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19 December 2013
California Women and Florida Man Sentenced for Conspiracy to Body-Smuggling Drugs to TampaRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge James D. Whittemore this week sentenced Vanessa Cooper (39, El Cajon, California), Canetha Johnson (43, El Cajon, California), and Raul Carbajal (23, Plant City, Florida) to 17, 14 and 15 years in federal prison, respectively, for conspiracy to possess with the intent to distribute and possession with intent to distribute more than 500 grams of methamphetamine.
Cooper and Johnson were found guilty by a federal jury on September 23, 2013. Carbajal pleaded guilty on September 13, 2013.
According to the evidence and testimony presented at trial, on or about April 1, 2013, Cooper and Johnson, along with co-defendant Selena Blanchard, departed from an airport in San Diego, California, ultimately destined for Tampa, Florida. The purpose of the trip was to deliver approximately two pounds of high-purity methamphetamine to Carbajal. In order to get the drugs through airport security, without detection, each individual smuggled a package inside of her body. The three women arrived in Tampa on April 2, 2013, where they were met by Carbajal. All three women then delivered the packages of methamphetamine to Carbajal. In the same manner, Cooper and Blanchard had delivered methamphetamine from California to Carbajal, in Tampa, on several prior occasions.
Blanchard was found guilty, following a jury trial, on September 23, 2013. A sentencing date has not yet been set.This case was investigated by special agents and local task force agents with the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
California Woman Pleads Guilty to $5 Million Mortgage Fraud Scheme to Purchase Santa Rosa and Walton County HomesRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced today that Andrea Lorraine Avery, 47, of Los Angeles, California, pleaded guilty this afternoon on federal charges concerning a mortgage fraud and money laundering scheme. Avery is scheduled to be sentenced on March 20, 2014, before Senior United States District Judge Roger Vinson.
According to the Indictment and the facts admitted by Avery during her guilty plea, beginning in 2005 and continuing through 2008, Avery and others entered into contracts to purchase residences located in Florida, Georgia, Louisiana, Texas, and California. Thereafter, loan applications were submitted to financial institutions to fund the purchases. In the loan applications, Avery and other borrowers made false statements to the lenders, which included: providing false names and social security numbers; overstating the borrower’s income and assets; and falsely stating the earnest money deposit was not borrowed. In support of the loans, Avery and other borrowers submitted fraudulent supporting documents to the lenders, which included: false pay-stubs, false W-2s, false verifications of employment, and false documentation concerning the borrower’s credit. Thereafter, Avery and others transferred money, required from the borrower to close on the purchase of the property, to the title agent handling the closing. As a result of Avery’s fraud, lenders loaned over $5,646,250 for just the five homes located in Santa Rosa and Walton counties. As a part of the scheme, Avery and others received kickbacks from the fraudulent loans’ proceeds.
Avery’s Indictment was the seventh indictment obtained as a part of the investigation into this multi-state mortgage fraud and money laundering scheme. Some of the others indicted and sentenced before Avery included: Lonnet Rochell Williams, who received 120 months in prison; Bryan Pool, who received 57 months in prison; Steven Imes, who received 78 months in prison; Annita Hawes, who received 23 months in prison; Raysean Richardson, who received 18 months in prison; and Dorothy Rodriguez who received 18 months in prison.
For Counts One through Six of the Indictment, which charged conspiracy to commit fraud and mail fraud affecting a financial institution, Avery faces up to 30 years in prison on each count, and for Count Seven of the Indictment, which charges conspiracy to commit money laundering, Avery faces an additional 20 years in prison.
The charges are the result of an investigation by the Florida Department of Law Enforcement, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
CBP Officer Arrested on Alien Transporting ChargesRead the Press Release
LAREDO, Texas – Juan Gabriel Bonilla, 27, a Customs and Border Protection (CBP) officer from Laredo, has been arrested for attempting to transport aliens into the United States and conspiracy to do so, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal Dec. 17, 2013, and unsealed today upon his arrest. Bonilla is expected to make an initial appearance tomorrow at 9:00 a.m. before U.S. Magistrate Judge J. Scott Hacker along with co-defendant Martha Maria Escobar, 35. Escobar, a legal permanent resident from Mexico, has been in federal custody since Oct. 11, 2013, the date of her initial arrest.
They are charged with conspiracy and three counts of transportation or attempted transportation of aliens in the United States.
According to the criminal complaint filed upon Escobar’s arrest, she was transporting several relatives in her car, three of whom were undocumented aliens from Mexico. Bonilla conducted an inspection of her vehicle and passengers, but allegedly released them to enable them to enter the United States illegally. Further inspection by another officer led to the discovery that the three of the passengers were illegal aliens and were being transported by Escobar, according to the allegations.
