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Thursday 31 October 2013
Gang Member Pleads GuiltyIn Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City gang member has pleaded guilty to conspiring to attempt to kill a rival gang member in connection with a federal racketeering case, U.S. Attorney Barry Grissom said today.
Jesus Sanchez, 23, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit acts of racketeering.
In his plea, Sanchez admitted he was a member of the Diablos Viejos and affiliated with the Norteno street gang on March 30, 2011, when he attempted to shoot and kill George Gonzalez, a member of the rival Sureno gang. Sanchez and other Norteno gang members encountered Gonzalez at the east Love’s convenience store in Dodge City. They exchanged gang signs and slurs with the victim before driving away from the store. Later, they returned and pursued Gonzalez. Near 1602 6th Avenue, Gonzalez got out of the car in which he was riding and ran up the alley toward his girlfriend’s house. As Gonzalez ran, Sanchez fired at least two shots at him from a .40 caliber handgun. The shots struck a fence.
Sanchez also admitted that on July 2, 2008, in Dodge City he and another gang member robbed a victim named Bryant Licon at knifepoint.
Sanchez admitted that Nortenos engaged in violence including assaults and robberies as a means of advancing their positions in the organization and building the gang’s reputation.
Sentencing is set for Jan. 13, 2014. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.Sanchez was one of 23 Norteno members 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. So far, 20 of the defendants have pleaded guilty or been found guilty. Three are awaiting trial.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’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.
Four Plead Guilty to $400,000 Stolen Vehicles, ID Theft, Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four defendants pleaded guilty in federal court this week for their roles in a nearly $400,000 conspiracy to use identity documents, checks and credit cards that were either found in stolen vehicles or pilfered from vehicles to make fraudulent purchases and to obtain methamphetamine.
Roberta Anne Welte, 27, of Blue Springs, Mo., and Brandi Nicole Neely, 31, of Arnold, Mo., pleaded guilty in separate appearances today before U.S. District Judge Dean Whipple. Melinda R. Kermer, 28, of Raytown, Mo., and Christopher Lee Curd, 29, of Kansas City, Mo., each pleaded guilty on Tuesday, Oct. 29, 2013.
Welte and Neely each pleaded guilty today to participating in the conspiracy to illegally transport stolen vehicles across state lines from Oct. 19, 2007, to Jan. 10, 2008, and possessing and distributing methamphetamine to further the conspiracy. The purpose of the conspiracy was to steal checks, credit cards, Social Security cards, driver’s licenses and the accompanying personal identifying information in order to make fraudulent purchases at various retail stores in the Kansas City metropolitan area and to obtain methamphetamine. The total loss resulting from their participation in the conspiracy was $398,168.
On Christmas Day in 2007, Welte admitted, she worked on behalf of a co-conspirator to package stolen credit cards, checks and a Social Security card belonging to one victim, stacks of KU tickets belonging to another victim, and other stacks of checks. On the same day, she used a stolen credit card belonging to one of the victims at a Quick Trip and she possessed a stolen 2005 Acura MDX SUV belonging to two additional victims. Welte admitted that she possessed a stolen Jeep Cherokee on Oct. 25, 2007, and that she transported a stolen Navigator from Kansas to Missouri on Dec. 20, 2007. Welte also admitted that she participated in pilfering several vehicles on Dec. 20, 2007, including vehicles that belonged to four victims in Shawnee, Kan.
Neely admitted that in December 2007 and January 2008 she repeatedly used stolen credit cards to purchase hundreds of dollars worth of merchandise and fuel. On Jan. 5, 2008, she and a co-conspirator burglarized a vehicle in a garage in Blue Springs, pilfered two other vehicles in Blue Springs, and operated and possessed a stolen Dodge Intrepid belonging to a Blue Springs resident. Neely was in possession of numerous driver’s licenses, Social Security cards and other items primarily taken from additional victims whose vehicles were pilfered or stolen. Neely was also in possession of several pieces of mail that had been stolen from the mailboxes of nine Blue Springs residents in January 2008.
Kermer admitted that she stole two vehicles in November 2007 and used a credit card belonging to one of the victims to make purchases at a Wal-Mart store in Liberty, Mo. Kermer also admitted that she possessed a stolen Cadillac belonging to another victim in Sugar Creek, Mo., as well as numerous driver’s licenses, credit cards, checks, casino cards and other items that had been pilfered from various vehicles and mail that had been stolen from a Sugar Creek victim. On Dec. 25, 2007, Kermer traded 1.75 grams of methamphetamine to a coconspirator for a gold VISA credit card.
Curd admitted that he deposited $875 into his personal bank account from stolen checks that had been pilfered from a vehicle in Independence, Mo. He also admitted that he deposited a $474 stolen personal check into his bank account from an Overland Park, Kan., victim whose vehicle had been stolen. Curd deposited a $250 personal check into his bank account that was taken from the vehicle of a Lenexa, Kan., victim. He also possessed another checkbook that had been stolen from an additional victim’s vehicle in Independence, and numerous credit cards, driver’s licenses, stolen personal checks and other items.
Co-defendants Robert Alva Curd, 29, and Nicholas E. Dobbins, 25, both of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy.
Under federal statutes, each of the co-defendants are subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jane Pansing Brown and William L. Meiners. It was investigated by the U.S. Postal Inspection Service – Office of Inspector General, the U.S. Secret Service and the Overland Park, Kan., Police Department.
Four Defendants Indicted in Alleged $10 Million Bank Fraud Scheme Involing the Sale of 26 Gas Stations in Four StatesRead the Press Release
CHICAGO — Four defendants were indicted on federal charges for their alleged roles in a scheme to fraudulently obtain more than $10 million in loan proceeds from a suburban bank through the sales of 26 gas stations in Illinois, Iowa, Nebraska and Wisconsin. Two defendants, CHARNPAL GHUMAN and AGA KHAN, co-owned the gas stations and sold them to purchasers financed by the bank loans and guaranteed in part by the Small Business Administration. They allegedly recruited purchasers and arranged the loans through a bank loan officer, AKASH BRAHMBHATT, based on false financial representations, including false tax returns prepared by SHITAL MEHTA, an accountant, both of whom also were indicted.
A fifth defendant, Khan’s brother, SHABBIR KHAN, was charged separately with tax offenses arising from the bank fraud investigation.
A 23-count indictment returned by a federal grand jury earlier this month was unsealed yesterday following the arrests of Ghuman, 34, of North Barrington, who was charged with 19 counts of bank fraud, three counts of bank bribery, and one count of filing a false federal income tax return, and Khan, 33, of Schaumburg, who was charged with four counts of bank fraud. Both men pleaded not guilty at their arraignment today and remain in federal custody pending a detention hearing at 10:30 a.m. Monday before U.S. Magistrate Judge Daniel Martin in Federal Court.
The indictment seeks forfeiture of approximately $10 million from Ghuman and Khan, as well as $198,180 in proceeds from the sale of Ghuman’s 2005 Porsche Carrera GT Coupe, which was allegedly purchased with fraud proceeds.
Brahmbhatt, 39, formerly of Naperville and currently living in Texas, and Mehta, 47, of Elk Grove Village, were each charged with one count of bank fraud. They were not arrested and will be arraigned on a date to be determined in U.S. District Court.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in- Charge of the Internal Revenue Service Criminal Investigation Division, together with officials of the Small Business Administration Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General.
According to the indictment, American Enterprise Bank, based in Buffalo Grove, was authorized to process SBA loans on its own if the loan satisfied SBA qualifications and rules, including a requirement that SBA loans could not be used to finance 100 percent of a business investment.
Between 2006 and 2009, the defendants allegedly engaged in the scheme, which involved the sales of 26 gas stations, including stations in the Illinois towns of Macomb, Mendota, New Boston, Rock Island, and Silvis, as well as three states.
As part of the scheme, Ghuman and Khan allegedly recruited purchasers of their gas stations who did not qualify for SBA loans and arranged for loans to be made in whole or in part in the name of the purchaser’s relative or friend who had acceptable credit, even though Ghuman, Khan, and Brahmbhatt knew that this straw purchaser would have no role in the gas station or repayment of the loans. In addition, the same three defendants caused false information and documents to be submitted to the bank, including false information about employment, income, assets, and liabilities; false tax returns allegedly prepared by Mehta; and false information about the purchasers’ contributions of equity.
Ghuman and Khan allegedly gave gifts to Brahmbhatt, including cars, in exchange for his alleged assistance in processing the fraudulent loans. The loan proceeds were paid to Ghuman and Khan as payment for gas stations owned by various business entities they controlled.
Ghuman alone was charged with filing a false federal income tax return for 2006, when he reported total and adjusted gross income of $203,583, and the total tax was $37,260, allegedly knowing that the actual amounts substantially exceeded those figures.
Shabbir Khan, 31, of Schaumburg, was charged separately yesterday with two misdemeanor counts of failing to file federal income tax returns for 2008 and 2009. He allegedly had gross income in 2008 in excess of $55,000 from his employment at a cell phone store and from broker’s fees paid to him by American Enterprise Bank as commissions on the loans, and gross income in excess of $30,000 in 2009 from his cell phone store employment.
Each count of bank fraud and bank bribery carries a maximum penalty of 30 years in prison and a $1 million fine. The tax count against Ghuman alone carries a maximum penalty of three years in prison and a $250,000 fine. The tax charges against Shabbir Khan each carry a maximum penalty of a year in prison and a $100,000 fine. In addition to criminal penalties, including mandatory costs of prosecution, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorney Sheri Mecklenburg.
An indictment contains merely charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Ghuman et al Indictment
Kahn InformationFormer Water Valley Police Officer SentencedRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, announce that:
John David Hernandez, 35, of Olive Branch, Mississippi, was sentenced on October 31, 2013 by United States District Judge Glen H. Davidson, following his plea of guilty in July 2013 to one count of extortion under color of official right, one count of money laundering, and one count of obstruction of a federal investigation. The charges arose out of Hernandez, while a Water Valley, Mississippi Police Officer, receiving money from a drug trafficker in return for providing law enforcement information.
Judge Davidson ordered Hernandez to serve 12 months and one day in custody on each count of conviction, to run concurrently, followed by 3 years supervised release. The United States Attorney’s Office obtained a forfeiture in the form of a money judgment against Hernandez in the amount of $5,000.00.
United States Attorney Felicia C. Adams stated that: “Hernandez’s actions were reprehensible.
He abused his authority, violated the law and the public trust. Today’s sentence demonstrates that such actions undermine the rule of law and will not be tolerated. While the majority of law enforcement
officers are hardworking professionals who risk their lives daily for our safety, the U.S. Attorney’s
Office is committed to aggressively prosecuting those officers who break the law and violate the public
trust.”This case was investigated by the Federal Bureau of Investigation, the Mississippi Bureau of Narcotics, the Drug Enforcement Administration, the Internal Revenue Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was part of the Organized Crime Drug Enforcement Task Force initiative. The case was prosecuted by Assistant United States Attorneys Clyde McGee IV and Samuel D. Wright.
Former U.S. Postal Service Mail Carrier Sentenced to Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Vernon Harrison, of Montgomery, Ala., was sentenced to serve 111 months in prison and three years supervised release, along with an order to pay $82,791 restitution, for his role in a stolen identity refund fraud scheme , announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Harrison was convicted on July 3, 2013, following a jury trial in the Middle District of Alabama. He was found guilty of conspiracy to file false claims, as well as numerous counts of mail fraud, aggravated identity theft, and embezzlement from the mail.
According to the evidence presented at the trial, Harrison was a corrupt U.S. Postal Service mail carrier who was recruited to join a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns, which claimed fraudulent tax refunds. The returns were filed from various locations, including houses and hotels around Montgomery and Birmingham, Ala. The tax refunds were placed on debit cards that were mailed to addresses along Harrison’s postal route in Montgomery. Harrison stole the debit cards from the mail and provided them to a co-conspirator in exchange for cash. During this period Harrison stole over 100 debit cards from the mail for his co-conspirators.
At trial, federal agents showed that they had uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham. This evidence included over 100 envelopes for debit cards that had been mailed to addresses on Harrison’s postal route, as well as agents’ observation that Harrison failed to deliver Turbo Tax debit cards.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Postal Service, Office of the Inspector General, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case. Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Former Jail Captain Pleads Guilty to Making A False StatementRead the Press Release
Fort Myers, Florida – Acting United States Attorney A. Lee Bentley, III announces that Raymond Kugler (59, North Port) today pleaded guilty to making a false statement. Kugler faces a maximum penalty of five years in federal prison.
