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19 December 2013
Third Defendant Sentenced in Murder of U.S. Border Patrol Agent Robert RosasRead the Press Release
SAN DIEGO – Jose Luis Ramirez-Dorantes was sentenced today to 55 years in prison for his participation in the July 2009 robbery and murder of United States Border Patrol Agent Robert Rosas, Jr.
Ramirez, a 46-year-old Mexican national, pleaded guilty on January 10, 2013, admitting he was one of five armed individuals who conspired to rob a Border Patrol agent of his night vision device, which resulted in Agent Rosas being fatally shot during a struggle. He pleaded guilty to conspiracy to commit robbery and kidnaping and use and carrying of a firearm during the commission of a crime of violence.
Court filings indicate that in July 2009, Ramirez and four others plotted to rob a Border Patrol agent of his night vision device. On July 23, 2009, the group, bearing firearms, traveled by car and foot to the international border near Campo, California. Ramirez stood watch on the Mexican side of the border while three co-conspirators sneaked into the United States at night and waited for a Border Patrol agent to arrive in the area. After Agent Rosas arrived in the area and exited his vehicle, he was detained at gunpoint. Agent Rosas resisted and, during the ensuing struggle, Ramirez’s co-conspirators shot Agent Rosas multiple times, killing him. The coconspirators then stole the agent’s firearm, night vision device, and other equipment and fled back to Mexico.
In June 2010, Mexican officials arrested Ramirez in Naucalpan, Mexico, near Mexico City, at the request of the United States. Ramirez was extradited to the United States in December 2010.
Ramirez is the third defendant to be sentenced for Agent Rosas’s murder. In April 2010, United States District Judge M. James Lorenz sentenced Christian Daniel Castro-Alvarez to 40 years of imprisonment. On November 14, 2013, he sentenced Marcos Rodriguez-Perez to 56 years to run consecutive to a two-year sentence Rodriguez is currently serving for violating his supervised release from a prior alien smuggling conviction. One other defendant, Emilio Samyn Gonzales- Arenazas, has pleaded guilty to participating in the murder and is scheduled to be sentenced on January 23, 2014. The last defendant, Jose Juan Chacon-Morales, remains a fugitive, and there is a reward of up to $100,000 for information leading to his arrest or location.
After Ramirez’s sentencing, United States Attorney Laura E. Duffy expressed her condolences to Agent Rosas’s family and colleagues at the Border Patrol: “We hope that in some small way, these successful prosecutions can make a difference to members of the Rosas family who have suffered such a tragic, irreparable loss. Ramirez and the others will pay a high price for their unconscionable actions that terrible night.”
Duffy also expressed her gratitude to the Federal Bureau of Investigation and Homeland Security Investigations who conducted the investigation. “Since July 2009, the investigating agents have displayed exceptional diligence and tenacity to bring these four men to justice, despite the length and complexity of this cross-border investigation. The expertise and resolve of the agents in this case, demonstrate that if a law enforcement officer is harmed in any way, the United States will dedicate its full resources to catching the perpetrators and bringing them to justice.”
Chief Patrol Agent Paul A. Beeson of the U.S. Border Patrol’s San Diego Sector said, “On behalf of all Border Patrol agents, we extend our deepest appreciation for the resolve and professionalism of the U.S. Attorney’s Office for their work on the prior convictions and this sentencing. We will always remember Border Patrol Agent Robert Rosas as a good father, loving husband, and a patriot to his country.”
FBI Special Agent in Charge, Daphne Hearn, commented, "Today's sentencing sends a message that the FBI is committed to bringing to justice those responsible for the death of U.S. Border Patrol Agent, Robert Rosas. Agent Rosas served his country with dedication, honor and courage and was killed while protecting our nation's borders. The FBI recognizes that no punishment will lessen Agent Rosas' death, but we hope today's sentencing will help bring some closure to the family.”
DEFENDANT Criminal Case No. 10CR1793-L Jose Luis Ramirez-Dorantes SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371: Conspiracy to commit robbery and kidnaping
Count 5: Title 18, United States Code, Section 924(c)(1): Discharging firearms during and in relation to a crime of violence
INVESTIGATING AGENCIESFederal Bureau of Investigation
Homeland Security InvestigationsThird Defendant Sentenced in False Tax Return and Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Behrmann Desenclos, 43, of Lauderhill, was sentenced for his participation in a scheme to file false tax returns and use stolen identities to claim fraudulent tax refunds. Desenclos was sentenced to 108 months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,358,156.76. Desenclos previously pled guilty to one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, Desenclos, Rachelle Beaubrun, and Louis Richard Nemorin were involved in a scheme to unlawfully enrich themselves by submitting false refund claims on federal income tax returns, causing the IRS to issue refunds which the defendants diverted to their own benefit and use. The defendants prepared various federal income tax returns falsely claiming refunds: (a) on behalf of foreign nationals who had previously been deported from the United States and who were ineligible to receive any refund; (b) based on jobs with companies that had no employees; (c) based on employment with companies or offices where the taxpayer named on the return did not work; (d) utilizing Schedule C to falsely claim deductions for nonexistent business expenses; and (e) by claiming First Time Homebuyer Credits for residences which the taxpayers named on the returns did not actually purchase.
Court documents state that Beaubrun and Desenclos also acquired stolen identification information such as names, dates of birth, and social security numbers, from Nemorin. The defendants prepared fraudulent federal income tax returns through Divine Tax and Financial Services and Global-Tech Financial Management, LLC.
For tax years 2008 and 2009, the defendants caused the submission of federal income tax returns which falsely claimed refunds amounting to more than $2.6 million.
On August 20, 2013, Rachelle Beaubrun, 42, of Lauderhill, and Louis Richard Nemorin, a/k/a Richard Nemorin, a/k/a Louis Nemorin, 35, of Riviera Beach, were sentenced for their participation in the schemes. Beaubrun was sentenced to 102 months in prison, to be followed by three years of supervised release. Nemorin was sentenced to 60 months in prison, to be followed by three years of supervised release. Both defendants pled guilty to one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
Mr. Ferrer commended the investigative efforts IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Karen Rochlin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third City of Buffalo Employee Guilty of Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Francis Tronolone, 33, of Buffalo, N.Y., pleaded guilty to stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
“Today’s developments mean that three different employees of the same City Department have now been convicted of collectively stealing hundreds of thousands of dollars from the residents of this area,” said U.S. Attorney Hochul. “These crimes occurred day in and day out over many months and years. This Office will continue to pursue this investigation until all who may have abused their positions are identified and caught.”
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that from November 2003 to the present, the defendant was employed as a coin collector and later a parking meter mechanic in the City of Buffalo Department of Parking Enforcement. In this capacity, Tronolone was responsible for collecting coins deposited into parking meters and repairing malfunctioning meters.
During the period of his employment, the defendant stole approximately $9,000 in coins from city parking meters, money that was supposed to be deposited into the city treasury. Some of the money was stolen from parking meters that had been rigged by other parking meter mechanics. Tronolone kept a small cooler in the back of his vehicle where he would conceal the stolen coins.
Tronolone is the third employee of the Department of Parking Enforcement to be convicted in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. A fourth employee, Franklin Lopez, is charged also charged with stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Tennessee Cardiologist to Pay $1.15 Million to Settle Allegations <br /> That He Performed Medically Unnecessary Heart ProceduresRead the Press Release
Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
“ Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and can harm patients ,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “ Protecting public funds and safeguarding Medicare beneficiaries continues to be a Department of Justice priority .”Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease. The government contends that, from January 1, 2005, through December 31, 2008, Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary . The government also claims that Korban improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself.
“This case is one of many that underscores our commitment to holding accountable those who would cheat the health care system for their own personal profit,” said U.S. Attorney for the Western District of Tennessee Edward L. Stanton III. “We will continue to vigorously protect citizens from schemes that damage the ability of health care providers and patients to participate in a system free of false claims and dishonesty.”
As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.“Too many recent frauds involve medically unnecessary heart stents,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General region including Tennessee. “Providers are warned that they can be aggressively investigated and held accountable for falsely billing federal health programs.”
Assistant Attorney General Delery thanked the Department of Health and Human Services Office of Inspector General, the Tennessee Bureau of Investigation, the U.S. Attorney’s Office for the Western District of Tennessee and the Commercial Litigation Branch of the Justice Department’s Civil Division for the collaboration that resulted in the settlement.
The allegations resolved by the settlement were first raised in a lawsuit filed against Korban under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, will receive a share of the settlement amount. Deming’s share has not been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Wood M. Deming v. Jackson-Madison County General Hosp., et al., Case No. 07-1116-BBD (W.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Tennessee Cardiologist to Pay $1.15 Million to Settle Allegations That He Performed Medically Unnecessary Heart ProceduresRead the Press Release
Jackson, TN – Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
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“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and can harm patients,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Protecting public funds and safeguarding Medicare beneficiaries continues to be a Department of Justice priority.”
Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease. The government contends that, from January 1, 2005, through December 31, 2008, Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary. The government also claims that Korban improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself.
“This case is one of many that underscores our commitment to holding accountable those who would cheat the health care system for their own personal profit,” said U.S. Attorney for the Western District of Tennessee Edward L. Stanton III. “We will continue to vigorously protect citizens from schemes that damage the ability of health care providers and patients to participate in a system free of false claims and dishonesty.”
As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“Too many recent frauds involve medically unnecessary heart stents,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General region including Tennessee. “Providers are warned that they can be aggressively investigated and held accountable for falsely billing federal health programs.”
Assistant Attorney General Delery thanked the Department of Health and Human Services Office of Inspector General, the Tennessee Bureau of Investigation, the U.S. Attorney’s Office for the Western District of Tennessee and the Commercial Litigation Branch of the Justice Department’s Civil Division for the collaboration that resulted in the settlement.
The allegations resolved by the settlement were first raised in a lawsuit filed against Korban under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, will receive a share of the settlement amount. Deming’s share has not been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Wood M. Deming v. Jackson-Madison County General Hosp., et al., Case No. 07-1116-BBD (W.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Tampa Man Sentenced on Fraud ChargesRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatAdnan Ali Sabla, 50, of Tampa, Florida, was sentenced today by United States District Judge Robert Hinkle to serve 27 months in prison for fraud charges. Sabla will serve a three-year term of supervised release after his incarceration and is required to pay $112,861.12 in restitution.
Sabla was arrested on March 18, 2013, when he arrived in Tallahassee with 24 stolen and fraudulently-obtained Treasury checks. He admitted that he had delivered wrongfully-obtained checks on other occasions. Sabla was sentenced based on a total of 59 checks, in a total amount of $254,832.54.
The majority of these checks were obtained by the filing of income tax returns, which falsely claimed that refunds were due. Sabla also delivered some stolen Social Security and Veteran’s Benefits checks. In the pleas entered in court Sabla was described as a middleman who transported the checks between the persons who obtained them and persons who could cash them.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the U.S. Secret Service and the Internal Revenue Service.
The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
Tampa Man Sentenced to 7 Years in Federal Prison for Tax Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Quincy Wimberly (29, Tampa) to seven years in federal prison for theft of government property and aggravated identity theft. Quincy Wimberly pleaded guilty on September 5, 2013.
According to court documents, from at least as early as January of 2011, Wimberly engaged in stolen identity tax refund fraud. He was responsible for over sixty fraudulently filed tax returns and fraudulently obtained tax refunds in excess of $175,000.
Wimberly’s co-conspirators, Nikia Williams and Porscha Williams, were previously sentenced to 6 ½ years and 4 years in prison, respectively, for their roles in the scheme.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
Stephen Leon Williams Sentenced to 90 Months on Federal Drug and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – Stephen Leon Williams, 62, of Kingsport, Tenn., was sentenced on Dec. 18, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 90 months in federal prison. Williams was convicted for his participation in an oxycodone conspiracy centered in the Kingsport, Tenn., area of the Eastern District of Tennessee and for selling a firearm to an undercover agent.
In February 2013, Williams sold 55 oxycodone pills to an individual working on behalf of law enforcement. In March 2013, Williams sold another 5 oxycodone pills to this individual and in a subsequent transaction on the same day, sold a .38 caliber handgun and a clip with six rounds to an undercover law enforcement agent. Overall, Williams stipulated that he conspired to distribute approximately 2,250 (30 mg) oxycodone pills between June 2011 and June 2013.
Williams was on parole at the time he committed these offenses from a 1981 first degree murder conviction in Hawkins County. Within a fairly short amount of time after being granted parole on the murder conviction, Williams became involved in the trafficking of oxycodone. After completing his 90 month federal sentence, Williams still faces revocation of his parole on his murder conviction.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Williams include the Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office and Kingsport Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
U.S. Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed.”