If convicted, each faces up to five years in federal prison on each count and a possible $250,000 fine.
The case is being investigated by CBP, CBP-Office of Internal Affairs, Immigration and Customs Enforcement-Office of Professional Responsibility and Department of Homeland Security-Office of the Inspector General. Assistant United States Attorney Homero Ramirez is prosecuting the case.
Defendants are presumed innocent unless and until convicted through due process of law.Buffalo Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Buffalo, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Intenet.
Emilio R. Haro, 30, of Buffalo, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Oct. 3, 2013, federal indictment.
Law enforcement officers from two separate agencies independently identified Haro’s computer during their investigations into the sharing of child pornography over peer-to-peer file-sharing networks.
Under federal statutes, Haro is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, the Republic, Mo., Police Department and Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Bridgeport Man Sentenced to 70 Months in Federal Prison for Narcotics TraffickingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHESTER CAMERON, 32, of Bridgeport, was sentenced on Tuesday by U.S. District Judge Stefan R. Underhill in Bridgeport to 70 months of imprisonment for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals have been charged in federal court with various offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, between November 2012 and February 2013, CAMERON regularly purchased half-kilogram quantities of cocaine from suppliers in New York and Jamaica, broke it down into smaller quantities and sold it to customers from Bridgeport and Stamford, some of whom converted it to crack cocaine for resale. In total, he purchased and redistributed more than five kilograms cocaine during this time period.
At the time of his arrest, CAMERON was found with nearly one-half kilogram of cocaine, more than $34,000 in cash, a Rolex watch, and other expensive jewelry, all of which he forfeited as part of his guilty plea.
Marvin Wooten, one of CAMERON’s highest volume drug customers, previously pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment. CAMERON’s brother, Cornel Cameron, also has pleaded guilty and is scheduled to be sentenced in January.
CAMERON is a citizen of Jamaica and faces deportation proceedings when he completes his federal sentence.
U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
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HOUSTON – David Matthew Geissen, 21, has been arrested following the return of an indictment alleging he communicated a false distress message to the Coast Guard, announced United States Attorney Kenneth Magidson. Geissen, of Danbury, was arrested today without incident.
The sealed indictment was returned Dec. 12, 2013, and unsealed upon his arrest. He made his initial appearance in Galveston today before U.S. Magistrate Judge John R. Froeschner, at which time he was permitted release on bond pending further criminal proceedings.
The indictment alleges that on or about March 22, 2013, Geissen communicated the false distress message by firing red flares into the sky. The Coast Guard deployed in an attempt to save lives and property when, in fact, no help was needed.
If convicted, Geissen faces up to six years in federal prison as well as a possible $250,000 maximum fine.
The charges are the result of an investigation conducted by the U.S. Coast Guard Investigative Service and Freeport Police Department. Assistant United States Attorney Robert Stabe is prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Bolivar Man Sentenced to A Total of 513 Months in Prison for Production and Possession of Child Pornography and Gun ChargesRead the Press Release
Jackson, TN – John McKinney, 71, of Bolivar, TN was sentenced yesterday to a total of 480 months in federal prison, following his September conviction on four counts of producing child pornography, and one count of possession of child pornography, announced U.S. Attorney Edward L. Stanton III.
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Chief U.S. District Judge J. Daniel Breen sentenced McKinney to 360 months in prison for each production charge, with the sentences set to run concurrently. Judge Breen further sentenced McKinney to 120 months in prison for the possession charge, with the sentence set to run consecutive to the other sentences. There is no parole in the federal prison system.
“Today’s sentence of 480 months reflects this community’s intolerance for the predatory acts committed by John McKinney,” said U.S. Attorney Stanton. “We will continue to work with our law enforcement partners to relentlessly pursue anyone who commits such heinous crimes and ensure that they face the full consequences of the law.
According to facts revealed during the trial, McKinney took sexually explicit pictures of girls as young as nine years old while the girls were visiting at his home. According to the sworn testimony of the mother of one victim, her younger daughter saw sexually explicit photos on McKinney’s computer. Investigators confiscated more than 87 CDs from a building on McKinney’s farm that contained pictures that he had taken depicting child pornography.
On June 25, 2013, McKinney was convicted by a federal jury of four counts of being a felon in possession of a firearm or ammunition. The guns and ammunition were discovered during the search of his home that revealed the pornographic photos. On September 27, 2013, Judge Breen sentenced McKinney to 33 months in prison on those charges. That sentence will run consecutive to his other sentences.
