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6 January 2014
Houston Man Convicted of Distribution and Possession of Child PornographyRead the Press Release
HOUSTON - Ivan Geovanni Ramirez, 29, has entered guilty pleas to distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Ramirez was indicted in August 2013 and today admitted to both allegations as charged.
Ramirez was arrested on March 5, 2013, following an investigation which revealed Ramirez was using peer-to-peer file sharing software to distribute child pornography over the Internet.
In October 2012, an FBI special agent was able to download child pornography from Ramirez. Authorities obtained and executed a search warrant and seized his computer, among other items. Forensic analysis revealed 358 images and 112 videos containing child pornography which involved pre-pubescent females, some under the age of 12, engaging in sexually explicit conduct with adult males.
U.S. District Judge Lynn Hughes, who accepted the plea, has set sentencing for April 7, 2014, at which time he faces a minimum of five and up to 15 years for the distribution conviction as well as a maximum of 10 years for the possession of child pornography. Both convictions also carry a possible $250,000 fine. Upon completion of any prison term imposed, Ramirez also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children. He will also have to register as a sex offender. Ramirez has been in custody since his arrest where he will remain pending that hearing.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
Goodwin Announces Three Indicted for Scamming Senior CitizensRead the Press Release
Defendants posed as family members and clergymen to rip off Good-Samaritan victims
*Audio clip included*
CHARLESTON, W.Va. – Three individuals who participated in an alleged scheme that netted more than $60,000 in one week from senior citizens in West Virginia and elsewhere have been indicted on multiple federal fraud charges, U.S. Attorney Booth Goodwin announced today. According to a 12-count indictment unsealed today, Kacey K. Moise, 38, of Elmont, N.Y., Charnita E. Ryland, 21, of Montgomery, Md., and Sheray J. McKay, 21, of Suitland, Md., have been charged with conspiracy to commit wire fraud and wire fraud. Kacey Moise was arrested today in Elmont, N.Y. The indictment describes the defendants’ fraudulent tactics, which included posing as family members of their elderly victims and pretending to be clergymen. After establishing their victims’ trust, the defendants claimed to be facing a financial emergency and asked the victims to wire money right away.
"Scams to steal from older West Virginians are downright shameful,” U.S. Attorney Booth Goodwin said. “Protecting our state’s senior citizens is one of my top priorities, and in 2014, we’re going to work harder than ever to catch criminals who cheat seniors.”
According to the indictment, beginning in or about November 7, 2012, and continuing through November 13, 2012, Moise, Ryland and McKay allegedly participated in a scheme to solicit money from 18 elderly individuals who resided in West Virginia and other states. As part of the scheme, numerous elderly individuals were called at their homes and asked for money under false pretenses. It was a part of the scheme that the callers, posing as family members or clergymen of the elderly citizens, or lawyers for the so-called family members or clergymen, often falsely stated that they had been in car accidents, had been arrested for driving while intoxicated, and needed money to get out of jail, pay attorney’s fees, and make reimbursement for the damage allegedly caused by their accidents. The callers then provided specific instructions to wire the requested funds – including how much to wire and where to send the wire transfers. In many instances, the elderly individuals made several wire transfers at the repeated requests of the callers – despite their limited funds. The defendants charged in the indictment picked up the funds from the wire transfers in Maryland and New York. The victims targeted in the alleged scheme ranged in age from 70 to 95 years old.
Ryland and McKay were previously arrested in Maryland in December 2013, and are each scheduled to appear before United States Magistrate Judge Dwayne L. Tinsley this week to be arraigned.
Moise is expected to appear before Judge Tinsley on January 23, 2014, for arraignment.
Each defendant faces up to 20 years in prison if convicted.
Today’s charges are part of U.S. Attorney Goodwin’s work to protect West Virginia’s senior citizens. Over the past few years, Goodwin has visited senior center locations in nearly twenty West Virginia counties to offer tips to protect seniors in their homes and help them avoid financial scams like this one. Additional information regarding this initiative can be found at: http://www.justice.gov/usao/wvs/safe-seniors.html
Note: The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Click here to listen to an audio clip from U.S. Attorney Booth Goodwin
Fresno Man Sentenced for Possession of A Pipe BombRead the Press Release
Fresno, Calif. — United States District Judge Anthony W. Ishii sentenced Jon Smilanick, 36, of Fresno, today to 30 months in prison for possession of a pipe bomb in violation of the National Firearms Act, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 9, 2013, police were called to Smilanick’s ex-neighbors’ home with the report of a bomb detonating. They found the remnants of a detonated pipe bomb. The ex-neighbors reported that they believed that Smilanick had detonated the device as they had had ongoing problems with him.
According to the plea agreement, police obtained a search warrant for Smilanick’s residence and found bomb-making materials in the garage and a live pipe bomb in the house. Smilanick’s wife said that she had hidden the bomb because she did not want him to have it. While at the residence, another neighbor came by and told police that on two occasions, he heard explosions from the area of Smilanick residence and had once seen a man matching Smilanick’s build throw something over the back fence and then heard a loud explosion. Officers went to the area to which the neighbor directed them and found remnants of two different devices.
Smilanick admitted to manufacturing the devices. He referred to them as “firecrackers.” He said he had been making them since he was in the sixth grade. He said he taught himself to make pipe bombs, and that he had made three this year. None of the devices were registered with the National Registration and Transfer Record.
“This investigation is an example of the excellent cooperation we have with both the Fresno Police Department and the community as a whole. Because of this cooperation, we were able to seize these dangerous explosive devices, and ensure the violator faces justice,” said ATF Special Agent in Charge Joseph Riehl
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Fresno Police Department. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case.
Fourth Former Bank Employee Pleads Guilty to Embezzling from A Bank in Grant CountyRead the Press Release
WICHITA, KAN. – A fourth former bank employee has pleaded guilty to embezzling from a bank in Grant County, Kan., U.S. Attorney Barry Grissom said today.
Hattie Wiginton, 33, Ulysses, Kan., pleaded guilty Monday to one count of theft from a bank. In her plea, she admitted she stole from Western State Bank in Ulysses, Kan., while she worked there from 2008 to 2010.
Beginning in 2008, Wiginton aided and abetted co-defendants Ashley Cravens and Amber Gutierrez to steal from the bank. Together they stole an amount up to $84,200 from the bank by making deposits into each other’s bank accounts that were false. The shortage was covered by falsely representing the balance in the vault of the bank.
On July 24, 2010, Wiginton took part in a staged bank robbery with Cravens and Gutierrez. Wiginton pretended to be the victim of the robbery while Cravens acted the part of the bank robber. The purpose of the staged robbery was to cover up the shortage of cash in the bank vault.
Wiginton is set for sentencing March 24. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Co-defendants are: Amber Gutierrez, 32, Ulysses, Kan., who is set for sentencing Feb. 3.
Ashley Cravens, 29, Ulysses, Kan., who is set for sentencing Feb. 7.
Linda Wise, 60, Ulysses, Kan., who is set for sentencing Feb. 24.Grissom commended the FBI, the Kansas Bureau of Investigation, the Grant County Sheriff’s Office, the Ulysses Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.
Four Sentenced, One Pleads Guilty in Dodge City Gang Racketeering CaseRead the Press Release
WICHITA, KAN. - Four members of a Dodge City street gang were sentenced and another pleaded guilty Monday in a federal racketeering case, U.S. Attorney Barry Grissom said.
Sentenced were: Gonzalo Ramirez, 28, Dodge City, Kan., who was sentenced to life plus 57 years.
Pedro Garcia, 27, Dodge City, Kan., who was sentenced to life plus 32 years.
Donte Barnes, 22, Dodge City, Kan., who was sentenced to 32 months.
Jesus Flores, 28, Dodge City, Kan., who was sentenced to time served of 20 months.Jayson Vargas, 31, Dodge City, Kan., pleaded guilty to one count of unlawful possession of a stolen firearm. In his plea, he admitted that on Aug. 20, 2011, he was driving a car in pursuit of his former girlfriend, who was in another car. During the chase, he pointed a handgun at her. Officers of the Ford County Sheriff’s Office stopped Vargas’ car and arrested him. They seized a .45 caliber handgun.
Vargas is set for sentencing March 24. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Among the defendants who were sentenced: Gonzalo Ramirez was convicted in a jury trial on count one (conspiracy to commit racketeering), count two (conspiracy to commit murder), count three (murder), count four (attempted murder), count five (assault with a dangerous weapon), count six (possession and discharge of a firearm during a violent crime), count seven (assault with a dangerous weapon), count eight (conspiracy to commit assault with a dangerous weapon), count nine (brandishing a firearm during a crime of violence), count ten (conspiracy to commit murder), count 11 (attempted murder), count 12 (assault with a dangerous weapon), and count 13 (possession and discharge of a firearm during a violent crime).
Pedro Garcia was convicted in a jury trial on count one (conspiracy to commit racketeering), count two (conspiracy to commit murder), count three (murder), count four (attempted murder), count five (assault with a dangerous weapon), count six (possession and discharge of a firearm during a violent crime), count seven (assault with a dangerous weapon), count eight (conspiracy to commit assault with a dangerous weapon), and count nine (brandishing a firearm during a crime of violence).
Donte Barnes pleaded guilty to one count of attempted murder in aid of racketeering.
Jesus Flores pleaded guilty to one count of assault with a dangerous weapon in aid of racketeering and one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering.The defendants were among 23 members of the Norteno street gang indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Twenty two defendants have been convicted. Charges were dismissed without prejudice against defendant Adam Flores.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff?s Office, the Ford County Attorney’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.Fort Myers Man Sentenced to 7 Years' Imprisonment for Distributing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Charles Allen Nave, III (39, Fort Myers) to seven years in federal prison for distributing child pornography. The court also ordered him to forfeit a Dell Precision laptop and a 2 GB SD card, which were used in the facilitation of the offense.
Charles Allen Nave, III was found guilty on September 17, 2013.
According to court documents, on January 31, 2013, Nave knowingly distributed child pornography over the Internet, to an undercover agent that he met in an online chat room. Nave sent the undercover agent four emails, along with images of child pornography as attachments. Subsequent to the execution of a search warrant, Nave was found to possess in excess of 300 images and 20 videos of child pornography.