According to the plea agreement, on June 24, 2013, special agents from the Federal Bureau of Investigation and Florida Department of Law Enforcement interviewed Kugler, who was the captain of the Desoto County Jail in Desoto County, Florida. The interview was conducted to investigate an allegation made by inmate “J.H.” regarding the violation of his civil rights by individuals acting under the color of law, while “J.H.” was an inmate at the Desoto County Jail on or about May 25, 2013.
Kugler was questioned by agents regarding his knowledge of the events of May 25, 2013. Specifically, he was asked about his knowledge of the request to transport, and decision not to transport, inmate “J.H.” to Desoto Memorial Hospital (DMH) for medical treatment on the evening of May 25, 2013. Kugler denied his knowledge of a request to transport inmate “J.H.” to DMH, knowing that his statements were false. In fact, Kugler was aware of the request to transport the inmate and willfully and deliberately denied such knowledge to the agents.
This case was investigated by the Federal Bureau of Investigation, Florida Department of Law Enforcement and the Desoto County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jesus M. Casas and Department of Justice Attorney Douglas Kern.
Former Executive Assistant at Oklahoma City University Pleads Guilty to Committing Wire Fraud by Misuse of University Credit CardRead the Press Release
Oklahoma City, Oklahoma – LISA CAROLIN RIGGS, 37, from Yukon, Oklahoma, pled guilty this week to committing wire fraud by misuse of her employer-issued credit card, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Riggs worked at Oklahoma City University (OCU) from May 2004 until November 2011. She worked as the executive assistant to the OCU President from May 2004 to July 2010, as executive assistant to the OCU Vice-President from July 2010 to April 2011, and as executive assistant to the OCU Dean of the School of Business from April 2011 to November 2011. In her positions, Riggs performed administrative and clerical duties that included making university-authorized purchases with an OCU credit card that had been issued in her name.
According to Court records and information from the plea hearing, from September 2004 to November 2011, Riggs used her OCU credit card to purchase various items and services for personal use, including gas, groceries, apparel, travel, wireless phone service, and payments on her Oklahoma Pikepass account. Riggs did not maintain receipts or complete and submit monthly transaction logs to her supervisor for approval as required. Her failure to do so made it appear she did not have any transactions to be approved. In the Spring of 2011, the OCU accounting department discovered the lack of documentation as part of a random audit. In sum, it was alleged that Riggs made unauthorized purchases of goods and services totaling $104,210.33.
Riggs was charged by Information on September 19, 2013, with one count of wire fraud. On October 29, 2013, Riggs pled guilty and agreed to pay restitution of $104,210.33 to OCU and $54,736.59 to the Delta Delta Chapter of Alpha Phi. At sentencing, she faces up to 20 years in prison, a $250,000 fine and restitution. A sentencing hearing will be set by the Court in approximately 90 days.
This case was the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Charles W. Brown.
Former Cook County Forest Preserve District Engineer Charged with Accepting $10,000 in Kickbacks from Two District ContractsRead the Press Release
CHICAGO — Two facilities of the Forest Preserve District of Cook County, which were spruced up in 2011, became part of an FBI sting investigation that resulted in federal charges against a former assistant engineer for allegedly taking $10,000 in kickbacks from two contracts he steered to a contractor who was cooperating with law enforcement. The defendant, JOSEPH MOLLICA, was indicted yesterday on two counts of federal bribery, law enforcement officials announced today.
Mollica, 52, of Elmwood Park, will be arraigned next Wednesday in U.S. District Court. He was released on his own recognizance after he was arrested on Oct. 3 and charged initially in a criminal complaint. Mollica was an assistant engineer for the Forest Preserve District for more than 20 years until last week, and he and others had authority to influence and award contracts for work under $25,000.
Together, the indictment and complaint allege that on Oct. 14, 2011, Mollica accepted a $6,000 kickback from a $24,900 contract to refinish and refurbish the Forest Preserve District’s headquarters building, where he worked, located at 536 N. Harlem Ave., in River Forest. On Dec. 16, 2011, he allegedly accepted a $4,000 kickback from a $16,500 contract to power wash and stain the building and boardwalk and do caulking at the Sand Ridge Nature Center in Calumet City.
The indictment seeks forfeiture of $10,000 in alleged kickback payments.
In both instances, a cooperating individual, a construction company owner who recorded conversations and meetings with Mollica in which the contracts were arranged and the kickbacks were paid, appeared to perform the work properly and completely, according to the complaint affidavit of an FBI agent. The kickback payments occurred after the Forest Preserve District paid the cooperating individual for the work that was performed.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each count of federal bribery carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorney Christopher Hotaling.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
ComplaintFlorida Woman Pleads Guilty to Conpiracy to Launder MoneyRead the Press Release
Agrees to Forfeit $8 Million Generated by Illegal Gambling Business
Hidden in Offshore AccountsALBANY, NEW YORK – Michele Lasso-Barraza, 30, of Parkland, Florida, pled guilty to conspiracy to commit money laundering today before United States District Judge Mae A. D’Agostino announced United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division, and Toni M. Weiracuh, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office. Lasso-Barraza, who faces up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, also agreed to forfeit her interest in $8 million. Sentencing is scheduled for February 28, 2014 at 12:30 pm before Judge D’Agostino in Albany. Co-defendant, Philip Gurian, 52, of Boca Raton, Florida, previously pled guilty to the same charge and is scheduled to be sentenced on February 6, 2014.
United States Attorney Hartunian said, “Another defendant, Michele Lasso-Barraza, has now admitted to her role in laundering $8 million generated by a sprawling illegal gambling operation which used the internet, phony corporations and offshore accounts. Those engaged in this type of activity, believing that their criminal conduct is well concealed, should now be on notice that law enforcement agencies at all levels – federal, state and local – are wise to their criminal tactics and committed to stopping them. I thank all of the law enforcement agencies involved in this investigation, particularly the Federal Bureau of Investigation, Internal Revenue Service- Criminal Investigation and the Albany County Sheriff’s Department, for their diligent work over several years to investigate this international money laundering operation, bring those responsible to justice and seize and forfeit their substantial ill-gotten gains.”
Special Agent-in-Charge Vale said, “This case illustrates the FBI’s ongoing commitment in working alongside our federal, state and local counterparts to root out illegal gambling locally, nationally and internationally. The plea of Ms. Lasso-Barraza to money laundering charges and the agreement to forfeit $8 million illustrates that the FBI will not tolerate this type of criminal activity at any level.”
Internal Revenue Service-Criminal Investigation Special Agent-in-Charge Weirauch said, “International money laundering is not the victimless crime that some may think it is. Money laundering, including the laundering of illegal gambling proceeds, facilitates the underground, untaxed economy, which, in turn, harms our nation’s strength. IRS-Criminal Investigation is always ready to work with our law enforcement partners in the fight against this threat to our country.”
As part of the plea, Lasso-Barraza admitted her involvement in an illegal gambling business run by Gurian and others which used internet websites that allowed bettors to place thousands of wagers from the Capital District, Florida, Indiana, California, Texas, and Nevada. She also admitted to participating in the laundering of at least $8 million on behalf of Gurian that was generated from the illegal gambling business. That money was transferred to offshore accounts in Panama, Andorra, and the Cayman Islands. Lasso-Barraza created some sham entities and then set up some of the accounts in the names of those sham entities.
These charges were the result of a joint investigation initiated by the Albany County Sheriff’s Office, and joined by the Albany County District Attorney’s Office, the Saratoga District Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Broward County Money Laundering Task Force. The case is being prosecuted by Assistant United States Attorney Robert A. Sharpe.
Federal Inmate Sentenced to 2 More Years in Prison for Possessing Marijuana and HeroinRead the Press Release
JOHNSTOWN, Pa. – An inmate of FCI Loretto has been sentenced in federal court to 24 months in prison, to be served consecutive to the 140-month sentence he is currently serving, on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Lonnie Johnston, 32. According to information presented to the court, on Oct. 31, 2012, Inmate Johnston possessed heroin and marijuana.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Special Investigative Staff at the Federal Correctional Institution at Loretto for the investigation leading to the successful prosecution of Johnston.
Farmington Man Sentenced to Fifteen Years in Federal Prison for Drug Trafficking and Firearms Conviction Moreno Prosecuted as Part of "Worst of the Worst" Anti-Violence InitiativeRead the Press Release
ALBUQUERQUE – Martin Moreno, 53, of Farmington, N.M., was sentenced today to 15 years in federal prison followed by five years of supervised release for his conviction on drug trafficking and firearms charges. Moreno also was ordered to pay a $20,000 fine.
Moreno’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 11th Judicial District Attorney Robert P. “Rick” Tedrow, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Commander Neil Haws of the Region II Narcotics Task Force.
Moreno was arrested in March 2012, on a federal criminal complaint charging him with drug trafficking offenses. He subsequently was charged in a seven-count second superseding indictment with possession of methamphetamine, cocaine and marijuana with intent to distribute; using and carrying a firearm in furtherance of a drug trafficking crime; and three counts of being a felon in possession of firearms and ammunition. According to court records, Moreno possessed the narcotics, numerous firearms and ammunition on Feb. 27, 2012, in San Juan County, N.M. At the time, Moreno was prohibited from possessing firearms and ammunition because he previously had been convicted of trafficking cocaine in the 11th Judicial District Court for the State of New Mexico in San Juan County. Moreno was arrested on state charges in Feb. 2012, which were dismissed after the federal charges were filed.
The charges against Moreno arose from evidence seized on Feb. 27, 2012, when the Region II Narcotics Task Force and HSI executed search warrants authorizing searches of Moreno’s residence, two storage lockers and a truck. They also were based on Moreno’s acknowledgement that he was the owner of the contents of the storage lockers and his truck.
In July 2013, Moreno entered a guilty plea to all seven counts of the second superseding indictment. In his plea agreement, Moreno admitted that on Feb., 27, 2012, he possessed approximately 120 grams of methamphetamine, a kilogram of cocaine and a kilogram of marijuana, all of which were stored in a storage locker in Farmington. He also admitted keeping a stolen pistol and ammunition in the storage locker for the purpose of protecting the drugs.
Moreno also admitted that in a different storage locker, he stored 14 firearms, including a machine gun, shotguns, hunting rifles and semi-automatic rifles. He acknowledged that as a convicted felon, he was prohibited from owning firearms.
In his plea agreement, Moreno also admitted possessing additional amounts of drugs, including a small amount of methamphetamine and a supply of marijuana, and a pistol at his residence. Moreno also acknowledged that the $3,000 in cash found in his bedroom and the $66,000 in cash found in his truck were the proceeds of his narcotics trafficking activities.
Moreno’s plea agreement requires that Moreno forfeit the firearms, ammunition and narcotics proceeds seized on Feb. 27, 2012.
This case was investigated by the Albuquerque office of HSI and the Region II Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Samuel A. Hurtado as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Fairborn Man Receives 78-month Sentence for Interstate Transportation for Purpose of Illegal Sexual ActivityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Thuron L. Hammersley, 44, of Fairborn, Ohio was sentenced in U.S. District Court today to 78 months in federal prison for transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution, in violation of the “Mann Act.”
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Miamisburg Police Chief John Sedlak announced the sentence imposed today by U.S. District Judge Timothy S. Black.
Hammersley was also sentenced to serve five years under court supervision after his release from prison. During that time, his computer use will be monitored. Hammersley was ordered to pay restitution and must register as a sex offender if required in any jurisdiction where he lives, works or goes to school.
Hammersley pleaded guilty in August to one count of transportation of an individual to engage in prostitution. He also acknowledged that he had enticed a woman to travel from Kentucky to Ohio also to engage in prostitution, and that he had obstructed the investigation into his activities.
According to court documents, Hammersley met the women on the website plentyoffish.com and placed ads for them on the internet site backpage.com offering the women as “escorts.” He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money. He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution. Hammersley enticed her by offering her employment, by paying for her bus ticket, and by paying for condoms. Hammersley collected the money paid by the men.
The case was investigated by the FBI and the Dayton and Miamisburg police departments. Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.
Eighteen Individuals Charged with Participating in Tri-State Methamphetamine Trafficking ConspiracyRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough and Joseph M. Arabit, Special Agent in Charge of DEA’s El Paso Division, announced the indictment of 18 individuals who allegedly participated in a tri-state drug trafficking organization that obtained methamphetamine from Arizona and Texas and distributed the drugs in Otero and Doña Ana Counties, N.M.