This case was investigated by the Hardeman County Sheriff’s Office, the Jackson Police Department and the FBI in Jackson. Assistant U.S. Attorneys Deb Ireland and James Powell represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."Bismarck Man Sentenced for Felon in Possession ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Dec. 19, 2013, Dylan A. Romero, 34, Bismarck, N.D., was sentenced by U.S. District Judge Daniel Hovland on a charge of possession of firearm by a convicted felon. Romero was found guilty by a federal jury on Sept. 6, 2013.
Judge Hovland sentenced Romero to seven years in federal prison, to be followed by three years of supervised release. Romero was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
In August 2012, law enforcement officials received information that a prohibited person, known as “Twist,” was interested in obtaining a handgun. “Twist,” identified as Dylan Romero, contacted an undercover ATF agent and arrangements were made for Romero to obtain a handgun and $600 for an ounce of cocaine. The undercover ATF agent met with Romero on Sept. 26, 2012, in Bismarck. Romero provided the agent with an ounce of fake cocaine and Romero took the gun, which was locked and disabled. Law enforcement officials immediately arrested Romero.
Romero was prohibited from possessing a firearm due to eight felony convictions, including the following: 1998 burglary, 2001 possession of controlled substance (cocaine), 2009 delivery of imitation controlled substance, and 2009 possession of marijuana with intent to deliver.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Metro Area Narcotics Task Force, the Bismarck Police Department, the Burleigh County Sheriff’s Office, the North Dakota Parole and Probation Office, and the North Dakota Bureau of Criminal Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Beverly Man Sentenced for Child Pornography CrimesRead the Press Release
BOSTON – A Beverly man was sentenced today in U.S. District Court on child pornography charges.
Timothy Bird, 39, was sentenced to five years in prison and five years of supervised release. Bird will be required to register as a sex offender upon his release from prison. In August 2013, Bird pleaded guilty to possession of child pornography and distribution of child pornography.
In November 2011, a federal agent, acting in an undercover capacity on a peer-to-peer file sharing network, downloaded images and videos depicting child pornography from Bird. At the time of his arrest, the defendant admitted that he had been downloading child pornography for approximately 10 years, and that he regularly used the peer-to-peer network to download and trade child pornography. Forensic examination of computer media seized from Bird’s apartment revealed more 32,000 images and videos depicting child pornography.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Chief John G. LeLacheur of the Beverly Police Department; and Chief Michael Begonis of the Wilmington Police Department made the announcement today. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
Bernard SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that MATTHEW SCOTT BERNARD, age 44, of Baton Rouge, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve forty-one (41) months in federal prison for his role in a fraudulent scheme to secure financing for a new fitness facility in Baton Rouge.
The sentence arises from an investigation into fraud in connection with an effort by BERNARD and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, BERNARD and a second individual, Ronald Joseph Olah, Jr., were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, BERNARD and Olah made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that Olah was operating at the time. The indictment alleged that BERNARD and Olah obtained loans from two different banks based on their false statements.
On August 14, 2013, BERNARD pled guilty to bank fraud. On November 5, 2013, BERNARD’S co-defendant, Olah, pled guilty to wire fraud in connection with a related scheme in which Olah took many of the same documents that BERNARD and Olah had used to defraud the banks, and knowingly sent them to an investor in Washington, in another attempt to secure financing for the new gym.
BERNARD appeared before Judge Brady this morning for sentencing, and was sentenced to serve 41 months in federal prison, to pay restitution in the amount of $249,899.82, and to pay a special assessment of $100. Following his release from prison, BERNARD will be required to serve a 3-year term of supervised release. Finally, as part of his sentence, BERNARD will be ordered to forfeit an additional $249,899.82 in proceeds from the fraudulent scheme. BERNARD’S co-defendant, Mr. Olah, is awaiting sentencing.
Acting United States Attorney Walt Green stated, “This prosecution sends a strong message to those who would defraud the businesses in our community. This office remains committed to fighting fraud and white collar crime, regardless of how the defendants intend to spend their criminal proceeds.”