This case was investigated by U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with participation from the Sanibel Police Department, the Fort Myers Police Department, the Florida Department of Law Enforcement, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Federal Air Marshal and Border Patrol Agent Sentenced to Ninety Years’ Imprisonment for Sexual Exploitation of ChildrenRead the Press Release
Earlier today, Michael J. McGowan, a former Federal Air Marshal and Border Patrol Agent, was sentenced to 90 years’ incarceration for three counts of Sexual Exploitation of Children. McGowan repeatedly sexually abused three boys over the course of four years between 2000 and 2004 and photographed the abuse. In 2005, McGowan was convicted in U.S. District Court for the Eastern District of New York of one count of Attempting to Receive Child Pornography and sentenced to 20 years’ imprisonment. In 2008, while serving his sentence, McGowan sought from prison to have the photographs destroyed, which led to their discovery and his current prosecution for Sexual Exploitation of Children.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John E. Dupuy, Assistant Inspector General for Investigations, Office of Inspector General in the Department of Homeland Security (OIG-DHS); and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
“Michal J. McGowan, sexual predator of young boys for personal gratification, went so far as to use his position as a Federal Air Marshal to perpetrate his abuses. Moreover, his prior imprisonment did nothing to deter him from compounding his crimes by reaching out from prison in an attempt to subvert justice and destroy evidence,” stated United States Attorney Lynch. “McGowan’s effective life sentence will ensure that no other child faces abuse at his hands and serves as a warning to those who would commit such crimes that they will be pursued, prosecuted, and prevented from continuing to endanger our most precious resource.” Ms. Lynch expressed her grateful appreciation to the U.S. Postal Inspection Service, the U.S. Bureau of Prisons, and the Drug Enforcement Administration for their outstanding assistance in this investigation.
The initial charges against McGowan arose out of a 2004 United States Postal Inspection Service sting operation in which he ordered child pornography via computer to be delivered to him at his residence in Hicksville, New York. On June 30, 2004, a search warrant was executed at his residence, at which time McGowan claimed to have been investigating child pornography cases in his capacity as a Federal Air Marshal. McGowan was arrested on July 21, 2004, after an analysis of his computer revealed in excess of 1,300 images and videos of child pornography, predominantly of boys between the ages of 10 and 15 years’ old, engaged in sexual activity with other boys and adult males. McGowan pleaded guilty in United States District Court on July 11, 2005 to Attempted Receipt of Child Pornography.
Prior to imposition of sentence for the 2004 child pornography offense, McGowan contacted a then 15-year-old boy via telephone and mail from jail and engaged in a sexual conversation with the boy. The boy later disclosed to federal investigators that McGowan had abused him on a number of occasions when he was 13 years’ old, in Corpus Christi, Texas, where McGowan previously resided. In 2006, following the disclosure of this molestation, as well as McGowan’s calls and letters from jail to the boy, McGowan was sentenced by United States District Judge Sandra J. Feuerstein to 20 years’ imprisonment, to be followed by lifetime supervised release.
On November 27, 2008, while housed at the Federal Correctional Institute in Butner, North Carolina, McGowan wrote a letter to a second victim, a then 18-year-boy, requesting him to recover and destroy a hard drive containing child pornography which McGowan had hidden behind a sheetrock wall at his Hicksville residence. This effort was discovered by Bureau of Prisons personnel, and the boy was interviewed. During the course of the interview, the boy admitted that McGowan had molested him from ages 10 to 14 years’ old, and further led OIG-DHS and HSI investigators to seize the hidden hard drive. Upon examination, the hard drive was found to contain in excess of 1,000 images of child pornography, including images of children as young as five-years-old engaged in sexual conduct, as well as images of McGowan molesting three boys, ages 11 to 13. Several of the photographs were taken in hotel rooms that McGowan had access to as a result of his work as a Federal Air Marshal. Also recovered was a VHS videotape which depicted an unidentified minor boy engaged in sexual activities filmed by McGowan.
Following McGowan’s return to the Eastern District of New York to face the current charges, he repeatedly attempted to obstruct justice by sending threatening letters to one of the victims depicted in the child pornography that McGowan created.
On September 20, 2011, McGowan pleaded guilty to three counts of Sexual Exploitation of Children. Today’s sentence of 90 years’ imprisonment will be served consecutive to the remaining term of the 20 year sentence McGowan is currently serving. The sentencing proceeding was held before Judge Sandra J. Feuerstein at the federal courthouse in Central Islip, New York.
The government’s case was prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
MICHAEL J. MCGOWAN
Age: 41
Hicksville, New York
Corpus Christi, Texas
E.D.N.Y. Docket No. 09-653(SJF)
Former Air Guard Member Sentenced for Wire FraudRead the Press Release
WICHITA, KAN. - A former Kansas Air National Guard senior airman who was assigned to McConnell Air Force Base in Wichita was ordered Monday to pay $54,992 in restitution and sentenced to three years federal probation for wire fraud, U.S. Attorney Barry Grissom said.
Eledria J. Bradley, 29, Wichita, was tried and convicted in U.S. District Court in Wichita on one count of wire fraud. During trial, prosecutors presented evidence that Bradley collected more than $50,000 in travel reimbursements by claiming she lived in Arizona while she was working at McConnell. Evidence showed that Bradley accessed her file via an online personnel system in which military members can access and change their personal information, and changed her residential address from Wichita to Chandler, Ariz. The change in address placed her outside the commuting distance for McConnell Air Force Base. As a result, she received lodging and per diem benefits to which she was not entitled from April 22, 2009, to April 23, 2011, totaling $54,992.
Grissom commended the Air Force - OSI and Assistant U.S. Attorney Alan Metzger for their work on the case.Foreign Bribery Charges Unsealed Against<br /> Former Chief Executive Officers of Oil Services CompanyRead the Press Release
Two former chief executive officers of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – have been charged for their alleged participation in a scheme to pay bribes to foreign government officials in violation of the Foreign Corrupt Practices Act (FCPA), to defraud PetroTiger, and to launder proceeds of those crimes. In addition, PetroTiger’s former general counsel pleaded guilty to bribery and fraud charges in connection with the same scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement after the charges and guilty plea were unsealed today.
“We have said – repeatedly and emphatically – that foreign corruption, whether committed by companies or by the individuals entrusted to run those companies, will not be tolerated. And, our track record in vigorously enforcing the FCPA has shown that message to be undeniably true,” said Acting Assistant Attorney General Raman. “The charges unsealed today against two former CEOs of PetroTiger and the guilty plea announced today of the former General Counsel reaffirm our clear message that we will prosecute corruption and fraud wherever we find it. Bribery distorts what should be a level playing field and deprives corporations and governments of funds that should instead be used to strengthen those institutions. Today’s announcement should be a reminder to CEOs and other executives who seek to corrupt the system at the expense of honest businesses: we are not going away.”
“Bribery of public officials, whether at home or abroad, corrupts business opportunity and undermines trust in government,” said U.S. Attorney Fishman. “The under-the-table deals alleged in today’s charges are not an acceptable way of doing business.”
“The FBI is committed to pursuing those who disrupt the level playing field to which companies in the U.S. and around the world are entitled,” said FBI Special Agent in Charge Ford. “We will continue to investigate these matters by working with law enforcement agencies, both foreign and domestic, to ensure that both corporations and executives who bribe foreign officials for lucrative contracts are punished.”
According to the charges, former co-CEOs of PetroTiger Joseph Sigelman, 42, formerly of Miami and the Philippines, and Knut Hammarskjold, 42, of Greenville, S.C.; former general counsel Gregory Weisman, 42, of Moorestown, N.J., and others allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million.
Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines and appeared this afternoon (ChST) in Guam before U.S. Magistrate Judge Joaquin V.E. Manibusan III. Sigelman will have an initial appearance in New Jersey federal court on a date to be determined. Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013, with conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
Weisman pleaded guilty on Nov. 8, 2013, to a criminal information charging one count of conspiracy to violate the FCPA and to commit wire fraud. The charges and guilty plea were also unsealed today.
The charges allege the defendants made three separate payments from PetroTiger’s bank account in the United States to the official’s bank account in Colombia to secure approval from Colombia’s state-owned and state-controlled oil company for a lucrative oil services contract in the country. According to the charges, to conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, for its assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .
NOTE: The court documents are attached.Related Materials:
Hammarskjold Complaint
Sigleman Complaint
Weisman InformationForeign Bribery Charges Unsealed Against Former Chief Executive Officers of Oil Services CompanyRead the Press Release
NEWARK, N.J. — Two former chief executive officers of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – have been charged for their alleged participation in a scheme to pay bribes to foreign government officials in violation of the Foreign Corrupt Practices Act (FCPA), to defraud PetroTiger, and to launder proceeds of those crimes. In addition, PetroTiger’s former general counsel pleaded guilty to bribery and fraud charges in connection with the same scheme.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement after the charges and guilty plea were unsealed today.
“Bribery of public officials, whether at home or abroad, corrupts business opportunity and undermines trust in government,” said U.S. Attorney Fishman. “The under-the-table deals alleged in today’s charges are not an acceptable way of doing business.”
“We have said – repeatedly and emphatically – that foreign corruption, whether committed by companies or by the individuals entrusted to run those companies, will not be tolerated. And, our track record in vigorously enforcing the FCPA has shown that message to be undeniably true,” said Acting Assistant Attorney General Raman. “The charges unsealed today against two former CEOs of PetroTiger and the guilty plea announced today of the former general counsel reaffirm our clear message that we will prosecute corruption and fraud wherever we find it. Bribery distorts what should be a level playing field and deprives corporations and governments of funds that should instead be used to strengthen those institutions. Today’s announcement should be a reminder to CEOs and other executives who seek to corrupt the system at the expense of honest businesses: we are not going away.”
“The FBI is committed to pursuing those who disrupt the level playing field to which companies in the U.S. and around the world are entitled,” said FBI Special Agent in Charge Ford. “We will continue to investigate these matters by working with law enforcement agencies, both foreign and domestic, to ensure that both corporations and executives who bribe foreign officials for lucrative contracts are punished.”
According to the charges, former co-CEOs of PetroTiger Joseph Sigelman, 42, of Miami and the Philippines, and Knut Hammarskjold, 42, of Greenville, S.C.; former general counsel Gregory Weisman, 42, of Moorestown, N.J.; and others allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million.Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines and appeared this afternoon (ChST) in Guam before U.S. Magistrate Judge Joaquin V.E. Manibusan III. Sigelman will have an initial appearance in New Jersey federal court on a date to be determined. Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013, with conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
Weisman pleaded guilty on Nov. 8, 2013, to a criminal information charging one count of conspiracy to violate the FCPA and to commit wire fraud. The charges and guilty plea were also unsealed today.
