that, after Capital Blu Management’s demise, he started another forex investment company and he accessed and traded approximately $200,000 of investors’ money from Capital Blu Management’s bank accounts. Bromfield also acknowledged that, between 2007 and 2009, he made false statements to law enforcement agents who were investigating Capital Blu Management and he and his co-conspirators. Finally, Bromfield acknowledged that he lied and committed perjury during civil proceedings which were initiated against Capital Blu Management, Bromfield, and his co-conspirators, by the United States Commodity Futures Trading Commission in 2010 and 2011.
This case was transferred to the U.S. Attorney’s Office for the District of Columbia from the Middle District of Florida. The investigation is continuing.
In announcing the plea, U.S. Attorney Machen and Special Agent in Charge Robnett commended the work of the task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County Sherriff’s Office, which investigated the criminal case. They also expressed appreciation for the work of the agents from the National Futures Association and attorneys from the Commodity Futures Trading Commission who litigated the civil action. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Diane Hayes and Corinne Kleinman, Legal Assistant Angela Lawrence, Auditor Crystal Boodoo, and Information Technology Specialist Thomas (Ron) Royal.
Finally, they thanked Assistant U.S. Attorneys Jonathan P. Hooks and Ephraim (Fry) Wernick of the U.S. Attorney’s Office for the District of Columbia. They were designated as Special Attorneys in the Middle District of Florida, and are prosecuting the case. They also expressed appreciation for the work of Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia.
13-393Final Defendant in Uvalde/Crystal City-based Texas Mexican Mafia Racketeering Ring Sentenced to Federal PrisonRead the Press Release
In Del Rio this afternoon, 31-year-old Texas Mexican Mafia member Eliseo Sanchez, III, of Crystal City was sentenced to 70 months in federal prison for conspiring to violate the Racketeering Influenced Corrupt Organization (RICO) statute plus an additional 24 months in federal prison for violating supervised release conditions stemming from a prior alien smuggling conviction. Sanchez is the last of 12 convicted Uvalde and Crystal City, Texas-based TMM members and associates charged in this racketeering investigation to be sentenced announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
The other TMM members convicted of the RICO conspiracy received the following prison sentences:
Jorge Abel Ramirez (a/k/a “Hondo,” a/k/a “Superdope”), of Hondo and Crystal City, 240 months;
Geronimo Torres (a/k/a “Jerry,” a/k/a “G”), of Uvalde, 180 months;
Benito Benavides (a/k/a “Benny”), of Uvalde, 240 months;
Chris Gutierrez (a/k/a “Fire”), of Uvalde, 108 months;
Albert Torres (a/k/a “Terrible”), of Uvalde; 168 months;
Eric Velasquez Solis (a/k/a “Kilo”), of Uvalde, 162 months;
Mario Zavala, of Crystal City, 108 months;
Rodolfo Villegas (a/k/a “Rudy”), of Crystal City, 72 months;
Charles Martinez (a/k/a “Charlie”), of Crystal City, 115 months; and,
Sebastian Cortinas (a/k/a “Seabass”), of Crystal City and Eagle Pass, 72 months.Additionally, Robert Marcus Castro (a/k/a “Tiny”), of Crystal City, pleaded guilty to committing a Violent Crime In Aid of Racketeering, and was sentenced to 97 months in federal prison.
The defendants conspired to engage in a pattern of organized criminal conduct including attempted murder, retaliation against an informant, extortion, and distribution of cocaine, heroin, marijuana and methamphetamine.
As a result of the same indictment, Carlos Guerrero of Uvalde, Zachary Vasquez of Uvalde and Jose Ibarra of Uvalde all pleaded guilty and were sentenced for conspiracy to possess with intent to distribute less than 500 grams of cocaine within 1,000 feet of Robb Elementary School in Uvalde, Texas. Guerrero was sentenced to 52 months incarceration; Vasquez to 24 months incarceration; Ibarra to 18 months incarceration.
Jorge Abel Ramirez was also found guilty of violently assaulting a prison guard while the RICO case was pending. He received 37 months incarceration for that offense, set to run consecutive to his 240 months RICO sentence, for a total of 277 months imprisonment.
“In this case, a dozen members of a violent drug gang have been sentenced to lengthy prison terms, and the community can rest assured that we will continue to use the resources of federal law enforcement to target the most dangerous offenders in the illegal drug trade,” stated United States Attorney Robert Pitman.
This case resulted from a joint investigation by the Federal Bureau of Investigation, Texas Department of Public Safety – Criminal Investigations Division, Uvalde County Sheriff’s Office, Drug Enforcement Administration and the U.S. Marshals Service, with assistance from the Real County Sheriff’s Office, Hondo Police Department, Zavala County Sheriff’s Office and Uvalde Police Department.Felon Who Riddled Parkersburg Residence with Bullets Sentenced to 6 ½ Years in Federal PrisonRead the Press Release
Shaun Linko opened fire on a Lynn Street residence in Parkersburg
CHARLESTON, W.Va. – A Parkersburg felon who opened fire on a Parkersburg residence in September 2012 using an AK-47 semi-automatic rifle was sentenced today to six and a half years in federal prison, announced U.S. Attorney Booth Goodwin. Twenty-six-year-old Shaun Michael Linko previously pleaded guilty in April to being a felon in possession of a firearm. The sentence was handed down by United States District Judge Thomas E. Johnston in Charleston.
On September 19, 2012, police responded to a report of shots fired in the vicinity of 1122 Lynn Street. Upon their arrival, officers with the Parkersburg Police Department observed a large quantity of spent shell casings from a semi-automatic rifle in the street, along with apparent bullet holes in the exterior of the residence at 1122 Lynn Street in Parkersburg. A short time later, Wood County deputy sheriffs observed a GMC Jimmy SUV parked at the 7th Street Park and Ride, located in close proximity to Lynn Street. As deputies approached the vehicle, they observed an ammunition box lying on the ground beside the driver’s side door of the vehicle. Police officers ordered the driver, Shaun Michael Linko, and a female passenger to exit the vehicle.
Linko, who was arrested, told police that he shot at the 1122 Lynn Street residence using the AK-47. Officers recovered the rifle and loose ammunition from the defendant’s vehicle.
Linko was previously convicted in March 2010 of conspiracy to deliver a controlled substance in the Circuit Court of Wood County. The defendant did not have his rights to possess a firearm restored.The investigation was conducted by the Parkersburg Police Department, the Wood County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Joshua Hanks handled the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Essex County, N.J., Woman Admits Mailing Threatening LetterRead the Press Release
NEWARK, N.J. – An Irvington, N.J., woman today admitted that she mailed a threatening letter to the Town of Secaucus, U.S. Attorney Paul J. Fishman announced.
Karen Waller, 50, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with mailing a threatening communication in interstate commerce.
According to documents filed in this case and statements made in court:
Waller admitted that she wrote and mailed a letter to Secaucus that included threatening language about bomb attacks and warned against underestimating her.
The charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 27, 2014.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force (JTTF), under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation. The JTTF comprises law enforcement officers from numerous federal, state and local agencies throughout New Jersey.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark
Waller Information
Department of Defense Employee Pleads Guilty to<br /> Submitting False Claim for Housing AllowanceRead the Press Release
A Department of Defense (DOD) employee has pleaded guilty to filing a false claim with the DOD while stationed in the Republic of Korea (ROK) to fraudulently obtain $64,000 in housing allowance, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Patrick Y. Kim, 56, of Reno, Nev., pleaded guilty today before U.S. District Judge Howard D. McKibben in the District of Nevada in Reno to one count of making a false claim. Kim faces a maximum penalty of five years in prison when he is sentenced on Feb. 12, 2014. As part of his plea agreement, Kim has agreed to pay full restitution to the DOD in the amount of $64,000.
The former chief of the Furniture Branch at the United States Army Garrison in Daegu, ROK, Kim admitted that he submitted a fraudulent lease to the housing office to obtain a living quarters allowance (LQA) that he was not entitled to receive. Kim began working at Daegu Garrison in or about October 2002, and, as a DOD civilian employee working in the ROK, he was entitled to receive certain housing allowances, including LQA under certain circumstances. To receive LQA, Kim was required to submit a copy of a housing lease in support of his application and acknowledge that the LQA payments were exclusively for the payment of rent and not for the payment of refundable security deposits or “key money” leases. Key money leases – sums of money paid to a lessor in lieu of rent, which are returned to the lessee at the end of the lease – are common in the ROK; however, they are prohibited by State Department regulations.
Kim admitted that in September 2008, he was looking for a new apartment as the lease for his current apartment was about to expire. He and his wife located a residence at an apartment complex; however, the owners of the apartments did not offer traditional rental leases – only key money leases and purchases. On or about Sept. 8, 2008, Kim’s wife entered into a key money lease for one of the apartments. Kim admitted that he knew that State Department regulations prohibited him from receiving LQA to pay for the key money lease signed by his wife. On or about Sept. 9, 2008, Kim created a fake rental lease for the subject property and submitted it to the housing office at Daegu Garrison in support of his request for LQA. The fake lease for the apartment purported to be a two-year lease with a total cost of $64,000. Kim admitted receiving $64,000 in LQA, which is non-taxable, and also admitted that he used the money to pay for a portion of the key money lease entered into by his wife.
Kim also admitted that he created a fake receipt for the purported $64,000 rental payment and submitted it to the housing office at Daegu Garrison to justify his receipt of the LQA. He received the $64,000 back at the end of the key money lease in 2010, and he used it for the purchase of a new residence in the ROK.
The case is being investigated by the U.S. Army Criminal Investigation Division and the FBI. The case is being prosecuted by Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Sue P. Fahami of the District of Nevada.
Defense Contractor CEO Sentenced to Prison for Defrauding United States NavyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Thomas Frank Robeson (48, Potomac, Montana) to 18 months in federal prison for conspiracy to commit money laundering. As part of his sentence, the court also entered a money judgment in the amount of more than $2.1 million, the proceeds of money laundering conspiracy.
Robeson was found guilty on June 4, 2013.
According to court documents, Robeson owned and operated Nomad Aviation, Inc. (Nomad), located in Sanford, Florida, and repaired avionics systems in military aircrafts. Naval Air Systems Command (NAVAIR) selected Nomad as the sole and prime contractor for a $43 million avionics integration contract for the T-44 Pegasus aircraft fleet. On May 20, 2008, Nomad submitted an invoice for $5,075,907 pursuant to the terms of the contract. In July 2008, the Administrative Contracting Officer assigned to the contract requested that the Defense Contract Audit Agency (DCAA) evaluate the $5 million invoice, known internally to the DCAA as Voucher NOM0028 (NOM0028). On or about October 17, 2008, Robeson, and someone acting on Robeson’s behalf, provided the DCAA with four vendor invoices, including one for $2,171,621 from South Peck LLC, which was dated October 15, 2008.