The investigation of this matter was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Attorney and Notary Public Antonio Peluzzo-Perotin Charged and Arrested for Causing More Than 100 Individuals to Obtain False Concealed Firearms’ Carrying Permits in the District of Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On December 18, 2013, a 300-count criminal complaint was authorized by US Magistrate Judge Bruce McGiverin charging attorney and notary public Antonio Peluzzo-Perotin with 100 violations of Title 18, United States Code, Section 505 (forgery of the signature of a judge, register, or officer of any court of the united States, or of any Territory thereof); 100 violations of Title 18, United States Code, Section 1028(a)(1) (causing the making of false identification documents); and 100 violations of Title 18, United States Code, Section 1028A (aggravated identity theft), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Peluzzo-Perotin caused 100 individuals to obtain false permits to carry concealed firearms within the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
According to the criminal complaint and affidavit, in September of 2013, information was brought to the attention of the FBI that Peluzzo-Perotin was creating fraudulent court documents in order to assist individuals to obtain permits to carry concealed weapons. The defendant was introduced to individuals who wanted concealed weapon permits through his association with a gun shop in Bayamón, PR, or through a network of intermediaries or brokers who brought him his clients.
So far, law enforcement has identified over 150 fraudulent petitions originated by Peluzzo-Perotin which have been filed in the Weapons Registry Section of PRPD in the municipalities of Caguas, Humacao, Bayamón, Aibonito and San Juan.
A review of court orders/resolutions authorizing the individuals to receive a concealed weapons permit has shown the following:
- The court filing number listed on the purported court document does not correspond to actual cases docketed within the Puerto Rico courts’ system, or does not match the names and numbers contained therein.
- The documents do not contain the actual name/s of the authorizing judicial officers as customary in all other court documents.
- All documents compared contain identical language, grammar and appearance; location of the Puerto Rico Superior Court’s Seal; location of the clerk’s office certificate of authentication; location of Internal Revenue Stamps (sellos) that partially cover the identifying judicial district.
- All documents contain similar hand written information within the clerk’s office certificate of authentication regardless of having been presumably prepared by different clerks of court.
Law enforcement has reviewed purported court orders/resolutions prepared and provided by the defendant which were then submitted to PRPD in order to cause the production of false PRPD identification cards, under true names. By perpetrating this scheme Antonio Peluzzo-Perotin entirely bypassed the judicial process, which had been legislatively established to properly adjudicate these Concealed Weapons permit applications.
“Today’s announcement exemplifies law enforcement agencies’ intense focus on the rigorous pursuit of criminals who bypass the judicial process using their positions as attorneys to defraud the government and endanger our communities,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “Peluzzo-Perotin perpetuated and financially benefitted from an elaborate scheme which demonstrated a blatant disregard for Puerto Rico’s firearms laws, and the security of all our citizens. The investigation continues.”
“The defendant engaged in forgery and aggravated identity theft for personal financial gain and put the security of Puerto Ricans at risk by providing false firearms carrying permits to more than 100 persons,” said Carlos Cases, Special Agent in Charge of FBI in Puerto Rico. “The FBI is committed to investigating corrupt lawyers who commit fraudulent practices.”
James Tuller-Cintrón, Superintendent of the PRPD stated: “The police officers who serve the Puerto Rico Police Department are committed to enforcing the law and ensuring the welfare of all Puerto Ricans. Those persons, who like Peluzzo-Perotin, wish to use their positions to infiltrate and manipulate the branches of government in favor of their own interests to harm the quality of life in Puerto Rico, should know that they will be arrested and shall face the full burden of the law. We will now investigate whether any crimes have been committed by those who Peluzzo-Perotin assisted. What we can point out is that we have taken him off the streets of Puerto Rico.”
The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass. If convicted, the defendant could face up to 15 years in prison and a mandatory sentence of two consecutive years for the aggravated identity theft charges.
Ashtabula Man Sentenced to 13 Years in Prison for Trafficking Heroin That Led to the Death of WomanRead the Press Release
An Ashtabula man was sentenced today to 13 years in prison for selling heroin that resulted in the death of an Ashtabula woman last year, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jamarce Miller, 37, previously pleaded guilty to conspiracy to distribute heroin. The count included a “death specification” that the heroin he sold directly resulted in the death of a person.
“Today there is a young girl being raised without a mother because of the heroin sold by Jamarce Miller,” Dettelbach said. “We hope today’s sentence gives this defendant time to reflect upon the devastation he caused to that girl, that family and our community.”
“Jamarce Miller is the typical drug dealer that routinely does not consider the consequences of his actions,” said Geno Corley, Resident Agent in Charge of the Drug Enforcement Administration’s Cleveland office. “DEA and it’s law enforcement partners will continue to investigate and ultimately stop the reign of terror by the Jamarce Millers of the world. Today, the community is safer because there is one less dope peddler selling poison on our streets.”
Miller was part of a conspiracy led by Rayshawn Reed, who arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area from March 2012 to August 15, 2012.