The charges allege the defendants made three separate payments from PetroTiger’s bank account in the United States to the official’s bank account in Colombia to secure approval from Colombia’s state-owned and state-controlled oil company for a lucrative oil services contract in the country. According to the charges, to conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, for its assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
14-005
Defense counsel:
Joseph Sigelman: Patrick Civille Esq., Guam (for purposes of initial appearance only)
Knut Hammarskjold: Assistant Federal Public Defender Lori M. Koch Esq., Camden
Gregory Weisman: Michael A. Schwartz Esq., Philadelphia
Sigelman Complaint
Hammarskjold Complaint
Weisman InformationFederal Judge Sentences "Jihad Jane" to 10 Years in Prison for Role in Plot to Commit Murder OverseasRead the Press Release
PHILADELPHIA - Colleen R. LaRose, aka "Jihad Jane," 50, was sentenced today to 10 years in prison for conspiracy to provide material support to terrorists, conspiracy to kill in a foreign country, making false statements and attempted identity theft. LaRose, a former resident of Montgomery County, Pennsylvania, pleaded guilty to the charges on February 1, 2011. The sentence was handed down by U.S. District Court Judge Petrese B. Tucker. In addition to the prison term, LaRose was ordered to pay $2,500 fine, $400 special assessment, and must complete five years of supervised release.
The sentencing result was announced by Acting Assistant Attorney General for National Security John Carlin, United States Attorney for the Eastern District of Pennsylvania Zane David Memeger, and Special Agent‑in‑Charge Ed Hanko of the Federal Bureau of Investigation's Philadelphia Division.
“This case clearly underscores the evolving nature of the terrorist threat we now face in this country,” said Memeger. “The Internet has made it easier for those who want to attack the American way of life to identify like-minded individuals to carry out their terroristic plans. While today's significant sentence will help protect the community from any future threat posed by the defendant, we as a nation must remain vigilant in identifying and stopping others who are susceptible to engaging in acts of homegrown violent extremism.”
“Today’s sentence sends a strong message to those attracted to a terrorist ideology,” said Special Agent in Charge Edward J. Hanko. “Our Joint Terrorism Task Forces and partners in the law enforcement and intelligence communities remain committed to tracking terrorists at every level, whomever and wherever they are.”
“Today, Colleen LaRose is being held accountable for her efforts to provide support to terrorists and encourage violence against individuals overseas,” said Acting Assistant Attorney General Carlin. “I want to thank the many agents, analysts and prosecutors who helped bring about today’s result.”
LaRose was charged by indictment in March 2010. A superseding indictment was filed in April 2010, adding co‑defendant Jamie Paulin Ramirez, a U.S. citizen and former resident of Colorado. Ramirez pleaded guilty and will be sentenced on January 8, 2014.According to documents filed with the court, LaRose and her co‑conspirators recruited men on the Internet to wage violent jihad in South Asia and Europe, and recruited women on the Internet who had passports and the ability to travel to and around Europe in support of violent jihad.
LaRose and her co‑conspirators used the Internet to establish relationships with one another and to communicate regarding their plans, which included martyring themselves, soliciting funds for terrorists, soliciting passports and avoiding travel restrictions (through the collection of passports and through marriage) in order to wage violent jihad. LaRose also stole another individual's U.S. passport and transferred it in an effort to facilitate an act of international terrorism.
In addition, LaRose received a direct order to kill a citizen and resident of Sweden, and to do so in a way that would frighten Athe whole Kufar [non‑believer] world.@ LaRose agreed to carry out her murder assignment, and she and her co‑conspirators discussed that her appearance and American citizenship would help her blend in while carrying out their plans. LaRose later traveled to Europe and tracked the intended target online in an effort to complete her task.
This case was investigated by the FBI's Joint Terrorism Task Force in Philadelphia, the FBI Field Division in New York, the FBI Field Division in Denver, and the FBI Field Office in Washington, DC. Authorities in Ireland and Sweden provided assistance in this matter. The Office of International Affairs in the Justice Department=s Criminal Division also provided assistance. The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, in the Eastern District of Pennsylvania, and Matthew F. Blue, Trial Attorney from the Counterterrorism Section in the Justice Department's National Security Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Grand Jury IndcitmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following: Florence Woman Indicted for Bank Fraud
Tamara Leigh Taylor, of Florence, South Carolina was charged with Bank Fraud in a 1-count indictment. The maximum penalty Taylor could receive is 30 years. The case was investigated by agents of the Secret Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.East Boston Man Guilty of Robbing Peabody BankRead the Press Release
BOSTON – An East Boston man pleaded guilty today to armed robbery of a bank in Peabody.
Mark Lepage, 51, pleaded guilty to armed bank robbery and possession of a firearm in furtherance of a crime of violence. Sentencing is scheduled for April 3, 2014.
On April 4, 2011, at approximately 1:14 p.m., Lepage walked into the Eastern Bank in Peabody brandishing a handgun, wearing sunglasses and a grey hooded sweatshirt pulled up over his head. He grabbed a male customer, held the gun to the customer's neck, and demanded money. After three bank tellers handed him $21,709, he fled the bank. He was arrested in East Boston two days later and indicted that month.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Peabody Police Chief Robert St. Pierre, made the announcement today. The case is being prosecuted by David G. Tobin and Carlos A. López of Ortiz’s Major Crimes Unit.
Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced JESUS TORRES PORTILLO, 23, of Burlington, North Carolina, to 120 months of imprisonment and 3 years of supervised release. PORTILLO previously pled guilty to conspiracy to distribute 5 kilograms or more of cocaine.
On November 9, 2011, PORTILLOarranged for approximately 5 kilograms of cocaine to be delivered to a DEA informant in Greenville, N.C. The two couriers were arrested after approximately 5 kilograms of cocaine were found in the trunk of the car they were driving. On November 14, 2013, PORTILLO arranged for approximately 3 kilograms of cocaine to be delivered to the informant in Goldsboro, N.C. PORTILLO was arrested after approximately 3 kilograms of cocaine were found in the truck in which he was a passenger. Further investigation revealed that, in addition to the approximate 8 kilograms of cocaine seized, PORTILLO was responsible for the distribution of 3,100 pounds of marijuana.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Douglas Man Sentenced on Child Pornography ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that Christopher L. Bohlen, age 51 of Douglas, Nebraska, was sentenced in federal court in Omaha for receiving and possessing child pornography. The Honorable Joseph F. Bataillon sentenced Bohlen to sixty months of imprisonment for receiving child pornography and a concurrent term of one year and one day for possessing child pornography. There is no parole in the federal system. After his release from prison Bohlen will begin a five year term of supervised release and be required to register as a sex offender.
Bohlen was identified as an individual interested in child pornography after the United States Postal Inspection Service noted correspondence to Bohlen from a website offering images of children. On June 28, 2012, an Investigator from the Postal Inspection Service accompanied by an Investigator with the Nebraska State Patrol approached Bohlen at his home.
Bohlen provided the investigators with verbal consent to search his computers for child pornography. He rescinded his consent after telling investigators that there was child pornography on each of his computers.
A federal search warrant was obtained for the contents of the computes. Approximately 47,000 image files of child pornography and child erotica were found on the computers. The child pornography included prepubescent children ranging from 2 to 12 years of age involved in sexual and sadomasochistic conduct.
United States Attorney Deborah R. Gilg expressed her appreciation to the United States Postal Inspection Service and the Nebraska State Patrol for their investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a family medicine practice in New Jersey admitted today to accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced.
Joel Fischgrund, 60, of Livingston, N.J., pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
Including Fischgrund, 22 people – 11 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and related cases and statements made in court:
Fischgrund today admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid $1,500 a month under a sham consulting agreement. As part of the purported agreement with Advantech Sales LLC, he was required to fill out a sheet – titled “Consultant Advisory Board Data Sheet” – that only took minutes to complete. Fischgrund admitted he knew the questions on that sheet had no real value to Advantech and were designed to disguise the bribe payments.
The bribery count to which Fischgrund pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 1, 2014. As part of his guilty plea, Fischgrund agreed to forfeit the bribes he received from BLS.
The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-003Defense counsel: Edward Dauber Esq., Newark
Fischgrund Information
Dallas-Based Companies Agree to Pay Civil Penalty to Settle Clean Air Act Violations Stemming from Illegal Import of VehiclesRead the Press Release
A Dallas-based group of companies and their owner must either stop importing vehicles or follow a comprehensive compliance plan to settle Clean Air Act (CAA) violations stemming from the alleged illegal import of over 24,167 highway motorcycles and recreational vehicles into the United States without proper documentation, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced. The four parties are also required to pay a $120,000 civil penalty.
“Importers of foreign made vehicles and engines must comply with the same Clean Air Act requirements that apply to those selling domestic products,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We will continue to vigorously enforce the law to ensure that imported vehicles and engines comply with U.S. laws so that American consumers get environmentally sound products and violators do not gain an unfair economic advantage.”
“Vehicles are one of the largest sources of pollution that significantly affect public health,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Holding importers accountable for meeting U.S. emissions standards is critical to protecting the air we breathe, and to protecting companies that play by the rules.”
Savoia, BMX Imports and BMX Trading, and their owner, Terry Zimmer, allegedly imported the vehicles from several foreign manufacturers into the United States through the Port of Long Beach, Calif. The vehicles were then sold through the Internet and from a retail location in Dallas, Texas.
Today’s settlement requires that the companies either certify that they are no longer engaging in CAA-regulated activities or follow a comprehensive plan over the next five years that would include regular vehicle inspections, emissions testing, and other measures to ensure compliance at various stages of purchasing, importing, and selling vehicles. In addition, the companies are required to export or destroy 115 of their current vehicles that have catalytic converters or carburetors that do not adhere to the certificate of conformity that they submitted to EPA. The purpose of the certificate of conformity, required by the CAA, is to demonstrate that vehicles or engines meet applicable federal emission standards.
EPA discovered the alleged violations through inspections at Long Beach and other U.S. ports of entry, and through information provided by the company. EPA’s investigation showed that approximately 11,000 of the imported vehicles were not covered by an EPA certificate of conformity, which means that EPA is unable to confirm that the emissions from these vehicles meet federal standards. Other violations included approximately 23,000 vehicles sold without the required emissions warranty and approximately 500 vehicles that did not have proper emission control labels.
The CAA requires that all vehicles have certification, warranty and labeling prior to being imported or sold in the United States to demonstrate that they meet federal emission standards. Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone or smog.