The 43-count indictment, which was filed under seal on Oct. 16, 2013, was unsealed yesterday following a multi-agency law enforcement operation that resulted in the arrest of eight of the 18 defendants, including five residents of Alamogordo, N.M. Two other defendants were arrested on Oct. 29, 2013 in Arizona and two more are in state custody on unrelated charges. Six defendants have yet to be arrested and are considered fugitives.
The defendants arrested in New Mexico will make their initial appearances in Las Cruces federal court this morning. The defendants arrested in Arizona will be transferred to New Mexico and the defendants in state custody will be transferred to federal custody to face the charges in the indictment.
The indictment charges all 18 defendants with conspiracy to distribute quantities of methamphetamine in Otero and Doña Ana Counties between Jan. 2013 and June 2013. The indictment also includes 14 substantive methamphetamine distribution counts and 28 “phone” counts which allege the use of communication devices to facilitate drug trafficking crimes.
The indictment is the result of an eleven-month multi-agency investigation led by the DEA that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. The OCDETF program is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, law enforcement officers seized approximately 3.3 kilograms of methamphetamine and $16,000 in cash.
Acting U.S. Attorney Steven C. Yarbrough emphasized the importance of the multi-agency investigation: “Methamphetamine is the drug most often associated with violent crime and property crime in New Mexico. When we attack methamphetamine trafficking in our communities, we reduce the incidence of other crime that goes hand in hand with drug trafficking. I am proud of being part of an operation that is a significant step in improving the public safety in Otero and Doña Ana Counties. Together with our law enforcement partners, we will continue our relentless pursuit of meth trafficking rings that operate in our communities throughout New Mexico.”
“With these arrests and seizures, DEA and its federal, state, and local law enforcement partners have dismantled an organization responsible for distributing large quantities of methamphetamine in southern New Mexico. Methamphetamine destroys the lives of its abusers and threatens the overall health and safety of our communities. We will continue to work together to target criminal organizations and their assets to ensure that drug traffickers are held responsible for the harm they cause,” said Joseph M. Arabit, Special Agent in Charge of DEA’s El Paso Division.
Assistant U.S. Attorneys Renee L. Camacho and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case, which was investigated by the Las Cruces office of the DEA, the Sunland Park Police Department, New Mexico State Police, Las Cruces/Doña Ana County Metro Narcotics Agency, Las Cruces Police Department, Alamogordo Police Department, and Bureau of Alcohol, Tobacco Firearms and Explosives.
The following law enforcement agencies participated in yesterday’s law enforcement operation: DEA’s offices in Las Cruces, El Paso, Texas, Phoenix, Ariz., and Tucson, Ariz.; the FBI’s office in Las Cruces; the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Border Patrol, U.S. Marshals Service, Doña Ana County Sheriff’s Office, Las Cruces Police Department, Las Cruces/Doña Ana County Metro Narcotics Agency, Alamogordo Police Department, and Sunland Park Police Department.
Summary of Indictment
Count 1 of the Indictment charges all eighteen defendants with conspiracy to distribute methamphetamine. The maximum penalty for a conviction on this count is imprisonment for not less than ten years or more than life and a $10,000,000 fine.
Counts 2-4, 6-7, 9, 11, 13, 16-17, 20, 29, 32 and 43 of the indictment charge certain defendants with possession of methamphetamine with intent to distribute. The maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $1,000,000 fine.
Counts 5, 8, 10, 12, 14-15, 18-19, 21-28, 30-31 and 33-42 of the indictment charge certain defendants with using a communications device (telephone) to facilitate a drug trafficking crime. The maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000 fine.
Charges Against Defendants
Roxann Renee Vasquez, 40, of Duncan, Ariz., is charged in Counts 1, 21, 24 and 39 of the indictment. Vasquez was arrested on Oct. 29, 2013 in Duncan, Ariz.
Jessie Jesus Marquez, 34, of Las Cruces, N.M., is charged in Counts 1, 13, 23, 29-30, 36 and 41 of the indictment. Marquez has yet to be arrested and is considered a fugitive.
Michelle Darlene Casillas, 36, of Phoenix, Ariz., is charged in Counts 1 and 19 of the indictment. Casillas was arrested yesterday in Phoenix.
Cornelio Barrera, 40, of Deming, N.M., is charged in Counts 1 and 38-40 of the indictment. Barrera was arrested on Oct. 29, 2013 in Duncan, Ariz.
Anthony Frank Montoya, 26, of Alamogordo, N.M., is charged in Counts 1, 10 and 15 of the indictment. Montoya is in state custody on unrelated charges and will be transferred to federal custody.
Demetrio Edwardo Stogden, 33, of Alamogordo, N.M., is charged in Counts 1, 14, 18, 26, and 35 of the indictment. Stogden is in state custody on unrelated charges and will be transferred to federal custody.
Jessica Marie Gomez, 30, of Phoenix, Ariz., is charged in Counts 1, 42 and 43 of the indictment. Gomez has yet to be arrested and is considered a fugitive.
Jay T. Black, 44, of Tularosa, N.M., is charged in Counts 1, 11, 17, 22 and 32 of the indictment. Black was arrested yesterday in Tularosa.
Rustan Turner, 49, of Alamogordo, N.M., is charged in Counts 1, 2 and 34 of the indictment. Turner was arrested yesterday in Alamogordo.
Carlos John Maldonado, 37, of Las Cruces, N.M., is charged in Counts 1, 3 and 25 of the indictment. Maldonado has yet to be arrested and is considered a fugitive.
Cecilia Chavez, 52, of Alamogordo, N.M., is charged in Counts 1, 2, 5 and 33 of the indictment. Chavez was arrested yesterday in Alamogordo.
John Frank Herrera, 44, of Alamogordo, N.M., is charged in Counts 1, 6, 7 and 17of the indictment. Herrera was arrested yesterday in Alamogordo.
Michael Paul Lucero, 39, of Alamogordo, N.M., is charged in Counts 1, 4 and 8 of the indictment. Lucero was arrested yesterday in Alamogordo.
Paul Steven McGranahan, 44, of Las Cruces, N.M., is charged in Counts 1, 28, 31 and 37 of the indictment. McGranahan has yet to be arrested and is considered a fugitive.
Stephan E. Morales, 30, of Las Cruces, N.M., is charged in Counts 1 and 27 of the indictment. Morales was arrested yesterday in Las Cruces.
Jasmine Lara Robertson, 35, of Alamogordo, N.M., is charged in Counts 1, 2, 9, 12 and 16 of the indictment. Robertson was arrested yesterday in Alamogordo.
Stephanie Taylor, 26, of Alamogordo, N.M., is charged in Counts 1, 2 and 20 of the indictment. Taylor has yet to be arrested and is considered a fugitive.
Bret Hampton, 33, of Las Cruces, N.M., is charged in Count 1 of the indictment. Hampton has yet to be arrested and is considered a fugitive.
- Indictment
Eagle Butte Man Sentence for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted in July by a federal jury of Assault Resulting in Serious Bodily Injury was sentenced on October 28, 2013, U.S. District Judge Roberto A. Lange.
Morrison was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Stanley Blake Morrison, age 32, was sentenced to 37 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from a January 2013 incident in which Morrison assaulted a Cherry Creek man with his fists, fracturing several facial bones and causing serious injury to the victim.
The Cheyenne River Sioux Tribe Law Enforcement Division conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Duryea WomanRead the Press Release
Sentenced For Involvement In Cocaine Distribution Conspiracy
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Edwin M. Kosik has sentenced Leslie Williams, age 31, of Duryea, Pennsylvania, to one year of imprisonment for her involvement in a cocaine distribution ring centered in Pittston, Pennsylvania.
According to United States Attorney Peter J. Smith, Williams admitted her role of receiving and distributing cocaine at a bar in Luzerne County where she worked during her guilty plea to the charge. In addition to the one-year term of imprisonment, Judge Kosik also ordered that Williams be placed on supervised release for a period of two years following the service of her sentence.The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Dupree Woman Pleads Guilty to Child Abuse and NeglectRead the Press Release
United States Attorney Brendan V. Johnson announced that Alisa Knight, age 29, of Dupree, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 28, 2013, and pled guilty to Child Abuse and Neglect.
The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from incidents that happened on or between December 25, 2011, and December 25, 2012, when Knight resided in Dupree with her three minor children. Among the children was the victim who witnessed the defendant on more than one occasion ingest controlled substances, primarily methamphetamine, a Schedule II controlled substance. Such acts were committed in the presence of the young victim and while the victim was under the care, custody and control of Knight. As a result, the victim gained knowledge of what methamphetamine is, how to ingest it, and where Knight obtained it.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Knight was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for December 19, 2013. A presentence investigation has been ordered.
Danbury Woman Sentenced to 57 Months in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VASILIKI PAPADAKOS, 61, of Danbury, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 57 months of imprisonment, followed by three years of supervised release, for trafficking oxycodone.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the trafficking of oxycodone, cocaine and marijuana in Fairfield County. Sixteen individuals have been charged as a result of this investigation.
According to court documents and statements made in court, during the investigation, PAPADAKOS traveled to New York on at least three occasions to pick up hundreds of 30-milligram oxycodone pills from her supplier. Also, in February 2012, PAPADAKOS was intercepted over a court-authorized wiretap arranging the purchase of 2,000 15-milligram oxycodone pills. Over a three-month period, PAPADAKOS facilitated the distribution of 8,000 pills with a total street value that exceeded $100,000.
PAPADAKOS has been detained since her arrest on May 8, 2012. On March 18, 2013, she pleaded guilty to one count of conspiring to possess with intent to distribute oxycodone.
In 1992, PAPADAKOS received a 188-month federal sentence for trafficking cocaine, heroin and marijuana. She was released from prison in February 2005.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford and Stratford Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
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[email protected]Columbus Tax Return Preparer Guilty of False ClaimsRead the Press Release
Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Gabriel “Gabe” Grchan, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New Orleans Field Office, announce that:
Cynthia H. Carter, 27, of Columbus, Mississippi, pled guilty on October 24 to filing a false claim with the federal government. Carter will be sentenced in approximately 90 days. Carter faces up to five years imprisonment, up to a $250,000 fine and up to three years supervised release.
The investigation by Internal Revenue Service Criminal Investigations revealed that Carter submitted tax returns to the IRS fraudulently claiming the First Time Home Buyers Credit. The false returns resulted in claimed refunds of approximately $3,838,312.
Return Preparer fraud is a priority for IRS Criminal Investigation, and we have committed many resources to investigating and prosecuting cases just like this one,” said Gabriel Grchan, Special Agent in Charge, IRS-CI, New Orleans Field Office. “It is my hope that the guilty plea entered today by Cynthia Carter further assures the taxpaying citizens of our country that IRS – CI is serious about protecting the United States Treasury.”
This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation and was prosecuted by the Office of the United States Attorney for the Northern District of Mississippi.
Colorado Springs Man and Member of "North American May-Boy Love Association" Indicted by Federal Grand JuryRead the Press Release
DENVER – A federal grand jury in Denver recently returned an indictment charging Clifton Brett Bennett, age 55, of Colorado Springs, Colorado, with one count of receipt of child pornography and one count of possession of child pornography, the U.S. Attorney’s Office, and the U.S. Postal Inspection Service, the Colorado Springs Police Department -- Internet Crimes Against Children Task Force (ICAC) announced. Bennett appeared in U.S. District Court in Denver on October 29, 2013. He did not contest the government’s request that he be detained. He was also arraigned. A tentative trial date of January 6, 2014 before U.S. District Court Judge Christine M. Arguello has been set.
According to the indictment, between November 1, 2008 and April 15, 2011 Bennett knowingly received material that contained child pornography. Further, on January 23, 2013, Bennett knowingly possessed child pornography. According to a state affidavit of probable cause, a United States Postal Inspector contacted an ICAC detective regarding a child pornography investigation. Postal Inspectors had identified an individual who lived in Colorado Springs who made over $4,000 in purchases for over 100 child pornography videos over a number of years. Follow up investigation determined the individual was Clifton Bennett.
A search warrant was executed at Bennett’s residence. During the execution of the warrant a detective conducted a forensic preview of the computer, and found images of prepubescent boys who were nude and posed in sexually explicit positions with their genitals exposed. They also found DVDs containing child pornography – many of which were delivered via U.S. Mail from New York. He also allegedly bought and downloaded child pornography as well. Investigators also determined that Bennett was a member of the “North American Man-Boy Love Association.” Following the execution of the search warrant Bennett was arrested and held in state custody. With the return of a federal indictment the state dismissed their case in its entirety.