St. Louis Man Sentenced for Home Invasion Robbery ConspiracyRead the Press Release
St. Louis, MO -- TRAY FERGUSON of Saint Louis, Missouri, was sentenced to 18 years imprisonment on December 18 by the Honorable Catherine D. Perry. Ferguson pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine and one count of possession of a firearm in furtherance of drug trafficking in July 2013. Ferguson is the first of five defendants to be sentenced in connection with an April 2013 conspiracy in which the five men agreed to, among other things, arm themselves, make entry into a house located in south Saint Louis City, and rob between 22 and 30 kilograms of cocaine from inside the residence.
In preparation for the robbery, Ferguson armed himself with a Springfield Armory make, Model XD, .45 caliber pistol loaded with 14 rounds of ammunition; an additional .45 caliber magazine loaded with 13 rounds of ammunition; and a Glock make, Model 22, .40 caliber pistol with an extended magazine loaded with 21 rounds of ammunition. Ferguson also obtained and provided to co-defendant Ricky Turner a Colt, Model Python, .357 caliber revolver; 15 rounds of ammunition; and a loaded Hi Point, Model C9, nine millimeter caliber pistol. Co-defendant James Clark possessed a Glock make, Model 19, nine millimeter caliber pistol with an extended magazine loaded with 33 rounds of ammunition.
Sentencing for each of the remaining four co-defendants has been set as follows: Tramaine Ellis: January 2, 2014; Ahmad Britton: February 11, 2014; Rickey Turner: February 6, 2014; and James Clark: March 4, 2014.
Ferguson’s sentencing comes as a result of the proactive investigation initiated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Louis Metropolitan Police Department in the Spring of 2013 to reduce violent crime within the City of Saint Louis.Six Chinese Nationals Indicted for Conspiring to Steal Trade Secrets from U.S. Seed CompaniesRead the Press Release
DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced the indictment on December 17, 2013, of six Chinese nationals for conspiracy to steal trade secrets from U.S. seed companies. The indictment alleges that from on or about April of 2011, to on or about December of 2012, Mo Hailong, Li Shaoming, Wang Lei, Wang Hongwei, Ye Jian and Lin Yong conspired to steal the trade secrets of several U.S. based seed manufacturing companies, and transport those trade secrets to China for the benefit of their China-based seed company. Mo Hailong was previously charged by criminal complaint on Tuesday, December 10, 2013.
Mo Hailong is employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, which is part of DBN Group. DBN Group is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.
Li Shaoming is Chief Executive Officer of Beijing Kings Nower Seed S & T Co., Ltd. Beijing Kings Nower Seed S & T, Co. (BKN) is the wholly owned seed subsidiary of DBN. Beijing Kings Nower Seed is headquartered in Beijing, China.
Wang Lei is a citizen and resident of China, and the Vice Chairman of Beijing Kings Nower Seed S & T CO., LTD.
Wang Hongwei is believed to be a resident of Quebec, Canada. Wang Hongwei is believed to be a citizen of both Canada and China.
Ye Jian is a citizen and resident of China, and a research manager for Beijing Kings Nower Seed S & T Co., Ltd.
Lin Yong is a citizen and resident of China, and an employee for Beijing Kings Nower Seed S & T Co., Ltd.
The defendants are alleged to have conspired to steal inbred corn seed from Dupont Pioneer, Monsanto, and LG Seeds. This “inbred” or “parent” line of seed constitutes valuable intellectual property of a seed producer. After stealing the inbred corn seed, the conspirators attempted to covertly transfer the inbred corn seed to China. The estimated loss on an inbred line of seed is approximately 5-8 years of research and a minimum of 30-40 million dollars.
The public is reminded that an indictment is merely a charge, and that the defendants are presumed innocent until and unless proven guilty.
(Download Press Release )
Six Arrested, 4.4 Kilograms of Heroin and $127,000 Seized by Law Enforcement During Heroin Distribution InvestigationRead the Press Release
TULSA, Okla. — On December 17, 2013, six people were arrested after search warrants were served by federal, state, and local law enforcement in a concerted effort to reduce the distribution of heroin in Tulsa County. Five of the six arrested were found to be unlawfully in the United States. The multiagency law enforcement effort seized approximately 4.4 kilograms of heroin, $127,971 in cash, three vehicles, and 27 mobile phones. This amount of heroin has an approximate value of $700,000 on the street.
Heroin is an opioid drug that is made from morphine and has powerful pain-relieving properties. The short-term effects of heroin include clouded thinking and shortness of breath. Users may also contract HIV/AIDS or hepatitis from a shared needle, slip into a coma, or death.
This is part of an ongoing investigation of the distribution of heroin in the Tulsa County area by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance by the Tulsa Police Department; Tulsa County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigation; Drug Enforcement Administration; and the Broken Arrow Police Department.
Each person arrested is presumed innocent and the facts presented must be proven in a court of law beyond a reasonable doubt.
Shiprock Man Pleads Guilty to Federal Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Elvan Hovel, 42, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today to a voluntarily manslaughter charge under a plea agreement with the U.S. Attorney’s Office.
Hovel was arrested in Aug. 2013, based on a criminal complaint charging him with second degree murder and subsequently charged in an indictment in Sept., 2013 with voluntary manslaughter. According to court filings, on July 22, 2012, Hovel pushed a 48-year-old Navajo woman who was intoxicated into an irrigation canal where the victim drowned.
In his plea agreement, Hovel admitted killing the victim on July 22, 2012, in a location within the Navajo Indian Reservation. Hovel pushed the victim into an irrigation canal at a time when the two were intoxicated and arguing. Hovel did not make any effort to rescue the victim as he watched her float away in the canal and go under.
Under the terms of the plea agreement, Hovel will be sentenced to five years in federal prison followed by a term of supervised release to be determined by the court. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Seven High Desert Residents Arrested by Members of Federal-State Task Force for Allegedly Selling MethamphetamineRead the Press Release
RIVERSIDE, California – An investigation by the High Desert Gang Impact Team this morning resulted in the arrest of seven defendants who face charges in federal and state court for distributing methamphetamine in the High Desert region.
The arrests this morning mark the culmination of a two-year investigation by the High Desert Gang Impact Team, which is made up of agents and deputies with the Federal Bureau of Investigation and the San Bernardino County Sheriff’s Department. Task Force members are continuing to search for two defendants who face federal charges.
A federal grand jury on November 27th returned five indictments in United States District Court that charge a total of six defendants. The federal indictments charge these defendants with distributing, and conspiring to distribute, methamphetamine.
The federal defendants, three of whom are expected to be arraigned this afternoon in United States District Court in Riverside, are:
- Christian Alejandro Navarro, 29, of Hesperia;
- Aldo Serna-Avila, 28, of Apple Valley;
- Johnnie Zuniga, 37, of Apple Valley;
- Candelario Vasquez, 49, of Apple Valley; who is in state custody on an unrelated charge;
- Jessica Enriquez, 29, of Apple Valley, who is currently a fugitive; and
- Virginia Gomez, 46, of Apple Valley, who is also being sought by authorities.
The federal defendants arrested today are expected to make their initial court appearances this afternoon in the United States District Court in Riverside. The six federal defendants, if convicted, each face a five-year mandatory minimum sentence and a statutory maximum sentence of 40 years.
Three defendants were charged by the San Bernardino County District Attorney’s Office with state narcotics offenses. The three defendants facing state charges are:
- Sally Oporto, 35, of Apple Valley;
- Nelly Rodriguez, 76, of Apple Valley; and
- Lucia Martinez, 46, of Victorville.
An indictment or complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
FBI agents with the Victorville resident agency; sheriff’s deputies from the Victorville, Apple Valley, Hesperia, and Adelanto sheriff’s stations; and officers from the San Bernardino County Probation Department participated in the execution of arrest warrants this morning.
Release No. 13-150
Sentences for December 13 – 19, 2013Read the Press Release
Rachel Marie Essley, 33, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 19, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 50 grams of methamphetamine. Essley was arrested in Cheyenne, Wyoming. She received 84 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Steven Wayne Hancock, 25, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 18, 2013, for conspiracy to possess with intent to distribute, and to distributing 50 grams or more of methamphetamine. Hancock was arrested in Rock Springs, Wyoming. He received 151 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Natalie A. Taylor, 46, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 18, 2013, for being a felon in possession of a firearm. Taylor was arrested in Cheyenne, Wyoming. She received 32 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Richard Wiberg, 38, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 17, 2013, for conspiracy to possess with intent to distribute, and to distributing 252 grams of methamphetamine. Wiberg was arrested in Casper, Wyoming. He received 72 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Jerry Lee Burkholder, 32, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for distribution of buprenorphine resulting in death. Burkholder was arrested in Rock Springs, Wyoming. He received 78 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Rock Springs Police Department.
Erick Romero-Badillo, 25, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for illegal re-entry of a previously deported alien into the United States. Romero-Badillo was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Joshua James Palmer, 28, of Douglas, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for being a felon in possession of a firearm. Palmer was arrested in Douglas, Wyoming. He received 13 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Douglas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mark A. Seiley, 41, of Morrill, Nebraska, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 13, 2013, for failure to register as a sex offender. Seiley was arrested in Cheyenne, Wyoming. He received time served, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Michael Olbekson, 41, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 13, 2013, for attempted online enticement of a minor. Olbekson was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years or supervised release, and was ordered to pay a $100.00 special assessment and a $1,000.00 fine. This case was investigated by the Federal Bureau of Investigation.
Raymond Anthony Lewis, 45, of Englewood, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 13, 2013, for conspiracy to possess with intent to distribute, and to distributing 200 grams of methamphetamine. Lewis was arrested in Casper, Wyoming. He received 262 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $2,500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Seed Company Owner Charged with Stealing Employee Pension FundsRead the Press Release
Andrew Sweeney, 66, of Wayne, Pennsylvania, was charged today by indictment with theft from an employee retirement fund, announced United States Attorney Zane David Memeger. According to the indictment, Sweeney, the President of Sweeney Seed Company, failed to pay monies, withheld from employees’ paychecks, to the employees’ IRA accounts and, instead, used the funds for unauthorized purposes. Sweeney allegedly embezzled $41,165.18 intended for the Sweeney Seed Company employee retirement account.
If convicted, Sweeney faces a maximum possible sentence of five years in prison, restitution, a $250,000 fine, and three years of supervised release.
The case was investigated by Department of Labor and the United States Secret Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Seattle Area Men Charged with Insider Trading Based on Microsoft Internal InformationRead the Press Release
Two Seattle area men were charged today in U.S. District Court in Seattle with 35 counts of insider trading related to their purchases and sales of stock options related to Microsoft Corporation, announced U.S. Attorney Jenny A. Durkan. One of the men, BRIAN JORGENSON, 32, of Lynnwood, Washington was employed as a Senior Manager in Microsoft’s Treasury Group. The other, SEAN STOKKE, 28, of Seattle was a day trader who had previously worked with JORGENSON at an asset management company. The complaint alleges that the two used non-public information from JORGENSON’s employment at Microsoft to profit on the movement of Microsoft stock and the stock of related companies. The men are scheduled to appear in U.S. District Court in Seattle at 3:00 this afternoon.
“For every stock market winner, there is a loser, and trading on confidential inside information is a cheaters way of gaining at the expense of others,” said U.S. Attorney Jenny A. Durkan. “This conduct hurts companies, hurts individuals, and shakes faith in our financial markets. We will vigorously investigate and prosecute this type of conduct.”
According to the criminal complaint, the men allegedly profited on three distinct instances of insider information: Microsoft’s investment in Barnes and Noble; Microsoft’s failure to meet earnings estimates in the fourth quarter of fiscal 2013; and Microsoft’s increased first quarter earnings in fiscal 2014. The men allegedly shared their profits by STOKKE providing JORGENSON with envelopes of cash in approximately $10,000 increments.
Through his employment, JORGENSON became aware in early April 2012 that Microsoft was considering an investment in Barnes and Noble for its digital and college business. Beginning April 18 and continuing, phone records show JORGENSON and STOKKE were in frequent contact. STOKKE opened an online options account and on April 20, 2012 began accumulating options on Barnes and Noble stock. On April 30, Microsoft announced the investment in Barnes and Noble, and the Barnes and Noble stock jumped 49%. STOKKE sold all his options that day for a profit of more than $184,000.
In early July 2013, JORGENSON learned through his employment that Microsoft would not meet its earnings estimate. Phone records show his contact with STOKKE. Beginning in mid-July, STOKKE bought “put” options on Microsoft stock – essentially betting it would go down. When Microsoft announced the lower than expected earnings on July 18, the stock did drop and the “put” options resulted in a profit to the two men of more than $195,000.