The consent decree, lodged today in the United States District Court for the Northern District of Texas, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html information on the settlement:More information on the settlement: www2.epa.gov/enforcement/savoia-inc-bmx-imports-lp-bmx-trading-llc-and-terry-zimmer-clean-air-act-settlement
More information on EPA’s Clean Air Act mobile source enforcement programs: www2.epa.gov/enforcement/air-enforcement#mobile
Convicted Felon with Gun Range Membership and Ammunition Sentenced to Almost 10 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Maurice Futch (32, Middleburg) to nine years and ten months in federal prison for being a felon in possession of ammunition.
Futch pleaded guilty to the charge on August 28, 2013.
According to court documents, officers with the Clay County Sheriff’s Office and special agents with the Drug Enforcement Administration (DEA) executed a search warrant at Futch’s home in Middleburg, on July 16, 2012. During the search, agents located over 50 rounds of 9mm ammunition, along with a drug scale and other narcotics paraphernalia. Agents also located a picture of Futch shooting a pistol at a local gun range and later discovered that Futch was, in fact, a member of the gun range. Futch had five prior felony convictions and is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Clay County Sheriff’s Office, DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.Conspirators Plead Guilty to Scheme Using Medical Patients’ Identities to Fraudulently Obtain MerchandiseRead the Press Release
Baltimore, Maryland – Chanell Y. Cole, age 30, of Owings Mills, Maryland, and Yolanda Gail Welch, age 39, of Philadelphia, Pennsylvania, pleaded guilty on Friday, January 3, 2014, to conspiracy to commit bank fraud in connection with a scheme to obtain merchandise using stolen personal identifying information of medical patients.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, beginning sometime in 2010 through February 2013, Chanell Cole, Yolanda Welch, and others participated in a scheme to defraud various financial institutions by stealing personal identifying information (“P.I.I.”) from medical providers and using the victims’ P.I.I. to fraudulently open credit accounts and assume control of existing credit accounts at Macy’s, Bloomingdale’s, and Nordstrom. The conspirators used the accounts to purchase merchandise in the names of the unknowing victims without intending to pay for the goods. The conspirators kept the goods; sold the goods to others in exchange for cash; or returned the goods to the retail stores for merchandise credit and for credit on the accounts of the conspirators.
According to her plea agreement, from 2008 through approximately May 2010, Chanell Cole was the sole employee of a rheumatologist with offices at Good Samaritan Hospital in Baltimore, and had access to the physician’s patient files, including electronic records. As part of the scheme, Cole used her position to unlawfully obtain the P.I.I. of numerous patients, including names, addresses, and social security numbers, which she provided to a co-conspirator.
In the early stages of the conspiracy, conspirators obtained false identifications in the names of the victims, but bearing the conspirator’s likeness. The fraudulent identifications and the P.I.I. were then used to open credit accounts at the retail stores. Once the accounts were opened, conspirators made purchases at stores in Maryland, Delaware, New Jersey, and New York. Later in the scheme, members of the conspiracy contacted Macy’s, Bloomingdale’s, and/or Nordstrom by telephone to determine if the victims had existing credit accounts with the retailers. Once it was learned that the victim had an existing credit account, members of the conspiracy used the victims’ P.I.I. to make purchases of merchandise over the phone, which were delivered to the residences of friends and family members of Cole, Welch and other conspirators, primarily in the Philadelphia area. After the merchandise was delivered, a conspirator picked up the packages, and paid the recipient a fee for having received the packages. The fee was either cash or a previously determined item of merchandise that was part of the delivery. The merchandise was sold for cash, or returned to the retail stores in exchange for gift cards. The gift cards were sold for cash or provided to friends and family members. Most of the merchandise was provided to Welch, who sold the merchandise to various individuals for approximately 50% of the retail value. Welch provided the cash to a co-conspirator, who paid her a cash fee in return. Welch listed some of the merchandise using her eBay account. Cole assisted in the sale of the merchandise and purchased some of the fraudulently obtained merchandise for her personal use.
During the course of the scheme, Cole provided the P.I.I. of at least 24 patients, which was used in the scheme causing a loss of at least $32,091.91, and Welch sold over $100,000 of fraudulently obtained merchandise. In total, the scheme resulted in the identities of over 100 individual victims being used to fraudulently obtain over $993,000 of merchandise from Macy’s, Bloomingdales, and Nordstrom.
Cole and Welch face a maximum penalty of 30 years in prison for the bank fraud conspiracy. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Cole on April 4, 2014 at 9:00 a.m. and for Welch on April 25, 2014 at 12:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and thanked Macy’s fraud investigators for their assistance. Mr. Rosenstein praised Assistant U.S. Attorney Paul Budlow, who is prosecuting the case.
Caldwell Man Sentenced for Distributing Meth and Unlawfully Possessing A FirearmRead the Press Release
BOISE — Matthew Navejar, 39, of Caldwell, Idaho, was sentenced today in United States District Court to 66 months in prison for unlawfully possessing firearms and distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Navejar to serve three years of supervised release and to forfeit his interest in two guns. He pleaded guilty to the charges on June 25, 2012.
According to the plea agreement, Navejar is prohibited from possessing firearms due to his 1997 conviction in Malheur County, Oregon, for manufacturing and/or possessing a destructive device. Navejar admitted that on November 21, 2011, he sold a rifle to another individual from his residence in Caldwell and assisted in the sale of a revolver. The price paid for both firearms was $165. Navejar further admitted that on November 30, 2011, he sold methamphetamine at a residence in the Nampa-Caldwell area.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force and is being prosecuted by the former 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.
Baltimore Store Robber Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Corey Washington, age 29, of Baltimore, today to 10 years in prison followed by three years of supervised release for robbing a clothing store. Judge Garbis enhanced Washington’s sentence upon finding that Washington is a career offender based on two previous convictions for armed robbery and possession with intent to distribute drugs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore Police Commissioner Anthony W. Batts; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, early on August 6, 2012, investigators intercepted phone calls between Washington and co-defendant Gerrod Richardson in which Richardson proposed that they rob the clothing store where he worked, which was located in the 5800 block of Baltimore National Pike in Baltimore County. The defendants met later that morning and finalized their plans. Washington entered the store at 9:30 a.m., posing as a customer. Washington walked to the store’s business office and brandished what appeared to be a gun at the store manager, demanding money from the store safe. The manager opened the safe and gave Washington $3,000 in cash and coins. Washington fled.
Later that day, investigators arrested Washington near his home and seized $1,000 in cash. They also seized empty coin wrappers matching those used by the store from Washington’s home and car. Washington admitted to the robbery.
Gerrod Richardson, age 40, of Baltimore, previously pleaded guilty to his participation in the robbery and was sentenced to 28 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments, and Baltimore City and County State’s Attorney=s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and James Wallner, who prosecuted the case.
Bakersfield Man Sentenced to More Than 7 Years in Prison for Receiving Child PornographyRead the Press Release
FRESNO, Calif. — William George Gray, 51, of Bakersfield, was sentenced today by Senior United States District Judge Anthony W. Ishii to 7 years and 3 months in prison, to be followed by 10 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 30, 2011, and January 2, 2013, Gray received more than 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.
This case was the product of an extensive investigation by the Central California Internet Crimes Against Children task force and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.Armed Marijuana Dealer Sentenced to 5 Years Behind BarsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jairus Quaintance (21, Jacksonville) to five years in federal prison for possessing a firearm while selling marijuana.
Quaintance pleaded guilty on August 28, 2013.
According to court documents, Quaintance was selling marijuana from a street corner just north of downtown Jacksonville. An officer with the Jacksonville Sheriff’s Office made contact with Quaintance and found that he was armed with a loaded 9mm pistol and marijuana packaged for sale.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.
Arizona Man Sentenced in Idaho Federal Court for Wire FraudRead the Press Release
Defendant Ordered to Pay Restitution of $606,989 to ClickBank
BOISE – Christopher L. Myers, 37, of Cave Creek, Arizona, was sentenced today in United States District Court in Boise to 37 months in prison for wire fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Myers to serve three years of supervised release, fined him $7,500, and ordered him to pay $606,989 in restitution to ClickBank, which includes $449,643 that Myers admitted he fraudulently wire transferred, and $157,346 for costs incurred by ClickBank in its internal investigation. Myers pleaded guilty to the charge on August 22, 2013.
According to the plea agreement, from April 2006 through November 2011, Myers was employed by Click Sales, Inc., doing business as ClickBank. For a portion of that time he served as the company’s comptroller. Click Sales, Inc., a subsidiary of Keynetics, Inc., operated a Boise-based internet business that facilitated payments between retailers and consumers. ClickBank received payments from consumers for the purchase price of goods and services, kept a portion of the purchase price as commission, and remitted the remainder to the retailers by checks, ACH transfers and wire transfers. Some of ClickBank’s retailer-clients failed to timely cash the checks. As comptroller, Myers was responsible for tracking these “issued but uncashed” checks.
According to the plea agreement, beginning in August 2008, on 26 separate occasions Myers wire transferred funds from ClickBank’s bank account to his personal bank accounts at a different bank. The funds that were wire transferred corresponded to the “issued but uncashed” checks to ClickBank retailer-clients. In total, Myers admitted he wire transferred approximately $449,643 from ClickBank’s bank account to his own bank accounts. According to the plea agreement, Myers did so with the specific intent to defraud and used the funds for personal purchases and expenditures, including mortgage payments and personal investment and retirement accounts.
The case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
3 January 2014
Two Indicted in Stranger- Originated Life Insurance SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Cheryl Garcia, Acting Special Agent-in-Charge, U.S. Department of Labor – Office of Inspector General, Susan A. Hensley, Regional Director, U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), todayannounced that a federal grand jury in Hartford has returned a 33-count indictment charging DANIEL CARPENTER, 59, of Simsbury, and WAYNE BURSEY, 63, of Bloomfield, with wire fraud, mail fraud and conspiracy offenses stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of the defendants and other investors, also known as a stranger-originated life insurance scheme. The indictment was returned on December 12, 2013, and unsealed on December 30.
According to the indictment, CARPENTER and BURSEY ran a series of companies, based in Simsbury and Stamford, that developed an employee welfare benefit plan and trust (the “Trust”) whose primary objective was to secure insurance policies on the lives of elderly individuals that could be held by the defendants and others as investments, or resold on the life settlement market, which is a third-party market for life insurance policies. Typically, insurance agents working with, for, or on behalf of the defendants approached individuals who were over the age of 70 (the “Straw Insureds”). The agents promised to provide the Straw Insureds with free life insurance for two years, and, at the end of the two years, would attempt to sell the policies on the life settlement market. In most cases, the agents promised the Straw Insureds that they would receive a portion of any sale proceeds. In other cases, the Straw Insureds were offered a cash inducement up front to participate.