Robeson created South Peck Aviation (SPA) and provided SPA invoices as if SPA was an unrelated, third-party vendor that had billed Nomad. SPA or Nomad actually purchased parts from third-party vendors, “marked up” the costs of the purchases, and submitted the inflated amounts in NOM0028, as if Nomad had purchased the parts from SPA. Robeson, and others acting at his direction, submitted the fictitious invoices via wire, specifically e-mail communication. SPA was actually a bakery that Robeson and his wife owned in Hawaii.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Defense Contract Audit Agency. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Defendants Plead Guilty in Manhattan Federal Court to Participating in Racketeering Conspiracy with Russian-American Organized Crime Enterprise Operating International Sportsbook and to Participating in A Gambling RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that VADIM TRINCHER pled guilty today in Manhattan federal court to participating in a racketeering conspiracy in connection with his role as a member of a Russian-American organized crime enterprise. VADIM TRINCHER’s son, EUGENE TRINCHER, also pled guilty today to operating an illegal gambling business. VADIM TRINCHER and EUGENE TRINCHER were charged in April 2013 along with 32 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. They pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Vadim Trincher played a critical role in the Taiwanchik-Trincher Organization – by helping both to launder tens of millions of dollars in proceeds from the organization's sportsbook and to run the illegal gambling business. His son Eugene ran a high stakes illegal card game in New York City for more than two years. We will not stop until, like Vadim and Eugene Trincher, everyone involved in this international crime ring is held to account.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty pleas:
The Taiwanchik-Trincher Organization is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world. The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus, and from Cyprus into the United States. Once the money arrived in the United States, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate. VADIM TRINCHER was a U.S.-based participant in the enterprise. As part of his plea, VADIM TRINCHER acknowledged that he, in furtherance of the Taiwanchik-Trincher Organization, laundered the proceeds of the organization’s international sportsbook and assisted in the operation of the illegal gambling business.
EUGENE TRINCHER ran a high stakes illegal poker game in New York City from 2010 through April 2013. At these games, the pots frequently reached tens of thousands of dollars or more. The operators of these poker games, including EUGENE TRINCHER, collected percentages of the pots known as Arakes.@ Each of the poker games employed at least five or more people to assist with the operation of the poker games, payments of debts, and collection of debts.
VADIM TRINCHER, 52, of New York, New York, faces a maximum of 20 years in prison and three years of supervised release. As part of his plea agreement, VADIM TRINCHER agreed to forfeit cash and property worth over $20 million. He is scheduled to be sentenced by Judge Furman on March 20, 2014, at 3:45 p.m.
EUGENE TRINCHER, 27, of Beverly Hills, California, faces a maximum of five years in prison and three years of supervised release. As part of his plea agreement, EUGENE TRINCHER agreed to forfeit the proceeds of his illegal gambling business. He is scheduled to be sentenced by Judge Furman on March 24, 2014, at 3:00 p.m.
VADIM TRINCHER is the 15th defendant in this case to plead guilty. EUGENE TRINCHER is the 16th defendant in this case to plead guilty. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrab pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013; and
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, New York City Police Department, and Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Crossville Man Pleads Guilty to Manufacturing Counterfeit CurrencyRead the Press Release
Ronald Thacker, 48, of Crossville, Tennessee, pleaded guilty yesterday in U.S. District Court to two counts of counterfeiting United States currency, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
At his plea hearing, Thacker admitted manufacturing counterfeit $50 bills in Nashville in May 2012, and using the counterfeit bills to purchase food at restaurants and to purchase items from retail stores. Thacker also admitted manufacturing counterfeit $50 bills in Crossville, Tennessee in August 2012 and using or attempting to use the counterfeit bills at restaurants and retail stores.
Thacker is scheduled to be sentenced on January 31, 2014, by Judge Todd J. Campbell. He faces a maximum sentence of twenty years in prison on each count.
This case was investigated by agents of the United States Secret Service, the Metropolitan Nashville Police Department and the Crossville Police Department. The case was prosecuted by Assistant United States Attorney William F. Abely.Crew Responsible for More Than 45 Commercial and Residential Burglaries Charged with Interstate Transportation of Stolen PropertyRead the Press Release
Earlier today, an indictment was unsealed charging Victor Arias, Rafael Astacio, Michael Figueroa, Nikitas Margiellos, and Leonard Repka with conspiracy and the interstate transportation of stolen property.1 Astacio, who was a detective with the New York City Police Department at the time of the burglaries, was also charged with unlawfully accessing a database that was maintained by the Federal Bureau of Investigation. The defendants= initial appearances are scheduled for this afternoon before United States District Judge Joseph F. Bianco at the United States Courthouse in Central Islip, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Kathleen M. Rice, Nassau County District Attorney, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas V. Dale, Commissioner, Nassau County Police Department, Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS), and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
“The defendants were part of a sophisticated burglary crew that victimized Long Island businesses and residents for more than three years. Each defendant had a role to play in this band of criminals. The crew relied upon weapons of force as well as modern technology to steal millions from both homes and businesses alike. The defendant Astacio’s actions make clear that he was a police officer in name only, having sold his badge and his honor in exchange for his share of their ill-gotten gains,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Nassau County Police Department for its work in the investigation, and to the Suffolk County Police Department for its cooperation and assistance in the investigation.
“When a police officer or any public servant breaks the law it casts a pall on all men and women who risk their lives and work hard to serve their communities. Detective Astacio and his fellow defendants betrayed the public trust by using Long Island homes and businesses as personal piggybanks, and we will prosecute to the fullest extent of the law,” stated Nassau County District Attorney Rice.
“The defendants did not discriminate when choosing their victims: businesses and private residences were equal targets of their thievery. To facilitate their alleged illegal activity, the defendants used a combination of physical labor and modern technology, to include the unlawful access by Astacio of protected FBI information. As charged, Astacio not only turned his back on the community he promised to protect, he also betrayed his fellow law enforcement officers for a chance to line his pockets with his victims’ hard-earned money. As the arrest of these defendants demonstrates, no one is above the law. We will continue to work with our law enforcement partners to ensure that those who steal and violate the public’s trust will be brought to justice,” stated FBI Assistant Director-in-Charge Venizelos.
“It is always a sad day when a member of the law enforcement community aligns himself with those who will hurt the public, choosing to abandon those he swore to protect,” stated IRS Special Agent-in-Charge Weirauch. The public should be secure in knowing, however, that the strong partnership between federal and local law enforcement authorities will work tirelessly to protect the public from harm and will strive to make the public whole when it is wronged.”
“The Internal Affairs Bureau thoroughly investigates allegations of members of the service, and their dedication to this Long Island-based case resulted in the indictment being announced today. The Department subsequently removed Astacio of his post and terminated his employment, and any of the members of the service considering criminal association faces the same,” stated NYPD Police Commissioner Kelly.
According to the indictment and court filings, between 2009 and 2012, the sophisticated burglary crew led by Nikitas Margiellos committed approximately three dozen commercial burglaries and ten residential burglaries in the Eastern District of New York stealing approximately $10,000,000 in cash and property. To carry out the burglaries, the crew used both traditional burglary tools, such as blow torches, crowbars, wire cutters, and sledge hammers, as well as modern technology, including cell phone jammers and police scanners. In addition, they often conducted surveillance of their burglary victims to determine when the victims would be out of their homes and businesses. On at least one occasion, the crew even installed a tracking device on a victim’s car to assist in that endeavor.
Additionally, as set forth in the indictment and court filings, in one instance, the defendants Arias, Figueroa, Margiellos, and Repka burglarized a business in Plainview, New York, entering that commercial establishment, while Astacio and another coconspirator monitored a police scanner and acted as lookouts. Arias, Figueroa, Margiellos, and Repka spent approximately three and a half hours in the business and stole more than 45,000 pairs of Under Armour, Hobie, and other sunglasses that were worth approximately $3,000,000. After the burglary, the defendants and their coconspirators transported the stolen property across state lines and sold some of the sunglasses on the Internet. During another burglary, members of the crew stole approximately $2,000,000 in cash from a plastic surgeon’s office located in Nassau County.
If convicted, Arias, Figueroa, Margiellos, and Repka each face a maximum sentence of 15 years’ imprisonment, and Astacio faces 17 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Christopher C. Caffarone and Nassau County District Attorney’s Office Rackets Bureau Chief Rick Whelan, who will be cross-designated for this case as a Special Assistant United States Attorney.
The Defendants
VICTOR ARIAS
Age: 37
Copiague, New YorkRAFAEL ASTACIO
Age: 41
Copiague, New YorkMICHAEL FIGUEROA
Age: 52
Mount Vernon, New YorkNIKITAS MARGIELLOS
Age: 40
West Babylon, New YorkLEONARD REPKA
Age: 50
Lindenhurst, New YorkE.D.N.Y. Docket No. 13-CR-640
_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Columbus Man Pleads Guilty to Using Stolen Identities to Defraud Federally Funded Tutoring ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO –Ashkir Ali, 46, of Columbus pleaded guilty today to defrauding the U.S. Department of Education’s Supplemental Education Services Program by billing two area school districts more than $100,000 for tutoring sessions that were never provided.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Thomas D. Utz, Jr., Special Agent in Charge for the North Central Region of the U.S. Department of Education, Office of Inspector General and Ohio Auditor of State Dave Yost announced the pleas entered today before U.S. District Judge Edmund A. Sargus Jr.
“These crimes were committed in order to abuse a program set up to help central Ohio schoolchildren,” U.S. Attorney Stewart said. “We will continue to work with federal and state law enforcement to uncover and prosecute such crimes.”
“This is a theft of literacy, not just money,” Auditor Yost said. “These boys and girls will never get those years of learning back.” Yost commended the federal authorities for their cooperation and “their passion to win justice for these kids.”Ali pleaded guilty to one count of making false statements, which is punishable by up to five years in prison, and one count of aggravated identity theft, punishable by a two-year sentence that he must serve after completing the sentence for making false statements. Judge Sargus will set a date for sentencing.
Ali owned WAISS Network Technologies. According to court documents, Ali created fraudulent forms using forged tutor, student and parent names and other information. He billed Columbus City Schools and was paid for tutoring 51 students who either never attended tutoring or who went very few times. Investigators determined the fraudulent scheme netted Ali approximately $100,000 over a two-year period.
Ali used the same method to defraud Southwestern City Schools out of approximately $20,000 in the 2010-2011 school year. Investigators did not find a single student from Southwestern City Schools who attended tutoring allegedly provided by WAISS.
Allegations surfaced of possible misconduct by providers of the Supplemental Education Services Program in January 2011. The Auditor of State’s Special Investigations unit conducted a special audit of the Columbus City School District in June 2011.
U.S. Attorney Stewart commended the investigation by the U.S. Department of Education Office of Inspector General and State Auditor Yost’s Special Investigations Unit, as well as Assistant U.S. Attorney Kenneth Affeldt who is representing the United States in this case.