The heroin was then distributed to co-conspirators in Ashtabula, including Miller, who then resold the heroin to other co-conspirators and to heroin users. Heroin from the conspiracy that had been distributed by Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012, according to court documents.
Reed, Miller and the nine other people have been found guilty for their roles in the conspiracy. Reed was sentenced to 14 years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Linda Barr following an investigation by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office, and the Ohio State Highway Patrol.
Arsonist Receives 60 Months in Prison for Burning Lorton, Virginia Sandwich ShopRead the Press Release
ALEXANDRIA, Va. – Horace Sinclair Thompson, Jr., 25, of Lorton, Va., was sentenced today to 60 months in prison, followed by 2 years of supervised release, for the arson of a retail food establishment located in Lorton, Va.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Deputy Chief Michael T. Reilly, Fairfax County Office of the Fire Marshal; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Thompson was found guilty following a multi-day jury trial on October 3, 2013. According to court documents and evidence adduced at trial, on February 6, 2013, Thompson intentionally poured gasoline inside of a Lorton, Virginia sandwich shop and ignited the flammable vapors with a BiC lighter. His ignition of the highly volatile vapors caused a massive explosion and fireball that destroyed the majority of the store. The force of the blast was so strong that it blew out the store’s windows, cracked and melted porcelain fixtures, and blew a door off of its hinges. Thompson was apprehended after he was admitted to the hospital with burns consistent with the arson.
This case was investigated by the Fairfax County Police Department, the Fairfax County Fire Marshal’s Office, and the ATF. Assistant United States Attorneys Mike Rich and Zach Terwilliger prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
Jefferson County Man Pleads Guilty io Being an Armed Career Criminal and Admits to Possessing Firearms Stolen in BurglaryEUGENE, Ore. – Daniel Chase Kennedy, 27, a resident of Jefferson County, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene yesterday and was sentenced to 15 years in prison. On July 10, 2013, Kennedy pled guilty to being an armed career criminal and admitted possessing shotguns and rifles he and two accomplices stole while burglarizing a Jefferson County home.
Chief Judge Aiken sentenced Kennedy as an armed career criminal because he possessed the firearms after being previously convicted in Oregon courts of twelve felonies including robbery, coercion and deliveries of methamphetamine.
According to court documents and statements made in court, Kennedy and two accomplices used methamphetamine before breaking into the unoccupied home and stealing the guns and jewelry. Oregon State Police officers recovered four of the stolen guns, stolen property, and methamphetamine at Kennedy’s Madras residence. Kennedy was on Oregon post-prison supervision for four felonies when arrested by the Oregon State Police and the Jefferson County Sheriff.
Kennedy’s guilty plea, admissions and sentence of 180 months in prison were part of his plea agreement with the U. S. Attorney’s Office for the District of Oregon, Jefferson County District Attorney’s Office, and Deschutes County District Attorney’s Office.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, Oregon State Police and the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Jefferson County Deputy District Attorney Laura Moszer and Deschutes County Deputy District Attorney Brigid Turner, prosecuted the case.
Armed Career Criminal Convicted on Federal Firearm Charge Faces up to Life in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Damien Gouse, 35, who is currently serving a lengthy prison sentence in Massachusetts on felony assault charges, faces 15 years up to life in federal prison after being convicted by a federal court jury on Wednesday of being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
The government filed notice with the court that they will seek to have Gouse sentenced as an armed career criminal. According to court documents, Gouse was convicted on five occasions between 1998 and 2007 of violent felony crimes punishable by terms of imprisonment of more than one year.
The government presented evidence at trial that on November 29, 2007, at approximately 9:50 p.m., two Providence Police officers, on routine patrol in a marked police cruiser, observed a vehicle make a turn without using a turn signal. The vehicle proceeded at a slow speed with the officers behind it, and then turned abruptly into a church parking lot, again without signaling. The officers conducted a traffic stop of the vehicle in the parking lot.
According to the government’s evidence, as the officers approached the vehicle they observed Gouse, who was alone in the vehicle, reach across the middle console of the vehicle toward the passenger side floor attempting to conceal an item. One of the officers illuminated the passenger area floor with a flashlight where he observed and seized a .22 caliber handgun.
Gouse has been detained since his arrest. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on March 11, 2014.
The case was prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan, Richard B. Myrus and Lee H. Vilker.
The matter was investigated by the Providence Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Alleged Ms-13 Member Extradited from El Salvador to Eastern District of Virginia on Charges of Attempted Murder in Aid of RacketeeringRead the Press Release
ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 25, of the District of San Miguel, El Salvador, was extradited from El Salvador to the United States on Wednesday, December 18, 2013. Benitez Hernandez was previously indicted by an Eastern District of Virginia grand jury on June 13, 2010, on multiple racketeering charges, including attempted murder.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Michael L. Chapman, Loudoun County Sheriff, and Maggie DeBoard, Town of Herndon Chief of Police, made the announcement.