The indictment alleges that CARPENTER and BURSEY, working with insurance agents, caused to be submitted to several insurance providers numerous insurance applications that contained several material misrepresentations, including falsely denying that third-parties were paying the premiums for the insurance, falsely denying discussions about the resale of the policies, falsely inflating the net worth and/or income of the insured, and falsely claiming that the insurance was being purchased for legitimate estate planning-related needs. All applications were signed by BURSEY, who acted as trustee of the Trust, which was to be the “owner” of all policies in the Trust. Moreover, the applications purported that the Trust was a bona fide welfare benefit trust under Internal Revenue Code Section 419(e), wherein employers would be making contributions to the Trust in order to fund the life insurance policies for the benefit of certain select employees.
The indictment further alleges that, in truth, no “employer” or Straw Insured ever paid a premium into the Trust, and the premiums were funded by loans, which typically came to the Trust from another company headquartered in Simsbury and controlled by CARPENTER. In many cases, those loans were, in turn, financed by another third-party financing company based in Stamford. The loan arrangements were withheld from the insurance providers, who would likely not have issued policies had they known the true nature of the Trust, and had the insurance applications been filled out truthfully.
CARPENTER and BURSEY are scheduled to be arraigned on January 17 before U.S. Magistrate Judge Donna F. Martinez in Hartford.
If convicted, CARPENTER and BURSEYface a maximum term of imprisonment of 20 years on each count of wire fraud and mail fraud.
This case is assigned to U.S. District Judge Robert N. Chatigny in Hartford.
This matter is being investigated by the U.S. Department of Labor – Office of the Inspector General, the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and the Special Inspector General for the Troubled Asset Relief Program. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
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Tom Carson
(203) 821-3722 [email protected]Two Fairbanks Men Plead Guilty to Illegal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that two Fairbanks men entered pleas of guilty in federal court today in Fairbanks, for two counts of trafficking in narcotics.
Andrew Paul Newman, 51, and Jason Carl Heim, 36, both of Fairbanks, Alaska, pleaded guilty today before Chief United States District Judge Ralph R. Beistline, to charges that they conspired to violate federal drug trafficking laws, and possessed more than 50 grams of actual methamphetamine with the intent to distribute it.
According to the facts presented in court by Assistant U. S. Attorney Stephen Cooper to support the guilty pleas, the two men cooperated in shipping into Alaska for resale a parcel containing seven ounces of 71% pure methamphetamine. When the parcel came through the U.S. Post Office in August 2013, Postal Inspectors suspected it contained illegal drugs. They obtained a search warrant from the court, followed the parcel when it was delivered, and arrested both Newman and Heim as they were in the act of opening the parcel in a secluded wooded area near North Pole. Electronic mail and postal records showed the parcel was the latest in a series of shipments of methamphetamine that Newman and Heim received by mail from an unidentified source in California between April and August. According to law enforcement investigators in the case, the total value of the seized drugs alone exceeds $40,000 or $80,000 if the drugs were diluted before resale. The value of the additional drugs Newman and Heim had shipped into Alaska between April and August would be several times this amount.
The judge set sentencing proceedings for April 4, 2014, in Fairbanks. Newman and Heim were ordered detained in custody pending the sentencing.
Ms. Loeffler commends the U.S. Postal Inspectors, the Bureau of Alcohol, Tobacco and Firearms, and the Alaska State Drug Enforcement Unit for the investigation of this case.
Third Person Charged in HUD Mortgage Fraud CaseRead the Press Release
Defendant’s Mother and Former Husband Sentenced Last Year for Their Roles in the Scheme
POCATELLO – U.S. Attorney Wendy J. Olson announced today that Sarah Kate Henecke, 35, also known as Alessandra Valencia Toscanelli, of Las Vegas, Nevada, has been indicted for her role in a mortgage fraud scheme. Henecke was arrested in Nevada on December 11, 2013. She is scheduled to make her first appearance in federal court in Idaho at 11:00 a.m. on January 15, 2014, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Pocatello.
A federal grand jury in Boise indicted Henecke on November 13, 2013. Henecke is charged with one count of making a false statement on a residential loan application for a Department of Housing and Urban Development (HUD) guaranteed loan. The indictment alleges that Henecke, a co-borrower on the loan along with her then-husband, Darin John Henecke, misrepresented that she had employment income of $2,400 per month, when in fact she was not employed.
Darin Henecke, 37, of Pocatello, Idaho, and Sarah Henecke’s mother, Karen DeWall Shaw, 60, of Chubbuck, Idaho, pleaded guilty last year to a misdemeanor charge of making a false statement. They were sentenced on September 25, 2013, to five years of probation and each ordered to pay $42,905 in restitution. According to the plea agreement filed in the case, on March 13, 2009, Darin Henecke obtained a residential loan to finance the purchase of a residence in Eagle, Idaho. The loan was funded based in part on the false statement allegedly made by Sarah Henecke. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Darin Henecke admitted that he knew false employment information was submitted to obtain the loan. Shaw admitted that she assisted in the fraud by providing false employment information in order for the borrowers to qualify for the loan.
The case is being investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
Today’s announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Stanton Heights Man Pleads Guilty to Drug Charges, Admits Operating Stash House and Using Juvenile "Runners"Read the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to federal drug trafficking charges, United States Attorney David J. Hickton announced today.
Brady Hall, 19, pleaded guilty to three counts before United States District Judge Cathy Bissoon. Specifically, Hall pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more heroin, possession with the intent to distribute a quantity of heroin, and employment of juveniles to distribute heroin. In total, Hall agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea, the Court was advised that from May 2012 to February 2013, Hall conspired together with his charged co-defendants, Jay Germany, Jaquan Washington, and others, to possess with the intent to distribute and distribute, heroin. In addition, Hall conspired with uncharged co-conspirator Andre Corbett and his associates to distribute heroin. Germany and Washington have both pled not guilty, while Corbett has pleaded guilty and was sentenced to 10 years in prison.
The Court learned that during the timeframe of the heroin trafficking conspiracy, Germany was the leader of the conspiracy, in that he operated the "customer phone," whereby retail heroin customers would call Germany to arrange a heroin transaction. Once the transaction had been finalized, Germany, in turn, called either Washington or Hall to deliver the heroin to the customer. Hall operated a heroin "stash house," located in Homestead. From that stash house, Hall used runners, including juvenile runners, to deliver heroin to customers.
Finally, Count Five of the Superseding Indictment related to a heroin transaction that took place at the Giant Eagle on the Waterfront in Homestead. On Oct. 30, 2012, a heroin customer arranged to purchase 100 stamp bags of heroin from Germany at the Giant Eagle. Germany drove Hall to complete the deal at Giant Eagle. Hall met the customer in the Giant Eagle bathroom. In the bathroom, Hall provided the customer with the 100 stamp bags of heroin. Law enforcement, who had been intercepting the telephone conversations of Germany, monitored this transaction, and later conducted a traffic stop of the customer as he drove away. Law enforcement recovered the purchased heroin from the customer.
Judge Bissoon scheduled sentencing for April 30, 2014, at 2:15 p.m. The law provides for a total sentence of up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Brady Hall.
San Antonio Mail Thief and Convicted Felon Sentenced to Federal PrisonRead the Press Release
In San Antonio this morning, 28-year-old John Michael Hawkins was sentenced to 77 months in federal prison for possession of stolen mail and being a convicted felon in possession of a firearm announced United States Attorney Robert Pitman and U.S. Postal Inspection Service Inspector in Charge Robert Wemyss, Houston Division.
In addition to the prison term, U.S. Chief District Judge Fred Biery ordered that Hawkins pay $4,228.56 restitution and be placed under supervised release for a period of three years after completing his prison term.
In February 2013, San Antonio Police Officers arrested Hawkins. At that time, Hawkins was in possession of stolen mail as well as a significant amount of credit cards in names other than his, various business checks, multiple personal checks, U.S. passports and Texas driver licenses. Hawkins was also in possession of a .357 caliber revolver.
On August 1, 2013, Hawkins pleaded guilty to the federal charges. Hawkins’ criminal history includes state felony convictions for burglary of a habitation, unauthorized use of a vehicle, vehicle theft and evading arrest/ detention with a vehicle.
“The Postal Inspection Service has sought those who steal mail for hundreds of years. The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission,” stated Robert Wemyss, Inspector in Charge, Houston Division.
This case was investigated by the U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Antonio Police Department. Assistant U.S. Attorney Michael Hardy prosecuted this case on behalf of the Government.
Rochester Man Sentenced for Fraud & Money LaunderingRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Griffin, 46, of Rochester, N.Y., who was convicted of conspiracy to commit mail and wire fraud and conspiracy to engage in money laundering, was sentenced to 46 months in prison by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Griffin was the owner of an employment staffing business that operated under various names, including LHT USA and Cambridge Personnel. From August 2007 to June 2008, the defendant spearheaded a conspiracy to defraud lenders by selling them false invoices in transactions known as factoring. The fraud involved creating false invoices and other supporting documents that the defendant then sold to a series of financing companies on a weekly basis for immediate cash. When a financing company realized that it had been sold uncollectible invoices and stopped dealing with Griffin's business, the defendant would change business names and continue the scheme with another financing company.
In total, Griffin and his confederates sold and attempted to sell more than $650,000 worth of bogus invoices to three separate factoring companies over a period of almost a year. He then laundered the proceeds of his crimes and used them to buy a Bentley, support a drug habit, and fund a lifestyle beyond his legitimate means.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Toni M. Weirauch, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Ramona Real Estate Agent Who Arranged Fraudulent Real Estate Sales Sentenced to 15 MonthsRead the Press Release
SAN DIEGO – Real estate agent Teresa Rose, of Ramona, California, was sentenced today to 15 months in custody by U.S. District Judge John A. Houston for her role in an investment and mortgage loan fraud scheme that generated tens of millions of dollars in fraudulent loans and millions in illegal kickbacks to the participants. In addition, Rose was ordered to pay more than half a million dollars in restitution to victims of the offense.
Rose was charged with participating in the scheme along with five others: Mary Armstrong, an unlicensed mortgage broker who orchestrated the scheme; William Fountain, Armstrong’s assistant; John Allen, a mortgage loan processor from Laguna Hills; Justin Mensen, a straw buyer who later recruited others and helped launder the funds; and Audrey Yeboah, a Los Angeles-based tax preparer who generated fake paperwork to support the loans.