If convicted of receipt of child pornography the defendant faces not less than 5 years and not more than 20 years in federal prison, and up to a $250,000 fine. If the defendant has a prior qualifying child exploitation conviction, he faces not less than 15 years and not more than 40 years imprisonment, as well as a fine of up to a $250,000. If convicted of possession of child pornography the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine. If the defendant has a prior qualifying child exploitation conviction, he faces not less than 10 years and not more than 20 years imprisonment, as well as a fine of up to $250,000. Bennett has a prior state conviction for Sexual Exploitation of Children, for which he served time in jail.
“The defendant in this case obtained some of his child pornography through the U.S. Mail,” said U.S. Attorney John Walsh. “Regardless of how defendants obtain their explicit material showing children being sexually abused, we will use every tool available to prosecute them.”
“Protecting children from these egregious crimes remains a top priority for the U.S. Postal Inspection Service,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “We continue to aggressively investigate, apprehend and assist in the prosecution of individuals who seek to sexually exploit children via the U.S. Mail.”
“Children are not a commodity. They remain our most precious resource and need to be protected,” said Colorado Springs Police Chief Peter T. Carey. “I applaud the diligence of our ICAC Unit in safeguarding our children from those who prey on them.”
This case was investigated by the United States Postal Inspection Service and the Colorado Springs Police Department -- Internet Crimes Against Children Task Force (ICAC).
Bennett is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Co-founder of Liberty Reserve Pleads Guilty to Money Laundering in Manhattan Federal CourtRead the Press Release
Vladimir Kats, 41, of Brooklyn, N.Y., pleaded guilty today in federal court before U.S. District Judge Denise L. Cote to money laundering and operating an unlicensed money transmitting business. The charges stem from his role in running Liberty Reserve, a company that operated one of the world’s most widely used digital currency services and allegedly laundered more than $6 billion in suspected proceeds of crimes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
“Vladimir Kats, by his own admission, helped to create and operate an anonymous digital currency system that provided cybercriminals and others with the means to launder criminal proceeds on an unprecedented scale,” said Acting Assistant Attorney General Mythili Raman. “His conviction reinforces what we said when Liberty Reserve was first brought down: banking systems that allow criminals to conduct illegal transactions anonymously will not be allowed to stand, and professional money launderers will be brought to justice.”
“As a co-founder and operator of Liberty Reserve, Vladimir Kats served as a global banker for criminals, giving them an anonymous, online forum to hide the proceeds of their illegal and dangerous activities,” said U.S. Attorney Preet Bharara. “With his guilty plea today, we take a significant step toward punishing those responsible for creating and running this international den of cybercrime.”
According to court records, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve allegedly was created and structured, and operated, to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve allegedly was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals to conduct anonymous and untraceable financial transactions.
According to the indictment, before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system and allegedly laundered more than $6 billion in suspected proceeds of crimes, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography, and narcotics trafficking. Kats co-founded Liberty Reserve and helped operate the company until in or about 2009.
Kats was arrested in Brooklyn in May 2013 and pleaded guilty today to one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of conspiring to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison; one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison; one count of receiving child pornography, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of 15 years in prison; and one count of marriage fraud, which carries a maximum sentence of five years in prison. A sentencing date has not yet been scheduled.
This case is being investigated by the Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Secret Service’s New York Electronic Crimes Task Force. The Judicial Investigation Organization in Costa Rica; the National High Tech Crime Unit in the Netherlands, the Financial and Economic Crime Unit of the Spanish National Police; the Cyber Crime Unit at the Swedish National Bureau of Investigation; and the Swiss Federal Prosecutor’s Office also provided assistance.
This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds Unit and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
Trial Attorney Kevin Mosely of AFMLS and Assistant U.S. Attorneys Serrin Turner and Andrew Goldstein of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges in the indictment against Kats’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Clinton Woman Pleads Guilty to Bank Fraud and Tax EvasionRead the Press Release
Jackson, Miss. -- Barbara Cummings, 60, of Clinton, pled guilty today in U.S. District Court to bank fraud and tax evasion, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen and IRS Criminal Investigation Special Agent in Charge Gabriel Grchen. A federal grand jury returned a five-count indictment against Cummings on January 24, 2013, charging her with one count of bank fraud, one count of aggravated identity theft and three counts of tax evasion.
Cummings will be sentenced by U.S. District Court Senior Judge David C. Bramlette III on January 14, 2013, at 10:30 a.m. The bank fraud charge carries a maximum of 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. The tax evasion charge carries a maximum penalty of five years in prison, a $250,000 fine, and up to three years of supervised release.
From March 2007 through March 2009, Barbara Cummings, was employed as the office manager at Mid-South Machinery in Jackson. During her employment, she systematically forged the signatures of the owners of Mid-South Machinery on numerous checks drawn on Mid-South Machinery’s accounts at First Commercial Bank, making such forged checks payable to herself and her husband and cashing and depositing such funds into her personal bank account. Cummings also altered the dollar amounts written on transaction tickets from Mid-South’s Regions Bank account that were made payable to “Petty Cash” or she would fraudulently create a transaction ticket, making it payable to “Barbara Cummings,” and keep some or all of the money. When interviewed by agents of the FBI and IRS, Cummings admitted to embezzling the funds from Mid-South by defrauding the banks. During 2008, she prepared her own income tax return, where she intentionally failed to report over $120,000 in income she had received that year through her fraudulent scheme in order to pay less tax on her income.
In announcing the guilty plea, U.S. Attorney Davis praised the efforts of special agents from the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Mike Hurst is prosecuting the case.###
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Child Pornographer Sentenced to Five YearsRead the Press Release
Elijah Fogle, 22, of Charlotte, North Carolina, was sentenced today to 60 months in prison for distribution of child pornography, receipt of child pornography, and possession of child pornography. U.S. District Court Judge Petrese Tucker also ordered 10 years of supervised release and a $300 special assessment.
Fogle pleaded guilty on July 30, 2013 and admitted that he had amassed a collection of child pornography on his computer and a thumb-drive that included hundreds of images and videos of children being sexually abused. He also admitted that he had distributed and received child pornography images over the Internet by uploading them to a file sharing website.
A special agent with Homeland Security Investigations, acting in an undercover capacity, signed into a “covert” account on a private peer to peer network in February 2012 and engaged in an online chat with a user later identified as the defendant. During the chat, Fogle advised he had folders to share that were on a flash drive and needed to be online for viewing. That same day, the agent selected 19 video files and discovered child exploitation activity. The downloaded files depicted children engaged in sexually explicit conduct. A full forensic examination of the defendant’s laptop computer and thumb-drive was conducted during which 835 images and 362 videos of child pornography were recovered. The images and videos on the thumb drive were contained in a hidden folder, which was consistent with being created to avoid discovery. The majority of the collection depicts prepubescent and pubescent males, many of which are clearly under the age of 12 years. During an interrogation the defendant admitted that he had sexually abused a 12 year old boy from his neighborhood in North Carolina.
The case was investigated by the Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Tomika N. Stevens.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Central Ohio Supplier of “Mountain of Marijuana” Sentenced to More Than 11 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, Ohio —A Columbus man was sentenced Thursday to 135 months in federal prison for his role as a supplier in a large-scale drug-trafficking and money-laundering conspiracy that was targeted and dismantled by the Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force.
U.S. Attorney Carter Stewart, Ohio Attorney General Mike DeWine, William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Franklin County Sheriff Zach Scott, Columbus Police Chief Kimberley Jacobs and other members of the task force announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
Levi Winston, 50, of Columbus, Ohio, pleaded guilty on May 2, 2013 to charges of conspiracy to possess and distribute more than 1,000 kilograms of marijuana and money laundering. Judge Frost sentenced Winston to 135 months on each count and ordered the sentences to run concurrently.
“Mr. Winston’s conduct is that of bringing in a literal mountain of marijuana into the Southern District of Ohio,” Assistant U.S. Attorney Michael Hunter told the court. “His admitted relevant conduct is approximately 5,000 kilos of marijuana which has an approximate street value of between four- and four point five million dollars.”During the course of the investigation, a known drug trafficking organization transported several tons of marijuana from Mexico to central Ohio. Winston and his associates hid large quantities of the drugs inside tractor trailers and industrial machinery. On October 17, 2011, HSI special agents and task force conducted a controlled delivery of 1,798.12 pounds of marijuana to a warehouse that Winston had rented located in Gahanna, Ohio. Winston and several of his associates were later arrested on conspiracy to distribute illegal drug charges.
The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission. “We are pleased by the strong work coming out of this OOCIC task force to fight organized drug crimes,” said Attorney General DeWine. “This is a clear example of successful teamwork between local, state, and federal agencies.”
"This sentence emphasizes HSI's mission to take down major trafficking organizations in our communities," said William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio. "HSI remains committed to working with our law enforcement partners to dismantle and disrupt these criminal conspiracies."“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “IRS-CI is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society.”
Sheriff Zach Scott said of the investigation, “I would like to congratulate the Central Ohio HIDTA Drug Task Force and the US Attorney’s Office on a job well done. Drug traffickers prey on Central Ohio because of its ideal geographic location. This is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County and law enforcement will be diligent in bringing those involved to justice.”
According to Columbus Police Chief Kim Jacobs, “The level of cooperation between local, county, state and federal authorities continues to play an important role in keeping the citizens of Columbus safe and in reducing the availability of illegal drugs in the Columbus area.”
In addition to the nearly 2500 pounds of marijuana seized by investigators in Columbus, the cooperation of several individuals and intelligence gathered during the investigation of this conspiracy has directly led to the seizure of an additional 3500 pounds of marijuana worth more than $3 million dollars in several other jurisdictions across the United States.
Other agencies participating in the investigation include Franklin County Prosecutor Ron O’Brien’s Office, the Ohio Bureau of Criminal Identification, the U.S. Postal Inspection Service, Gahanna Police Department, Ohio State Highway Patrol, Hilliard Division of Police, Ohio Casino Control Commission and the Ohio National Guard Counterdrug Program.
Nine other individuals have pleaded guilty to possession with the intent to distribute narcotics or conspiracy as a result of the investigation:
Didnicio Diaz-Barrera – Sentenced October 10, 2012 to 33 months in federal prison.
Adan Anaya – Sentenced June 6, 2012 to 57 months in federal prison.
Pedro Barrera-Diaz– Sentenced June 10, 2012 to 33 months in federal prison.
Alberto Hernandez – Sentenced June 6, 2012 to 12 months in federal prison.
Antonio Andriao – Sentenced May 1, 2012 to 21 months in federal prison.
Steven Johnson– Sentenced August 8, 2013 to 60 months in federal prison.
Robert Crook -- Sentenced September 20, 2013 to 12 months in federal prison.
Jose Garza -- Sentenced September 17, 2013 to 46 months in federal prison.
Marco Torres – Sentenced August 8, 2013 to 24 months in federal prison.U.S. Attorney Stewart commended the cooperative investigation by the agencies, as well as Assistant U.S. Attorney Hunter, who prosecuted the case.
Cedar Rapids Man Sentenced for Million Dollar Investment FraudRead the Press Release
A man who defrauded investors out of more than $1,000,000 was sentenced today to more than four years in federal prison.
Jeffrey J. Kinseth, age 58, from Cedar Rapids, Iowa, received the prison term after a July 11, 2013, guilty plea to one count of wire fraud.
In a plea agreement, Kinseth admitted he was the president and principal shareholder of Virtual Vision, Inc. Kinseth admitted that, between March 2008 and September 2009, he solicited and accepted hundreds of thousands of dollars from at least eleven individual investors. Kinseth admitted falsely telling the investors all of their money would be invested through Virtual Vision as a purported pooled investment vehicle. Kinseth admitted he told the investors this, knowing he would, at least at times, fail to invest all of the investors= money and use some of the money to make payments to earlier investors and for other purposes. Kinseth also admitted that, of the investor funds actually traded, he consistently sustained losses. Kinseth admitted fraudulently concealing his misappropriation and trading losses by creating and issuing false account statements to investors that falsely reflected purported profits from their trading.
According to information disclosed at sentencing, Kinseth operated a Ponzi scheme that stretched from about October 2006 to about March 2010.
Kinseth was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kinseth was sentenced to fifty-one months’ imprisonment to be followed by a three-year term of supervised release. Kinseth was also ordered to make $1,107,414.51 in restitution to the victims of his offense. There is no parole in the federal system.