Centre County Man Sentenced to Probation for Possessing Marijuana PlantsRead the Press Release
JOHNSTOWN, Pa. - A resident of Patton, Pa., has been sentenced in federal court to four years probation, the first three months of which must be satisfied by conditions of home confinement with electronic monitoring, on his conviction of possession of marijuana plants, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Stephen D. Lamont, 36.
According to information presented to the court, on May 9, 2011, Lamont possessed with the intent to distribute at least 50, but less than 100, marijuana plants.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Lamont. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Bulger Sentenced to Two Life TermsRead the Press Release
BOSTON – In U.S. District Court in Boston today, James J. Bulger was sentenced for operating a criminal enterprise that was responsible for the murder of 11 people, as well as numerous counts of extortion, money laundering, drug dealing, and firearms possession.
U.S. District Court Judge Denise J. Casper sentenced Bulger to two consecutive life terms plus five years and $19.5 million in restitution. During the sentencing hearing this morning, Judge Casper told Bulger that, “The scope, the callousness, the depravity of your crimes, is almost unfathomable.”
On August 12, 2013, Bulger was convicted by a jury following a two-month long trial. The jury found the former fugitive guilty of racketeering conspiracy and numerous racketeering acts of murder, extortion, narcotics distribution, money laundering and possession of firearms including machineguns. In their verdict, the jury found that Bulger played a role in the murders of Deborah Hussey, Paul McGonagle, Edward Connors, Thomas King, Richard Castucci, Roger Wheeler, Brian Halloran, Michael Donahue, John Callahan, Arthur Barrett and John McIntyre.
“The loss and anguish suffered by these families and many others is unimaginable. What is undeniable is the fact that all of this suffering was caused by James Bulger – who is now, finally being held accountable for his horrific acts,” said United States Attorney Carmen M. Ortiz.
Bulger, the former leader of the Winter Hill Gang, ran a vast criminal network that emanated from South Boston and controlled much of the city and the surrounding areas during the 1970s and 1980s. In order to generate money and maintain dominance among other criminal enterprises, Bulger and his associates engaged in numerous illegal activities such as loansharking, extortion of local business owners and bookmakers, trafficking of narcotics and firearms, and murder. Bulger, and associates under his direction, used violence, threats, and intimidation to carry out these illegal activities.In late 1994, upon learning of his impending indictment, Bulger fled Massachusetts. On June 22, 2011, Bulger and his companion, Catherine Greig, were arrested in Santa Monica, California after 16 years on the run. Greig was later convicted of conspiracy to harbor a fugitive and is currently serving eight years in federal prison.
U.S. Attorney Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael E. Horowitz, Inspector General for the Department of Justice; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division, and U.S. Marshal John Gibbons made the announcement today.
The case was prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr., Brian T. Kelly and Zachary Hafer of Ortiz’s Public Corruption and Special Prosecutions Unit.
Brownwood, Texas, Man Sentenced to 135 Months in Federal Prison for Enticing A Minor Child to Engage in Sexual ActivityRead the Press Release
AMARILLO, Texas — Luis Gerardo Alvarado, 22, was sentenced this morning, by U.S. District Judge Mary Lou Robinson, to 135 months in federal prison, following his guilty plea in September 2013 to one count of enticement of a minor and aiding and abetting. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in Brownwood, Texas, Alvarado met a minor female, who lived in Coleman County, Texas, by contacting her through Facebook chat. From mid-March 2013 until April 8, 2013, Alvarado communicated with the minor female and attempted to persuade and entice her to engage in sexual activity with him. Alvarado knew the minor female was under 17 years of age. Alvarado has been in federal custody since July 1, 2013, when he was received from state custody, where he was being held on pending state charges.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Coleman Police Department, the Santa Anna Police Department and the Brownwood Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Belmond Man Pleads Guilty to Making A False Statement to A BankRead the Press Release
A businessman who made a false statement to a bank in order to obtain a loan pled guilty today in federal court in Cedar Rapids.
Marvin Redenius, age 49, from Belmond, Iowa, was convicted of one count of making a false statement to a financial institution.
At the plea hearing, Redenius admitted that, on November 10, 2006, he lied to the financial institution, claiming the purpose of the loan was for the purchase of farm equipment when, in fact, Redenius used the proceeds of the loan to purchase stock in a company.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Redenius remains free on bond previously set. Redenius faces a possible maximum sentence of 30 years’ imprisonment, a $1 million fine, $100 in special assessments, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-3007.
Attorney General Eric Holder Calls on Congress to Pass Bipartisan Second Chance ActRead the Press Release
WASHINGTON – Attorney General Eric Holder today endorsed the reauthorization of the Second Chance Act, bipartisan legislation introduced by Senators Patrick Leahy and Rob Portman and its companion legislation by Representatives Danny Davis and F. James Sensenbrenner, Jr. that provides resources and support to people reintegrating into their communities after being incarcerated. The Attorney General’s endorsement came while visiting a graduation ceremony for participants of Project EARN, a federal reentry court in St. Louis. The visit highlighted the department’s “Smart on Crime” initiative that seeks to reform the criminal justice system, improve reentry programs, and pursue alternatives to incarceration for low-level, non-violent offenses.
During Fiscal Year 2013 under the Second Chance Act, the Justice Department’s Bureau of Justice Assistance and the Office of Juvenile Justice funded over 100 grants, totaling more than $62 million, to support improved probation, parole, and reentry programs throughout America. The grants include mental health and substance abuse treatment initiatives, technology career training programs, juvenile reentry efforts, and smart probation projects. If Congress fails to reauthorize the Second Chance Act, countless neighborhoods will no longer have the critical support that has helped make profound and positive differences.
Please see below for the Attorney General’s prepared remarks in St. Louis.
REMARKS AS PREPARED FOR DELIVERY BY ATTORNEY GENERAL ERIC HOLDER AT PROJECT EARN GRADUATION CEREMONY
Thank you, Your Honor – and good morning, everyone. It is a pleasure to be here in St. Louis, and a privilege to stand with each of the participants – and, especially, the graduates – of this remarkable program.
I appreciate the opportunity to share this moment with you. And I am honored to join all of the proud family members and friends who are with us today in celebrating your achievements, reflecting on the progress you’ve made, and reaffirming your individual commitments to yourselves, your communities – and your futures.
First, to our graduates: I know the journey that has led you to this moment has not been easy. I know you’ve had to work hard and overcome tremendous adversity.
At times, it’s been an uphill battle. But the fact that you stand before this Court as Project EARN graduates is not only inspiring – it is proof of the strength, and the sheer determination, that defines you. And it’s emblematic of the courage that defines everyone who has the resolve to enter treatment and keep moving down the long and difficult – but ultimately rewarding – road to recovery.
For our graduates – and for those who aspire to join them – I know this program has presented both an opportunity and a challenge. It has required you to be honest with yourselves, and with your families and friends. It has demanded that you confront your weaknesses and acknowledge past mistakes. And it has given you the chance not only to reclaim your future, but to build a new one.
We can all be proud of the positive strides that our four distinguished graduates have made in this regard.
After a great deal of hard work, Kenneth Johnson is expected to earn his degree in HVAC next month. And he’s already giving back to those around him by helping others stay on the right path and maintain a sober lifestyle.
Roger Jenkins is a full-time college student who’s only three credits away from earning his degree. He’s keeping busy – running his own carpet cleaning business, which I’m glad to hear is thriving, and placing a renewed focus on his wonderful family.
Donald Westrich has turned his back on decades of drug use. He’s been sober for more than a year. And, in addition to maintaining full-time employment, he’s become active in his community through a local church.
Last but not least, Michael Stephens has undergone a remarkable transformation. After a difficult start in this program, he has been free of cocaine use for more than a year. He’s served as a source of inspiration to many of those around him. And I’m told that he always has a smile on his face.
Each of these graduates is here as a result of months of hard work, dedication, and willpower. Today, they stand among the ranks of well over a million people who have graduated from drug courts like this one across the country.
I hope those of you who are still making your way through this program will be encouraged by what they’ve accomplished.
As you keep moving forward, I want you to know that you have my support, and the support of my colleagues at every level of the Department of Justice – as well as President Obama and others throughout the Administration.
All of us are committed to the same goals that have driven leading criminal justice professionals to come together – here in St. Louis – to create this innovative program. And we’re determined to keep building on the successes you’re making possible – not only in this community, but across the country.
In fact, I am pleased to announce today that, during Fiscal Year 2013, the Justice Department funded over 100 grants totaling more than $62 million under the landmark Second Chance Act. These important funds support improved probation, parole, and reentry programs throughout America. And they have the potential to make a real difference in countless neighborhoods.
That’s why it’s imperative that we keep up the good work. I want to take this opportunity to call on Congress to pass legislation, introduced yesterday by U.S. Senators [Patrick] Leahy and [Rob] Portman, which would reauthorize and strengthen the Second Chance Act. This law enjoys broad, bipartisan support. And its timely reauthorization would enable us to institutionalize our commitments to programs like this one – and continue providing the resources necessary to make good on our nation’s promise of equality, opportunity, and justice under law.
We must support these programs because we recognize that – as our graduates here have shown – better treatment, and expanded access to the resources you need, can result in better outcomes and brighter futures for many who come into contact with the criminal justice system.
This is something I’ve seen firsthand. During my time as a judge on the Superior Court in Washington, D.C. – and later as United States Attorney for the District of Columbia – I learned how drug abuse, crime, and incarceration can trap people in a destructive cycle. A cycle that weakens communities, tears families apart, and destroys individual lives.
Day after day, I watched lines of young people – most often young men of color – stream through my courtroom. Too many of the faces I saw became familiar – because too many of the people I sentenced served their time, were released from prison, and sooner or later returned to the same behavior that had led them to my courtroom in the first place.
That’s one reason why I’m passionate about programs like this one – programs that can help strong, committed individuals like you to break that cycle and gain the tools you need to reenter your communities and lead productive and fulfilling lives.
But I’m also here today because I understand that our country has a broader obligation to stand with you, and to support you – because we’re not fundamentally different.
I grew up in a neighborhood – in Queens – where people like you would have been my friends. We would have gone to school, and partied, and played basketball together.
So I can’t help but feel mindful of the fact that, although I’m here in my capacity as Attorney General of the United States, a few of the people I grew up with – good people, like you –ended up taking very different paths. Some of them didn’t catch the same breaks. Some had to deal with drug issues. And some became involved with the criminal justice system – because of bad luck, or bad choices, or both.
I’ve seen how tough it can be for people in your shoes to turn your lives around, to deal with unfairness, and to overcome adversity. I know that everyone makes mistakes – everyone. Including me. And that’s why I wanted to be here today: to tell you in person how proud I am that each of you has decided not to let your mistakes define you – and not to make excuses – but to make the most of the opportunities that you’ve been given.
You’re here today because you’re smart. You have the skills and the determination not just to make positive contributions, but to become role models for those around you – especially the young people who will learn from your examples.
Never forget that you have a responsibility to these kids – to talk to them, to serve as mentors, to help them learn from your mistakes, and to ensure that their lives aren’t interrupted or cut short.