Rose’s coconspirators, including Mary Armstrong, recruited real estate “investors” through advertisements in the Los Angeles Times, Monster.com, and elsewhere. They offered these “investors” the opportunity to purchase homes using their good credit with no money down. In order to get these “investors” to participate in the loan fraud, the participants in the fraud promised to make the mortgage payments on their behalf using rental income from the properties.
In reality, these so-called investors were nothing more than straw buyers who were promised $10,000 for each property purchased as part of the scheme. Rose helped secure mortgages on the properties by falsifying loan applications for the straw buyers. Among other things, the loan applications she helped to falsify claimed that the borrowers had exorbitant income from fake employers, and assets that they did not own. Rose and others used sham employers in order to verify the borrowers’ fabricated employment histories. In addition, Armstrong arranged for the borrowers to obtain 100% financing – and thus avoided having to make any down payment on the properties.
Rose acted as both the buyers’ and sellers’ real estate agent on a number of these sales, and convinced the sellers of each property to inflate the purchase price by $100,000 or more. These inflated amounts were allegedly for construction to improve the properties. In fact, no construction work was performed and the funds were diverted (or “kicked back”) to bank accounts controlled by Rose’s coconspirators. In this way, the conspirators pocketed nearly $15 million in kickbacks, made few if any mortgage payments, and allowed nearly all of the properties to swiftly fall into foreclosure. Rose earned real estate sales commissions from both the sellers and buyers on each transaction, and took home more than $200,000 for arranging the sales of nine properties in Ramona. In total, Armstrong arranged the purchase of approximately $100 million in loans through this scheme, resulting in estimated losses between $7 million and $20 million to the mortgage lenders and secondary purchasers Fannie Mae and Freddie Mac.
All of the defendants pled guilty to participating in the scheme and were sentenced by Judge Houston. Armstrong was sentenced to 100 months in custody. Fountain and Allen were sentenced to 42 months and 12 months in custody, respectively. Mensen and Yeboah were each sentenced to probation with terms of home detention or house arrest.
United States Attorney Laura Duffy said the American public is the actual victim of this type of widespread mortgage fraud, which played such a significant role in destabilizing the country’s financial situation and neighborhoods rocked by foreclosures and abandoned homes. She emphasized that her office would aggressively prosecute such crimes and urged anyone in the community who has information relating to these charges to contact the San Diego branch of the Federal Bureau of Investigation at (858) 565-1255 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
This matter was investigated jointly by agents from the FBI and FHFA-OIG. The case is being prosecuted by FHFA-OIG Investigative Counsel and Special Assistant U.S. Attorney Emily W. Allen and Assistant U.S. Attorney Valerie Chu of the Southern District of California.
DEFENDANTS Criminal Case No. 12CR1848-JAH Mary Armstrong
Teresa Rose
William Fountain
John Allen DEFENDANT Criminal Case No. 12CR1458-JAH Justin Mensen DEFENDANT Criminal Case No. 12CR4322-JAH Audrey Yeboah SUMMARY OF CHARGESMary Armstrong, Teresa Rose, and William Fountain
Count 1: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to
Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of
$250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.Mary Armstrong
Count 2: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Counts 3-5: Title 18, United States Code, Section 1956(a)(1)(B)(I) -- Money Laundering -- statutory maximum sentence of 15 years’ custody, a maximum fine of $500,000 or twice the value of the property involved in the transaction, and $100 special assessment.
Justin Mensen
Information: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and
$100 special assessment.Audrey Yeboah
Information: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
AGENCIESFederal Bureau of Investigation
Federal Housing Finance Agency - Office of Inspector GeneralNine Trey Gangster Sentenced to 9 1/2 YearsRead the Press Release
RICHMOND, Va. – Ricky Timothy Wyatt, Jr., a.k.a. “Knuckles,” 27, of Petersburg, Va., was sentenced today to 114 months’ in prison, to be followed by 3 years of supervised release for charges of possession of firearms by a convicted felon and manufacturing counterfeit currency.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge, Federal Bureau of Investigation’s Richmond Field Office; Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office; and John I. Dixon, III, Chief of Police, City of Petersburg, made the announcement after the sentence was imposed today by United States District Judge Henry E. Hudson.
To date, more than one dozen members of the Nine Trey Gangster (NTG) organization have been indicted and convicted of various federal charges involving illegal firearms, manufacturing counterfeit currency, and drug trafficking. Charges against more than one dozen other Nine Trey Gangsters are currently pending.
Wyatt, who proceeded to trial on September 26, 2013, was convicted on September 27, 2013 of all six counts in the Criminal Indictment. At the sentencing hearing today, the United States introduced evidence showing that Wyatt was in charge of NTG members in Petersburg, Virginia and elsewhere, and that he was responsible for leading a group involving five or more people, or was otherwise extensive. The United States linked the firearms he illegally possessed, and his manufacturing of counterfeit currency to Wyatt’s leadership role in the Nine Trey Gangsters, where Wyatt held the rank of “Lo Stain.”
NTG is part of the United Blood Nation (UBN). UBN was the first unified Blood gang alliance on the East Coast, and started on Riker’s Island at the George Machen Detention Center in the New York City jail system. There were five original sets under the UBN, one of which was NTG, which was formed in 1993. Since its inception, NTG has been one of the most active East Coast Blood gang sets. NTG has spread across the eastern United States, and the FBI and numerous dedicated gang task forces have undertaken a long-term investigation of NTG activities in Virginia and neighboring states. NTG members are organized into “line-ups.” There were multiple active “line-ups” in Virginia and elsewhere under Wyatt’s control. The “High Stain” appoints a “Lo Stain” who has generals ranking from five stars down to one star reporting to him. “Soldiers” are the lowest ranking members in the gang. The “High Stain” of each line up reports to two “Godfathers,” both of whom are in New York. At NTG meetings, dues were collected, a portion of which was sent to NTG leadership in New York. In addition, meetings included assigning discipline to NTG members who violated NTG codes. Discipline may involve a loss of rank, or a 31 second beating.
This case was initiated and investigated by the Federal Bureau of Investigation as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, Full Blooded Ink. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Newport Man Sentenced for Receiving Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that John Kuhl, 42, of Newport, Vermont, was sentenced in United States District Court in Rutland, Vermont, on January 2, 2014, to serve 60-months imprisonment and a five (5) year term of supervised release following his conviction on one count of receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). Chief Judge Christina Reiss also ordered Kuhl to pay a $100 special assessment.
According to court records, Kuhl gave a cell phone to a minor female and instructed her to take photos of her genitalia and to send the photos to him, which the minor female did. A forensic examination of Kuhl’s telephone revealed the existence of the photos the minor had taken and sent to him. This activity came to law enforcement attention when it investigated allegations that Kuhl had inappropriately touched four other minors during a boat trip in Newport, Vermont.
The prosecution of Kuhl was being handled by Assistant U.S. Attorney Barbara Masterson. Kuhl was represented by David McColgin of the Federal Defender’s Office.
U.S. Attorney Coffin commended the efforts of the Newport Police Department, Homeland Security Investigations, and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Kuhl.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Miami Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Orlando, FL – Acting United States Attorney A. Lee Bentley, III announces that Camorette James (28, Miami) today pleaded guilty to one count of conspiracy to commit bank fraud. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
James was indicted on March 12, 2012.
According to court documents, James and others engaged in a conspiracy to commit bank fraud and to defraud the Navy Federal Credit Union ("NFCU"). They facilitated the conspiracy by opening fraudulent accounts by telephone, while claiming to be members of the United States Armed Forces, and by using the identification of others without authorization. Following these telephone calls, the conspirators requested account access cards, known as "CuCards," to be mailed to addresses in Central Florida.
As part of the scheme, James deposited worthless checks into the fraudulently opened NFCU accounts, in order to inflate the accounts’ balances. These checks were drawn on accounts in which there were no funds. Along with other conspirators, James then withdrew funds from the fraudulent accounts, before the bank realized that the deposited checks were worthless.
On November 2, 2012, Brittany Jones was sentenced 48 months’ imprisonment for her role in the scheme, after pleading guilty to conspiracy to commit bank fraud, three counts of bank fraud, and aggravated identity theft. Jones was also ordered to pay $180,034.72 in restitution.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
Metro Station Armed Carjacker Pleads GuiltyRead the Press Release
Carjacking Victim Shot and Seriously Injured
Greenbelt, Maryland – Samuel Damien Bynum, age 23, of Washington, D.C., pleaded guilty today to conspiring to use a gun during a carjacking, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George=s County Police Department; Prince George=s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Douglas F. Gansler.
“Through coordinated efforts of local, state and federal law enforcement agencies, a gang of dangerous carjackers has been put out of business,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, beginning in January 2011, Bynum conspired with others to commit armed carjackings in Prince George’s and Montgomery Counties. On May 25, 2011, Bynum and co-conspirators drove to the Largo Metro Station in Largo, Maryland in a car they had stolen during a carjacking at the New Carrollton Metro Station a few days earlier. Bynum saw two people park their Camaro in the garage and followed them into the stairwell. Bynum told law enforcement that he blocked the stairwell so that his co-conspirators, who were armed with handguns, could rob the victims. Bynum or a conspirator hit one of the victims with a handgun, but they were unable to steal the victim’s car keys. Bynum and his conspirators fled, but returned a short time later to steal the Camaro after finding the keys to the car during their flight. Upon returning to the area, a co-conspirator gave Bynum one of the handguns and told Bynum to start shooting if the victims did anything. As one of the victims attempted to get into the car, Bynum and his conspirators shot several times at both victims. One of the victims was struck by a bullet and suffered permanent bodily injury requiring significant and ongoing medical attention.
Two alleged co-conspirators have been charged in federal court and another was prosecuted in state court.
Bynum had previously purchased the handgun he used in the carjacking. Bynum had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
Bynum faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. U.S. District Judge Paul W. Grimm scheduled sentencing for May 6, 2014 at 11:00 a.m.United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General=s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
McLaughlin Woman Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman convicted of Larceny was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Tabitha Good House, age 27, was sentenced to 5 years of unsupervised probation, $16,761 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Good House was indicted by a federal grand jury on July 17, 2013. She pled guilty on October 7, 2013.