The final instance of insider trading charged in the complaint relates to trading in advance of the announcement of better than expected first quarter 2014 earnings. In October 2013, because of his employment, JORGENSON learned that Microsoft would announce a 17 percent increase in earnings per share over the prior year. One day before the announcement, STOKKE used brokerage accounts controlled by the two men to purchase call options of a technology sector fund that is influenced by the price of Microsoft stock. Following the earnings announcement, Microsoft stock and thus the sector fund went up. The men executed their options and sold the shares for a profit of nearly $13,000.
“The high density of publicly traded companies in Seattle affords a large number of people access to insider information that can unfairly benefit their investment decisions,” said FBI Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle field office. “While most employees will never exploit that knowledge, our FBI office is particularly attentive to uncovering when and where this type of fraud occurs. We have seen many types of schemes and evasion techniques by inside traders, but they all share an erroneous belief that they’ll never be caught.”
JORGENSON is no longer employed by Microsoft.
Insider trading is punishable by up to 20 years in prison and up to a $5,000,000 fine.
The Securities and Exchange Commission (SEC) is also filing a civil action against the men today.
The case was investigated by the FBI and the SEC. The case is being prosecuted by Assistant United States Attorney Katheryn Kim Frierson.
Salem Man Indicted for Attempt to Interfere with Administration of IRSRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Federal Grand Jury also returns three additional indictments
ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced that an investigation by the Internal Revenue Service-Criminal Investigations has led to a federal indictment being returned this week in Elkins.
DUANE PHILIP MCATEE, age 43, of Salem, West Virginia, was charged with one count of “Attempt to Obstruct or Impede the Due Administration of Justice.” If convicted, MCATEE faces up to three years in prison. This case will be prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
In the three separate cases:
ALFONSO CRUZ-GREGORIO, age 39, an inmate at FCI Gilmer, was named in a two-count Indictment charging him with “Assault with a Dangerous Weapon with Intent to do Bodily Harm” and “Possession of a Prohibited Object [Weapon].” If convicted, CRUZ- GREGORIO faces up to fifteen years in prison. This case will be prosecuted by Assistant U.S. Attorney Brandon S. Flower and was investigated by the Special Investigations Section at FCI Gilmer.
RONALD SNYDER, age 39, of Buckhannon, West Virginia, was named in a one-count Indictment charging him with “Failure to Update Sex Offender Registration” as required by the Sex Offender Registration and Notification Act. If convicted, SNYDER faces up to ten years in prison. This case will be prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the U.S. Marshals Service.
JOSE SANTOS NATIVI-REYES, age 33, was named in a one-count Indictment charging him with entering the United States, after having been previously deported, without obtaining the express consent of the Secretary of Homeland Security or the Attorney General of the United States to reapply for admission to the United States. NATIVI-REYES was found in Berkeley County, West Virginia, on September 13, 2013. If convicted, NATIVI-REYES faces up to two year in prison and deportation. The case will be prosecuted by Assistant United States Attorney Paul T. Camilletti and was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Rutland Man Sentenced to Nine Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 18, 2013, Chief Judge Christina Reiss, of the United States District Court, sentenced Calvin Alexander, 31, of Rutland to nine years imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. Alexander previously pled guilty to this offense and had agreed to a nine-year sentence.
According to court records, two weeks before the federal drug charges were brought in February 2013, the defendant was charged in state court with a home invasion in Rutland. According to state court records, this home invasion allegedly involved four male subjects, including the defendant (also known as “Drama”), storming into a Rutland residence with pepper spray and a firearm and attempting to rob the occupants of drugs and cash. Two of the occupants were injured in the assault. The defendant allegedly actively participated in this home invasion, including kicking in the door. In consideration of the defendant’s plea to a nine-year federal sentence, the United States Attorney’s Office agreed to recommend to the State Attorney’s Office that the state charges be dismissed.
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by Assistant Federal Public Defender Steven Barth. This case was jointly investigated by the Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, & Explosives.Ringleader of International Rhino Smuggling Conspiracy Pleads Guilty in New Jersey to Wildlife Trafficking CrimesRead the Press Release
Zhifei Li, the owner of an antique business in China, pleaded guilty today to being the organizer of an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino horn and elephant ivory worth more than $4.5 million were smuggled from the United States to China.
The guilty plea was announced by Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, Paul J. Fishman, U.S. Attorney for the District of New Jersey, Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
Li, 29, of Shandong, China, the owner of Overseas Treasure Finding in Shandong, pleaded guilty today before U.S. District Judge Esther Salas in Newark, N.J., to a total of 11 counts: one count of conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act; and two counts of making false wildlife documents.
Li was arrested in Florida in January 2013 on federal charges brought under seal in New Jersey and shortly after arriving in the country. Before he was arrested, he purchased two endangered black rhinoceros horns from an undercover USFWS agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li was arrested as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
In papers filed in Newark federal court, Li admitted that he was the “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang, aka “Jeffrey Wang,” who was sentenced to serve 37 months in prison on Dec. 5, 2013, in the Southern District of New York . Li played a leadership and organizational role in the smuggling conspiracy by arranging for financing to pay for the wildlife, purchasing and negotiating the price, directing how to smuggle the items out of the United States and obtaining the assistance of additional collaborators in Hong Kong to receive the smuggled goods and then smuggle them to him in mainland China.
“The take-down of the Li smuggling ring is an important development in our effort to enforce wildlife protection laws,” said Acting Assistant Attorney General Dreher for the Justice Department’s Environment and Natural Resources Division. “Rhino horn can sell for more than gold and is just as rare, but rhino horn and elephant ivory are more than mere commodities. Each illegally traded horn or tusk represents a dead animal, poaching, bribery, smuggling and organized crime. The Justice Department will continue to vigorously enforce the law designed to protect wildlife. This is a continuing investigation."
“The brutality of animal poaching, wherever it occurs, feeds the demand of a multibillion-dollar illegal international market,” said U.S. Attorney Fishman. “As a major hub of international commerce through our ports and busy airport, the District of New Jersey plays an important role in curbing the escalation of this devastating trade. Zhifei Li’s conviction is a warning to those who would be lured by the profits of dealing in cruelty.”
“The illegal trade in rhino horn has devastated the wild population of these magnificent animals, with the real possibility emerging that all sub-species will be extinct in the wild within our lifetimes,” said U.S. Attorney Ferrer. “Additionally, the poaching activities have cost the lives of enforcement rangers and wardens as the traffickers have resorted to greater levels of violence to feed the black market. This case reflects the seriousness with which we regard these activities and our commitment to work collectively to quash the conduct and hold the law-breakers accountable.”
“The staggering prices paid for rhino horn by criminals like Zhifei Li and his accomplices ensure that unscrupulous poachers continue to slaughter these animals, and it’s our hope that his conviction serves as a warning to other traffickers of the severe consequences they face,” said Fish and Wildlife Service Director Ashe. “The unparalleled greed of criminal trafficking rings like Li’s fuel the poaching epidemic that is decimating rhinoceros populations in the wild. Regardless of whether the horns he smuggled were sawed off the corpse of a rhino last year or a decade ago, each one represents the death of one of the world’s most endangered animals.”
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (known as CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where raw rhinoceros horns are carved into fake antiques known as Zuo Jiu (which means “to make it as old” in Mandarin). In China, there is a centuries-old tradition of drinking from an intricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques.
According to the charges, plea agreement and a detailed joint factual statement filed in in Newark federal court , the investigation of Li began in November 2011, after a confidential informant sold two raw rhino horns to a middleman at the Vince Lombardi rest stop on the New Jersey Turnpike in an Operation Crash undercover sale. These government-supplied rhino horns were, in turn, sold to a Long Island City antiques dealer who was working for Li.
At Li’s direction, raw rhino horns were hidden by wrapping them in duct tape, hiding them in porcelain vases and falsely describing them on customs and shipping documents, including by labeling them as porcelain vases or handicrafts.
Li purchased 25 raw rhino horns, including 13 endangered black rhinoceros horns weighing approximately 151 pounds, through connections in New York and New Jersey, and another five raw rhino horns weighing at least 20 pounds through an accomplice in Dallas.
Li sold whole rhino horns to factories where they would be carved into fake antiques. The leftover pieces from the carving process were sold for alleged “medicinal” purposes even though rhino horn is made of compressed keratin, the same material in human hair and nails and has no proven medical efficacy.
Between 2011 and 2013, Li purchased approximately 60 carved ivory items from U.S. auction houses with an approximate market value of $500,000, all of which were smuggled to China at Li’s direction.
Before arriving in Miami, Li sent a text message to the Long Island City antiques dealer saying that he had as much as $500,000 to spend in the U.S. on antiques and rhino horn. When purchasing two rhino horns from an undercover USFWS agent at a Miami Beach hotel, Li told the covert agent that he was interested in buying more rhino horns regardless of quality, as much as the agent could find, and inquired if the horns could be shipped directly to Hong Kong.
In April 2012, after a Dallas-based accomplice purchased a large, eight-pound raw rhino horn for Li in Florida worth more than $140,000, Li sent the dealer an email directing him to cut the horn into two pieces, wrap them in electrical tape, and send them to Hong Kong in separate packages. The email included a photo of the rhino horn with a red line drawn though it indicating where the lengthy horn should be cut.
After Li’s conspirator in Long Island City purchased two raw elephant tusks for Li weighing more than 100 lbs, Li sent instructions by email that the shipper should declare the contents as “automobile parts” and not use the word “tusk” on the shipping documents.
Li smuggled libation cups carved from rhinoceros horns from the U.S. to Hong Kong. Rhino carvings valued as much as $242,500 were sold to Li’s customers in China. In early 2013, one of those customers, Shusen Wei, pleaded guilty in the Southern District of Florida to knowingly buying a smuggled rhino carving from Li.
The plea agreement requires Li to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Also, various ivory objects seized by the USFWS as part of the investigation will be surrendered. The maximum potential penalty is 10 years for each of the smuggling counts and five years for each of the other offenses, as well as a $250,000 fine per count, or twice the gross gain or loss from the offense. Sentencing before Judge Salas has been scheduled.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Barbara Ward of the New Jersey U.S. Attorney’s Office Criminal Division and Asset Forfeiture and Money Laundering Unit, Assistant U.S. Attorney Thomas Watts-FitzGerald of the U.S. Attorney’s Office for the Southern District of Florida and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.Related Materials:
Superseding Information
Li, zhifei JFSRingleader of International Rhino Smuggling Conspiracy Pleads Guilty in New Jersey to Wildlife Trafficking CrimesRead the Press Release
WASHINGTON – Zhifei Li, the owner of an antique business in China, pleaded guilty today to being the organizer of an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino horn and elephant ivory worth more than $4.5 million were smuggled from the United States to China.
The guilty plea was announced by Paul J. Fishman, U.S. Attorney for the District of New Jersey; Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice; Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).
“The brutality of animal poaching, wherever it occurs, feeds the demand of a multibillion-dollar illegal international market,” said U.S. Attorney Fishman. “As a major hub of international commerce through our ports and busy airport, the District of New Jersey plays an important role in curbing the escalation of this devastating trade. Zhifei Li’s conviction is a warning to those who would be lured by the profits of dealing in cruelty.”
Li, 29, of Shandong, China, the owner of Overseas Treasure Finding in Shandong, pleaded guilty today before U.S. District Judge Esther Salas in Newark, N.J., to a total of 11 counts: one count of conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act; and two counts of making false wildlife documents.
Li was arrested in Florida in January 2013 on federal charges brought under seal in New Jersey and shortly after arriving in the country. Before he was arrested, he purchased two endangered black rhinoceros horns from an undercover USFWS agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li was arrested as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
In papers filed in Newark federal court, Li admitted that he was the “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang, aka “Jeffrey Wang,” who was sentenced to 37 months in prison on Dec. 5, 2013, in the Southern District of New York. Li played a leadership and organizational role in the smuggling conspiracy by arranging for financing to pay for the wildlife, purchasing and negotiating the price, directing how to smuggle the items out of the United States, and obtaining the assistance of additional collaborators in Hong Kong to receive the smuggled goods and then smuggle them to him in mainland China.
“The take-down of the Li smuggling ring is an important development in our effort to enforce wildlife protection laws. Rhino horn can sell for more than gold and is just as rare, but rhino horn and elephant ivory are more than mere commodities. Each illegally traded horn or tusk represents a dead animal, poaching, bribery, smuggling and organized crime,” said Acting Assistant Attorney General Dreher. “The Justice Department will continue to vigorously enforce the law designed to protect wildlife. This is a continuing investigation.”