Kinseth was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation in cooperation with the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Office of the United States Trustee.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-51 LRR.
Cary Business Owner Sentenced to over 5 Years in Federal Prison for International Fraud SchemeRead the Press Release
ROCKFORD – A Cary, Ill. business owner was sentenced today in federal court by U.S. District Judge Frederick J. Kapala to 63 months in federal prison for conducting a three and half year, multi-million dollar, international fraud scheme. Judge Kapala also ordered that CLARE THOMAS ANDERSON, 45, serve 3 years of supervised release following his release from prison, and pay restitution of $6,191,155 to the companies he victimized. Anderson, who owned and operated multiple businesses in Cary, Ill., and Florida, pled guilty to a federal wire fraud charge on April 5, 2012.
According to the written plea agreement, Anderson owned and operated the following businesses: Certifibre, LLC; Anderson International Global, LLC, which had an assumed name of Worldwide Paper Company, Inc.; American Surplus Supply; Southernmost Exports, LLC, Southernmost Holdings, LTD; and Sea Consulting, LLC. Through these businesses, Anderson contracted to sell wood pulp and other raw materials to manufacturers, brokers and suppliers, which were usually located in foreign countries.
Anderson obtained payments from his customers before the shipments arrived at their destinations. Often, the customers obtained Letters of Credit from their banks in order to pay for the shipments in advance. Anderson admitted that he obtained these payments by creating and presenting fraudulent documents to his customers. These documents falsely represented the quantity and quality of materials that had been shipped.
Anderson further admitted that, instead of shipping the wood pulp or other raw materials he had agreed to sell, he frequently shipped worthless scrap material to his foreign customers. When the customers called him to complain, Anderson falsely told them that the scrap materials were intended for other customers in different countries.
Anderson also admitted that on some occasions, instead of shipping the agreed upon amounts of wood pulp or other raw materials, he shipped substantially smaller amounts. When the customers called and complained about the short shipments, Anderson falsely told them that the short shipments were caused by clerical errors.
Anderson often failed to pay his own suppliers for the materials he had shipped. In addition, Anderson usually failed to pay the freight shipping charges. Anderson also admitted that he spent the fraudulently obtained funds on his own personal expenses. On a few occasions Anderson refunded some money to his victims in order to avoid detection of his scheme. Anderson paid these refunds only after the victims contacted, or threatened to contact, federal law enforcement officials. Anderson admitted that he obtained the funds used to pay these refunds by defrauding additional customers.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-In-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Scott A. Verseman.
Cambridge Man Sentenced to 28 Years in Prison for Attempted Murder of A U.S. Marshals Service Task Force OfficerRead the Press Release
Fired Many Shots at Officers Serving Him With an Arrest Warrant, Wounding One Officer
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Tayvon Dobson, age 23, of Cambridge, Maryland, today to 28 years in prison followed by five years of supervised release for attempted murder of a federal officer and using a gun during the attempted murder.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Dorchester County State’s Attorney William H. Jones; Cambridge Police Chief Kenneth W. Malik; U.S. Marshal Johnny Hughes; Dorchester County Sheriff James W. Phillips, Jr.; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
“Law enforcement officers put their lives on the line every day to protect us from violent criminals,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the local, state and federal agencies that brought Tayvon Dobson to justice.”
On February 29, 2012, members of the Maryland State Apprehension Team/Capital Area Regional Fugitive Task Force of the U.S. Marshals Service and the Cambridge, Maryland Police Department arrived at a residence divided into individual apartments on Hubbard Street in Cambridge to serve an arrest warrant for Dobson. The arrest warrant charged Dobson with first degree assault and other related charges.
A Task Force detective and a supervisory inspector wore official police vests with bright letters signifying “SHERIFF” or “Police US MARSHAL” across the back, along with a “Task Force” or “Police US Marshal” patch on the front. Shortly after entering one of the apartments, Dobson’s movements were heard across the hall in apartment #1. Officers shouted at Dobson to open the door. Within minutes, gunshots from apartment #1 were directed at law enforcement located outside the residence at their unmarked police vehicles. After the Task Force detective in apartment #2 realized that he could not safely escape that apartment through the hallway, he barricaded the bedroom door with a mattress and dresser.
Shots continued to ring out from apartment #1 as other officers yelled to Dobson to surrender. After several minutes of gunfire, the detective heard Dobson reload a firearm. Dobson began to shoot again. The detective was able to see into the hallway and the front door of apartment #1. Seconds later, the detective saw Dobson leave the apartment and stop in the hallway. Dobson saw the detective no more than 15 feet away and began to fire. The detective fired back while still barricaded in apartment #2. After several volleys of gunfire, the detective felt a sharp pain in his left shoulder, but continued to fire at Dobson. When Dobson left the hallway, the detective saw blood rapidly coming from his wound. The detective broke through the aprtment window, rolled out to the ground and ran to safety. He later underwent surgery.
Dobson continued to shoot at the remaining officers. Four hours after law enforcement first entered the building, Dobson finally surrendered. All of the rooms of Dobson’s residence were riddled with bullet holes. Three firearms were seized, two of which had been used to fire from inside the apartment, as well as a magazine, several rounds of live ammunition and numerous spent shell casings and projectiles.
United States Attorney Rod J. Rosenstein commended the ATF, Dorchester County State’s Attorney’s Office, Capital Area Regional Fugitive Task Force of the United States Marshals Service, Cambridge Police Department, U.S. Marshals Service, Dorchester County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
California Woman Pleads Guilty to Conspiracy to Defraud the IRS and Aggravated Identity TheftRead the Press Release
Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California announced that Noemi Rubio Baez, of Salinas, Calif., pleaded guilty to conspiracy to file false claims for tax refunds with the Internal Revenue Service (IRS) and to aggravated identity theft.
According to the plea agreement, beginning around Feb. 28, 2008 and continuing through April 16, 2012, Baez and a co-conspirator participated in a scheme to obtain and to help others obtain false claims from the IRS by electronically filing in her own name, and in the names of others, false federal income tax returns. Baez and her co-conspirator created false income information in the names and Social Security numbers of multiple individuals, and filed materially false tax returns with the IRS claiming refunds derived from tax credits including the Earned Income Tax Credit, the Additional Child Tax Credit, and the Making Work Pay Credit.
According to court documents, in some instances, the taxpayers requested the returns be prepared, but in others the taxpayers did not provide Baez or her co-conspirator with their personal identification information and were unaware that the returns had been filed in their names. Baez and her co-conspirator filed more than 150 false and fraudulent claims unlawfully seeking more than $400,000 in tax refunds.
At the time of her sentencing, scheduled for Jan. 23, 2014, before U.S. District Judge D. Lowell Jensen, Baez faces a maximum penalty of 12 years in prison, three years of supervised release and a fine of $500,000.
Assistant Attorney General Kathryn Keneally and U.S. Attorney Melinda Haag thanked special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles O’Reilly, Erin S. Mellen and Sonia M. Owens, who are prosecuting the case.
Black Hawk Man Indicted for Tampering, Accessory After the Fact, and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Black Hawk, South Dakota, man has been indicted by a federal grand jury for allegedly aiding another individual in the theft of property belonging to the South Dakota Army National Guard between September 2012 and March 2013.
Craig Whitford, age 35, was indicted by a federal grand jury on October 22, 2013, for Tampering, Accessory after the Fact, and False Statement.
Whitford appeared before U.S. Magistrate Judge Veronica L. Duffy on October 28, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment and a $250,000 fine for the charge of Tampering, and 5 years of imprisonment and a $250,000 fine for each of the charges of Accessory after the Fact and False Statement. The charges are merely accusations and Whitford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Army National Guard. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Whitford was released on bond pending trial. A trial date has been set for December 17, 2013.
Benjamin Quinn McChesney and Lloyd John Romero Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on October 30, 2013, before Senior U.S. District Judge Wm. Fremming Nielsen, BENJAMIN QUINN McCHESNEY, age 36, and LLOYD JOHN ROMERO, age 29, were sentenced.
McCHESNEY was sentenced after having been found guilty of theft of firearms for a licensed dealer, theft of firearms in interstate commerce, and possession of stolen firearms, to a term of:
- ison: 120 months on each count, to run concurrently
- ecial Assessment: $300
- stitution: $40,076.38
- pervised Release: 3 years
ROMERO was sentenced after having been found guilty of possession of stolen firearms and being a felon-in-possession of firearms, to a term of:
- ison: 120 months on each count, to run concurrently
- ecial Assessment: $200
- pervised Release: 3 years
Special Assistant U.S. Attorney Ed Zink prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Belchertown Man Sentenced for Advance Fee Fraud Scheme That Defrauded 130 VictimsRead the Press Release
BOSTON - A Belchertown, Mass., man was sentenced today in U.S. District Court in Springfield for running an advance fee fraud scheme that defrauded 130 victims of $800,000 and possessing a firearm.
John Sacco, 65, was sentenced by U.S. District Court Judge Michael A. Ponsor to 46 months in prison, three years of supervised release and $86,460 in restitution. In May 2013, Sacco pleaded guilty to conspiracy to commit fraud, mail fraud, and being a felon in possession of a firearm.
From August 2008 to December 2009, Sacco and others ran a national advance fee scheme that defrauded approximately 130 victims of over $800,000. Sacco placed advertisements in national newspapers promising would be investors that they could make hundreds of thousands of dollars a year by working with Sacco’s company, SAC Financial Corp, as brokers of business loans to individuals with poor credit. The individuals who responded to the advertisements were subjected to high pressure sales tactics and false references which convinced them to send Sacco an up-front fee of between $3,500 and $6,900. Thereafter, Sacco strung the victims along through a fictitious loan brokerage process which resulted in no actual loans being made.
Sacco also was sentenced for being a felon in possession of a firearm. In 2001, he was convicted in federal court of defrauding Monson Savings Bank of $236,000. As a convicted felon, Sacco was prohibited from possessing a firearm. In Nov. 2010, a 12-gauge shotgun and 16 shotgun shells were seized from Sacco’s bedroom during the execution of a court ordered search warrant for Sacco’s residence.
United States Attorney Carmen M. Ortiz; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Kevin O'Regan of Ortiz’s Springfield Branch Office.
Bank Robber Sentenced to 120 Months in Federal PrisonRead the Press Release
Defendant Threatened to Kill Everyone in the Bank’s Lobby
DALLAS — A Dallas man, who robbed a Chase Bank located on Lemmon Avenue in Dallas in 2011, was sentenced this afternoon. U.S. District Judge Jane J. Boyle sentenced William Clary, 37, to 120 months in federal prison, following his guilty plea in July 2013 to one count of bank robbery. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on August 1, 2011, Clary entered the Chase Bank, located at 4512 Lemmon Avenue in Dallas, approached a teller and presented a note that read, “I want 3600 dollars now! Have a gun. If you scream or signal I will kill you.” Clary then threatened to kill everyone in the lobby if the teller did not comply with his demands. In fear for her life, and the life of others, the teller removed cash from her drawer and gave it to Clary. After Clary received the cash, he departed the bank.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson prosecuted.
Anchorage Man sentenced to 180 months in prison for conspiracy to ditribute methamphetamine and gun chargesRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court after pleading guilty to conspiracy to distribute methamphetamine and possessing a firearm in furtherance of a drug crime.
Jason Gerald Woods, 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 180 months in prison, to be followed by a five year term of supervised release. Woods previously pled guilty to conspiring to distribute methamphetamine with two other individuals and to possessing a gun in furtherance of his drug trafficking activities.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Woods worked with two other individuals to sell more than forty grams of actual methamphetamine over an estimated six month period in 2012. The conspiracy culminated in a deal where the conspirators attempted to trade methamphetamine for fully automatic weapons. During that deal, Woods was armed with a loaded 9mm handgun. In addition to the drug trafficking he engaged in as part of the conspiracy, Woods also sold drugs on his own, selling approximately 146 grams of methamphetamine to an undercover law enforcement officer.
In sentencing Woods, Judge Gleason noted the seriousness of the offense and the need to protect the community from those who engage in the selling of this destructive drug.
Judge Gleason previously sentenced Woods’ co-defendants, Michael Dean Miller and Boaphan Sengchareun, to 120 and 144 months in prison, respectively, for their roles in the conspiracy.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of this case in the successful prosecution of Woods.