This case is an example of the hard work and partnership between FBI agents and police detectives who serve on the Northern Virginia Gang Task Force. These collaborative efforts are essential to investigating complex gang crimes and bringing gang members to justice.
Benitez Hernandez, who was charged with multiple counts of attempted murder in aid of racketeering as well as the discharge of a firearm during or in relation to a crime of violence, faces a maximum penalty of life imprisonment if convicted. Benitez Hernandez, who made his initial appearance today in front of United States Magistrate Judge Ivan D. Davis, will next appear for arraignment in front of United States District Judge Claude M. Hilton within the next fourteen days.
According to the indictment, Benitez Hernandez, an alleged member of the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on September 13, 2008, in Loudoun County, Virginia. Benitez Hernandez allegedly committed the double shooting to increase his position and stature within MS-13. On May 22, 2013, Benitez Hernandez was apprehended, in El Salvador, by an elite Salvadoran investigative unit known as the Transnational Anti Gang (TAG) Task Force. The TAG is composed of specially trained Salvadoran National Police investigators who work closely with the FBI on transnational investigations. This extradition marks the first time in recent history that a Salvadoran citizen has been extradited to the United States to be held accountable for alleged gang activity committed in the United States.
This case was investigated by the Federal Bureau of Investigation, Loudoun County Sheriff’s Office, and the Northern Virginia Gang Task Force with assistance from the Town of Herndon Police Department. The United States law enforcement partners involved in the investigation and prosecution of Benitez Hernandez praised the outstanding efforts of the Salvadoran National Police for their assistance in bringing this fugitive to justice. Acting United States Attorney, Dana J. Boente, also thanked the FBI’s Legal Attaché office in El Salvador, the Government of El Salvador, and the U.S. Department of Justice’s Office of International Affairs. Assistant United States Attorneys Patricia Haynes and Zach Terwilliger are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Additional Defendants Charged in Bank Fraud SchemeRead the Press Release
A superseding indictment was filed today adding four people to a multi-year bank fraud and identity theft scheme, announced United States Attorney Zane David Memeger. Benjamin Easley, 36, of Darby, PA, Jonathan Weeks, 42, of Upper Marlboro, NJ, Roderic Grady, 23, and Martina Grady, 25, both of New Castle, DE, were added to an indictment charging Derrick Floyd, 36, of Philadelphia, and Cynthia Nowicki, 47, of Eagleville, PA. The defendants are charged with conspiracy, bank fraud and aggravated identity theft in a scheme involving numerous individuals, to defraud banks such as PNC Bank, Wells Fargo Bank, TD Bank, Republic Bank and Wachovia Bank.
Using the stolen account information of a PNC Bank customer, the indictment alleges that the defendants made fraudulent withdraws from the victim bank account and transferred the money to a TD Bank account set up by Derrick Floyd. Floyd then visited multiple TD Bank branches between October 4, 2011 and October 7, 2011, making large withdrawals. It is further alleged that these defendants conspired with Shaun Mays, Laddis Taylor, and Norman Ross, all charged elsewhere, in obtaining or attempting to obtain more than $400,000 through fraudulent withdrawals and wire transfers involving at least seven victim bank accounts.
If convicted, Easley faces a maximum possible sentence of 175 years in prison and a fine of up to $7.75 million; Nowicki faces a maximum possible sentence of 67 years in prison and a fine of up to $1.5 million; Weeks, R. Grady and M. Grady each face a maximum possible sentence of 37 years in prison and a fine of up to $1.5 million; and Derrick Floyd faces a maximum possible sentence of 35 years in prison and a fine of up to $1.25 million.
The case was investigated by Federal Bureau of Investigation and United States Secret Service. It is being prosecuted by Assistant United States Attorney K.T. Newton.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525
18 December 2013
Woman Sentenced to 137 Months in Prison for Assault on A Federal Officer and for Failure to AppearRead the Press Release
Tequila Marsh, 41, of Nashville, Tenn., was sentenced today to serve 137 months in prison, to be followed by a three year term of supervised release, for assaulting a United States Postal Inspector and for failing to appear for a sentencing hearing, announced David Rivera, United States Attorney for the Middle District of Tennessee.