“The illegal trade in rhino horn has devastated the wild population of these magnificent animals; with the real possibility emerging that all sub-species will be extinct in the wild within our lifetimes,” said U.S. Attorney Ferrer. “Additionally, the poaching activities have cost the lives of enforcement rangers and wardens as the traffickers have resorted to greater levels of violence to feed the black market. This case reflects the seriousness with which we regard these activities and our commitment to work collectively to quash the conduct and hold the law-breakers accountable.”“The staggering prices paid for rhino horn by criminals like Zhifei Li and his accomplices ensure that unscrupulous poachers continue to slaughter these animals, and it’s our hope that his conviction serves as a warning to other traffickers of the severe consequences they face,” said Fish and Wildlife Service Director Ashe. “The unparalleled greed of criminal trafficking rings like Li’s fuel the poaching epidemic that is decimating rhinoceros populations in the wild. Regardless of whether the horns he smuggled were sawed off the corpse of a rhino last year or a decade ago, each one represents the death of one of the world’s most endangered animals.”
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (known as CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where raw rhinoceros horns are carved into fake antiques known as Zuo Jiu (which means “to make it as old” in Mandarin. In China, there is a centuries old tradition of drinking from an intricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques.
According to the charges, plea agreement and a detailed joint factual statement filed in in Newark federal court:
The investigation of Li began in November 2011, after a confidential informant sold two raw rhino horns to a middleman at the Vince Lombardi rest stop on the New Jersey Turnpike in an Operation Crash undercover sale. These government-supplied rhino horns were, in turn, sold to a Long Island City antiques dealer who was working for Li.
At Li’s direction, raw rhino horns were hidden by wrapping them in duct tape, hiding them in porcelain vases and falsely describing them on customs and shipping documents, including by labeling them as porcelain vases or handicrafts.
Li purchased 25 raw rhino horns, including 13 endangered black rhinoceros horns weighing approximately 151 pounds, through connections in New York and New Jersey, and another five raw rhino horns weighing at least 20 pounds through an accomplice in Dallas, Texas.
Li sold whole rhino horns to factories where they would be carved into fake antiques. The leftover pieces from the carving process were sold for alleged “medicinal” purposes even though rhino horn is made of compressed keratin, the same material in human hair and nails and has no proven medical efficacy.
Between 2011 and 2013, Li purchased approximately 60 carved ivory items from U.S. auction houses with an approximate market value of $500,000, all of which were smuggled to China at Li’s direction.
Before arriving in Miami, Li sent a text message to the Long Island City antiques dealer saying that he had as much as $500,000 to spend in the U.S. on antiques and rhino horn. When purchasing two rhino horns from an undercover USFWS agent at a Miami Beach hotel, Li told the covert agent that he was interested in buying more rhino horns regardless of quality, as much as the agent could find, and inquired if the horns could be shipped directly to Hong Kong.
In April 2012, after a Dallas-based accomplice purchased a large, eight-pound raw rhino horn for Li in Florida worth more than $140,000, Li sent the dealer an email directing him to cut the horn into two pieces, wrap them in electrical tape, and send them to Hong Kong in separate packages. The email included a photo of the rhino horn with a red line drawn though it indicating where the lengthy horn should be cut.
After Li’s conspirator in Long Island City purchased two raw elephant tusks for Li weighing more than 100 pounds, Li sent instructions by email that the shipper should declare the contents as “automobile parts” and not use the word “tusk” on the shipping documents.
Li smuggled libation cups carved from rhinoceros horns from the U.S. to Hong Kong. Rhino carvings valued as much as $242,500 were sold to Li’s customers in China. In early 2013, one of those customers, Shusen Wei, pleaded guilty in the Southern District of Florida to knowingly buying a smuggled rhino carving from Li.The plea agreement requires Li to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Also, various ivory objects seized by the USFWS as part of the investigation will be surrendered. The maximum potential penalty is 10 years for each of the smuggling counts and five years for each of the other offenses, as well as a $250,000 fine per count, or twice the gross gain or loss from the offense. Sentencing before Judge Salas has been scheduled for April 1, 2014.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Barbara Ward of the New Jersey U.S. Attorney’s Office Criminal Division and Asset Forfeiture and Money Laundering Unit, Assistant U.S. Attorney Thomas Watts-FitzGerald of the U.S. Attorney’s Office for the Southern District of Florida and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
13-475
Defense counsel: Gary Cutler Esq., New York
Li, Zhifei Superseding Information
Li, Zhifei JFS
Li, Zhifei JFS Exhibits
Li Exhibt 1
Li Exhibit 1a
Li Exhibit 2
Li Exhibit 7
Li Exhibit 10
Li Exhibit 10a
Li Exhibit 11
Li Exhibit 12Richmond Man Pleads Guilty and Admits to Stealing Millions Through A Rehabilitation Tax Credit SchemeRead the Press Release
RICHMOND, Va. – Billy Gene Jefferson, 52, of Richmond, Va., pleaded guilty today for his role in stealing over $12,000,000 from federal and state tax credit programs that are designed to promote the rehabilitation of historic buildings in the area.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; Gary Barksdale, Inspector in Charge of the United States Postal Inspection Service, Washington, D.C. Division; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after the plea was accepted by United States District Judge John A. Gibney, Jr.
Jefferson was charged in a criminal information with Major Fraud Against the United States and Engaging in Unlawful Monetary Transactions. He faces a maximum penalty of 20 years in prison, restitution to the victims, a fine of up to $500,000, and three years of supervised release when he is sentenced on April 8, 2014.
According to a statement of facts filed with the plea agreement, Jefferson was the managing member of “River City Renaissance, LC” and “River City Renaissance III, LC,” both real estate development companies that specialized in urban renewal projects and the rehabilitation of historic buildings. The defendant also used another corporation, “River City Real Estate, Inc.,” (RCRE) as the general contractor for rehabilitation work on the properties. Using these entities, Jefferson applied for millions in state and federal historic tax credits in connection with his rehabilitation of a number of historic properties throughout the Richmond area.
At the state level, the Virginia Department of Historic Resources (VDHR) administered the Virginia Historic Rehabilitation Tax Credit program. That program allowed the property owner to receive a state income tax credit equal to 25 percent of the amount spent on eligible rehabilitation expenses. At the federal level, the U.S. Department of the Interior National Park Service (DOI-NPS) administered the Federal Historic Preservation Tax Incentives program, which encouraged private sector rehabilitation of historic buildings through tax credits equal to 20 percent of the amount spent on eligible rehabilitation expenses.
Jefferson admitted that from 2009 through 2011 he fraudulently participated in the state and federal historic rehabilitation tax credit programs through the rehabilitation of qualified properties. Specifically, he submitted applications for federal and state tax credits on the rehabilitation of a former tobacco manufacturing plant in the Manchester Industrial Historic District of Richmond, Virginia (referred to as the TABAC Project), which was followed by the rehabilitation of ten historic buildings located in the Fan District of Richmond, Virginia (referred to as the River City Renaissance Projects).
Among other steps in his fraudulent rehabilitation tax credit scheme, Jefferson executed and submitted false applications to the VDHR and DOI-NPS for the tax credit approval process, including the Part 3: Historic Preservation Certification Application – Request for Completed Work form that requires accurate certification of “costs attributed solely to rehabilitation of the historic structure.” Within the Part 3 Certifications, Jefferson falsely inflated the Qualified Rehabilitation Expenses (QREs), thereby increasing the tax credits claimed for specific projects. Jefferson agreed that if actual amounts had been submitted to federal and state authorities, he would have received less in Virginia and federal tax credits.
With respect to the River City Renaissance Projects, Jefferson admitted to initiating the historic rehabilitation tax credit application process on at least 10 different properties in Richmond, Virginia. Due to concerns with the accuracy of the defendant’s QRE submissions, VDHR required additional information to address the concerns on six of the properties. During the verification process for those expenses, Jefferson provided false information and concealed the actual QRE expenditures that he knew to be less than the amounts claimed on the original submissions to VDHR. In total, for the River City Renaissance Projects, Jefferson’s account records established that of the $28,836,342 in QRE expenses claimed, only $9,796,252.08 could have qualified as QREs for federal and state tax credits on the River City Renaissance Projects. As a result of those false submissions, Jefferson fraudulently received approximately $7,775,410.46 in actual tax credits on the River City Renaissance Projects.
Jefferson also admitted to submitting inflated QREs for the TABAC Project. His account records established that of the $57,064,858 in QRE expenses claimed, only $45,570,466.20 could have qualified as QREs for federal and state tax credits on the TABAC Project. As a result of those false submissions, Jefferson fraudulently obtained approximately $5,172,476.31 in tax credits on the TABAC Project.
Jefferson also admitted to using different business arrangements resulting in portions of the Federal tax credits accruing to the benefit of corporation C.U.S.A. and portions of the state tax credits accruing to benefit of corporation F & Co. Through those arrangements, he received payments from those corporations in exchange for the tax credits. Jefferson admitted that as part of the ongoing scheme to defraud, he caused C.U.S.A. to wire transfer $3,674,277 from a Citibank bank account to the River City Renaissance, LC Wachovia Bank account (ending in 9277), in Richmond, Virginia. Jefferson subsequently transferred those funds to different accounts under his control, including personal accounts he maintained at HSBC Bank International.
In connection with his guilty plea, Jefferson agreed that the loss amount relating to the federal tax credits is $5,754,616.34, and the loss amount relating to the state credits is $7,193,270.43, for a combined total of $12,947,886.77. He agreed to pay that full amount for restitution, as well as an additional $750,000 for criminal forfeiture.
This case was investigated by the Internal Revenue Service Criminal Investigation Division, Federal Bureau of Investigation Richmond Office, the United States Postal Inspection Service, and the Virginia State Police. The Virginia Department of Historic Resources also assisted law enforcement in the investigation. Assistant United States Attorneys Michael Gill and Wingate Grant and Special Assistant United States Attorney Patrick Dorgan are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Real Estate Agent Headed to Prison for Money LaunderingRead the Press Release
McALLEN, Texas - Freddy Centeno, 52 of Brownsville, has been ordered to prison for money laundering for a convicted drug trafficker, announced United States Attorney Kenneth Magidson. Centeno, a licensed real estate agent, pleaded guilty to a one-count criminal information August 30, 2013.
Today, U.S. District Judge Micaela Alvarez handed Centeno a sentence of 24 months in prison to be immediately followed by a two-year-term of supervised release. In handing down the sentence, Judge Alvarez noted Centeno was responsible for laundering more than $200,000 and further ordered the forfeiture of all real properties.
At the time of his plea, he admitted he helped a narcotics trafficker launder drug profits through the purchase of real properties in Brownsville. Centeno structured financial transactions of residential and commercial properties to conceal the identity and ownership of a narcotics trafficker.
The conviction and sentence comes as a result of the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Spike Strip. The narcotics trafficking and money-laundering investigation targeted the Armando Arambul drug trafficking organization which operated under the auspices of the Gulf Cartel in Matamoros, Mexico, and throughout the Southern District of Texas.
Arambul and others were responsible for transporting multi-ton quantities of cocaine to Houston and other major U.S. cities and remitted millions of dollars to the Gulf Cartel. Arambul was convicted and was previously sentenced to 14 years in prison.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, FBI, Customs and Border Protection, Border Patrol, Cameron County District Attorney’s Office-Narcotics Investigation Division and the U.S. Marshals Service. Assistant United States Attorneys Jesse Salazar is prosecuting the case.Quad Cities Area Man Sentenced on Federal Marijuana ConspiracyRead the Press Release
DAVENPORT, IA – On December 19, 2013, Autumn E. Skelton, age 38, of Port Byron, Illinois, was sentenced by Chief United States District Judge James E. Gritzner to 18 months imprisonment for conspiracy to distribute at least 50 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Skelton was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately October 2010 and continuing until about October 27, 2012, Skelton conspired with other persons to distribute marijuana in the Quad Cities area. Specifically, Skelton and co-defendant John Michael Masterson received multiple kilograms of marijuana on multiple occasions from persons transporting the marijuana in vehicles from Northern California to the Davenport, Iowa area on behalf of co-defendant David Gabriel Morago. Skelton further distributed the marijuana he received to customers in the Port Byron, Illinois area.
On October 8, 2013, Chief Judge Gritzner sentenced Masterson to 24 months imprisonment and three years of supervised release following imprisonment for conspiracy to distribute marijuana. On October 23, 2013, Judge Gritzner sentenced Morago to 110 months imprisonment and four years of supervised release for conspiracy to distribute marijuana.