Aloha, Oregon Woman, A Former Credit Union Employee, Sentenced for Money LaunderingRead the Press Release
PORTLAND, Ore. - Janelle Fuston, 25, of Aloha, Oregon, was sentenced yesterday by U.S. District Judge Marco A. Hernandez to five years of probation and 200 hours of community service for the crime of money laundering. She was also ordered to pay $48,243 to the government in the form of a money judgment. Fuston pleaded guilty to the crime of money laundering in April of this year, and the money judgment represents a portion of the approximately $120,000 that Fuston admitted to laundering for her co-defendant and ex-boyfriend, Larry Fuentes.
Between April 2011 and April 2012, Fuston, who was employed at the time by First Tech Federal Credit Union in Beaverton, agreed to launder over $120,000 in Fuentes’s drug proceeds. Defendant Fuston admitted she knew that Fuentes had no legitimate income, that she knew the cash he was providing her constituted drug proceeds, and that she deposited the drug money into multiple accounts held in her name at First Tech Federal Credit Union. She further admitted to establishing one of the accounts at First Tech in her name for the sole purpose of storing those drug proceeds, and to breaking up the drug proceeds into multiple deposits because ATMs could only accept a limited number of bills at a time.
Before their crime was discovered, Fuston and Fuentes spent all but approximately $11,000 of the laundered drug proceeds, enjoying the fruits of their illegal conduct in the form of vacations, tanning salons, and other luxuries. Fuston was fired from her job at First Tech once her conduct was discovered, and her plea agreement provides that she is prohibited from working in the financial industry for ten years following her conviction.
Fuston’s co-defendant, Larry Fuentes, has also pleaded guilty to the crime of money laundering, and is scheduled for sentencing on February 4, 2014.
The investigation of this case was conducted by the High Intensity Drug Trafficking Area Interdiction Task Force, including the Portland Police Bureau’s Drugs and Vice Division, the Department of Homeland Security, and the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Katie Lorenz.
Alleged Lancaster County Fraudster Facing Additional ChargesRead the Press Release
PHILADELPHIA - Debra Lightfoot, a/k/a "A.T.B.," 57, of Lititz, PA, was charged today by superseding indictment with transmitting a threat by interstate communications, and threat of assaulting, resisting, opposing, impeding, intimidating, or interfering with a Government Employee in the course of official duties, announced United States Attorney Zane David Memeger. According to the Superseding Indictment, the defendant threatened an employee of the Social Security Administration while speaking to that employee by telephone. The superseding indictment adds the two new counts to 11 counts of wire fraud, one count of theft of government funds, two counts of Social Security Fraud, and one count of aggravated identity theft. Lightfoot allegedly used a stolen Social Security number to work while collecting disability payments from the Social Security Administration under her true identity. She was arrested on October 7, 2013 on a criminal complaint and is detained pending trial.
If convicted, Lightfoot faces a maximum possible sentence of 248 years imprisonment, a three‑year period of supervised release, restitution to the government of $137,665 and a $1,625 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Sentenced to Seven Years for Using a Firearm to Rob a Pharmacy of Prescription PainkillersRead the Press Release
ALBUQUERQUE – James Phillip Tafoya, 43, of Albuquerque, N.M., was sentenced this afternoon to seven years in federal prison followed by three years of supervised release for his conviction for using a firearm in relation to a crime of violence. He also was ordered to pay $930.82 in restitution.
Tafoya was arrested in Jan. 2013, on a three-count indictment charging him with (1) violating the Hobbs Act by robbing a business involved in interstate commerce, (2) using a firearm in relation to a crime of violence, and (3) theft of medical products. Count 1 of the indictment alleged that Tafoya robbed an employee of an Albuquerque-area CVS Pharmacy at gunpoint on Nov. 3, 2012, and stole Oxycodone and Oxycontin. Count 2 alleged that Tafoya used a firearm to perpetuate the robbery, and Count 3 alleged that Tafoya used violence and the threat of violence to unlawfully take pre-retail medical products.
In July 2013, Tafoya pled guilty to Count 2 of the indictment and admitted that on Nov. 3, 2012, he committed armed robbery of the CVS store located at 9640 Menual Blvd NE, in Albuquerque. Tafoya admitted entering the store, displaying and brandishing a firearm in order to intimidate the clerk, and demanding that the clerk give him Oxycodone and Oxycontin. He also admitted knowing that CVS is a business engaged in interstate commerce, and that he used a firearm to knowingly and unlawfully take pre-retail medical products through the threat of violence or force.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Jon K. Stanford. The case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
Alaska Man Pleads Guilty to Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Scott Falk, age 29, of Kenai, Alaska, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 21, 2013, and pled guilty to a charge of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor.
The charge carries a maximum penalty upon conviction of 20 years and a $250,000 fine. Falk will be required to register as a sex offender.
As part of a sex-trafficking undercover operation during the 2013 Sturgis Motorcycle Rally in August, Falk was arrested for attempting to obtain sex with a 13-year old girl. Falk responded to a law enforcement-generated internet advertisement which advertised sex with a fictitious 12 or 13 year-old girl and negotiated the terms of the sexual encounter. Falk then met with an undercover agent posing as someone who could provide the young girl, and was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, the Pennington County Sheriff’s office, and the Meade County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Acoma Pueblo Man Sentenced to Forty Months for Domestic Assault by a Habitual OffenderRead the Press Release
ALBUQUERQUE – Eric Thomas Valley, 42, was sentenced this morning to 40 months in federal prison followed by three years of supervised release for his conviction for domestic assault by a habitual offender. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Police Chief Vincent M. Mariano of the Acoma Tribal Police Department.
Valley, a member and resident of Acoma Pueblo, was arrested in Oct. 2012, based on a criminal complaint alleging that he assaulted his domestic partner, also a member of Acoma Pueblo, by striking her in the head with a wooden rolling pin. The victim sustained numerous injuries, including three lacerations to the head that had to be stapled closed, as a result of the assault. Valley subsequently was charged in a three-count indictment with (1) domestic assault by a habitual offender; (2) assault resulting in serious bodily injury; and (3) assault with a dangerous weapon.
In April 2013, Valley pleaded guilty to Count 1 of the indictment and admitted assaulting his girlfriend on Oct. 10, 2012, on Acoma Pueblo. Valley also admitted that he previously has been convicted on domestic violence offenses on two occasions. Court records reflect that Valley has prior convictions for battery on a household member in Magistrate’s Court in Cibola County, N.M., in June 2005, and battery against a household member in Acoma Tribal Court in May 2009.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services, and the Acoma Tribal Police Department, and was prosecuted by Special Assistant U.S. Attorney David Adams and Assistant U.S. Attorney Kyle T. Nayback.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
25 Sentenced in Operation Prison CellRead the Press Release
CORPUS CHRISTI, Texas – 14 former Texas Department of Criminal Justice (TDCJ) correction officers and 11 others have been ordered to federal prison following their convictions related to a large-scale racketeering case involving the McConnell Unit in Beeville, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston.
“’Operation Prison Cell’ is a very appropriate name for this investigation in that it describes where those responsible for the corruption, trafficking and violence uncovered in this case will spend a considerable portion of the rest of their lives,” said Moskowitz. “Unfortunately, while we expect convicted criminals to act like criminals, we will not tolerate those entrusted to serve the public to do the same, and these sentences send an unmistakable message to both the corrupted and their corruptors that we will catch you and punish you for your crimes.”
With the exception of Juan Ledezma, who was convicted following a two-day trial, 28 others pleaded guilty to varying counts of racketeering or other charges. U.S. District Judge Hayden Head, who accepted the guilty pleas and presided over the trial, handed down the sentences against 25 of those convicted from Tuesday through today. Four others will be sentenced at a later date.
Former McConnell Unit guards Stephanie Deming, 24, Lela Ysolde Hinojosa, 52, and Arturo Salas, 23, all of Beeville, Christy Nesloney, 27, of Cuero, James Randal Standlea, 25, of Mathis, Desiree Silguero, 43, of McAllen, Emmanuel Cotto, 32, of San Antonio, Megan Brook Morales, 24, of Bulverde, Lakeisha Jeanette Reid, 25, of Austin, Jaime Jorge Garza, 38, of Santa Elena, and Oscar Juraidini, 25, of Brownsville, were all convicted of one count of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), as was contract mental health professional Kimberly Koenig, 32, of Victoria. Nesloney was sentenced today to 28 months in federal prison, while Deming received 27 months, while Reid received a sentence of 24 months in federal prison, while Salas and Juraidini will each serve 22 months. Hinojosa and Morales each received 21-month terms of incarceration, while Garza will be in prison for 15 months. Silguero and Cotto will serve five months to be immediately followed by another five months on home confinement. Standlea and Koenig will be on probation for three years.
Other McConnell Unit Guards Jamar Tremayne Green 30, of Refugio, Casey Simmons, 25, of Kenedy, and Justin Leonard, 24, of Cypress, were convicted of conspiracy to possess with the intent to distribute ecstasy, marijuana and cocaine, respectively. Simmons was sentenced to three years of probation, while Green and Leonard will serve five months in prison plus five months of home confinement.
Seven of the 10 individuals considered “facilitators” in the case were also sentenced today. Yvonne Sandoval, 37, of Corpus Christi, Maria Fernanda Hidalgo, 32, of McAllen, and Lindsey Elaine Savage, 30, of Copperas Cove, were all convicted of RICO and received sentences of 18 months, 12 months plus one day, and 38 months, respectively. Melissa Lozano, 29, of San Antonio, was also convicted on the RICO count and will be sentenced Nov. 25, 2013. The six other facilitators pleaded guilty to one count of money laundering. Juanita Beltran Mendez, 50, of Bishop, will be on probation for five years, while Nancy Star Onega, 27, and Donna Sorise, 57, both of Hialeah, Fla., and Maria Rose Rodriguez, 35, of Alamo, will serve sentences of 60, 71 and 66 months, respectively. Craig Owens, 29, of Kileen, and Karla Sanchez, 26, of Houston, will be sentenced Nov. 25, 2013.
The final four charged in the case – Aaron Trevino, 37, of Lockhart, Christopher Karl Owens, 33, of Killeen, Christopher Smith, 28, of Chester, and Ledezma, 40, of Brownsville – were considered “inmates” in the overall scheme and were at one time or another in TDCJ custody during the conspiracy. Trevino pleaded guilty to the RICO count and received a total of 198 months in federal prison, while Smith entered a plea to money laundering and received time served, approximately 10 months of incarceration. Ledezma, who was found guilty by a Corpus Christi federal jury of conspiracy to possess with the intent to distribute methamphetamine, cocaine and marijuana, will serve a total of 360 months in federal prison for the three counts of conviction. Christopher Owens will be sentenced in January 2014.
There are still two fugitives in the case and warrants remain outstanding for their arrests.
The arrests came as a result of a joint effort between TDCJ-Office of Inspector General and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
Correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were then sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison.
During Ledezma’s trial, the jury heard testimony that Ledezma acted as an intermediary between drug traffickers in south Texas and Mexico. He had connections to drug suppliers and, utilizing the illegally smuggled cell phones, coordinated with other prisoners to organize drug deals inside and outside the prison. Jurors heard that prisoners had made phone calls to Ledezma while in the McConnell Unit. In these calls, Ledezma agreed to help arrange for six pounds of methamphetamine to be purchased in Corpus Christi and distributed in Arkansas. The buyers of the methamphetamine were to pay more than $20,000 per pound of the drug.
The overall investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of the illegal cell phones.
A subsequent investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The overall case is the result of a four-year investigation conducted by the U.S. Attorney’s Office, Homeland Security Investigations, TDCJ-Office of Inspector General, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Corpus Christi Police Department Gang and Organized Crime Units, U.S. Postal Inspection Service and the Bee County District Attorney’s office.
The case is being prosecuted by Assistant U.S. Attorneys Mark Patterson and Michael Hess.
23 Year Old Man Arrested for Sex Trafficking of Local TeenagersRead the Press Release
SAN JOSE - A federal grand jury in San Jose returned an Indictment on October 16, 2013, charging Jamal Raphael Broussard with sex trafficking of children, transportation of minors for prostitution, and coercion and enticement of minors for prostitution, announced United States Attorney Melinda Haag.
According to the six-count Indictment, Broussard, 23, of Hercules, Calif., beginning in August 2010 and continuing at least through May 2013, is alleged to have recruited, enticed, or transported two minor females using force, fraud, or coercion to cause them to engage in commercial sex acts, knowing that they were younger than 18-years-old. Broussard benefited financially by these commercial sex acts. Further, Broussard is alleged to have arranged or induced the travel of these minor victims, sending them from California to multiple states across the country for the purpose of engaging in prostitution.