"Local, state, and federal law enforcement officers place themselves in harm's way every day to protect the rest of us," said U.S. Attorney David Rivera. "When individuals engage in criminal conduct and place our law enforcement officers and the public in danger of physical harm, it is a serious matter that warrants serious consequences. Those individuals should know that they will be held accountable for their crimes."
According to testimony at a guilty plea hearing conducted on April 5, 2012, the United States Postal Inspection Service and the Metropolitan Nashville Police Department were investigating a check fraud scheme that began in August of 2009. On December 2, 2009, a postal inspector received a telephone call from a manager at the Brentwood, Tennessee Post Office, reporting that an individual who previously had presented a fraudulent check at that post office had returned and was attempting to purchase stamps. Postal inspectors immediately responded to that post office and questioned the individual.
That individual provided the postal inspectors a false name and told them that he had arrived at the post office in a a "brown truck" driven by his sister. He said the truck was in a shared retail parking lot immediately west of the post office.
While interviewing the individual, the inspectors observed a champagne-colored Chevrolet Suburban that matched the description of a vehicle reportedly used in previous incidents of check fraud. The postal inspectors approached the Suburban and one of them displayed his badge and identified himself as a police officer to Marsh, who was the driver of the Suburban. Marsh was subsequently ordered to park the vehicle, but instead, rapidly accelerated towards one of the inspectors, causing him to take evasive action to avoid being struck by the vehicle. The vehicle then sped from the parking lot, narrowly avoiding a collision with on-coming traffic.
On December 7, 2009, the United States filed a criminal complaint and obtained an arrest warrant for Marsh, charging her with assaulting a federal officer. That arrest warrant was executed on December 10, 2009. At the time of her arrest, Marsh admitted that she had delivered her cousin to the Brentwood Post Office and that she knew he intended to do something illegal. She acknowledged that she heard and understood the commands of the postal inspectors to park her car, but did not do so.
Marsh entered a plea of guilty on April 5, 2012 to the charge of assaulting a federal officer and her sentencing hearing was scheduled for July 12, 2012. Marsh failed to appear for that sentencing hearing and a bench warrant was issued authorizing her arrest.
During the early morning hours of May 29, 2013, the Nashville Crime Stoppers program received a tip that Marsh was at a hotel in Nashville. Officers from the Metropolitan Nashville Police Department responded to that hotel and arrested Marsh.
This case was investigated by the United States Postal Inspection Service and the Metropolitan Nashville Police Department. The United States is represented by Assistant United States Attorney Byron Jones.
Wine Dealer Rudy Kurniawan Convicted in Manhattan Federal Court for Creating and Selling Millions of Dollars of Counterfeit WineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that wine dealer RUDY KURNIAWAN was found guilty today by a jury in Manhattan federal court for engaging in a scheme to manufacture and sell counterfeit bottles of purportedly rare and expensive wine for millions of dollars. KURNIAWAN was also convicted of a scheme to fraudulently obtain a $3 million loan from a financing company. He was convicted following a one-week jury trial before U.S. District Judge Richard Berman.
Manhattan U.S. Attorney Preet Bharara said: “Rudy Kurniawan perpetrated a vintage fraud scheme, not only peddling counterfeit wine, but concocting, bottling, and labeling what he foisted on his victims. As the jury found in its verdict today, Kurniawan was also the author of a fictional tale that enabled him to defraud a lender out of $3 million. He now stands to pay for his fraud with time behind bars in a federal prison.”
According to evidence at trial and documents previously filed in Manhattan federal court:
KURNIAWAN has been a collector of fine and rare wines, and rose to become one of the most prominent and prolific dealers in the United States of purportedly rare and expensive wine. From 2004 through 2012, he engaged in a systematic scheme to defraud wine collectors and others by selling and attempting to sell numerous counterfeit bottles of purportedly rare and expensive wine. KURNIAWAN manufactured counterfeit bottles of rare and vintage wine at his home in Aracadia, California, operating what was, in effect, a counterfeit wine laboratory. KURNIAWAN mixed and blended lower-priced wines so that they would mimic the taste and character of rare and far more expensive wines; poured his creations into empty bottles of rare and expensive wines that he procured from various sources; and created a finished product by sealing the bottles with corks and outfitting the bottles with counterfeit wine labels he created. KURNIAWAN then sold and attempted to sell these counterfeit bottles of wine at auctions and in direct sales to wealthy wine collectors. KURNIAWAN earned millions of dollars through the sale of these counterfeit bottles of wine.