The conviction stems from incidents occurring between December 1, 2012, and March 25, 2013, when Good House, who was employed by KLND Radio Station in McLaughlin, forged the signature of station board members and negotiated several checks, knowing she was not entitled to the monies to which she received. The total amount of the checks was $16,761.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
McLaughlin Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Lehi James Demarrias, Sr., age 31, was sentenced to 57 months in custody, 3 years of Supervised Release, $3,287.41 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Demarrias was indicted by a federal grand jury on July 23, 2013. He pled guilty on September 23, 2013.
The conviction stems from an incident that happened in McLaughlin on July 17, 2013, when Standing Rock Agency Dispatch received a call regarding a male who had been stabbed in the stomach. Bureau of Indian Affairs police officers arrived on the scene and were informed by the victim that he had been stabbed by Demarrias.
The victim was originally taken to the Mobridge hospital where he was stabilized and then transferred to a hospital in Bismarck, North Dakota. Upon arrival in Bismarck, the hospital determined it was necessary for the victim to undergo emergency surgery due to the possibility that one of his organs was possibly ruptured. As a result of this incident, the victim sustained serious bodily injury.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Demarrias was immediately turned over to the custody of the U.S. Marshals Service.
Kentland Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Brian Hudson, a/k/a “Country,” age 33, of Hyattsville, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Hudson’s plea agreement, from June 2010 to August 2011, Hudson conspired with Philip Whitehurst and others to distribute cocaine in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. During the investigation, law enforcement intercepted numerous calls where Hudson was overheard discussing the sale of cocaine with Whitehurst. During the conspiracy, Hudson also sold 3.5 grams of crack cocaine to a source, who conducted the purchase at the direction of the Prince George’s County Police Department. On February 21, 2012, Prince George’s County police officers and FBI Task Force officers blocked Hudson’s car when he attempted to leave his apartment. Hudson rammed several of the police vehicles with his car and attempted to run away before he was arrested. Hudson admits that he was responsible for the distribution of between five and 15 kilograms of cocaine during the conspiracy.Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, was previously sentenced to 294 months in prison for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine. Twenty-one other Kentland co-conspirators have been sentenced to between 27 and 210 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem, Arun G. Rao and Thomas M. Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.Jicarilla Apache Man Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Jeremiah Burns, 32, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to an indictment charging him with involuntary manslaughter.
Burns was arrested in Aug. 2013, based on an indictment charging him with killing a man on Oct. 22, 2011, while driving under the influence of alcohol within the Jicarilla Apache Indian Reservation. In entering his guilty plea, Burns admitted killing the victim while driving under the influence of alcohol and marijuana which rendered him incapable of exercising clear judgment and a steady hand in handling a vehicle. As such, Burns acknowledged that he operated the vehicle without due caution and with a reckless disregard that imperiled the lives of others.
Under the terms of his plea agreement, Burns will be sentenced to 20 months in federal prison followed by a term of supervised release to be determined by the court. Burns’ sentencing hearing has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Holter in Great Falls, on December 31, 2013, and entering pleas of Not Guilty were:
- DERRICK LEE DRIVDAHL, a 50-year-old resident of Helena appeared on charges of child pornography. If convicted, DRIVAHL faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years in prison.
Appearing before U.S. Magistrate Judge Lynch in Missoula, on January 2, 2014, and entering pleas of Not Guilty were:
- TIMOTHY GARDINER, a resident of Yakima, Washington appeared on charges of distribution of methamphetamine. If convicted, GARDINER faces possible penalties of life imprisonment.
- JEFFREY LACKMAN, a 24-year-old resident of Butte, appeared on charges of distribution of methamphetamine. If convicted, LACKMAN faces possible penalties of life imprisonment.
Appearing before U.S. Magistrate Judge Ostby in Billings on January 3, 2014, and entering pleas of Not Guilty were:
- GAYLON LANCE LAMEWOMAN, a 33-year-old resident of Lame Deer, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted, LAMEWOMAN faces possible penalties of 10 years in prison.
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Homestead Man Conspired to Distribute Heroin from ACJ, SCI-Camp HillRead the Press Release
PITTSBURGH - A resident of Homestead, Pa., pleaded guilty in federal court to federal drug trafficking charges, United States Attorney David J. Hickton announced today.
Jordan Murphy, 22, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, before United States District Judge Cathy Bissoon. In total, Murphy agreed to accept responsibility for between 700 and 1,000 grams of heroin.
In connection with the guilty plea, the Court was advised that from May 2012 to February 2013, Murphy conspired together with his charged co-defendants Andre Corbett, Sterling Marshall, and others, to possess with the intent to distribute and distribute, heroin. Those named co-defendants have previously pleaded guilty.
Specifically, the Court learned that during the timeframe of the heroin trafficking conspiracy, Murphy was incarcerated on state charges at Allegheny County Jail and SCI-Camp Hill. However, Murphy still participated and coordinated heroin sales from those facilities. Specifically, Murphy, in recorded "jail calls," had Corbett and Marshall sell heroin through uncharged co-conspirator Brady Hall, who used "runners" to deliver this heroin to heroin customers in Homestead. This conspiracy was primarily supplied heroin by uncharged co-conspirator Brandon Thompson, amongst others. Murphy set pricing and coordinated drug payments over the telephone. Thompson has pleaded not guilty in a related indictment.
Judge Bissoon scheduled sentencing for April 24, 2014, at 2:15 p.m. The law provides for a total sentence of up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Jordan Murphy.
Fourteen Charged After Joint Investigation into Drug Trafficking and Violence in BridgeportRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Bridgeport Police Chief Joseph L. Gaudett, Jr. today announced that 14 individuals have been charged by indictment with various narcotics and firearms offenses as part of joint investigation into drug trafficking and violence in Bridgeport. The majority of the defendants were arrested on criminal complaints in early December and a federal grand jury in Bridgeport returned an 18-count indictment on December 18.
According to statements made in court, since January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force has been conducting an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport.
Charged in the indictment are:
RONELL HANKS, a.k.a. “Biz” and “Ace,” 24, of Bridgeport
OMAR BAHAMONDE, a.k.a. “Dirk,” 29, of Bridgeport
JONATHAN BOHANNON, 25, of Bridgeport
JERMAINE BUCHANAN, a.k.a. “Hot Main,” 18, of Shelton
MOYAN FORBES, 22, of Bridgeport
RASHAD HEARD, a.k.a. “Shotty,” 23, of Bridgeport, SYBIL HOPKINS, 55, of Stratford
STEVEN HUTCHINSON, a.k.a. “L,” 24, of Bridgeport
TAVAR JOHNSON, 30, of Bridgeport
YAZMINE MORALES, 36, of Newington
CARLOS SOTO, a.k.a. “Machon,” 49, of Newington
EBONEY WOOD, a.k.a. “Sis,” 33, of New Haven
D’METRIUS WOODWARD, a.k.a. “Flea,” 29, of Bridgeport
TYSHEEM WRIGHT, 25, of BridgeportDuring the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
The indictment charges each defendant with conspiracy to possess with intent to distribute narcotics. If convicted of this charge, based on the type and quantity of narcotics charged, BAHAMONDE, BOHANNON, FORBES, HANKS, HEARD, HOPKINS, MORALES, SOTO, WOOD, WOODWARD and WRIGHT face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. BUCHANAN, HUTCHINSON and JOHNSON face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Certain defendants are also charged with possessing with intent to distribute, and distribution of, heroin and/or cocaine base (“crack cocaine”).
The indictment also charges HANKS and BOHANNON with one count of possession of a firearm and ammunition by a previously convicted felon, which carries a maximum term of imprisonment of 10 years; BOHANNON and BUCHANAN with one count of possession of a firearm in furtherance of drug trafficking crimes, which carries a mandatory five-year sentence; HANKS and BUCHANAN with one count of possession of a stolen firearm, which carries a maximum term of imprisonment of 10 years, and WOOD with transfer of a firearm to a convicted felon (HANKS), which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to Chief U.S. District Judge Janet C. Hall in New Haven.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, Norwalk Police Department, Trumbull Police Department and Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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(203) 821-3722 [email protected]Former McHenry County Sheriff's Deputy Pleads Guilty to Federal Child Sexual Abuse and Exploitation ChargeRead the Press Release
ROCKFORD — A former McHenry County Sheriff=s Deputy pleaded guilty today in federal court before U.S. District Court Judge Frederick J. Kapala to crossing a state line with intent to engage in a sexual act with a person who had not attained the age of 12 years. The defendant, GREGORY M. PYLE, 38, of Crest Hills, Ill., formerly of Crystal Lake, Ill., admitted that on Dec. 13, 2008, he had custody of a child under 12 years of age, when he drove the child from Crystal Lake, Ill. to Milwaukee, Wisc., with the intention to engage in sexual acts with the child and to produce visual depictions of such acts. Pyle admitted that he stayed overnight in a Milwaukee hotel and engaged in sexual acts with the child that were sadistic, masochistic, and violent. The defendant produced images of the child engaged in these sexual acts and later distributed the images over the Internet.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois State Police, the McHenry County Sheriff’s Department, and the Illinois Internet Crimes Against Children Taskforce assisted in the investigation.
Pyle’s sentencing hearing is scheduled for April 14, 2014, at 2:30 p.m. Crossing a state line to engage in a sexual act with a minor under 12 carries a mandatory minimum sentence of 30 years and a maximum of life in prison, a period of supervised release following imprisonment of at least five years and up to life, and a maximum fine of $250,000.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Former Jpd Detective Sentenced on Bribery ChargeRead the Press Release
Jackson, Miss. -- Robert Nikita Shegog, of Terry, Mississippi, was sentenced in U.S. District Court today to 22 months and 15 days imprisonment for bribery, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Shegog was also ordered to pay a $10,000.00 fine.
Shegog pled guilty to the bribery charge in July, 2012, admitting that, while employed as a Narcotics Detective with the Jackson Police Department in 2010, he advised a Hinds County criminal defendant that he would assist him in getting a sentence reduction on an outstanding drug charge if he would pay Shegog $45,000.00.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.###
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Former El Paso County Judge Anthony Cobos Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
This afternoon, former El Paso County Judge Anthony Cobos and Lorenzo Hilario Aguilar were each sentenced to four years in federal prison followed by three years of supervised release for their roles in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the 46–year-old Cobos pay a $10,000 fine; the 63-year-old Aguilar, a $50,000 fine. Furthermore, Judge Montalvo ordered Cobos and Aguilar to surrender to federal authorities on or before February 11, 2014, to begin serving their prison terms.