For those of you who are graduating today – Kenneth, Roger, Donald, and Michael – I congratulate you on this extraordinary achievement. For those who are just starting Project EARN, or who are well on your way – I am proud of every one of you.
I am confident in your ability to keep moving forward, to become leaders and role models in your neighborhoods, and to make the difference that our fellow citizens – and especially our young people – need and deserve.
Congratulations, once again – and keep up the great work. I expect to hear great things about all that you’ll do and achieve from this moment forward.
For more information about the department’s “Smart on Crime” initiative, please visit http://www.justice.gov/ag/smart-on-crime.pdf.
Attempted Crystal Meth Distribution Results in Significant SentencesRead the Press Release
McALLEN, Texas – Gelacio Cendejas-Renteria, 44, of Uruapan, Michoacan, Mexico, and Julian Martinez-Rodriguez, 44, of McAllen, have been ordered to federal prison for their respective involvement in the distribution of crystal methamphetamine from McAllen to Houston, announced United States Attorney Kenneth Magidson along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA).
Today, U.S. District Judge Randy Crane sentenced Cendejas-Renteria to life in prison. In handing down the sentence, Judge Crane noted Cendejas-Renteria’s role in the transaction as well as utilization of his residence to store the narcotics and involving the assistant of a minor in the drug negotiations. As an illegal alien, Cendejas-Renteria is expected to
Taking into consideration his role in the case as well as his prior criminal history, Judge Crane sentenced Martinez-Rodriguez to 360 months in federal prison today. He will also face deportation proceedings following his release from prison.
On Jan. 17, 2013, Cendejas-Renteria met with an undercover agent and negotiated the transportation of crystal methamphetamine from McAllen to Houston. On Feb. 1, 2013, Cendejas-Renteria met with the agent and provided him money to cover the cost of transporting the narcotics to Houston. On the same date, Cendejas-Renteria provided the agent the keys to a motor vehicle containing the narcotics. The agent then obtained the vehicle and, while traveling to another location, was followed by Martinez-Rodriguez. The vehicle was determined to have 10 bricks of crystal methamphetamine with a gross weight of 12 kilograms. A subsequent search at the residence of Cendejas-Renteria and Martinez-Rodriguez lead to the discovery of an additional 20 bricks of crystal methamphetamine with a gross weight of 22 kilograms and an additional 29 bundles of marijuana with a gross weight of 272 kilograms.
Cendejas-Renteria pleaded guilty on March 25, 2013, while Martinez-Rodriguez pleaded guilty on May 3, 2013.
Both men will remain in custody.
The investigation was conducted by DEA and is being prosecuted by Assistant United States Attorney Juan Alanis.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Jakeith Terrell Campbell, 31, of Mobile, was sentenced in federal court today to a total term of 35 years imprisonment. Campbell entered guilty pleas to charges of conspiracy to possess with intent to distribute crack cocaine, and two counts of using, carrying and possession of a firearm during and in relation to a drug trafficking offense. Judge Callie V. S. Granade imposed the sentence, which consisted of consecutive penalties required by federal law for the serious drug and gun offenses.
The gun penalties require the imposition of consecutive mandatory terms of 5 years and 25 years. The sentence for the drug offense was an additional 5 years. The judge ordered a five-year term of supervised release, which will commence when Campbell is released from imprisonment, and a total of $300 in special mandatory assessments. No fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office, the Mobile Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Ambulance Company Owner and Son Plead Guilty to Conspiracy to Commit Health Care & Wire FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today, before United States District Judge Terrence W. Boyle, PHYLLIS STALLINGS HARRELL and PAUL LYNN TRUEBLOOD, both of Belvidere, North Carolina, pleaded guilty to Count 1 of the Second Superseding Indictment which charged them with Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349.
The investigation of this case was conducted by the United States Department of Health and Human Services Office of the Inspector General, the North Carolina Department of Justice's Medicaid Investigations Unit, and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore is the assigned prosecutor on the case from the Economic Crimes Division of the United States Attorney's Office.
Count 1 of the Second Superseding Indictment alleges that between January of 2004 and December of 2009, HARRELL and TRUEBLOOD conspired to defraud Medicare, Medicaid, and private insurers in connection with various billings for alleged non-emergency ambulance transportation services in the area of Elizabeth City. The Indictment alleges that HARRELL, the mother of TRUEBLOOD, billed Medicare and Medicaid through Harrell Medical Transport, a company owned by HARRELL and operated by HARRELL and TRUEBLOOD. The indictment further alleges that TRUEBLOOD operated a wheelchair van transportation company that transported Medicare and Medicaid beneficiaries to routine medical appointments on a weekly basis. The Indictment alleges that although patients were transported in wheelchair vans, HARRELL and TRUEBLOOD billed Medicare and Medicaid through Harrell Medical Transport as though the trips had occurred in an ambulance. Medicare and Medicaid do not pay wheelchair van providers for wheelchair van transportation. The Indictment alleges that HARRELL and TRUEBLOOD fabricated and caused to be fabricated information in medical records to make it appear as though the patients had traveled by ambulance. The Indictment also alleges that HARRELL and TRUEBLOOD caused employees of Harrell Medical Transport to omit material information in medical records concerning the ability of patients to walk and ride in wheelchairs, which affects whether Medicare and Medicaid will pay for ambulance transportation.
During the investigation of the case, the United States Attorney’s Office, with the assistance of the United States Department of Health and Human Services, the North Carolina Attorney General’s Office – Medicaid Investigaitons Division, and the Federal Bureau of Investigation, seized several hundred thousand dollars in assets held by HARRELL and TRUEBLOOD. Seized assets included various ambulances and other vehicles, as well as the contents of various bank and investment accounts. During court today, United States District Judge Terrence W. Boyle entered a Preliminary Order of Forfeiture with respect to these assets and other assets linked to the fraud.
At sentencing, which has been tentatively scheduled for the Court’s February 17, 2014 term, HARRELL and TRUEBLOOD each face up to 20 years in prison, 3 years of supervised release, and up to a $250,000 fine. HARRELL and TRUEBLOOD will also be ordered to make restitutuion to Medicare, Medicaid, and private insurers who lost money due to the fraud. While the exact amount of restitutuion has yet to be determined, during court the Government noted that the loss in the case could amount to as much as $2.5 Million.Albuquerque Woman Sentenced to Eight Years for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Reyna Carizoza, 51, a Mexican national illegally in the United States, was sentenced this morning to 97 months in prison followed by four years of supervised release for her methamphetamine trafficking conviction. Carizoza will be deported after she completes her prison sentence.
Carizoza was arrested on a criminal complaint in April 2013, after law enforcement officers found methamphetamine in her vehicle following a traffic stop. She subsequently was indicted and charged with possession of methamphetamine with intent to distribute.
Court records reflect that the FBI initiated an investigation into Carizoza in April 2013, after an informant identified her as an Albuquerque-area drug trafficker. On April 26, 2013, the FBI directed the informant to make several recorded telephone calls to Carizoza during which the informant negotiated to buy four ounces of methamphetamine from Carizoza. Thereafter, law enforcement officers executed a traffic stop of Carizoza’s vehicle. After a narcotics canine “alerted” to the passenger side of the vehicle, officers found a bag containing approximately 64.7 grams of methamphetamine hidden in a toy that was in the vehicle. Carizoza was arrested and has been in federal custody since that time.
This case was investigated by the FBI’s Albuquerque Cross Border Drug Violence Hybrid Squad and the Bernalillo County Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Holland S. Kastrin and Lynn W.Y. Wang.
Alabama Woman Assisted Co-Conspirator in Tax Evasion SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Florala, Al., pleaded guilty in federal court to a charge of conspiracy United States Attorney David J. Hickton announced today.
Linda Reed, 69, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from June 9, 2007, to April 15, 2008, Reed conspired with others to defraud the United States by assisting a co-conspirator in concealing money from the Internal Revenue Service in order for the co-conspirator to avoid paying income tax.
Judge Gibson scheduled sentencing for April 1, 2014, at 10:30 a.m. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation conducted the investigation that led to the prosecution of Reed.
Alabama Man Sentenced to Federal Prison for Role in Identity Theft and Tax Refund SchemeRead the Press Release
Kevin Jackson of Montgomery, Ala., was sentenced to serve 102 months in federal prison and three years of supervised release, along with an order to pay $150,840.49 in restitution, for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Jackson had previously pled guilty to access device fraud and to aggravated identity theft.
According to court documents, Jackson possessed a storage locker in which law enforcement authorities found a computer, three cellular telephones, at least 500 names and Social Security numbers of identity theft victims and at least 70 prepaid debit cards, all tied to a scheme to obtain fraudulent federal tax refunds by causing federal tax returns to be filed in the names of stolen identities.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Secret Service, along with assistance from the Montgomery Police Department. Trial Attorneys Justin Gelfand and Jason Poole of the department’s Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Alabama Man Sentenced to Federal Prison for Role in Identity Theft and Tax Refund SchemeRead the Press Release
Montgomery, Alabama - Montgomery, AL – Kevin Jackson of Montgomery, Ala., was sentenced to serve 102 months in federal prison and three years of supervised release, along with an order to pay $150,840.49 in restitution, for his role in a stolen identity refund fraud scheme, announced U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Jackson had previously pled guilty to access device fraud and to aggravated identity theft.
According to court documents, Jackson possessed a storage locker in which law enforcement authorities found a computer, three cellular telephones, at least 500 names and Social Security numbers of identity theft victims and at least 70 prepaid debit cards, all tied to a scheme to obtain fraudulent federal tax refunds by causing federal tax returns to be filed in the names of stolen identities.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Secret Service, along with assistance from the Montgomery Police Department. Trial Attorneys Justin Gelfand and Jason Poole of the department’s Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Wednesday 13 November 2013
Woman Pleads GuiltyIn Salina Drug Trafficking CaseRead the Press Release
TOPEKA, KAN. – A woman has pleaded guilty in a federal drug trafficking case from Salina, U.S. Attorney Barry Grissom said today.
Abigail Torres Soto, 23, pleaded guilty to one count of conspiracy to distribute methamphetamine, three counts of distributing methamphetamine and one count of possession with intent to distribute methamphetamine. In April 2013, Soto was indicted along with co-defendants Jon Reed Woodbridge, 23, and Delaine Rae Romeo, 48, Salina, Kan. The indictment alleged that beginning in January 2013 the defendants conspired to distribute methamphetamine in Saline County, Kan.
In June 2013, Romeo pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted that on Feb. 7, 2013, agents with the drug task force based in Salina executed a search warrant at the Koyotee lounge in Salina and seized more than $6,000 in cash, marijuana, methamphetamine and other drug paraphernalia. Agents had made three controlled buys of methamphetamine from the Koyotee lounge. Romeo admitted that she had been receiving methamphetamine from Soto to sell.