This case was investigated by the United States Drug Enforcement Agency - Quad Cities Metropolitan Enforcement Group; Davenport, Iowa, Police Department; South Dakota Highway Patrol; South Dakota Division of Criminal Investigation; and Mendocino County California Sherriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Previously Convicted Sex Offender Sentenced to 25 Years for Sex Trafficking a Minor and Two AdultsRead the Press Release
Terrance Anderson, aka Scooby, has been sentenced to federal prison on charges of sex trafficking of a minor and two counts of transporting adults in interstate commerce for prostitution. Anderson, 42, of Ellenwood, Ga., was sentenced by U.S. District Judge Thomas W. Thrash to serve 25 years in prison to be followed by seven years supervised release. Anderson was ordered to pay restitution to three victims totaling $154,500. Anderson pleaded guilty to the charges on July 19, 2013.
“This sentence makes clear that those who prey upon women and girls and coerce them into prostitution will be punished severely,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice will continue to devote its full efforts to investigating and prosecuting those who commit such heinous crimes.”
“This defendant chose to earn a living exploiting minors, even continuing to do so after previously serving a federal sentence for sex trafficking-related conduct,” said U.S. Attorney Sally Quillian Yates of the Northern District of Georgia. “Our office will remain vigilant in our efforts to prosecute those who exploit children and young women in this district.”"Today's sentencing removes a dangerous individual from our streets who has repeatedly shown a callous disregard for the basic human rights of others,” said Acting Special Agent in Charge Ricky Maxwell for the Federal Bureau of Investigation (FBI) Atlanta Field Office. “Human trafficking and child exploitation cases such as this reaffirm the FBI's mission as we work to protect and help those that may not be able to help themselves."
According to U.S. Attorney Yates, the charges and other information presented in court, from February 2008 through December 2011, Anderson ran a prostitution ring in which he advertised the sexual services of a minor and young women on the internet, including K.B., T.B., A.C. and other victims. He advertised on sites such as Backpage, Craig’s List and Eros, as well as his own website, Rentsomethingsexy.com. Anderson caused K.B., a 17-year-old girl, to engage in commercial sex acts in multiple states, requiring her to earn $1,000 a day, work seven days-a-week and give all of her earnings to him. Anderson also transported 18-year-old T.B. and 24-year-old A.C. from Georgia to Virginia, where he required the young women to perform numerous commercial sex acts for his financial gain.
Anderson previously pleaded guilty in August 2001 to using a cell phone, which is a facility of interstate commerce, to cause a juvenile to engage in prostitution and to being a felon in possession of a firearm. He received a sentence of seven years in federal prison after providing information to federal investigators about other sex trafficking crimes and testifying at the trial of two other human traffickers. However, Anderson resumed his sex trafficking activities after completing his prison sentence.
This case was investigated by Special Agents of the FBI. If anyone has any information about human trafficking, they are encouraged to report the information to the FBI at 404-679-9000.
Assistant U.S. Attorney Susan Coppedge of the Northern District of Georgia and Deputy Chief Karima Maloney of the Civil Rights Division prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Previously Convicted Sex Offender Sentenced to 25 Years for Child Sex TraffickingRead the Press Release
ATLANTA – Terrance Anderson, a/k/a/ Scooby, has been sentenced to federal prison on charges of sex trafficking of a minor and two counts of transporting adults in interstate commerce for prostitution.
“This defendant lived off the sexual exploiting of minors, even after previously serving a federal sentence for sex trafficking-related conduct,” said United States Attorney Sally Quillian Yates. “Our office will remain vigilant in our efforts to prosecute those who exploit children and young women in this district.”“For his own benefit, the defendant preyed upon women and girls, coercing them into prostitution,” said Jocelyn Samuels Acting Assistant Attorney General for the Civil Rights Division. “The Department of Justice will continue to devote its full efforts to prosecuting those who commit such heinous crimes.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing removes a dangerous individual from our streets who has repeatedly shown a callous disregard for the basic human rights of others. Human trafficking and child exploitation cases such as this reaffirm the FBI's mission as we work to protect and help those that may not be able to help themselves.”
According to United States Attorney Yates, the charges and other information presented in court: From February 2008 through December 2011, Anderson ran a prostitution ring in which he advertised the sexual services of a minor and young women, including victims K.B., T.B., A.C. and other victims on the Internet. He advertised on sites such as Backpage, Craig’s List and Eros, as well as his own website, Rentsomethingsexy.com. Anderson caused K.B., a 17-year-old girl, to engage in commercial sex acts in multiple states, requiring her to earn $1,000 a day, work seven days-a-week, and give all her earnings to him. Anderson also transported 18-year-old T.B., and 24-year-old A.C., from Georgia to Virginia, where he required the young women to perform numerous commercial sex acts for his financial gain.
Anderson previously pleaded guilty in August 2001 to using a cell phone, which is a facility of interstate commerce, to cause a juvenile to engage in prostitution, and to being a felon in possession of a firearm. He received a sentence of seven years in federal prison after providing information to federal investigators about other sex trafficking crimes and testifying at the trial of two other human traffickers. However, Anderson resumed his sex trafficking activities after completing his prison sentence.
Terrance Anderson, 42, of Ellenwood, Ga., was sentenced by United States District Judge Thomas W. Thrash to 25 years in prison to be followed by seven years of supervised release. Anderson was ordered to pay restitution to victims totaling $154,550. Anderson pleaded guilty to the charges on July 19, 2013.
This case was investigated by Special Agents of the Federal Bureau of Investigation. If anyone has any information about human trafficking, they are encouraged to report the information to the Federal Bureau of Investigation at 404-679-9000.
Assistant United States Attorney Susan Coppedge and Department of Justice Deputy Chief Karima Maloney prosecuted the case.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
President Obama Grants Commutations and PardonsRead the Press Release
Today President Barack Obama granted clemency to 21 individuals, consisting of eight commutations and 13 pardons.
The President granted commutations to the following eight individuals:
- Clarence Aaron - Mobile, Ala.
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; attempt to possess cocaine with intent to distribute (Southern District of Alabama)
Sentence: Life imprisonment, five years' supervised release (Dec. 10, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014 - Stephanie Yvette George - Pensacola, Fla.
Offense: Conspiracy to possess cocaine base with intent to distribute (Northern District of Florida)
Sentence: Life imprisonment, ten years' supervised release (May 5, 1997)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014 - Ezell Gilbert - Tampa, Fla.
Offense: Possession with intent to deliver cocaine base; possession with intent to distribute marijuana (Middle District of Florida)
Sentence: 292 months' imprisonment, five years' supervised release (Mar. 25, 1997)
Commutation Grant: Prison sentence commuted to time already served - Helen R. Alexander Gray - Ty Ty, Ga.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; possession of a firearm by a convicted felon (Middle District of Georgia)
Sentence: 240 months' imprisonment; 10 years’ supervised release (Oct. 8, 1996)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014 - Jason Hernandez - McKinney, Tex.
Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base; possession with intent to distribute methamphetamine; possession with intent to distribute a mixture of methamphetamine and cocaine hydrochloride; distribution of a controlled substance within 1,000 feet of a protected property; establishing a place for manufacture and distribution of controlled substances (Eastern District of Texas)
Sentence: Life imprisonment; eight years' supervised release; $5,000 fine (Oct. 2, 1998)
Commutation Grant: Prison sentence commuted to 240 months (20 years) - Ricky Eugene Patterson - Fort Pierce, Fla.
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (Southern District of Florida)
Sentence: Life imprisonment, 10 years’ supervised release (Aug. 3, 1995)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014 - Billy Ray Wheelock - Belton, Tex.
Offense: Conspiracy to distribute more than 50 grams of crack cocaine; possession with intent to distribute more than 5 grams of crack cocaine within 1,000 feet of a school; possession with intent to distribute crack cocaine; aiding and abetting possession with intent to distribute and distributing more than 5 grams of crack cocaine within 1,000 feet of a school (Western District of Texas)
Sentence: Life imprisonment, 10 years' supervised release, $3,000 fine (Jun. 9, 1993)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014 - Reynolds Allen Wintersmith, Jr. - Rockford, Ill.
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; possession with intent to distribute cocaine base (Northern District of Illinois)
Sentence: Life imprisonment, five years' supervised release, $1,000 fine (Nov. 23, 1994)
Commutation Grant: Prison sentence commuted to expire on April 17, 2014
The President granted pardons to the following thirteen individuals:
- William Ricardo Alvarez - Marietta, Ga.
Offense: Conspiracy to possess with intent to distribute heroin ; conspiracy to import heroin (District of Puerto Rico)
Sentence: Time served after service of nine months' imprisonment, four years' supervised release (Apr. 30, 1997; amended Jul. 31, 1997) - Charlie Lee Davis, Jr . - Wetumpka, Ala.
Offense: Possession with intent to distribute and distribution of cocaine base; use of a minor to distribute cocaine base (Middle District of Alabama)
Sentence: 87 months' imprisonment, five years' supervised release (Mar. 21, 1995) - Ronald Eugene Greenwood - Crane, Mo.
Offense: Conspiracy to violate the Clean Water Act (District of South Dakota)
Sentence: Three years' probation, conditioned on six months' home confinement and 100 hours’ community service, $5,000 restitution, $1,000 fine (Nov. 18, 1996) - Little Joe Hatch , aka Joe Hatch Sr. - Lake Placid, Fla.
Offense: Possession with intent to distribute marijuana (Southern District of Florida)
Sentence: 60 months' imprisonment, four years' supervised release (May 15, 1990) - Martin Alan Hatcher . - Foley, Ala.
Offense: Distribution and possession with intent to distribute marijuana (Southern District of Alabama)
Sentence: Five years' probation (Nov. 9, 1992) - Derek James Laliberte - Auburn, Me.
Offense: Money laundering (District of Maine)
Sentence: 18 months imprisonment, 2 years' supervised release (Oct. 2, 1992, as amended May 21, 1993) - Alfred J. Mack - Manassas, Va.
Offense: Unlawful distribution of heroin (District of Columbia Superior Court)
Sentence: 18 to 54 months' imprisonment (Apr. 5, 1982) - Robert Andrew Schindler - Goshen, Va.
Offense: Conspiracy to commit wire fraud; conspiracy to commit mail and wire fraud (District of Utah)
Sentence: Three years' probation conditioned on four months' home confinement, $10,000 restitution (May 14, 1996) - Willie Shaw, Jr. - Myrtle Beach, S.C.
Offense: Armed bank robbery (District of South Carolina)
Sentence: Fifteen years' imprisonment (Aug. 7, 1974) - Kimberly Lynn Stout , formerly known as Kimberly Lynn Cooley - Bassett, Va.
Offense: Bank embezzlement; false entries in the books of a lending institution (Western District of Virginia)
Sentence: One day of imprisonment, three years' supervised release, conditioned on five months’ home detention) (Nov. 9, 1993) - Bernard Anthony Sutton, Jr. - Norfolk, Va.
Offense: Theft of personal property (Eastern District of Virginia)
Sentence: Three years' probation, $825 restitution, $500 fine (Apr. 4, 1989) - Chris DeAnn Switzer , formerly known as Chris DeAnn Rasco - Omaha, Neb.
Offense: Conspiracy to violate narcotics laws (methamphetamine) (District of Nebraska)
Sentence: Four years' probation, conditioned on six months’ home confinement and 200 hours' community service (Jun. 25, 1996) - Miles Thomas Wilson - Williamsburg, Ohio.
Offense: Mail fraud (Southern District of Ohio)
Sentence: Three years’ probation (Jul. 15, 1981)
- Clarence Aaron - Mobile, Ala.
Pollock Prisoner Sentenced to 80 Months in Prison for Assaulting Fellow InmateRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that John Waller, 41, of New Rochelle, N.Y., was sentenced by U.S. District Judge Dee D. Drell to 80 months in prison and three years of supervised release for attacking a fellow inmate with a makeshift knife at the U.S. Penitentiary at Pollock, La. A federal jury found Waller guilty on September 17, 2013 after a two-day trial.
At the trial, it was established that on March 28, 2010, Waller stabbed a fellow inmate repeatedly with a makeshift knife. The assaulted inmate received puncture wounds to the upper body and was brought to a nearby hospital for treatment. The attack was recorded by the prison’s video recording system. Waller is currently serving a 320-month sentence on narcotics and weapons charges.
The Federal Bureau of Investigation and U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Pine Ridge Man Sentenced for Abusive Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Abusive Sexual Contact with a Minor was sentenced on December 16, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Archie Backward, age 22, was sentenced to 14 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Backward pled guilty to the charge on August 26, 2013. The charge related to Backward engaging in sexual contact with a minor female on November 6, 2012, at Pine Ridge.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Backward was immediately turned over to the custody of the U.S. Marshals Service.
Pikeville Man Sentenced for Robbing North Carolina and South Carolina BanksRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced BRIAN GARLAND LANCASTER, 47, of Pikeville, North Carolina, to 84 months imprisonment, consecutive on each count, followed by 5 years of supervised release.