In September, Cobos and Aguilar each pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services. By pleading guilty, the defendants admitted that in 2007, they participated in a bribery scheme involving former El Paso County Judge Anthony Cobos’ vote and influence on El Paso County contracts. According to court records, Cobos accepted bribes in the form of cash money and other benefits, including campaign contributions to Cobos-supported individuals running for the El Paso City Council, in exchange for his vote and influence in refinancing approximately $40 million of El Paso County debt and to terminate the then El Paso County financial advisor’s contract and replace with another company.
“The sentences handed down today should reassure the public that we will be relentless in pursuing those who would attempt to corrupt public officials as well as those public officials who violate their public trust for personal gain,” stated U.S. Attorney Robert Pitman.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
“Nothing destroys public confidence more than those who illegally conspire to benefit from taxpayer dollars. The FBI is committed to protecting the El Paso community by holding violators personally accountable for their actions,” stated FBI SAC Douglas E. Lindquist.
Assistant United States Attorney William F. Lewis, Jr. prosecuted this case on behalf of the Government.
Final Defendant in Meth Trafficking Case Sentenced to 30 Years in Federal PrisonRead the Press Release
Five Co-Conspirators Serving Sentences Ranging from 21 Months to 35 Years
POCATELLO – U.S. Attorney Wendy J. Olson announced today Juan Carlos Garcia, 36, of Idaho Falls, Idaho, was sentenced today to 30 years in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. Chief U.S. District Judge B. Lynn Winmill also ordered Garcia to serve 10 years of supervised release and pay a $3,000 fine. He pleaded guilty to the charge on August 12, 2013.
Five co-conspirators were sentenced late last year to serve lengthy prison sentences. Fausto Urias, of Idaho Falls, the leader/organizer of the criminal organization, was sentenced in October 2013 to 35 years in prison for conspiracy to distribute 50 grams or more of actual methamphetamine. Benito Joya, of Rigby, Idaho, was sentenced in October to 121 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine. Marco Antonio Echeverria, of Idaho Falls, was sentenced in December 2013 to serve 97 months in prison for distributing methamphetamine. Erica Rodriguez, of Idaho Falls, was sentenced in December to 92 months in prison for possession to with intent to distribute 50 grams or more of actual methamphetamine. Misti Chapman, of Idaho Falls, was sentenced in October to 21 months in prison for distribution of methamphetamine and violating a previously imposed term of supervised release.
According to plea agreements filed in the case, between November 2009 and October 23, 2012, Urias and Garcia conspired to possess and distribute methamphetamine to other individuals in the Idaho Falls area. Urias and Garcia were previously convicted of felony possession of a controlled substance in Bonneville County, Idaho, on November 9, 2004, and June 7, 2005, respectively.
“This drug trafficking organization brought significant amounts of this highly addictive drug into our communities,” said Olson. “Through the cooperative efforts of local, state and federal authorities, we have successfully dismantled this operation. The U.S. Attorney’s Office and its law enforcement partners will use all lawful means to bring to justice and seek punishment for those who traffic methamphetamine in Idaho.”
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Espanola Man Pleads Guilty to Robbing Espanola Bank in September 2013Read the Press Release
ALBUQUERQUE – Stephen Gurule, 34, of Espanola, N.M., pleaded guilty this morning to an indictment charging him with bank robbery.
Gurule was arrested on Oct. 3, 2013 on a criminal complaint charging him with robbing the Community Bank located at 411 Carr Lane, Espanola, N.M. on Sept. 27, 2013, and subsequently was indicted on a bank robbery charge.
According to court filings, the Community Bank was robbed at approximately 3:00 pm on Sept. 27, 2013 by a man who passed a handwritten note demanding money to a bank teller. On Oct. 1, 2013, the FBI received a call from an individual who reported that Gurule had confessed to robbing the Community Bank. The following day, another individual called the FBI to report that Gurule had confessed to robbing a bank in Espanola. The FBI obtained an arrest warrant for Gurule on Oct. 3, 2013, after comparing a driver’s license photograph of Gurule to the robber shown on the bank surveillance video and determining that the robber appeared to be Gurule.
During today’s proceedings, Gurule entered a guilty plea to the indictment and admitted robbing Community Bank on Sept. 27, 2013. Gurule has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Gurule faces a maximum penalty of 20 years in federal prison.
This case was investigated by the Santa Fe Office of the FBI and City of Espanola Police Department, and is being prosecuted by Assistant U.S. Attorney David M. Walsh.
District Man Sentenced to Nine Years in Prison for Stabbing Man Following Argument over $20 Debt-Defendant Tells Victim, “Get Me My Money”-Read the Press Release
WASHINGTON - Charles Link, 53, of Washington, D.C., was sentenced today to nine years in prison on a charge of assault with a dangerous weapon stemming from the stabbing of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Link was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Link will be placed on three years of supervised release.
According to the government’s evidence at trial, the victim and Link were close friends for more than four years. They socialized together and played chess, and the victim even helped Link at his job at a funeral home. From time to time, Link would loan the victim small amounts of money. In the fall of 2012, the two men got into a disagreement over the repayment of a $20 loan. The victim had given Link his food assistance card and had told Link to use it to buy $40 of food, to cover the $20 debt. When Link never used the card and failed to return it, the victim cancelled the card so that he could get a new one and access his food benefits.
On the evening of Nov. 13, 2012, as the victim was walking near his home, he encountered Link and the two began arguing over the debt. When the victim reached the entrance to an alley off the 500 block of Newton Place NW, he was pushed from behind by an unidentified man and fell to the ground. Link joined in the attack and kicked and punched the victim, stating “get me my money.” Link then pulled out a knife and stabbed the victim five times - twice in the chest and rib cage. He and the unidentified man fled, leaving the victim bleeding in an alley.
In sentencing the defendant, Judge Canan took note of that fact that Link was convicted in 1993 of second-degree murder while armed in another stabbing in the District of Columbia. In that case, he and another person stabbed a man to death in an alley over a petty disagreement about moving trash. Link was sentenced to 15 years in prison for that attack.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department, including detectives from the Fourth Police District. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Wanda Trice and Debra McPherson. Finally, he commended the work of Assistant U.S. Attorney Vivien Cockburn and former Assistant U.S. Attorney Trevor N. McFadden, who assisted in the investigation, and Assistant U.S. Attorney Brittain Shaw, who investigated and prosecuted the case.
14-001District Man Sentenced to Nine Years in Prison for Stabbing Man Following Argument over $20 Debt-Defendant Tells Victim, “Get Me My Money”-Read the Press Release
WASHINGTON - Charles Link, 53, of Washington, D.C., was sentenced today to nine years in prison on a charge of assault with a dangerous weapon stemming from the stabbing of a man in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Link was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Link will be placed on three years of supervised release.
According to the government’s evidence at trial, the victim and Link were close friends for more than four years. They socialized together and played chess, and the victim even helped Link at his job at a funeral home. From time to time, Link would loan the victim small amounts of money. In the fall of 2012, the two men got into a disagreement over the repayment of a $20 loan. The victim had given Link his food assistance card and had told Link to use it to buy $40 of food, to cover the $20 debt. When Link never used the card and failed to return it, the victim cancelled the card so that he could get a new one and access his food benefits.
On the evening of Nov. 13, 2012, as the victim was walking near his home, he encountered Link and the two began arguing over the debt. When the victim reached the entrance to an alley off the 500 block of Newton Place NW, he was pushed from behind by an unidentified man and fell to the ground. Link joined in the attack and kicked and punched the victim, stating “get me my money.” Link then pulled out a knife and stabbed the victim five times - twice in the chest and rib cage. He and the unidentified man fled, leaving the victim bleeding in an alley.
In sentencing the defendant, Judge Canan took note of that fact that Link was convicted in 1993 of second-degree murder while armed in another stabbing in the District of Columbia. In that case, he and another person stabbed a man to death in an alley over a petty disagreement about moving trash. Link was sentenced to 15 years in prison for that attack.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department, including detectives from the Fourth Police District. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Wanda Trice and Debra McPherson. Finally, he commended the work of Assistant U.S. Attorney Vivien Cockburn and former Assistant U.S. Attorney Trevor N. McFadden, who assisted in the investigation, and Assistant U.S. Attorney Brittain Shaw, who investigated and prosecuted the case.
14-001Department of Justice Takes Steps to Strengthen Federal Background Check System for Firearms TransfersRead the Press Release
The Department of Justice today announced it is proposing a regulation that will clarify who, due to mental health reasons, is prohibited under federal law from receiving, possessing, shipping or transporting firearms. In addition to providing general guidance on the federal law, this clarification will help states determine what information may be appropriately shared with the federal background check system for firearms transfers – the National Instant Criminal Background Check System (NICS) – in order to keep guns out of the hands of individuals who may be a danger to themselves or others.
The revised definition clarifies that the statutory terms “adjudicated as a mental defective” and “committed to a mental institution” include persons who are found incompetent to stand trial or not guilty by reason of mental disease or defect; persons lacking mental responsibility or deemed insane; and persons found guilty but mentally ill, regardless of whether these determinations are made by a state, local, federal or military court. The proposed regulation also clarifies that the statutory term includes a person committed to involuntary inpatient or outpatient treatment.
“We are taking an important, commonsense step to clarify the federal firearms regulations, which will strengthen our ability to keep dangerous weapons out of the wrong hands,” said Attorney General Eric Holder. “This step will provide clear guidance on who is prohibited from possessing firearms under federal law for reasons related to mental health, enabling America’s brave law enforcement and public safety officials to better protect the American people and ensure the safety of our homes and communities. And it is emblematic of the Justice Department’s broader commitment to use every tool and resource at its disposal to combat gun violence and prevent future tragedies while respecting the Constitutional rights to which all Americans are entitled.”The NICS background check system is a critical tool in keeping guns out of the hands of those who cannot legally have one. To date, NICS has prevented more than 2 million guns from falling into the wrong hands. In order for background checks to continue to be effective, the system must have access to relevant, correct and complete information.
Clarifying the existing Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regulation is just one of many common-sense steps the department has taken to keep guns out of the wrong hands. The department is working diligently to reduce gun violence and is committed to using every tool at its disposal, including implementing effective prevention, enforcement and re-entry strategies. In addition, the department is working with other federal departments and agencies to ensure relevant information is shared with the NICS and has also provided monetary support to states to improve their abilities to share this information.
The NPRM will be available for review beginning at 4:15pm on Friday, Jan. 3, 2014, at: http://www.federalregister.gov. Comments can be submitted to http://www.regulations.gov.