Soto is set for sentencing Feb. 14. She faces a penalty of not less than 10 years and a fine up to $4 million on the conspiracy count, not less than five years and not more than 40 years and a fine up to $2 million on each distribution count, and a maximum penalty of 20 years and a fine up to $1 million on the remaining count.
Co-defendants include:
Jon Reed Woodbridge, who is set for trial Nov. 14.
Delaine Rae Romeo, who is set for sentencing Jan. 27, 2014.Grissom commended the 1-70/I-35 Drug Task Force, the Salina Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Westmoreland County Restaurateur Sentenced to Probation with Home Detention for Evading TaxesRead the Press Release
PITTSBURGH - A resident of Greensburg, Pennsylvania, has been sentenced in federal court to five years probation, including one year of home detention, and ordered to file tax returns, including penalties and interest on her conviction of federal income tax evasion, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Jeanean C. Smith.
According to information presented to the court, as owner of Jioio's Restaurants in Latrobe and North Huntingdon, Smith engaged in the practice of "skimming" cash from restaurant sales, resulting in a total tax loss of $438,661 from the filing of false personal, corporate and payroll tax returns during the years 2006-2009.
Prior to imposing sentence, Judge Diamond stated that defendant's personal circumstances and the need to run her business in order to repay the IRS outweighed any need for a Sentencing Guidelines sentence of imprisonment.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Smith.
Washington Park Man Sentenced for Firearm OffenseRead the Press Release
Terrell A. Rey, 28, of Washington Park, Illinois, was sentenced in federal district court on November 8, 2013, to 30 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $250 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that On October 28, 2012, police officers responded to Rey’s home. The officers announced themselves and encountered Rey just inside the front door of the residence, at which point they observed a firearm in his back pants pocket. Rey was taken into police custody, interviewed and read his Miranda rights. He admitted to possessing a firearm, knowing he was a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Washington Park Police Department. Special Assistant United States Attorney Neal C. Hong prosecuted the case.
Voluntown Man Charged with Distributing Designer Drugs over the Internet, Possessing LsdRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, announced that AARON MIODUSZEWSKI, 33, of Voluntown, was arrested today on a six-count indictment charging him with possessing and distributing controlled substance analogues over the Internet, and possessing LSD.
According to court documents and statements made in court, it is alleged that between June 2011 and July 2012, MIODUSZEWSKI distributed controlled substance analogues through websites he operated, including www.eastcoastchems.com and www.simfluxresources.com. It is further alleged that when law enforcement officers executed a search warrant at MIODUSZEWSKI’s home in July 2012, they recovered large quantities of various controlled substance analogues, as well as LSD.
Controlled substance analogues are synthetic drugs that are illegal if intended for human consumption. Common names for various controlled substance analogues are “designer drugs,” “bath salts,” “spice,” and “herbal incense.” The synthetic drugs mimic the dangerous effects of cocaine, amphetamines and other substances that are Schedule I or II controlled substances under the federal Controlled Substances Act.
The indictment charges MIODUSZEWSKI with four counts of possession with intent to distribute and distribution of controlled substance analogues, one count of possession with intent to distribute controlled substance analogues, and one count of possession with the intent to distribute lysergic acid diethylamide (“LSD”).
A federal grand jury in Hartford returned the indictment on November 5, 2013, and MIODUSZEWSKI was arrested this morning at his residence. He appeared this afternoon before U.S. Magistrate Judge Donna F. Martinez and is detained pending a hearing that is scheduled for Friday, November 15, at 11:30 a.m.
If convicted, MIODUSZEWSKI faces a maximum term of imprisonment of 20 years and a fine of up to $1 million on each count.
Acting U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad in Worcester, Mass., and is being prosecuted by Special Assistant U.S. Attorney Natasha Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two North Idaho Men Sentenced for Conspiring to Distribute MethRead the Press Release
COEUR D’ALENE – U.S. Attorney Wendy J. Olson announced today that Justin William Russell, 27, of Sandpoint, and Michael Alan Briggs, 43, of Hayden, were sentenced for conspiring to possess with intent to distribute 50 grams or more of methamphetamine. The defendants appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
Russell was sentenced today to serve 89 months in prison and fined $1,000. Briggs was sentenced on Tuesday to serve 87 months. Judge Lodge ordered each defendant to serve five years of supervised release following their prison term and forfeit at least $10,000, which represents the proceeds derived from the offense conduct.
According to court documents, Russell and Briggs pleaded guilty on August 20 and June 24, 2013, respectively, to count one of the federal indictment filed on March 19, 2013. The defendants admitted that from May 2011 to at least December 2011, they conspired together and with other individuals to possess and distribute 50 grams or more of methamphetamine. The evidence showed that Briggs received his methamphetamine from Russell until Russell was arrested, and then moved on to another supplier. Both individuals sold their methamphetamine in the Coeur d’Alene area.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the North Idaho Violent Crime Task Force, a Federal Bureau of Investigation sponsored Safe Streets Task Force comprised of law enforcement from the Kootenai County Sheriff’s Office, Coeur d’Alene City Police Department, Post Falls Police Department, Idaho State Police, Bonner County Sheriff's Office, Shoshone County Sheriff's Office, and the Coeur d’Alene Tribe.
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. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Two Indicted in $15 Million Investment Fraud Scheme That Victimized National Hockey League Players and Long Island InvestorsRead the Press Release
An indictment was unsealed this morning in federal court in Brooklyn charging Phillip A. Kenner, a former financial advisor to several former and current National Hockey League (“NHL”) players, and Tommy C. Constantine, also known as “Tommy C. Hormovitis,” a former professional race car driver, with wire fraud and wire fraud and money laundering conspiracies in connection with schemes involving fraudulent real estate and business investments. Kenner is also charged with wire fraud involving a separate scheme to buy real estate in Sag Harbor, New York.
The defendants were arrested earlier today in Scottsdale, Arizona, by agents of the Federal Bureau of Investigation and Internal Revenue Service and officers of the Scottsdale Police Department, and a search warrant was executed at Kenner’s residence. The defendants are scheduled to appear later today before United States Magistrate Judge Bridget S. Bade at the federal courthouse in Phoenix, Arizona, for removal proceedings to the Eastern District of New York.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Criminal Investigation, New York.
During his college years at Rensselaer Polytechnic Institute (“RPI”) in Troy, New York, Kenner became acquainted with one of the schemes’ victims, who played hockey at RPI before being drafted by an NHL professional team. In approximately 1994, Kenner was licensed as a financial advisor and, early in his career, worked at a firm in Boston, Massachusetts, where he built a client list of several NHL players, before starting his own firm in 2003. Between 2002 and 2013, Kenner advised numerous hockey players on investments in a series of allegedly fraudulent schemes that he represented would earn significant profits for the players; however, the victimized players instead suffered losses exceeding $15 million.
The Hawaii Real Estate Investment Scheme
As alleged in the indictment and other court filings by the government, Kenner fraudulently solicited at least 13 players to invest $100,000 each in a real estate development project on the Big Island of Hawaii. In connection with this scheme, Kenner also convinced several NHL players to open lines of credit, to which Kenner was given access. Unbeknownst to the players, Kenner allegedly used their investments for purposes unrelated to the development of the Hawaii real estate project. Rather than investing the money as promised, Kenner and Constantine used it to fund personal real estate purchases, pay personal expenses, and pay down other debts necessary to conceal the scheme. Beyond the NHL players, in August 2006, Kenner and Constantine also allegedly defrauded Lehman Brothers Holdings, Inc. of $2 million based on Kenner’s misrepresentations concerning the use of a real estate loan. In total, the victims of this scheme lost more than $13 million.
The Eufora LLC Scheme
Constantine operated Eufora, LLC, a prepaid debit card business, which he founded in 2002. Kenner informed the NHL players that Eufora was an up-and-coming company with great potential for growth. Between February 2008 and May 2009, players invested, at Kenner’s urging, approximately $1.4 million into Eufora. However, none of that $1.4 million was actually invested in Eufora; rather, the investment money was diverted to bank accounts that Kenner and Constantine controlled, and was used to cover the costs of Kenner and Constantine’s personal mortgages, credit card bills, travel costs, jewelry, and other expenses. In December 2009, Kenner and Constantine fraudulently convinced an Eastern District of New York resident to invest another $200,000 in Eufora, the vast majority of which was later diverted to a Constantine-controlled account unrelated to Eufora. In total, investors lost more than $1.5 million as a result of the Eufora scheme.
The Global Settlement Fund Scheme
In May 2009 through February 2010, Kenner and Constantine persuaded NHL players to give approximately $4.1 million to fund an attorney’s escrow account, termed the Global Settlement Fund, or “GSF,” which was to be used to finance litigation related to Mexican land deals. However, only a small fraction of the players’ contributions to the GSF were used for litigation; rather, the vast majority of the money was allegedly transferred into bank accounts controlled by Constantine, and significant portions of the money were used by Kenner and Constantine for purposes unrelated to the GSF, including funding Kenner’s personal investment in a tequila company in Mexico, funding litigation in Florida related to a race car company owned by Constantine, and funding the transfer of Constantine’s Arizona home. The players lost more than $1 million as a result of this scheme.
The Sag Harbor Scheme
In a separate scheme, Kenner acquired a 25% interest in real property in Sag Harbor, New York, without using any of his own money. To achieve this result, Kenner took $395,000 from a player’s line of credit, without that player’s knowledge or permission. Kenner also convinced another player to pay $375,000 for a 50% interest, when Kenner only gave him a 25% interest and pocketed the other half of the money. In early 2010, the investors realized Kenner had not contributed any of his own money, and they sold the property at a loss. Kenner has filed a civil lawsuit in Arizona against one of the investors in connection with the Sag Harbor property.
“As alleged, Phillip Kenner spun a web of lies, deceit and broken promises that stretched from Hawaii to Mexico to the East End of Long Island. Kenner used his school connections to build a client list of NHL players. Once he gained their trust he promptly betrayed it by steering them to fraudulent investment schemes that enriched himself and Constantine to the tune of millions at the players’ expense,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute to the fullest extent those who seek to profit by such fraud.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS for their work on the investigation, and thanked the Scottsdale, Arizona, Police Department for their assistances.
Assistant Director in Charge George Venizelos: “As alleged, Kenner exploited his personal relationship with these players in pursuit of his own lucre. Player after player, time after time he and his partner, Constantine, stole from anyone they could find. This was an elaborate scheme of deception, trickery, and lies that victimized many. The FBI will continue to pursue anyone who believes using others’ savings as their personal piggy bank is acceptable behavior.
“It is not uncommon for investment fraudsters to target a specific group of victims and that group may even include the perpetrator’s own friends and acquaintances,” stated IRS Special Agent-in-Charge Weirauch. “The cooperation between IRS-Criminal Investigation, the U.S. Attorney’s Office, and the FBI should give the investing public confidence that investment fraud schemes will ultimately be uncovered and thoroughly investigated, and that the scammers will be prosecuted. Nevertheless, always take care when entrusting money to others, including to investment professionals whom you already know.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted the defendants face maximum sentences of 20 years.