Broussard was arrested yesterday morning at his home in Hercules, and made his initial appearance in federal court in San Jose in front of The Honorable Nathanael Cousins, U.S. Magistrate Curt Judge. Broussard is currently in federal custody pending further hearings. Broussard’s next scheduled appearance is on November 5, 2013, at 1:30 p.m. for a detention hearing before The Honorable Howard R. Lloyd, U.S. Magistrate Court Judge.
The maximum statutory penalty for each count of sex trafficking of children, in violation of 18 U.S.C. §§ 1591(a) and 1594(a), is lifetime imprisonment, a mandatory minimum 15 years in prison, a fine of $250,000, and restitution. The maximum statutory penalty for each count of transportation of minors for prostitution, in violation of 18 U.S.C. § 2423(a) and (d), is 30 years imprisonment, a mandatory minimum 10 years imprisonment, a fine of $250,000, and restitution. The maximum statutory penalty for each count of coercion and enticement for prostitution, in violation of 18 U.S.C. § 2422(a) and (b), is lifetime imprisonment, mandatory minimum 10 years imprisonment, a fine of $250,000, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Burney and Tracey Andersen. The prosecution is the result of a 10-month joint investigation by the Federal Bureau of Investigation and the San Jose Police Department Human Trafficking Task Force.
(Broussard indictment )
Wednesday 30 October 2013
Waterbury Man Sentenced to More Than Nine Years in Prison for Robbing Banks in Waterbury and New BritainRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE RIVERA, 41, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 117 months of imprisonment, followed by four years of supervised release, for robbing banks in Waterbury and New Britain.
According to court documents and statements made in court, on February 1, 2013, RIVERA, Victor Ramos and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RIVERA, Ramos and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319.
RIVERA carried a firearm during both robberies and, during the Waterbury robbery, physically assaulted a customer causing her injuries.
In addition, RIVERA and Ramos violently stole $100 from a small business in Waterbury on January 28, 2013.
RIVERA has been detained since his arrest on February 21, 2013. On August 7, 2013, he pleaded guilty to one count of bank robbery.
Ramos has been detained since his arrest on June 5, 2013. On August 19, 2013, he pleaded guilty to the same charge.
This matter has been investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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[email protected]Utah Man Indicted on Federal Hate Crime and Gun Charges Related to Religious-Motivated Attack on SynogogueRead the Press Release
The Department of Justice announced today that a federal grand jury sitting in Salt Lake City returned a superseding indictment charging Macon Openshaw, 21, of Salt Lake City, on gun possession charges and a federal hate crime charge relating to a bias-motivated attack at a local synagogue.
The indictment alleges that between Jan. 1, 2012 and April 30, 2012, Openshaw intentionally defaced and damaged the Congregation Kol Ami synagogue in Salt Lake City by firing several rounds from a Walther .22 caliber handgun at the building, breaking windows and damaging the window frame of the building. Openshaw allegedly performed these actions because of the religious character of the synagogue. This charge carries a statutory maximum sentence of 20 years imprisonment.
The superseding indictment charges Openshaw with one count of using and carrying a firearm in relation to a crime of violence, possession of a firearm with a removed, obliterated or altered serial number and possession of a firearm while subject to a protective order. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The matter is being investigated by the Salt Lake City Division of the FBI and is being prosecuted by Assistant U.S. Attorney Carlos Esqueda of the U.S. Attorney’s Office for the District of Utah, Central Division, and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
US Government Intervenes in False Claims Lawsuit Against United States Investigations Services <br /> for Failing to Perform Required Quality Reviews of Background InvestigationsRead the Press Release
The government has intervened in a lawsuit filed under the False Claims Act against United States Investigations Services LLC (USIS) in the U.S. District Court for the Middle District of Alabama, the Department of Justice announced today. The lawsuit alleges that USIS, located in Falls Church, Va., failed to perform quality control reviews in connection with its background investigations for the U.S. Office of Personnel Management (OPM).
The lawsuit was filed by a former employee of USIS, Blake Percival, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties, known as relators, to sue on behalf of the government when they believe false claims for government funds have been submitted. The private party is entitled to receive a share of any funds recovered through the lawsuit. The False Claims Act also permits the government to investigate the allegations made in the relator’s complaint and to decide whether to intervene in the lawsuit, and to recover three times its damages plus civil penalties. The government is intervening now based on the results of its investigation of the relator’s allegations and has requested that the court give it until Jan. 22, 2014, to file its own complaint.“We will not tolerate shortcuts taken by companies that we have entrusted with vetting individuals to be given access to our country’s sensitive and secret information,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Justice Department will take action against those who charge the taxpayers for services they failed to provide, especially when their non-performance could place our country’s security at risk.”
Since 1996, USIS has contracted with OPM to perform background investigations on individuals seeking employment with various federal agencies. Executed in 2006, the contract at issue in the lawsuit required USIS to conduct the investigatory fieldwork on each prospective applicant. It also required that a trained USIS Reviewer perform a full review of each background investigation to ensure it conformed to OPM standards before sending the file back to OPM for processing.
According to the relator’s complaint, starting in 2008, USIS engaged in a practice known at USIS as “dumping.” Specifically, USIS used a proprietary computer software program to automatically release to OPM background investigations that had not gone through the full review process and thus were not complete. USIS allegedly would dump cases to meet revenue targets and maximize its profits. The lawsuit alleges that USIS concealed this practice from OPM and improperly billed OPM for background investigations it knew were not performed in accordance with the contract.
“Thorough, appropriate and accurate background checks are essential in the employment of government personnel,” said George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. “The increase in foreign and domestic terrorism places an increased responsibility on our government to ensure that unsuitable individuals are prohibited from government employment.”
“This is a clarion call for accountability,” said Patrick E. McFarland, Inspector General of OPM. “As recent events have shown, it is vital for the safety and security of Americans to have these background investigations performed in a thorough and accurate manner. We can accept no less. Those responsible for any malfeasance that compromises the integrity of the background investigations process must be held accountable.”
“OPM does not tolerate fraud or falsification,” said Elaine Kaplan, Acting Director of OPM. “We work hard to prevent and detect both through a variety of means including a robust integrity assurance program, multiple levels of review and workforce education and training. We also work hand in hand with our Inspector General and the Department of Justice when we discover fraud so that bad actors are held accountable to the fullest extent of the law.”
This matter was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Middle District of Alabama in conjunction with OPM’s Office of Inspector General and Federal Investigative Service.
The claims asserted against USIS are allegations only, and there has been no determination of liability.
U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in BridgewaterRead the Press Release
BOSTON – The United States Attorney’s Office, Plymouth County District Attorney’s Office, U.S. Secret Service’s Boston office and Bridgewater State University today hosted researchers from the National Threat Assessment Center (NTAC) to provide law enforcement, school personnel and university officials with information on Managing Threatening Situations and Creating Safe School Climates. Over 200 attended the conference which was held at Bridgewater State University.
During the conference, participants were provided information on the foundations of threat assessment which is a behavior-based approach used by law enforcement and others to identify and assess those individuals who pose a risk of engaging in targeted violence. NTAC also highlighted its research related to school safety and the adaption of the threat assessment approach in both K-12 and higher education settings. They also discussed how privacy laws such as HIPAA and FERPA can impact the ability to identify students of concern, and provided participants with information on types of information that can be shared to assist with a threat assessment investigation.
“We are very grateful to the U.S. Secret Service’s NTAC for sharing their expertise on how to develop a comprehensive plan to prevent targeted violence,” said United States Attorney Carmen M. Ortiz. “It is our hope that the information provided today will provide law enforcement, schools and universities with additional tools on how to establish a culture that promotes and implements effective violence prevention and intervention strategies.”
District Attorney Timothy J. Cruz stated, “I am pleased that we were able to once again present this important information from the National Threat Assessment Center (NTAC) to our local schools and law enforcement personnel. The researchers from the NTAC did a tremendous job and it is our hope that today’s information will help guide schools and local law enforcement as they work to keep our schools safe from targeted violence."For more information on the National Threat Assessment Center and its research, please visit http://www.secretservice.gov/ntac.shtml
For information on the Department of Justice’s Defending Childhood Initiative, please visit http://www.justice.gov/defendingchildhood/ and
http://www.futureswithoutviolence.org/section/our_work/child_wellbeing/defending_childhood_initiativeTwo District Men Sentenced to Prison Terms for Robbing Man on D.C.-Maryland Border with 14-Year-Old AccomplicesPrince George’s County and Metropolitan Police Departments Investigated the CaseRead the Press Release
WASHINGTON – Amos Jones, 23, and Edwin Holmes, 20, both of Washington, D.C., have been sentenced to prison terms for robbing a man and contributing to the delinquency of two minors who joined in the attack, U.S. Attorney Ronald C. Machen Jr. announced.
Jones and Holmes were found guilty by a jury in August 2013 of charges of robbery and contributing to the delinquency of a minor. The verdicts followed a trial in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow sentenced both defendants on Oct. 28, 2013. Judge Pasichow sentenced Jones to 52 months in prison. She sentenced Holmes to a total of 106 months in prison, but suspended all but 40 months provided that he successfully completes two years of supervised probation.
According to the government’s evidence, on Nov. 17, 2012, at about 2 a.m., Jones and Holmes, along with two 14-year-old boys, robbed a man who was walking from a Metro station in the area of Southern Avenue SE, along the border of the District of Columbia and Prince George’s County. After they confronted the victim, and the victim told them he had no money, the assailants forced the man to give up his watch and cell phone.
The victim called 911, and the Prince George’s County, Md. Police Department, which assists with patrols in the area, apprehended all four robbery suspects. Jones had been released just two days prior to the robbery after serving a sentence in a case involving a stolen car.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who investigated the case for the Metropolitan Police and the Prince George’s County Police Departments. He also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Anthony Griffith, Richard Cheatham and Antoinette Sakamsa; Information Technology Specialists Anisha Bhatia and Kimberly Smith, and Victim/Witness Advocate James Brennan. Finally, he praised the work of Assistant U.S. Attorneys Tejpal Chawla and Demian S. Ahn, who investigated and prosecuted the case. 13-371
Two Defendants Found Guilty in Manhattan Federal Court in Connection with Murder-For-Hire ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, Jr., Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that HECTOR RAYMOND PEÑA and JOSE PEÑA were found guilty yesterday of conspiracy to commit murder-for-hire, murder-for-hire, and the use of a firearm in connection with murder-for-hire. HECTOR RAYMOND PEÑA and JOSE PEÑA were convicted after a 10-day jury trial before U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Preet Bharara said: “Hector Raymond Peña and Jose Peña were cold-blooded contract killers who went to great lengths – even impersonating law enforcement – to commit their brutal murders. Yesterday’s swift convictions by the jury ensure that they will spend the rest of their lives behind bars paying for the lives they took.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “The Solid Gold investigation exemplifies the power of inter-agency cooperation like no other. The case has endured the test of time and has closed homicides that have – up until this point – been open, cold cases. Now, after approximately 16 years, the resolve and determination of the investigators and prosecution team have finally given closure to the victims’ families. Justice has been done.”
NYPD Commissioner Raymond W. Kelly said: “Although New York City has vastly improved from the murderous days of the 1990s when these defendants committed their vicious acts, the NYPD never let up its investigation and secured the arrests that followed. Yesterday’s verdict represents unrelenting work by detectives with the support of U.S. Attorney Preet Bharara’s office, whose prosecutors also are to be commended for delivering justice.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
HECTOR RAYMOND PEÑA and others were hired by a drug organization to murder Pedro Medina in the spring of 1997. On May 9, 1997, HECTOR RAYMOND PEÑA and others carried out that murder contract by impersonating police officers, abducting Mr. Medina in front of his home, executing him by shooting him in the head twice, and dumping his body on the side of the Harlem River Drive in Manhattan, New York.
HECTOR RAYMOND PEÑA, JOSE PEÑA, and others were hired by a different drug organization to murder members of a robbery crew in the summer of 1997. On June 25, 1997, HECTOR RAYMOND PEÑA, JOSE PEÑA, and others carried out that murder contract by impersonating police officers, abducting Jose Suarez and Juan Carmona, executing them by shooting them in the head, and burning their bodies beyond recognition inside a vehicle they left on the side of the Henry Hudson Parkway in Manhattan, New York.