On September 16, 2013 LANCASTER was charged in a three-count superseding criminal information. On September 24, 2013 he pled guilty to two counts of Armed Bank Robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d); and to one count of Attempted Bank Robbery in violation of Title 18, United States Code, Section 2113(a).
According to the investigation, on October 12, 2012, LANCASTER robbed the First Citizens Bank in Myrtle Beach, South Carolina with a BB gun. He took approximately $6,190.00, in currency. On October 16, 2012 LANCASTER approached the entrance to Heritage Bank in Fremont, North Carolina and pulled the hood of his sweatshirt over his head. A bank employee observed LANCASTER’S suspicious behavior and activated the automatic door lock feature. LANCASTER fled the scene. On October 17, 2012, LANCASTER, entered the Southern Bank in Roanoke Rapids armed with a BB gun. He pointed the gun at two tellers and commanded them to fill his bag with money. The tellers complied and LANCASTER fled with $7,862.98 currency.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Roanoke Rapids Police Department, Asheville Police Department, Halifax Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Pamlico County Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today that United States District Judge Louise W. Flanagan sentenced NORRIS WILLIS, 42, of Bayboro, North Carolina, to 123 months of imprisonment and 10 years of supervised release. WILLIS previously pled guilty to conspiracy to distribute 5 kilograms or more of cocaine and 280 grams or more of crack cocaine.
On October 21, 2008, WILLIS was arrested in South Carolina after he and his co-conspirators purchased 1 kilogram of cocaine from a confidential informant. On November 30, 2010, the Pamlico County Sheriff’s Office used another confidential informant to buy 4.8 grams of cocaine base (crack) from WILLIS. The investigation revealed that WILLIS was accountable for the distribution of 100 kilograms of cocaine, 1.48 kilograms of cocaine base (crack) and 27 kilograms of marijuana from 1992 until November 30, 2010.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
he federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Pair Pleads Guilty to $4.4 Million False Income Tax Refund SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Jose Luis Martinez, 47, of Columbus, Ohio, and Mercedes Emelinda-Silie, 41, of Grove City, Ohio both pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service (IRS) by filing false claims for federal income tax refunds. Martinez also pleaded guilty to one count of operating an unlicensed money transmitting business. The total tax loss in this case is approximately $4,415,492.58. Martinez and Silie each face a maximum of ten years in prison and a fine of up to $250,000
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service announced the guilty pleas entered today before U.S. District Judge Gregory L. Frost.
According to court documents, during 2010 and 2011 Martinez and Silie jointly owned and operated San Isidro Cargo in Columbus. San Isidro Cargo was registered with the U.S. Treasury Department as a Money Service Business to provide services such as check-cashing, wire transfers, tax-preparation, notary services, and title services among others.
Martinez operated San Isidro Cargo without a check-casher’s license knowing that one was required by the Ohio Revised Code. Martinez used San Isidro Cargo to assist co-conspirators, primarily located in New York and New Jersey, in carrying out the income tax refund scheme which came to be known as “Operation Mass Mail.”
This scheme involved the mass filing of hundreds of false income tax returns with Social Security Numbers and identifying information of residents of Puerto Rico. The false income tax returns contained fictitious information including employee wages and employee withholding. The false income tax returns were accompanied by counterfeit Forms W-2 that used, without legal authority, the names and Employer Identification Numbers of legitimate U.S. businesses. The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York. Many of the income tax refund checks shared the same street address, but different apartment numbers, making it easier for co-conspirators to collect the checks from one location. The checks were collected by corrupt letter carriers and apartment managers or by other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The conspirators then used couriers to travel to other states, including Ohio, to cash the checks at various check-cashing services, including San Isidro Cargo.
Martinez and Silie knew the U.S. Treasury checks they received from persons from New York and New Jersey stemmed from fictitious income tax returns. Martinez and Silie also knew the endorsements on the checks were forged. Martinez allowed one individual to cash bulk quantities of sizable income tax refund checks bearing the names of others and addresses located primarily in New York. Silie made several over the counter cash withdrawals and provided these funds to co-conspirators. Martinez and Silie received and retained copies of hundreds of counterfeit driver’s licenses from co-conspirators in order to conceal the fraudulent nature of the scheme.
Everyone involved in the scheme, from the income tax return preparer to the check-casher, was paid a cut of the fraudulent income tax refund. Martinez charged a fee of seven to eight percent of check’s face value. This fee was a premium for the conversion of the ill-gotten checks, and was well above the three percent fee permitted by Ohio Revised Code for the cashing of government checks, and the two percent fee charged to legitimate customers.
After San Isidro Cargo’s bank accounts were closed by the bank, Martinez continued the scheme by recruiting others to cash the fraudulent checks on their own bank accounts.
From February 2010 through February 2011, Martinez, Silie and others assisted in the conversion and laundering of approximately 696 fraudulently obtained U.S. Treasury checks totaling $4,415,492.58. During 2010, Martinez, Silie and others conducted bank withdrawals in excess of $4 million from San Isidro Cargo’s business accounts.
A third person, Suheidy A. Warner, 30, of Columbus, was also charged in this case in an April 2013 indictment alleging one count of conspiracy to defraud the IRS by filing false claims for federal income tax refunds, one count of conspiracy to commit money laundering, four counts of aggravated identity theft and 25 counts of converting U.S. monies to her own use. Warner is currently a fugitive.
“The object of this refund fraud scheme was to swindle the government and the taxpaying public,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Be assured that IRS Criminal Investigation, along with our law enforcement partners and the U.S. Attorney's Office, will hold those who engage in refund fraud fully accountable."
These cases are being prosecuted by Assistant United States Attorney Daniel Brown and they were investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service.
# # #Owner of Invision Investments Sentenced on Wire Fraud ChargesRead the Press Release
St. Louis, MO - The United States Attorney's Office announced today that KEVIN BROWN, owner of Invision Investments, was sentenced to 36 months of imprisonment for operating a Ponzi-style investment scheme in which Brown falsely and fraudulently represented to investors that their money would be used to invest in real estate.
According to court documents, Brown represented to investors and potential investors that Invision Investments had equity in property when in truth and fact, only a portion of investor funds went into the purchase and/or rehabilitation of properties. Brown executed and provided promissory notes that falsely and fraudulently represented the rate of return investors were promised to receive. He represented that Invision Investments would acquire, rehabilitate and resell properties sufficient to produce the promised rates of return. In truth, Invision's real estate purchases and efforts to rehabilitate and resell properties were insufficient to generate the promised funds. Investors were paid returns on their investments using funds obtained from subsequent investors, in addition to returns on legitimate investments, i.e. the sale of real estate. In addition, Brown used investor's funds for business expenses, to pay interest to other investors and to pay Brown's compensation and some personal expenses.
Brown was also ordered to pay more than $1.6 million in restitution to victims of his fraud scheme.
This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Dianna R. Collins handled the case for the U.S. Attorney's Office.
Oviedo Man Sentenced to 30 Months in Prison for Tax Fraud and ObstructionRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell yesterday sentenced Daniel M. Metz (54, Oviedo) to 30 months in federal prison for filing false returns and attempting to obstruct justice. He was also ordered to serve a 3-year term of supervision, following his release from prison, and to pay $112,995 in restitution.
Metz was found guilty by a federal jury, on July 18, 2013.
According to court documents, in 2009, Metz's business account was the subject of an Internal Revenue Service civil audit. During the course of the audit, the auditor realized that Metz had not filed personal tax returns for years 2005, 2006, and 2007. After being told about the personal tax returns, Metz prepared the returns and attached false 1099s, which he also had prepared. Metz mailed the returns to the auditor. The auditor suspected that the 1099s were false and requested records from Metz's personal bank accounts. The banks confirmed that the 1099s were false. The personal tax returns were never processed. Had they been processed, Metz would have received approximately $330,344 in refunds from the IRS. Through various means, Metz tried to hinder the IRS' investigation, including filing a lawsuit against the IRS Commissioner and the special agent who was conducting a criminal investigation. That lawsuit was ultimately dismissed.
At the sentencing hearing, the court spoke at length about Metz’s plan to defraud the United States government. The court said that the scheme was long term and “egregious.” It added that Metz had “intentionally filed patently false documents to cheat his way out of paying taxes.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Orlando Man Sentenced to over 12 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Jeffrey Alan Barnett (46, Orlando) to 12 years, 11 months in federal prison for distribution and possession of child pornography. The court also ordered Barnett to serve a 10-year term of supervision, following his release from prison, and to register as a sex offender.
Barnett pleaded guilty on August 7, 2013.
According to court documents, Barnett used a peer-to-peer filing sharing program to distribute child pornography to an undercover federal task force agent, on three separate occasions. On March 21, 2013, a federal search warrant was executed at Barnett’s residence. During the execution of that warrant, investigators found a computer located in Barnett’s bedroom that contained child pornography. During an interview, Barnett admitted that the computer belonged to him, that he had been using a peer-to-peer file sharing program to download and trade child pornography, and that he had been trading child pornography for over twenty years. Barnett was arrested on federal charges on March 21, 2013. A forensic examination of his computer found that he possessed over 250 videos of child pornography, including images of sadistic and masochistic conduct.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff's Office. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Operator of Multi-Million Dollar Ponzi Scheme Indicted on Federal ChargesRead the Press Release
Defendant Allegedly Defrauded Over 200 Investors
CHARLOTTE, N.C. – The operator of a $44 million Ponzi scheme that defrauded more than 200 investors has been indicted on federal charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal grand jury sitting in Charlotte returned the criminal indictment on Wednesday, December 18, 2013, charging Daniel H. Williford, 55, of Statesville, N.C. with one count of securities fraud, one count of wire fraud, and five counts of money laundering. The indictment also includes a forfeiture allegation seeking a money judgment in the amount of $44,000,000.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI).
“For those fraudsters who have not gotten the message yet, I am committed to prosecuting financial crimes and going after those who take money from victims with fake promises. Let me make it simple: you rip people off, you get indicted,” said U.S. Attorney Tompkins.
“For years, Daniel Williford swindled hundreds of people, including his own co-workers out of their hard-earned money. While most people struggle to afford college, he paid those expenses using cash from his investors. Now he will be held accountable for his actions because of the agents and prosecutors who worked so diligently to bring him to justice,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
According to allegations contained in the indictment, from January 2007 through July 2013, Williford induced over 200 investors in Charlotte and elsewhere to invest over $44 million, by promising his victims their money would be invested in wireless internet equipment, internet towers, and other facilities and companies. Instead of investing the money, the indictment alleges, Williford used it to run a Ponzi-style scheme and to fund his personal lifestyle. According to the indictment, during the course of the fraud, Williford invested only $7.7 million of the victims’ money as promised. The indictment alleges that Williford used approximately $32 million of the investor’s money to cover personal expenses and to pay some of his victims supposed “profits” on their investments. However, these payouts came from funds contributed by new investors, known as “Ponzi” payments.
Williford has been ordered by the U.S. District Court to appear on a summons for his initial appearance, which will be scheduled by the Court. If convicted, Williford faces a maximum of 20 years in prison each for the securities fraud and wire fraud counts, and a maximum of 10 years imprison for each of the money laundering counts. The securities fraud count carries a maximum fine of $5,000,000, the wire fraud count a maximum fine of $250,000, and each of the money laundering counts carries a maximum fine of $250,000 or twice the amount of criminally derived proceeds.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. The prosecution is being handled by Assistant U.S. Attorney Kurt Meyers of the Western District of North Carolina.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
Ocean County, N.J., Man Sentenced to 20 Years in Prison for Sexually Abusing Toddler, Streaming Assault Live over the InternetRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man was sentenced today to 20 years in prison for sexually abusing a toddler and streaming footage of the assault over the Internet, U.S. Attorney Paul J. Fishman announced.
Rodford W. Brindley, 68, of Toms River, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of sexual exploitation of a minor. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court: Brindley engaged in online chats with someone whom he believed to be a mother living in Ohio, but who was, in fact, an Ohio law enforcement officer. On April 2, 2012, with no encouragement from the officer, Brindley sexually abused a child in his care at his Toms River home and streamed live video of that conduct over the Internet. He was arrested the same day by Ocean County authorities. He has been in custody since the case was adopted federally in May 2012.
In addition to the prison term, Judge Pisano sentenced Brindley to serve five years of supervised release. He is also required to register as a sex offender.U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; and the Franklin County Sheriff’s Department in Ohio, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Harvey Bartle, Attorney-in-Charge of the U.S. Attorney’s Office in Trenton.