The criminal case has been assigned to the Honorable Joseph F. Bianco, United States District Judge for the Eastern District of New York, in Central Islip, New York. The government's case is being prosecuted by Assistant United States Attorneys Carrie Capwell, Demetri Jones and Diane Leonardo.
The Defendants
Name: PHILLIP A. KENNER
Age: 43
Residence: Scottsdale, ArizonaName: TOMMY C. CONSTANTINE, a/k/a “Tommy C. Hormovitis”
Age: 47
Residence: Scottsdale, ArizonaE.D.N.Y. Docket No. 13-CR-607(JFB)
Two Indicted for Assault of A Border Patrol AgentRead the Press Release
LAREDO, Texas - Mexican National Jose Luis Zavala-Rodriguez aka Jose Juan Zavala-Rodriguez or Jose Juan Rodriguez-Rosa, 22, and Johnny Jose Redrovan-Pesantez, 23, of Ecuador, have been charged with assault of a federal officer causing bodily injury, announced United States Attorney Kenneth Magidson. Zavala-Rodriguez is also charged with conspiracy to transport aliens and transporting an alien for personal financial gain.
Currently in custody, both men are expected to make an initial appearance before U.S. Magistrate Judge Scott Hacker tomorrow, at which time the government expects to request their continued detention pending further criminal proceedings.
The indictment, returned today, alleges that on or about Oct. 23, 2013, the men did knowingly forcibly assault, resist, oppose, impede, intimidate, and interfere with a U.S. Border Patrol agent while he was performing his official duties. The agent required medical attention but survived.
The three-count indictment also alleges that Zavala-Rodriguez conspired to transport as well as transporting an alien who had entered and remained in the United States illegally for the purpose of commercial advantage and private financial gain.
If convicted of the assault on the officer, each faces up to 20 years in prison and a possible $250,000 fine. Zavala-Rodriguez further faces an additional 10-year possible sentence on each of the remaining two charges, upon conviction, as well as a $250,000 fine.
The case was investigated by FBI and the Laredo Police Department and is being prosecuted by Assistant United States Attorney Homero Ramirez.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Defendants Admit Guilt in Insider Trading SchemeRead the Press Release
NEWARK, N.J. –The two primary traders in an extensive insider trading network admitted today to repeatedly using information divulged by insiders at pharmaceutical/medical technology firms operating in New Jersey, U.S. Attorney Paul J. Fishman announced.
Lawrence Grum, 49, of Livingston, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of conspiracy to commit securities fraud and four counts of securities fraud.
Michael Castelli, 49, of Morris Plains, N.J., pleaded guilty before Judge Hayden to an information charging him with two counts of conspiracy to commit securities fraud and five counts of securities fraud.
According to documents filed in this case and statements made in court:
From 2007 to 2012 Grum and Castelli executed numerous, profitable trades based on inside information fed to them by their friend, Mark Cupo, 52, of Morris Plains, N.J., who was an executive at Sanofi-Aventis, a global pharmaceutical company with United States operations based in New Jersey. Cupo, in turn, obtained much of the inside information from his friend and former employee, John Lazorchak, 43, of Long Valley, N.J., who was director of financial reporting at Celgene Corp., another global pharmaceutical company based in New Jersey. Lazorchak also obtained certain inside information from Mark Foldy, 43, of Morris Plains, a friend and former high school classmate of Lazorchak, who was a marketing executive at Stryker Corp., a leading medical technology business with a major division located in New Jersey.
During the course of the multi-year insider trading operation, Grum and Castelli regularly received from Lazorchak, via Cupo, material, nonpublic information about Celgene’s anticipated corporate acquisitions, numerous quarterly earnings results, and regulatory news, with the understanding that Grum and Castelli would trade based on the inside information and share their profits with Lazorchak and Cupo. Grum and Castelli also received inside information directly from Cupo regarding a corporate acquisition planned by Cupo’s employer, Sanofi, as well as inside information regarding a Stryker acquisition, which inside information Cupo had obtained from Lazorchak. Lazorchak, in turn, had obtained the Stryker inside information from his friend, Foldy.
Grum and Castelli made efforts to conceal their involvement in insider trading by, for example, compiling binders of market research to try to provide an independent basis for their knowledge of confidential, material nonpublic information.
The material, nonpublic information available to Grum and Castelli enabled them to reap substantial profits by engaging in lucrative securities trading ahead of the public announcement of several corporate acquisitions, numerous quarterly earnings results, and regulatory news. In addition, they shared a portion of their profits with Lazorchak and Cupo, for their respective role in providing Grum and Castelli inside information.
Grum and Castelli each face a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy counts; and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities fraud counts. Grum and Castelli are both scheduled to be sentenced on Feb. 20, 2014.
Grum and Castelli are the last of the six defendants charged with participating in this insider trading network to plead guilty. The other four defendants: Lazorchak, Cupo, Foldy, and Michael Pendolino, 44, of Nashua, N.H., entered their guilty pleas before Judge Hayden on Oct. 7, 2013, and are scheduled to be sentenced on Jan. 20, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special
Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty pleas. He also thanked the U.S. Securities and Exchange Commission=s Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-434
Defense counsel:
Lawrence Grum: Scott A. Resnik Esq., New York
Michael Castelli: Daniel Zinman Esq. and Daniel Stein Esq., New York
John Lazorchak: Lawrence S. Lustberg Esq., Newark
Mark Cupo: Joseph J. Bell Jr. Esq. and Joseph J. Bell, IV Esq., Rockaway, N.J.
Mark Foldy: Jonathan Marks Esq., New York
Michael Pendolino: James S. Friedman Esq., NewarkGrum, Lawrence Information
Castelli, Michael InformationThree Arrested and Detained in Central Falls Police, FBI Investigation into Alleged Crack Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Three men arrested by Central Falls Police, the FBI and officers and agents assigned to the FBI RI Safe Streets Task Force were ordered detained in federal custody on Tuesday on charges of allegedly participating in a conspiracy to distribute crack cocaine, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI, and Central Falls Police Chief James J. Mendonca.
Angel Vigo, 20, of Central Falls, Adalberto Negron, 30, of Woonsocket, and Edwin Nieves, 24, with a last known address in Pawtucket, were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond during their initial appearance in federal court, charged with conspiracy to distribute cocaine base. The three men were arrested on Friday.
According to an affidavit in support of criminal complaints against Vigo, Negron and Nieves and filed with the court, it is alleged that on at least ten occasions an individual operating at the direction of law enforcement allegedly arranged for the purchase and accepted delivery of varying amounts of crack cocaine from Vigo, Negron and Nieves. According to the affidavit, telephone calls to arrange the alleged purchases of crack cocaine and the alleged deliveries of the drugs were monitored by law enforcement. The alleged deliveries took place in Central Falls and Pawtucket.
A criminal complaint is merely an allegation 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.
Conspiracy to distribute cocaine base is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000.The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the FBI, FBI RI Safe Streets Task Force and the Central Falls Police Department with the assistance of officers from the Cranston, Providence and Norton, Mass., Police Departments and the Massachusetts State Police.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Third Carbon County Woman Pleads Guilty to Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a third woman from Carbon County pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Ceres Lozada, age 27, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2010 and December 2012.
Previously, Bonnie Vosburgh, age 22, of Nesquehoning, and Victoria Argott, age 34, of Lansford, entered guilty pleas and admitted to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 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.
Stratford Man Convicted of Operating Tax Refund SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found BENJAMIN GREEN, III, 45, of Stratford, guilty of engaging in a corrupt tax refund scheme. The trial before U.S. District Judge Vanessa L. Bryant began on November 7 and the jury returned its verdict yesterday afternoon following a three-day trial before U.S. District Judge Vanessa L. Bryant.
According to the evidence presented during the trial, in March 2009, GREEN filed a federal Individual Income Tax Return for the 2008 tax year. On the return, GREEN asserted the fraudulent “Original Issue Discount” (“OID”) tax scheme, in which taxpayers falsely claim significant amounts of OID interest income and federal tax withholding on their federal tax returns. The object of the OID tax scheme is to obtain large tax refunds from the U.S. Treasury by fraudulently claiming significant federal tax withholdings that exceed the smaller amount of tax due on the falsely claimed income.
On his federal tax return, GREEN falsely claimed to have received $920,063 in taxable interest income, and to have $929,702 of federal income tax withholdings for the 2008 tax year. Based on this false information, GREEN claimed a refund from the IRS in the amount of $616,434, and the IRS erroneously issued a refund in that amount to GREEN. Shortly after receiving the refund, GREEN disbursed the majority of the fraudulently-obtained funds through wire-transfers, withdrawals and checks to third parties. He also used more than half of the refund to pay off his mortgage.
When the IRS tried to collect the refund, GREEN undertook a course of conduct to inhibit the IRS’s efforts to recover the money, including sending frivolous correspondence to the IRS, hiding real property in the name of a nominee entity to impede the IRS’s collection efforts, and falsely complaining that the IRS had commenced unauthorized collection and enforcement actions against him.
GREEN was convicted of one count of making a false claim against the United States, which carries a maximum term of imprisonment of five years, and one count of attempting to obstruct the due administration of the internal revenue laws, which carries a maximum term of imprisonment of three years.
Judge Bryant has scheduled sentencing for February 3, 2014.
This matter was investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Trial Attorney Sean Beaty of the Justice Department’s Tax Division, and Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Shreveport Man Sentenced for Conspiracy to Possess and Distribute CocaineRead the Press Release
SHREVEPORT, La – United States Attorney Stephanie A. Finley announced that David Lamone Moten, 34, of Shreveport, was sentenced Tuesday by U.S. District Court Judge S. Maurice Hicks Jr. to 105 months in prison and four years of supervised release for conspiracy to possess with intent to distribute cocaine. He pleaded guilty January 31, 2013.
According to evidence presented at the guilty plea, in December of 2012, Moten conspired with Michael Williams, Robin Lynette Gaddis and others to possess with intent to distribute more than 500 grams of powder cocaine. In 2011 and 2012, Williams caused cocaine to be transported from Dallas to his hometown of Shreveport for redistribution by others, including Moten. Specifically, on December 1, 2012, Moten received a shipment of powder cocaine from Williams and distributed the cocaine in the Shreveport area.Williams pleaded guilty to drug conspiracy charges on January 31, 2013 and was sentenced on May 30, 2013 to 151 months in federal prison. Gaddis pleaded guilty to conspiracy January 22, 2013 and was sentenced June 10, 2013 to 24 months in federal prison.