HECTOR RAYMOND PEÑA and JOSE PEÑA face mandatory minimum sentences of life in prison. They are scheduled to be sentenced by Judge Marrero on February 28, 2014, at 2:00 p.m.
Mr. Bharara praised the investigative work of the Bureau of Alcohol, Tobacco, Firearms & Explosives and the New York City Police Department.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Laurie A. Korenbaum, Timothy D. Sini, and Micah W. J. Smith are in charge of the prosecution.
Thirteen Members of Pharmacy Burglary Ring Charged with Stealing and Distributing Millions of Dollars’ Worth of Prescription-Controlled Substances and Hundreds of Thousands of Dollars in CashRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Commissioner of the New York City Police Department (“NYPD”) announced today the unsealing of charges against 13 members of a burglary ring (the “Burglary Ring”) alleged to be responsible for more than 125 burglaries and attempted burglaries of pharmacies in Manhattan, the Bronx, Queens, and Brooklyn since 2010. BRYAN ALTAGARCIA, EDWIN ARAUJO, MARTIN AVALO, ALVARADO DOMINGUEZ, ALAN FELIZ, DAVID SANTIAGO, and CARLOS VALLEJO were arrested today in Manhattan and the Bronx, and are expected to be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Michael H. Dolinger later this afternoon. MIGUEL ARAUJO was arrested today in Boston, and is expected to be presented and arraigned later this afternoon in federal district court in the District of Massachusetts. GUILLLERMO ARAUJO, JOSE GONZALEZ, and ESFRAIN SILVA are already in custody in connection with pending cases. Two other defendants, CHRISTIAN LORA and ANDY MACCOW, remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, this group of defendants went to extreme lengths to break into pharmacies across New York City in order to feed their voracious appetite for cash and prescription drugs to peddle. This Office has zero tolerance for those who contribute to the growing prescription drug abuse epidemic, and thanks to our partners at the NYPD and FBI, this ring of alleged offenders has been apprehended and will be prosecuted.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, the defendants participated in a complex burglary scheme to steal controlled prescription drugs and money from numerous victim pharmacies. Allegedly using technology and physical surveillance to perpetuate their illegal activity, this band of thieves thought they could outsmart law enforcement. The defendants’ downfall was that they underestimated the dedication and commitment of the FBI’s Health Care Fraud Task Force and the NYPD. Using traditional investigative techniques and the defendants’ own technology against them, the FBI and its law enforcement partners put an end to their alleged criminal enterprise.”
NYPD Commissioner Raymond W. Kelly said: “Criminals who exploit drug addiction for profit will be pursued and prosecuted as any perpetrator of more immediately devastating offenses. That these individuals are alleged to have used luxury vehicles – from multiple Mercedes-Benzes to a Bentley – purchased from the proceeds of their narcotics sales illustrates the scope of their activity. I commend the detectives in the NYPD’s Major Case Squad and Financial Crimes Task Force, and their partners in U.S. Attorney Bharara’s office on their work in stopping this operation.”
According to the Indictment filed in Manhattan federal court and other information in the public record:
ALTAGARCIA, EDWIN ARAUJO, GUILLERMO ARAUJO, MIGUEL ARAUJO, AVALO, DOMINGUEZ, FELIZ, GONZALEZ, LORA, MACCOW, SANTIAGO, SILVA, and VALLEJO were members of a sophisticated Burglary Ring that stole controlled prescription drugs with a street value in the millions of dollars, and hundreds of thousands of dollars in cash.
The burglaries involved the entry and attempted entry into pharmacies through ceilings, walls, window bars, and doors. In some instances, the victimized pharmacies were in locations that provided cover for the defendants while they penetrated the exteriors of the pharmacies with crowbars, axes, and other tools. In others, the pharmacies were adjacent to commercial establishments that the defendants broke into and then used tools to enter the pharmacies through common walls.
The members of the Burglary Ring wore dark clothing, including hooded sweatshirts, masks, and gloves, and employed sophisticated planning and counter-surveillance techniques to avoid apprehension. They frequently circumvented or disabled burglar alarms and surveillance cameras. By communicating by cellphone with each other and with lookouts who were monitoring police scanners during the burglaries, they were able to escape the pharmacies with the stolen goods and cash before law enforcement was able to apprehend them.
The Indictment unsealed today is a result of a joint investigation by the FBI and NYPD that began in 2011 and continues. In addition to information provided by a cooperating witness who committed burglaries with various defendants, DNA evidence links AVALO, VALLEJO, and SILVA to three of the pharmacy burglaries, and cellphone data links various combinations of the defendants to more than 50 of the pharmacy burglaries. Through sophisticated analysis of cellphone information, law enforcement identified dozens of cellular telephones the burglars used during the burglaries. Extensive evidence demonstrates that the various defendants were the users of those cellphones during more than 50 of those burglaries. In addition, numerous photographs recovered from cellphones belonging to various defendants and searched pursuant to warrants depict the defendants holding large amounts of U.S. currency, wearing expensive jewelry, associating with one another, and possessing high-end luxury automobiles.
The Indictment seeks the forfeiture of several luxury cars used by the defendants to commit the burglaries and purchased with proceeds of narcotics trafficking, including a Bentley, which was captured on surveillance video being used by some of the defendants as a getaway vehicle during several recent pharmacy burglaries, and several Mercedes-Benz vehicles and a BMW.
In connection with the arrests today, the FBI and NYPD also executed search warrants on the residences of EDWIN ARAUJO on Wadsworth Avenue, AVALO on Saint Nicholas Avenue, DOMINGUEZ on West 188th Street, and VALLEJO on Audubon Avenue in New York, New York.
BRYAN ALTAGARCIA, 22, of the Bronx, New York; EDWIN ARAUJO, 30, of New York, New York; GUILLERMO ARAUJO, 24, of New York, New York; MIGUEL ARAUJO, 22, of the Bronx, New York; AVALO, 34, of New York, New York; DOMINGUEZ, 27, of New York, New York; FELIZ, 35, of New York, New York; JOSE GONZALEZ, 30, of New York, New York; CHRSTIAN LORA, 25, of New York, New York; ANDY MACCOW, 29, of New York, New York; DAVID SANTIAGO, 30 of New York, New York; SILVA, 20, of the Bronx, New York; and VALLEJO, 26, of New York, New York are each charged with one count of conspiracy to burglarize pharmacies of controlled substances, which carries a maximum sentence of 10 years in prison. SILVA faces an additional penalty of up to 10 years in prison for committing this offense while on bail in another federal case. All of the defendants except SILVA are also charged with conspiracy to distribute and possess with the intent to distribute controlled substances, which carries a maximum sentence of 20 years in prison. In addition, EDWIN ARAUJO, GONZALEZ, and MACCOW are charged with witness tampering in connection with the beating of a cooperating witness in a federal case against SILVA, which carries a maximum sentence of 30 years in prison.
The charges against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
Mr. Bharara praised the efforts of the FBI's Health Care Fraud Task Force and the Bronx Major Case Squad of the NYPD. The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force is composed of agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General’s Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau. Mr. Bharara also thanked the Boston Field Office of the FBI for its assistance in locating and arresting MIGUEL ARAUJO.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Jason A. Masimore and Russell Capone are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture of assets.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Edwin Araujo et al. Indictment
Real Estate Developer Sentenced to 30 Months Imprisonment for Destination Ventures Fraud SchemeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; announced Roger Stephen Clary, age 61, of Little Rock was sentenced by United States District Judge J. Leon Holmes to 30 months in federal prison to be followed by two years of supervised release. Special conditions were imposed on his supervised release to include: cooperation with the collection of DNA; prohibition on the possession of any firearm, ammunition, destructive device or dangerous weapon; and disclosure of financial information to probation officer upon request. The special conditions also state he may not obtain any new lines of credit. Judge Holmes ordered Clary to pay $1,595,000 in restitution to the Banc of America Leasing Corporation (BALC).Clary was ordered to report to the Bureau of Prisons by Monday, March 10, 2014.
Clary was indicted July 7, 2010, and on February 7, 2013, pled guilty to mail fraud. Clary created a company called Destination Ventures which was to purchase, custom outfit and lease buses. Clary obtained a loan from BALC to fund the purchase and outfitting of the buses. The loan was approved and entered into on May 8, 2008. The following day, Clary requested that BALC distribute a portion of the loan proceeds to purchase and outfit the buses. However, on the same day, Clary directed the vendor who was to outfit the buses to redistribute the funds once the vendor received them. The vendor complied with the directives from Clary. Consequently, $1,595,000 of the loan proceeds were paid to companies in which Clary had a financial interest but which had no involvement in the purchase, custom outfitting, or leasing of the buses as intended by the loan agreement. The mail fraud count charges Clary with later falsely certifying to BALC that the buses had been custom outfitted.
This investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation. Assistant United States Attorney Angela Jegley prosecuted this case for the United States.
Pollock Prisoner Sentenced for Drug PossessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Roy Elbert Carlton, 43, of Temple, Texas, was sentenced by U.S. District Judge Dee D. Drell to 27 months in prison for possessing drugs in a prison. He was also ordered to pay a $2,000 fine.
Carlton was found guilty August 7, 2013, after a two-day trial. The jury deliberated for 20 minutes and returned a guilty verdict. Witness testimony and documents admitted at trial revealed that Carlton’s codefendant, Whitney C. Anderson and their children, visited him on February 20, 2010, at the U.S. Penitentiary in Pollock, La. During the visit, one of the children was sitting on Carlton’s lap. Carlton was seen taking something out of the child’s pocket and then swallowing it. At that point, the visit was terminated, and Carlton was taken to a cell for observation. Eventually, the item swallowed by Carlton was excreted. The matter appeared to be balloon fragments and other material that tested positive for the presence of marijuana. Testimony at trial revealed that Anderson had brought multiple balloons filled with marijuana to the facility to smuggle to Carlton.Anderson was sentenced Monday, October 28, 2013 to eight months in prison for providing contraband to a prisoner. She was also ordered to pay a $1,000 fine. She pleaded guilty July 15, 2013.
The FBI conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Polk County Man Indicted for Tax FraudRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Norman V. Charlton was indicted yesterday on tax fraud charges. The thirteen-count indictment charges Charlton with conspiracy to commit wire fraud, theft of government property and aggravated identity theft. He is also charged with four counts of wire fraud, four counts of theft of government property, and four counts of aggravated identity theft. Charlton faces a maximum penalty of 5 years in federal prison for the conspiracy charge, 20 years’ imprisonment for each wire fraud offense, 10 years’ imprisonment for each count of theft of government property, and 2 consecutive years for the aggravated identity theft offenses. The indictment also seeks forfeiture of nearly $15,000 in U.S. currency seized on March 21, 2012, and a forfeiture money judgment in the amount of the proceeds of the fraud, which is alleged to be at least $412,000. Charlton previously made his initial appearance in federal court on September 30, 2013, after being arrested and detained in federal custody on a federal complaint alleging theft of government property.
According to the indictment, beginning as early as August 2011 and continuing through at least June 4, 2012, Charlton and co-conspirators used stolen names and social security numbers to electronically file fraudulent tax returns and obtain tax refunds to which they were not entitled. A record of those filings was kept in a detailed ledger. The fraudulent refunds were deposited onto reloadable debit cards in others’ names and/or disbursed in U.S. Treasury checks and were mailed to addresses controlled or directed by Charlton and others. The indictment alleges that Charlton and his co-conspirators used and directed the fraudulent tax refunds to obtain cash and goods for their own benefit and the benefit of others.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Petersburg Man arraigned on distribution, receipt, and Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Petersburg man was arraigned today on a criminal complaint filed in the U.S. District Court in Juneau, Alaska, for the distribution, receipt, and possession of child pornography.
Tye Leif Petersen, 45, of Petersburg, Alaska, was arraigned today before U. S. Magistrate Judge Leslie C. Longenbaugh, in a three-count criminal complaint charging a count each of distribution, receipt, and possession of child pornography. Petersen was ordered detained pending trial.
Assistant U. S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides those convicted of distribution or receipt of child pornography, a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum sentence of 10 years, however, the maximum sentence increases to 20 years and $250,000 fine, if the images depict children under the age of 12 years. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The charges against Petersen are the result of an investigation conducted by the Federal Bureau of Investigation in cooperation with the Petersburg Police Department. If the public has any further
information, questions, or concerns about the activities of Petersen, please contact the Petersburg Police Department at (907) 772-3838.A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.