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Defense counsel: William Cunningham Esq., Brick, N.J.Northern Michigan Resident Convicted of Criminal Copyright Infringement and Mail FraudRead the Press Release
Bruce Alan Edward, 49, of Atlanta, Michigan, was convicted Tuesday of criminal copyright infringement and mail fraud, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations (HSI).
After a one-week trial, a federal jury returned guilty verdicts finding the defendant guilty of two counts of criminal copyright infringement and one count of mail fraud.
Edward was charged with both criminal copyright infringement and mail fraud after selling more than 2,500 counterfeit copies of copyrighted Microsoft software valued at more than 1 million dollars retail. From about May 11, 2008, until approximately September 16, 2010, Edward purchased counterfeit Microsoft software from various suppliers located primarily in China, Singapore and the United States, and sold them on eBay to unwitting buyers."Online consumers should beware of counterfeit goods and products of inferior quality," McQuade said. "We hope this prosecution will raise awareness and deter these kinds of fraud schemes."
Edward will be sentenced March 20, 2014, before U.S. District Judge Thomas Ludington.
The case was prosecuted by the Bay City and Flint branches of the United States Attorney's Office for the Eastern District of Michigan and the Computer Crime and Intellectual Property Section of the Criminal Division, United States Department of Justice and investigated by Homeland Security Investigations (HSI) branch located in Sault Ste. Marie, Michigan, and HSI Intellectual Property Rights Center located in Arlington, Virginia.
Nine Defendants Charged in Connection with Herion Distribution in Marinette County, Brown County and Menominee, MichiganRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced the filing of a criminal complaint alleging that nine people were involved with the distribution of heroin in Marinette County, Brown County and Menominee, Michigan. Brian L. King (age: 55) of Chicago was charged with Distribution of Heroin in violation of Title 21 United States Code, Section 841(a)(1), (b)(1)(B). The other eight defendants listed in the table below are charged with conspiracy to distribution heroin in violation Title 21 United States Code, Sections 841(a)(1), (b)(1)(B), and Title 18 United States Code, Section 2.
Name Age and ResidencyAndrea M. Paris (nee Addington)
29, Marinette, Wisconsin
23, Marinette, Wisconsin
Shawn A. Klatt
33, Marinette, Wisconsin
Karen A. Sanchez
38, Marinette, Wisconsin
Gerald F. Pichette
50, Green Bay, Wisconsin
Michael D. Peak
40, Menominee, Michigan
Donald M. Myers
41, Menominee, Michigan
Eric E. Ebbole
42, Menominee, Michigan
According to charging documents it is alleged that King is responsible for the distribution of over 500 grams of heroin in the Marinette, Wisconsin, Green Bay, Wisconsin, and Menominee, Michigan areas. The others charged in the complaint are alleged to have conspired to fund, purchase, transport, distribute, and sell large amounts of heroin in northeast Wisconsin and Menominee, Michigan.
If convicted each defendant, faces a maximum penalty of between 5 and 40 years imprisonment, a maximum fine of $5,000,000, a $100 special assessment, and between 4 years to life on supervised release.
This case was a joint investigation by the Drug Enforcement Administration and the Wisconsin Department of Justice Division of Criminal Investigation with assistance from the Milwaukee and Chicago High Intensity Drug Trafficking Area programs, the Marinette County Sheriff’s Department, the Brown County Sheriff’s Department, the Marinette Police Department, the Menominee County Michigan Sheriff’s Department and the Menominee Michigan Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
A criminal complaint is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove each of them guilty beyond a reasonable doubt.
New Jersey Man Charged with Possession of Heroin as Result of Carlisle Truck Stop ArrestRead the Press Release
A New Jersey man was indicted by a federal grand jury in Harrisburg yesterday on charges of possessing more than 3 ounces of heroin with the intent to distribute.
United States Attorney Peter J. Smith announced that Rafael Cabrera, 35, of Passaic, New Jersey, was charged in a two count indictment with possessing at least 100 grams of heroin with the intent to distribute it and with traveling in interstate commerce to distribute the drug. Cabrera was arrested on February 11, 2013 at a truck stop in Carlisle by federal and state agents who were conducting surveillance of the location and waiting for Cabrera to arrive. A search of Cabrera and his vehicle led to the alleged seizure of the heroin.
Cabrera faces a mandatory minimum sentence of 5 years and up to a maximum of 40 years in prison if convicted and faces a potential combined maximum fine of $1.25 million.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Moorefield Man Sentenced to Fifteen Years for Trafficking of PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Sixteen Others Appear for Plea and Sentencing Hearings
ELKINS, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that TIMOTHY JUSTON WIMER, age 29, of Moorefield, West Virginia, was sentenced to 188 months in prison as a result of his convictions for “Possession with Intent to Distribute Hydrocodone,” “Possession with Intent to Distribute Oxycodone,” “Possession with Intent to Distribute Methamphetamine,” and “Possession with Intent to Distribute Morphine.” The investigation began in 2012 and ended in 2013, with the criminal acts taking place in Grant and Hardy counties.
WIMER has five prior felony convictions in State Court in Hardy, Grant, and Mineral counties, including one for “Sexual Assault.” He was remanded to the custody of the United States Marshal pending designation to a federal prison.
This case was investigated by uniformed officers of the West Virginia State Police, West Virginia State Police-BCI, Federal Bureau of Investigation, the Moorefield Police Department, the Grant County Sheriff’s Office and the Hardy County Sheriff’s Office. Chief Judge John Preston Bailey imposed the sentence upon WIMER.
Sixteen others appeared before Judge Bailey and Magistrate Judge John S. Kaull for plea and sentencing hearings, as follows:
JAMES FRANKLIN FLUHARTY, age 45, of Bridgewater, Virginia, was sentenced to 57 months in prison for Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” FLUHARTY, who is free on bond, will self-report to the designated Federal institution. This case was investigated by uniformed officers of the West Virginia State Police and the West Virginia State Police BCI unit.
RODOLFO VILLAGOMEZ CORREA a/k/a “CHINO,” age 33, of Buckhannon, West Virginia, was sentenced to 46 months in prison for “Possession of Firearms by an Alien Illegally in the United States.” The Court ordered that CORREA’s sentence run consecutive to any sentence he may receive in Upshur County, where he has been charged with murder. The Court also ordered that CORREA abandon to the United States Department of Homeland Security all right, title, interest and claim to 16 firearms, a counterfeit Resident Alien Card, a counterfeit Permanent Resident Card, and other items seized. CORREA was returned back to the custody of the State of West Virginia. This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI); the West Virginia State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Forest Service; and, the Buckhannon Police Department.
LEONARDO RAMOS RODRIGUEZ, age 36, of Petersburg, West Virginia, was sentenced to 37 months in prison for one count off “Distribution of Oxycodone” and one count of “Felon in Possession of a Firearm.” RODRIGUEZ was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI); the West Virginia State Police-Bureau of Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; uniformed officers of the West Virginia State Police; the Grant County Sheriff’s Office; and, the Grant County Probation Office.
JACK FRANCIS GIBBINS, age 36, of Moorefield, was sentenced to 37 months in prison for “Distribution of Heroin.” GIBBINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHRISTOPHER MICHAEL FISCHER, age 27, of Moorefield, was sentenced to 32 months in prison for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” FISCHER, who is free on bond, will self-report to the designated Federal institution.
TONYA RENEE HAYMOND, age 28, of Romney, West Virginia, was sentenced to 31 months in prison for “Distribution of Heroin.” HAYMOND was remanded to the custody of the United States Marshal pending designation to a Federal institution.
ROGER ALLEN SEE, age 23, of Lost River, West Virginia, was sentenced to 30 months in prison for “Possession of Material to be Used in the Manufacture of Methamphetamine.” SEE, who is free on bond, will self-report to the designated Federal institution.
The GIBBONS, FISCHER, HAYMOND and SEE cases were investigated by the Hardy County Sheriff’s Office and the Moorefield Police Department.
LISHA LYNN RUNIONS, age 52, of Fisher, West Virginia, and, LISA LYNN CRITES, 37, of Moorefield, were sentenced to 5 years of probation for “Possession of Material Used in the Manufacture of Methamphetamine.” This case was investigated by the West Virginia State Police-BCI, uniformed officers of the West Virginia State Police and the Hardy County Sheriff’s Department.
MEGAN ROHRBAUGH, age 23, of Rio, West Virginia, was sentenced to 2 years of probation for “Distribution of Oxycodone.” This case was investigated by the West Virginia State Police-BCI.
TIMOTHY ALLEN HAWKS, age 20, ELIZABETH CHRISTINE SAMPSELL, age 42, COURTNEY LEE KNIGHT, age 30, and CYNTHIA MARIE TAYLOR, age 28, of Moorefield, entered pleas of guilty before Magistrate Kaull. HAWKS entered a plea to “Possession of Material to be Used in the Manufacture of Methamphetamine” and SAMPSELL, KNIGHT and TAYLOR entered pleas of guilty to ““Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” HAWKS, who is in custody pending sentencing, faces up to 10 years in prison. SAMPSELL, KNIGHT and TAYLOR, who are free on bond pending sentencing, face up to 20 years in prison. This case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations and US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI); the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office and the Moorefield Police Department.
MATTHEW PAUL SELLERS, age 25, of Annapolis, Maryland, entered a plea of guilty before Judge Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” SELLERS, who is in bond pending sentencing, faces up to 20 years in prison. This case was investigated by the West Virginia State Police and the Lewis County Sheriff’s Department.
SUSAN CHLOE RIDLEY, age 48, of Parsons, West Virginia, entered a plea of guilty before Judge Bailey to “Distribution of Pseudoephedrine.” RIDLEY, who is on bond pending sentencing, faces up to 5 years in prison. This case was investigated by agents and officers of the United States Forest Service and the Tucker County Sheriff’s Office.
The above-listed cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner.
PATRICK S. CRITES, age 46, of Moorefield, was sentenced to 10 months in prison for “Transmitting Threatening Communications in Interstate Commerce.” CRITES was remanded to the custody of the United States Marshal pending designation to a Federal institiution. This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the United States Secret Service, as the threat was made to the White House.
Mobile Man Sentenced to Twenty Four Months Imprisonment of Firearms OffenseRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces that Kevin Alphonzo Johnson was sentenced to twenty four months imprisonment today by United States District Court Judge Callie V. Granade, after pleading guilty to being a felon in possession of a firearm in violation of Title 18 USC '922(g)(1). Johnson was previously convicted of the felony offense of Receiving Stolen Property 2nd Degree in the Circuit Court of Mobile County, Alabama, Case No. CC2001-004567, on or about August 7, 2012. The firearm that Johnson possessed was a Chinese made, Model SKS .762 caliber rifle.
The case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff=s Office, Narcotics Division.
Mission Woman Sentenced for Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman convicted of Wire Fraud was sentenced on December 16, 2013, by U.S. District Court Judge Roberto A. Lange.
Clarice Brave, age 51, was sentenced to 5 months in custody, 5 months of home confinement, 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $16,852.38 in restitution to Family Dollar and $5,000 in restitution to Country Pride Cooperative.
Brave was indicted by a federal grand jury on July 17, 2013, for Wire Fraud, Larceny, and Making False Statements to a Federal Agency. She pled guilty on September 9, 2013, to one count of wire fraud.
The conviction stems from incidents that occurred between August 1, 2012, and September 24, 2012, when Brave devised a rolling deposit scheme to obtain money from the Family Dollar in Mission, South Dakota. Brave took cash out of store deposit bags for personal use, and delayed taking deposits to the bank until she had enough cash from successive days to make up the difference in the bags from which she took the cash. When Family Dollar management began to suspect Brave was rolling deposits, Brave was required to fax deposit tickets, the deposit log, and the store’s daily cash receipt totals to the Family Dollar’s Loss Prevention Director in Shawnee, Kansas, on a daily basis. On September 21, 2012, Brave fraudulently persuaded a teller to issue five deposit tickets from the bank without depositing any cash into Family Dollar’s bank account. She then faxed the fraudulently obtained deposit tickets from Mission to Shawnee, Kansas, in an attempt to conceal the rolling deposit scheme.
As part of the plea agreement in the case involving Family Dollar, Brave agreed to pay $5,000 in restitution to Country Pride Cooperative. The case in which Brave was indicted on February 13, 2013, for allegedly taking monies from Country Pride Cooperative was dismissed at sentencing.
The investigations were conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The cases were prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Brave must self-report to the U.S. Marshals Service on December 30, 2013, to begin serving her sentence.
Michigan Man Convicted of Conspiracy to Distribute Heroin in KentuckyRead the Press Release
LEXINGTION, KY - A Michigan man, who led a drug conspiracy that brought heroin into eastern Kentucky for distribution, was convicted by a federal jury.