Williams, Gaddis and Moten were prosecuted as part of OCDETF Operation Dry Cedar, which targeted cocaine distributors in Shreveport’s Cedar Grove neighborhood. The FBI’s Northwest Louisiana Violent Crimes Task Force investigated the case. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Members of the Task Force include the FBI, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier City Police Department, Bossier Parish Sheriff’s Office, Desoto Parish Sheriff’s Office and the Louisiana State Police. The investigation spanned two states, multiple jurisdictions, and involved the FBI offices in both Shreveport and Dallas. To date, the investigation has produced eight federal indictments and 14 state arrests.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Ringleader of El Paso and Baltimore-based Federal Human Trafficking Investigation Sentenced to 17 1/2 Years in Federal PrisonRead the Press Release
In El Paso, 45-year-old Alarcon Allen Wiggins (aka “Alarcon Tha Don”), the C.E.O. of 424 Records, 1 Team 1 Family Entertainment, DBD TV and DBD Productions in Baltimore, MD, was sentenced yesterday to 212 months in federal prison for his leadership role in a forced prostitution scheme based in El Paso and Baltimore announced United States Attorney Robert Pitman and FBI Special Agent in Charge FBI Special Agent in Charge Douglas E. Lindquist.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Wiggins pay $24,879.83 restitution and be placed under supervised release for a period of ten years after completing his prison term. On August 8, 2013, Wiggins pleaded guilty to conspiracy to commit human trafficking and conspiracy to transport women for purposes of prostitution.
Alarcon and nine other Baltimore residents have been convicted and sentenced as part of this investigation. Sentences for the other defendants ranged from probation to 186 months incarceration.
According to court records, the defendants were involved in a scheme from January 2009 until their arrests in October 2011 which included human trafficking; transport via interstate commerce for prostitution; coercing and enticing for prostitution; and, the concealing, removing or confiscating identification documents—all for financial benefit. Wiggins and other defendants used their ties to the music industry to recruit young women then force them to work as strippers and prostitutes while confiscating all means of communication from the victims, namely cell phones and laptop computers; confiscating all identification documents from victims; prohibiting any communication by the victims and personal interaction with anyone outside the group without the defendants’ permission or in their presence; and, collecting all victims’ earnings for the benefit of the defendants.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys J. Brandy Gardes and Daniel Crumby prosecuted this case on behalf of the government.
Plummer Woman Sentenced for Conspiring to Distribute MethRead the Press Release
COEUR D’ALENE – Vanessa Louise Wagner, 30, of Plummer, Idaho, was sentenced today to 90 months in prison followed by five years of supervised release for conspiracy to distribute 50 grams or more of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Wagner to forfeit $5,600. She pleaded guilty to the charge on July 22, 2013.
According to court documents, Wagner admitted that between December 4, 2012, and January 8, 2013, she conspired with Gibson to distribute 50 grams or more of actual methamphetamine. Wagner admitted that she knew the substance was methamphetamine and she knowingly distributed it.
Charles Edward Gibson, 43, of Spokane, Washington, was sentenced on October 22 to 20 years in prison for conspiracy to distribute 50 grams or more of methamphetamine. According to the plea agreement, Gibson admitted that between December 4, 2012, and January 8, 2013, he distributed to an undercover officer and received payment for at least 50 grams or more of actual methamphetamine. It was later determined the street value of the methamphetamine was at least $35,000. Gibson was ordered to forfeit $35,000, which represents the proceeds derived from the criminal conduct.
“Vanessa Wagner and Charles Gibson will each serve lengthy federal prison sentences as punishment for bringing methamphetamine into our communities,” said Olson. “Methamphetamine is highly addictive and brings great tragedy to those who use it. We will continue to aggressively prosecute those who seek to profit from his horrific and illegal substance. I commend the cooperative law enforcement effort that brought this case to a successful conclusion.”
“Methamphetamine is an insidious, addictive drug that ruins lives and threatens our communities,” said DEA Special Agent in Charge Matthew G. Barnes. “This investigation is another fine example of the outstanding partnerships that have been forged between agencies who are committed to the keeping our communities safe.”
The case was jointly investigated by the Bureau of Indian Affairs (BIA), Drug Enforcement Administration (DEA), Idaho State Police, Coeur d’Alene Tribal Police and Plummer Police Department.
Pearland Septuagenarian Heads to Prison for Nearly 14 Years in Child Pornography CaseRead the Press Release
GALVESTON, Texas – David Paul Roetcisoender, 73, of Pearland, has been ordered to federal prison following his convictions of distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Roetcisoender was convicted by a federal jury on Aug. 28, 2103, following a two-day trial and approximately two hours of deliberation.
In handing down the sentence, U.S. District Judge Gregg Costa, who presided over the trial, took into consideration his age as well as the large number of images involved and the length of time he was engaged in the activity. Roetcisoender was then ordered to serve respective terms of 120 and 163 months for the possession and distribution convictions, which will served concurrently for a total of 163 months in federal prison. He will then serve eight years of supervised release following completion of his prison term and will also be ordered to register as a sex offender.
During the trial, the jury testimony from a detective with the Pearland Police Department who explained how he discovered several videos of child pornography over the Internet which were later traced to a computer used by Roetcisoender.
Evidence proved that on June 4, 2012, officers executed a search warrant at Roetcisoender’s residence in Pearland. At that time, an officer conducted a computer forensic preview which resulted in the discovery of thousands of images and videos of child pornography on a computer Roetcisoender used.
At the time of the search, testimony further revealed Roetcisoender admitted to downloading and viewing child pornography since the 1990s.
The jury also heard that more than 2000 videos and more than 100,000 images of child pornography were found on computers, hard drives and other storage devices seized by officers and used by Roetcisoender.
Further, the government proved that he not only possessed the child pornography but distributed it on at least two separate occasions. A Pearland computer forensic officer testified that the file sharing program used by Roetcisoender contained data that specified which specific files had been downloaded by others over the Internet from Roetcisoender’s computer.
Roetcisoender attempted to convince the jury that he did not knowingly distribute child pornography.
The jury disagreed and found him guilty on two counts of distribution of child pornography and one count of possession of child pornography.
Roetcisoender was arrested on the federal charges on Nov. 14, 2012. He has and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Pearland Police Department investigated the case as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, 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."
Paintsville Doctor Agrees to Pay U.S. Government $200,000 to Settle Civil AllegationsRead the Press Release
Doctor has surrendered medical license
LEXINGTON, KY - A former Paintsville, KY., physician has agreed to pay the U.S. Government $200,000 to settle civil allegations that he improperly billed federal health care programs and failed to maintain documentation required to support reimbursement payments.
Under federal law, the Medicare and Medicaid programs reimburse physicians for procedures that are deemed medically necessary. The U.S. Attorney’s Office, on behalf of the Government, contends that, from January 2008 through December 2011, Dr. Don V. Bryson failed to keep documentation that supported the medical necessity of procedures for which he had billed Medicare and Medicaid for reimbursement.
The Government further contends that Bryson had submitted claims seeking reimbursement for services to patients that he failed to properly authorize or oversee.
Under the terms of the settlement agreement, Bryson will return $152,000 to repay the Kentucky Department for Medicaid Services and $48,000 to repay the Medicare program.
Previously, in June 2012, Bryson also agreed with the Kentucky Board of Medical Licensure to surrender his medical license.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky announced the settlement agreement today.
The investigation was conducted by the U.S. Attorney’s Office and the Kentucky Department for Medicaid Services. Assistant U.S. Attorney Valorie D. Smith represented the Government in this case.
Ojo Amarillo Woman Pleads Guilty to Using a Firearm During an AssaultRead the Press Release
ALBUQUERQUE – Perfinna King, 34, an enrolled member of the Navajo Nation who resides in Ojo Amarillo, N.M., pleaded guilty to using a firearm during a crime of violence. Under the terms of her plea agreement, King will be sentenced to six years in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
King was arrested in April 2012, based on a criminal complaint charging her with assaulting her domestic partner, another Navajo woman, with a knife and a pistol on April 6, 2012. King subsequently was indicted and charged with assault with a dangerous weapon, assault resulting in serious bodily injury, and using and carrying a firearm during a crime of violence. Prosecution of this case was delayed by competency proceedings.
According to court filings, in the early hours of April 6, 2012, King had an argument with the victim during which King stabbed the victim in the leg in a residence located in the Navajo Indian Reservation. Although the victim tried to get away from King by hiding in a bathroom, King dragged the victim out of the bathroom and stabbed her again. Thereafter, King shot the victim in the leg as the victim ran out of the residence in an effort to get away from King. The victim was treated for multiple stab wounds and a gunshot wound on her leg.
During today’s proceedings, King entered a guilty plea to Count 3 of the indictment and admitted using a firearm during an assault she committed on April 6, 2012. King has been in federal custody and remains detained pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Ohio Man with Loaded Pistol and Prescription Pain Pills Gets 5 Years in Federal PrisonRead the Press Release
BECKLEY, W.Va. – An Ohio man who possessed a loaded pistol and powerful prescription pain pills in January 2013 was sentenced today to five years in federal prison, announced U.S. Attorney Booth Goodwin. Thomas William Dyer, Jr., 58, of Columbus, previously pleaded guilty in July to carrying a loaded firearm during and in relation to a drug trafficking crime. Dyer’s sentence was handed down today by U.S. District Judge Irene C. Berger in Beckley. On January 20, Dyer possessed a loaded .380 caliber pistol and oxycodone pills at a residence located near New Richmond, Wyoming County, W.Va.
Dyer was arrested following a controlled drug buy that took place in and around New Richmond. During a search, police also found a total of six firearms and 130 oxycodone pills at a residence located near New Richmond.The Southern Regional Drug and Violent Crimes Task Force, the Wyoming County Sheriff’s Department and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Nampa Man Sentenced for Federal Firearms ViolationRead the Press Release
BOISE – Keanta M. Lathrop, 35, of Nampa, Idaho, was sentenced today in United States District Court to 47 months in prison followed by three years of supervised release for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Lathrop to forfeit the firearm he unlawfully possessed. He pleaded guilty to the charge on August 22, 2013.
According to the plea agreement, court records show that Lathrop pleaded guilty to trafficking cocaine in Ada County and was sentenced on May 23, 2007, to six years in prison. Lathrop was later granted parole and released from prison. As a condition of release, Lathrop agreed to searches of his person or property. In October 2012, a search was conducted of Lathrop’s Nampa residence by Nampa police and Lathrop’s parole officer. The officers discovered a Jimenez Arms .380 semiautomatic pistol inside a backpack at the residence. Lathrop was present during the search and subsequently admitted that his fingerprints were on the weapon and he knowingly possessed the firearm. Because Lathrop was previously convicted of the felony offense of trafficking cocaine, he is prohibited from possessing firearms.
The case was investigated by the Nampa Police Department, Idaho Department of Probation and Parole, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Lathrop is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nacogdoches Traffic Stop Results in Federal Prison Sentence for Mexican NationalRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 27-year-old Tamaulipas, Mexico man has been sentenced to federal prison for credit card fraud related charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Samuel Rivera Compean pleaded guilty on Apr. 16, 2013, to possession of 15 or more unauthorized access devices and was sentenced to 37 months in federal prison today by U.S. District Judge Ron Clark. Compean was ordered to pay restitution in the amount of $58,754 to Discover Financial Services, a credit card issuer.
According to information presented in court, on Mar. 16, 2012, Compean was stopped by a State trooper for a traffic violation in Nacogdoches, Texas. During the traffic stop, 146 fraudulent credit cards were discovered in different names with matching false identification cards bearing Compean’s picture. The cards were secreted in various compartments in the car. Compean also had numerous electronic items purchased with the cards including I-pads, I-pods, Xboxes, and laptop computers. Compean attempted to flee on foot but was apprehended after a short foot chase. He was released later on bond by a local judge. Compean was indicted by a federal grand jury on Feb. 6, 2013, and charged with federal credit card fraud charges. Compean will be deported following his prison sentence.
This case was investigated by the Texas Department of Public Safety and the Houston Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Moxee Man Sentenced to 31 Months in Federal Prison for Selling Counterfiet Airbags on e-BayRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jason Jordan, age 34, of Moxee, Washington, was sentenced after having pleaded guilty in June, 2013 to Conspiracy to Traffic in Counterfeit Airbags. United States District Court Chief Judge Rosanna M. Peterson sentenced Jordan to a 31month term of imprisonment to be followed by a 36 month term of court supervision upon release from Federal prison. Chief Judge Peterson also ordered Jordan to pay approximately $600,000 in restitution and forfeitures.
According to information disclosed during the court proceedings, Jordan owned two businesses -- Auto Pros and Sickspeed Inc. -- located in Moxee, Washington. He sold retail automobile parts via the Internet from these businesses. Jordan used these businesses to facilitate the importation of counterfeit airbags from China, which airbags were falsely labeled as being manufactured by reputable automobile manufacturers, such Honda, Toyota, Ford, and General Motors. Jordan advertised these counterfeit airbags as genuine products and sold them via e-Bay. Jordan admitted that he actually sold approximately 1980 counterfeit airbags from June of 2011 to August of 2012, earnings proceeds in the amount of $444,180.
This investigation began when officers with the United States Customs and Border Protection (CBP), intercepted shipments from China which contained counterfeit airbags and which were destined to Jordan's business for sale to the public. Over the course of several months, CBP officers seized numerous shipments containing an aggregate of 194 counterfeit airbags with a value of approximately $51,010. CBP authorities issued Jordan notices that the airbags had been seized because they were counterfeit. Despite these notices and seizures, Jordan continued to import counterfeit airbags into the United States and continued selling them to the public. Investigators believe that many airbags had been sold to unwitting independent garages where, without the knowledge of the automobile owners, the counterfeit airbags were installed in numerous vehicles. Agents with the Department of Homeland Security Investigations executed a search warrant at his business in August 2012 and seized over 5,300 counterfeit items, including counterfeit airbags and other counterfeit automotive parts.
As part of the agreed resolution in this case, Jordan agreed to forfeit $57,063 that the United States previously seized from his bank accounts and an additional $100,000 in cash and assets. Jordan was also ordered to pay restitution in the amount of $444,180 to the automobile manufactures whose trademarks were infringed.
Michael C. Ormsby said, "The National Highway Transportation Safety Administration has tested some counterfeit airbags from China, resulting in alarming failures, including catching fire and exploding shrapnel. While law enforcement officers have identified some of these airbags, identifying vehicles that are equipped with the counterfeit airbags in the used, and often salvage, car market is extremely difficult. The counterfeit airbags that entered the stream of commerce continue to present a risk of injury to unwary used car buyers. This investigation puts an end to Jordan's illegal activities that put innocent victims at risk of potential serious injury. This successful investigation was the result of the tireless efforts by law enforcement officers with the Department of Homeland Security Investigations, United States Customs and Border Protection and the Moxee Police Department, together with assistance from representatives of Honda Motors and Ford Motor Company. I commend their superb effort in this important case."
Information for consumers regarding counterfeit airbags is available at: http://www.safercar.gov.
The case was investigated by Homeland Security Investigations, United States Customs and Border Protection, with the assistance of the Moxee Police Department, Honda Motors, and Ford Motor Company. The case was prosecuted by Mary K. Dimke, an Assistant United States Attorney for the Eastern District of Washington.
CR-12-2079-RMP
Milpitas Man Sentenced to Five Months Custody, Ordered to Pay A $10,000 Fine, and Restitution for Illegal Shark SalesRead the Press Release
SAN FRANCISCO – Dean Tuan Trinh was sentenced yesterday to 5 months home detention, and ordered to pay a $10,000 fine to the Lacey Act Reward Fund, along with $14,400 in restitution for his involvement in the illegal take and sale of California leopard sharks from the San Francisco Bay and nurse sharks from Florida State waters, United States Attorney Melinda Haag announced.
Trinh, 44, of Milpitas, Calif., pleaded guilty on August 8, 2013, to violations of Wire Fraud, the Lacey Act, and Conspiracy to violate the Lacey Act. According to the plea agreement, Trinh admitted that he ran a wholesale fish business known as Aquatop USA in Milpitas, from 2009 through 2012. Trinh stated that he knew there was a lucrative market for undersized (less than 36”) California leopard sharks and used his fishing vessel, the “Shark Hunter,” to fish for the sharks in the San Francisco Bay. Trinh offered the sharks for sale on his website and sold them to customers throughout the United States and abroad. To facilitate the sale of these illegal sharks, Trinh caused wires to be sent, including emails to customers, and electronic filings with the U.S. Fish & Wildlife Service.
During the same time period, Trinh admitted that he had advertised undersized nurse shark pups for sale on eBay and Craigslist, knowing that these sharks were taken in violation of Florida State law – the shark pups were harvested from Florida state waters without the required licenses and permits and out of the lawful season. Trinh conspired with an individual in Florida to obtain these sharks.
Trinh was indicted by a federal grand jury in Florida on November 1, 2012, and charged with Conspiracy to violate the Lacey Act. On May 23, 2013, Trinh was indicted by a federal grand jury in California, and charged with Wire Fraud and Lacey Act violations.
The sentence was handed down by The Honorable Richard Seeborg, United States District Court Judge, following a guilty plea on three counts of violating the Lacey Act, in violation of 16 U.S.C. § 3372(a)(2)(A), six counts of Wire Fraud, in violation of 18 U.S.C. § 1343, and Conspiracy, in violation of 18 U.S.C. § 371. Judge Seeborg sentenced the defendant to three years of probation with 5 months home detention, and ordered him to pay a $10,000 fine to the Lacey Act Reward Fund, which provides money to those who provide information leading to an arrest or criminal conviction for a violation of the Lacey Act. Judge Seeborg also ordered the defendant to pay $14,400 in restitution: $5,400 to be paid to the California Academy of Sciences, and $9,000 to be paid to the National Fish and Wildlife Foundation, created by Congress to protect and restore fish and wildlife and their habitats. Trinh was also ordered to forfeit his truck and fishing vessel, and ordered to relinquish all rights he has to any state fishing, hunting or other wildlife collecting licenses.
Northern District of California AUSA Maureen Bessette and Southern District of Florida AUSA Thomas A. Watts-Fitzgerald prosecuted the case with the assistance of Janice Pagsanjan. The prosecution is the result of a two year investigation by the U.S. Fish & Wildlife Service and the National Oceanic and Atmospheric Administration Office of Law Enforcement.
(Trinh indictment 5/15/2013 )
(Trinh indictment leopard shark )
Massachusetts Woman Pleads GuiltyIn Wichita Massage Parlor Sex Trafficking CaseRead the Press Release
WICHITA, KAN. - A Massachusetts woman has pleaded guilty to aiding and abetting the harboring of undocumented workers as part of a human trafficking scheme, U.S. Attorney Barry Grissom said today.
Xiuqing Tian, 44, Framingham, Mass., pleaded guilty to one count of harboring undocumented aliens. In her plea, Tian admitted she entered the United States in September 2009 and came to Wichita with an agreement to work for co-defendants Yan Zhang and Gary Kidgell in their Sun Chi Spa massage business. After she arrived, Tian was encouraged and expected by Zhang and Kidgell to perform sexual acts with patrons of the spa. Kidgell and Zhang later opened AG Spa, where Tian was similarly employed.
While working for Kidgell, Tian helped recruit other Chinese women to work in his massage businesses. She provided translation services and conducted interviews of Chinese females. In January 2011, at Kidgell’s direction, she used the telephone to recruit a woman by telling her she would make a lot of money in Wichita. After the woman arrived in Wichita, she was met by Tian and Kidgell, who transported her to Kidgell’s residence. The woman was made to stay there and to pay rent. Both Tian and Kidgell knew the woman was not a United States citizen.
Sentencing is set for Jan. 29. Tian faces a maximum penalty of five years in federal prison and a fine up to $250,000.
Co-defendants Kidgell and Zhang are awaiting trial.
The Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Maryland Man Pleads Guilty to “Black Money” Conspiracy and Admits Engaging in A Series of Similar Schemes in Massachusetts, Rhode Island, and ConnecticutRead the Press Release
BOSTON – A Maryland man was convicted yesterday in United States District Court in Springfield on a number of charges related to the altering of U.S. currency in connection with a “black money” scheme.
Cole Williams, 32, of Frederick, Md., pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiracy, wire fraud, and possession of altered U.S. currency with intent to defraud.
During the plea hearing, Williams agreed to repay $329,000 to the victims of five separate “black money” schemes that he perpetrated in 2011. Williams admitted that he perpetrated similar “black money” schemes in Billerica, Leominster, Groton, Conn., and Woonsocket, RI.
In the charged scheme, Williams and another co-conspirator defrauded two businessmen who operated Village Pizza in Indian Orchard, Mass. Williams and his partner first offered to purchase Village Pizza with $150,000 of what they called “black money,” which they represented to be genuine U.S. currency that had been altered to appear completely black, and they said, could be converted back into genuine currency through a chemical process. They claimed the currency had been colored black as part of a plan to smuggle it back to the U.S. from Africa.
In July 2011 at Village Pizza, Williams and the co-conspirator presented the two businessmen with genuine United States currency that they had previously coated black, and then used chemicals and powder to remove the black coating, thereby convincing the two businessmen into believing that they really possessed hundreds of thousands of dollars in “black money.” Williams and the co-conspirator then induced the businessmen to provide them with $50,000 in cash, which they said they would use to convert more “black money” into genuine U.S. currency that they promised to give to the businessman in exchange for the pizza restaurant. Williams and the co-conspirator then pretended to use the businessmen’s $50,000 to convert their “black money,” which was simply black paper cut to the size and shape of U.S currency, and then they took the $50,000 and left the businessmen with a large amount of black paper.
Williams faces a maximum sentence of 20 years in prison on the wire fraud count and possession of altered U.S. currency count and a maximum of five years in prison on the conspiracy count. Each count carries a maximum of three years of supervised release and a $250,000 fine. The co-conspirator was indicted for a similar scheme in RI, but fled prior to trial, and is a fugitive from justice.
United States Attorney Carmen M. Ortiz and Steven Ricciardi, Special Agent in Charge of the United States Secret Service, Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.