On Tuesday, a federal jury in Lexington convicted 32 year-old Douglas Martin of one count of conspiracy to distribute controlled substances, following an hour and a half of deliberation and two days of trial. Martin was also convicted of witness tampering.
According to the evidence at trial, Martin conspired with others to obtain heroin in Detroit, Mich., and bring it back for distribution in Madison, Fayette and Bourbon Counties in Kentucky. The evidence established that, from June 2012 until March 2013, Martin conspired to distribute 2.7 ounces of heroin, which has a street value of approximately $15,000. It also established that Martin and others conspired to distribute cocaine and that Martin would live in an apartment in Richmond when he came to Kentucky.
The investigation started when officers with the Paris Police Department conducted a routine traffic stop of a vehicle, with Martin and his co-defendants, Andre Hawkins, Ameida Udousoro and Jessica Cavezza inside. The officers subsequently located several thousand dollars, in cash, on the defendants.
Udousoro and Cavezza previously pleaded guilty to their roles in the conspiracy and Hawkins remains a fugitive.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, Rodney Brewer, Kentucky State Police Commissioner, and Kevin Sutton, Chief of the Paris Police Department, jointly announced the verdict.
The investigation was conducted by Kentucky State Police, FBI and the Paris Police Department. Assistant U.S. Attorney Todd Bradbury represents the U.S. Attorney’s Office in this case.
Martin will be sentenced on March 19, 2014. He faces a maximum of 30 years in prison, for the drug conspiracy, and 20 years for the witness tampering offense. However, any sentence following conviction would come after the Court considers the U.S. Sentencing Guidelines and the federal statutes governing the imposition of sentences.
Mexican Man Charged with Illegal Re-EntryRead the Press Release
A grand jury returned a one-count indictment charging Jose Isabel Sandate-Lozano, age 30, with illegally reentering the United States following his deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Sandate-Lozano is an alien who was previously removed or deported from the United States to Mexico on July 19, 2005, subsequent to a conviction for an aggravated felony.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Gregory C. Sasse, following investigation by agents of the Homeland Security Investigations of the Immigration and Customs Enforcement Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
McLaughlin Woman Charged with Assaulting, Resisting, or Impeding Federal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, or Impeding two federal contract officers.
Twyla Crow Ghost, age 29, was indicted on December 10, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 16, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Crow Ghost is accused of assaulting two Cheyenne River Sioux Tribal detention officers. Crow Ghost inflicted bodily injury on one of the officers while the officers were employed by the Cheyenne River Sioux Tribe Police Department under contract with the Bureau of Indian Affairs. The charge is merely an accusation and Crow Ghost is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Crow Ghost was released on bond pending trial. A trial date has not been set.
Mansfield Man Faces ChargesRead the Press Release
A grand jury returned a two-count indictment charging Cameron J. Lawhorn, 21, of Mansfield, Ohio, with one count of damage to and interference with an air navigation facility and one count of theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Lawhorn willfully damaged, destroyed, and disabled a Federal Aviation Administration air navigation facility located in Shelby, Ohio. The indictment further alleges that Lawhorn knowingly stole Federal Aviation Administration property, including a laptop computer, multimeter, and oscilloscope.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation and the Richland County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Indictment of Political Consultant for Defrauding the New York Democratic Senate Campaign CommitteeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that STEPHEN COLANGELO, Jr., pled guilty to two counts of securities fraud and two counts of wire fraud in connection with two separate schemes that defrauded investors out of more than $2.7 million. COLANGELO’s first scheme involved a hedge fund he controlled called the Brickell Fund, LLC (the “Brickell Fund”), and his second scheme involved three companies he created and controlled called “Hedge Community,” “Start A Hedge Fund,” and “Under the Radar SEO” (collectively, the “Business Ventures”). COLANGELO misled investors in the course of both of these schemes by making numerous misrepresentations, which included issuing fraudulent performance statements, private placement memoranda, and other business documents. COLANGELO pled guilty in Manhattan federal court before U.S. Magistrate Judge James Cott.
Manhattan U.S. Attorney Preet Bharara said: “Investors deserve fair and honest services from their money managers. Stephen Colangelo, Jr. and others like him who fraudulently pocket investor money undermine confidence in the markets.”
According to the Indictment and related court proceedings:
From March 2009 to February 2011, COLANGELO represented that he was an investment manager and solicited funds from private investors for the Brickell Fund, a purported hedge fund he operated. In the course of soliciting funds from investors, COLANGELO made numerous misrepresentations. Specifically, he told potential investors that his compensation for managing their investments in the Brickell Fund would be a nominal management fee and a certain percentage of trading profits, thus ensuring his compensation would be dependent on his trading success. In reality, COLANGELO regularly misappropriated large amounts of investor money for his own personal benefit and to support unrelated business ventures. He also regularly made false claims to investors about investment strategy and alleged profits. Based on these and other fraudulent statements and misrepresentations, COLANGELO defrauded investors out of more than $1.6 million in connection with the Brickell Fund.
From August 2009 to October 2011, COLANGELO also solicited investments in the Business Ventures. In doing so, COLANGELO represented that investment money would be used for legitimate business expenses, when in reality, he misappropriated a large amount of the investments for his own personal benefit. COLANGELO defrauded investors of well over $1.1 million in connection with the Business Ventures.
COLANGELO, 46, pled guilty to two counts of securities fraud and two counts of wire fraud. The securities fraud and wire fraud charges each carry a maximum term of 20 years in prison. The sentencing before U.S. District Judge Robert W. Sweet is scheduled for April 3, 2014 at 4:30 p.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive,
coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20
federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition
of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases
against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For
more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Steve Lee is in charge of the prosecution.
US v. Melvin Lowe Indictment
Man Using False Identity Arrested for Sex Trafficking in Miami and AustraliaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Wendy A. Bashnan, Special Agent in Charge, Bureau of Diplomatic Security (DS), Miami Field Office, announce the arrest of Damion St. Patrick Baston, 36, in New York City, New York, where he was ordered detained.
Baston has been charged in Miami by indictment with one count of sex trafficking a victim by means of force, fraud, and coercion, both in the Southern District of Florida and in multiple countries around the world, including Australia, in violation of Title 18, United States Code, Sections 1591(a)(1) and 1596. Title 18, United States Code, Section 1596 provides for extraterritorial jurisdiction in human trafficking cases. The indictment charges a second count of forcible sex trafficking of a victim in the Southern District of Florida. If convicted on either count, Baston faces a mandatory minimum penalty of fifteen years in prison and a maximum penalty of life in prison.
Baston is also charged with five counts of transporting multiple individuals for prostitution, in violation of Title 18, United States Code, Section 2421, importation of an alien for prostitution, in violation of Title 8, United States Code, Section 1328, use of a passport secured by false statement, in violation of Title 18, United States Code, Section 1542, aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and three counts of money laundering, in violation of Title 18, United States Code, Section 1956. Baston, who is a Jamaican national, has also been charged with illegal reentry of an alien previously ordered removed, in violation of Title 8, United States Code, Section 1326.
The 14 count federal indictment was returned on December 12, 2013. Baston was located and arrested by DS and ICE-HSI agents in New York on December 17, 2013. Baston remains in custody and is expected in federal district court here in Miami soon.
U.S. Attorney Wifredo A. Ferrer stated, “Human trafficking is one the most deplorable crimes our office prosecutes. Law enforcement agencies are teaming up to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. Working with our dedicated law enforcement partners here and abroad we will press on with efforts to reach those who are being exploited, and prosecute those who choose to engage in this inhumane practice.”
“Sex trafficking is one of the most heinous crimes we investigate, these victims are taken advantage of on a daily basis” said Alysa D. Erichs, Special Agent in Charge, ICE-HSI. “Investigative efforts by HSI alongside our partners at the DSS and the Australian Federal Police highlight the collaborative effort within federal and international law enforcement partners to ensure international boundaries do not hinder the enforcement of justice.”
“We are thankful for our continued partnership with the international law enforcement community. A team of Miami and international DS resources worked closely with the Australian authorities to locate and apprehend Damion Baston,” said Special Agent in Charge Wendy A. Bashnan of the DS Miami Field Office. “We hope that the long awaited prosecution of Baston will provide some satisfaction to the many individuals he victimized and their families. DS’s worldwide presence at U.S. Embassies around the world allows us to work with our host country law enforcement to track and capture fugitives who have fled the U.S. to avoid prosecution.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and DS, as well as the Australian Federal Police. The case is being prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Roy K. Altman.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
MS-13 Members Receive Life SentencesRead the Press Release
ATLANTA - Ernesto Escobar, a/k/a Pink Panther, a/k/a Flaco, Miguel Alvarado-Linares, a/k/a Joker, and Dimas Alfaro-Granados, a/k/a Toro have been sentenced to life in prison for their roles in committing murders and attempted murders in Gwinnett and DeKalb Counties.
“The defendants sentenced today were the local leaders of the notorious MS-13 gang,” said United States Attorney Sally Quillian Yates. “These defendants upheld MS‑13’s reputation for spreading fear throughout the community by committing brazen and indiscriminate acts of violence, including killing rival gang members and suspected cooperators. They have rightfully earned their life sentences.”
“Homeland Security Investigations, in partnership with our federal, state and local law enforcement partners, have made a priority of targeting the most violent members of transnational gangs who are involved in murder and mayhem and significantly escalate violence in our neighborhoods, and these three individuals fit that bill,” said Brock Nicholson, special agent in charge of HSI Atlanta. “Our communities are now safer because these heinous criminals will spend the rest of their lives behind bars”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "An investigation that helped secure life sentences for such violent offenders that have proven time and again that they have no respect for the lives of others is a very successful investigation. Such international gangs as MS-13 will continue to be the focus of a joint law enforcement effort at all levels with the goal to arrest those involved and to dismantle the organization as a whole."
According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members have been arrested, charged, and/or deported. Members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS‑13. Each clique had a leader, often referred to as “the first word,” who conducted weekly meetings. At these meetings, members discussed their crimes against rival gang members and their plans to retaliate against rivals. The clique leaders collected dues from the gang members, which they used to buy guns and post bail for jailed gang members. Clique leaders often sent money back to MS-13 leaders in their home countries of El Salvador and Honduras, and clique leaders often reported back to MS-13 leaders in their home countries about MS-13 activities in the Atlanta area.
The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders, and armed robberies. The evidence at trial showed that the defendants committed the following crimes:
- Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
- In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members. The driver, Celso Villalobos, was shot, and his passenger, Angel Gonzalez, was murdered. Angel Gonzalez was 20 years old.
- On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares pulled out a gun and shot the men.
- A few weeks after the New Year’s Eve incident, Alfaro-Granados got into a fight with a suspected rival gang member at a nightclub. Alvarado-Linares, Alfaro-Granados, and Escobar later returned to the club, where Escobar shot a man walking through the parking lot.
- In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to the clique leader, who gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot. The victim, David Hernandez, was only 16 years old.
- In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected 18th Street member. Alvarado fired a shotgun and killed Pablo Archila-Baires. Archila-Baires was only 15 years old.
Ernesto Escobar, a/k/a Pink Panther, a/k/a Flaco, 30, of Norcross, Ga., was sentenced today to life in prison. Miguel Alvarado-Linares, a/k/a Joker, 25, of Norcross, Ga., was sentenced to life in prison on October 15, 2013, and Dimas Alfaro-Granados, a/k/a Toro, 30, of Duluth, Ga., was sentenced to life in prison on October 29, 2013. Escobar, Alvarado-Linares and Alfaro-Granados were found guilty by a jury on July 15, 2013. Parole has been abolished in the federal system.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Chamblee Police Department, and Gwinnett County Sheriff’s Office.
Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and U.S. Department of Justice, Organized Crime and Gang Section, Trial Attorney Joseph K. Wheatley prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Local Woman Indicted on Federal Bank Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO - MELANIE ANN MAHANEY was indicted on multiple fraud charges involving her alleged misuse of bank funds.
According to the indictment, between March 8, 2013, and April 19, 2013, defendant was recruited to impersonate car burglary victims in a bank fraud scheme. During the course of the scheme, defendant received stolen drivers licenses, social security cards, personal checks, credit and debit cards and other forms of identification which had been stolen by others from the vehicles. Using the stolen identification of one car burglary victim, defendant cashed checks stolen from other car burglary victims at banks located in the St. Louis Metropolitan Area and the Southern District of Illinois.
Mahaney, St. Louis, was indicted by a federal grand jury on two felony counts of bank fraud and two felony counts of aggravated identity theft.
If convicted, each count of bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million and each count of aggravated identity theft carries a mandatory imprisonment of 2 years and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.