The Scheme to Defraud a Lender
KURNIAWAN also devised and carried out a scheme to fraudulently obtain a $3 million loan from a financing company located in New York City that specialized in extending loans that are secured by valuable collectibles, such as art and wine. KURNIAWAN obtained the loan by providing false information to, and concealing material information from, the financing company, including falsely omitting approximately $7.4 million in outstanding loans, falsely representing his annual expenses, and falsely representing that he was a permanent resident of the United States when he had no legal immigration status in the United States and had, in fact, been ordered by an immigration court to leave the country years earlier.
KURNIAWAN, 37, of Arcadia, California, was convicted of one count of mail fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which also carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the outstanding work of the FBI’s Art Crime Team and its New York and Los Angeles field offices.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Jason P. Hernandez and Joseph Facciponti are in charge of the prosecution.
Wichita Falls Man Sentenced to 14 Years in Federal Prison for Role in Large Scale Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas —Louis Griego, Jr., aka “Big Lou,” 44, of Wichita Falls, Texas, was sentenced on Monday, by U.S. District Judge Reed C. O’Connor, to 168 months (14 years) in federal prison following his guilty plea in July 2013 to an indictment charging conspiracy to possess with intent to distribute and to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A total of seven defendants have pleaded guilty in the case. In August, Judge O'Connor sentenced Anthony Rueben Johnston, 28, to 480 months (40 years) in federal prison; Rachel Dawn Billen, 20, to 36 months and Christina Gail Thompson, 32, to 42 months in federal prison. Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine.
Three other defendants charged in the case, Janis Hernandez, James Allan Holley and Darren Scott Murphy, Jr., also pleaded guilty, and their sentencing dates are scheduled during the next few months.
According to documents filed in Griego’s case, Griego admitted that during the month of February 2013, he distributed quantities of methamphetamine to and received payments for methamphetamine from customers in the Wichita Falls area. Co-conspirator Anthony Rueben Johnston supplied the methamphetamine that Griego distributed.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Wheatfield Man Pleads Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Filippo Inglima, 47, of Wheatfield, N.Y., an Italian citizen, who was convicted of conspiracy to distribute a thousand kilograms or more of marijuana and five kilograms or more of cocaine, was sentenced to 121 months in prison, by U.S. District Judge Richard J. Arcara. The defendant will also forfeit $39,456,00 in United States currency, a rifle and ammunition, and a sport utility vehicle.
Assistant U.S. Attorneys Frank T. Pimintel and Joseph M. Guerra, who handled the case, stated that from 2006 to 2007, Inglima owned Filippo’s Restaurant in Buffalo. Co-defendant David Gambino invested in the restaurant to help Inglima pay bills and other expenses of the restaurant. After that, Gambino asked Inglima to assist in the smuggling of drugs and money to and from Canada. Between 2006 and November 2009, Inglima conspired with Gambino and others to import quantities of marijuana from Canada and distribute the drug to other individuals in Buffalo. In addition, Inglima transported quantities of cocaine from the United States into Canada. The defendant picked up the cocaine in different parts of the United States including Chicago, Ohio, New York City and New Orleans. During the period of the conspiracy, the defendant conspired to distribute 100 kilograms of cocaine and 1,800 kilograms of marijuana.
Inglima was arrested in November 2009 along with Gambino and 22 others. All defendants have been convicted. David Gambino was sentenced to 188 months in prison in November 2013.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge, the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Michael Cerretto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Westside Man Arrested on Money Laundering Charges Related to Alleged Embezzlement of Nearly $370,000 from Girl ScoutsRead the Press Release
LOS ANGELES – A Marina Del Rey man is expected to make his first court appearance this afternoon after being arrested yesterday by FBI agents on federal charges of laundering $50,000 out of approximately $370,000 he allegedly embezzled from the Girl Scouts.
Channing Smack, 51, who was a senior property manager of the Girl Scouts of Greater Los Angeles (GSGLA), was arrested yesterday without incident. Smack is named in a criminal complaint that was also filed late yesterday charging him with money laundering, a federal offense that carries a maximum sentence of 10 years in federal prison.
Smack was arrested after being interviewed by FBI agents about the alleged embezzlement and one day after he withdrew $64,500 from accounts believed to contain proceeds of the scheme.
According to the affidavit in support of the complaint, Smack was responsible for managing the GSGLA’s 22 properties in the Los Angeles area. Over the past year and a half, Smack approved invoices for services purportedly provided by a firm called ZB Land Maintenance & Engineering, which is registered under the name of Smack’s deceased brother. Between August 2012 and October 2013, allegedly at Smack’s direction, GSGLA issued 23 checks to ZB that totaled $368,278. The evidence uncovered by the FBI shows that most of the checks to ZB were then deposited into one of two bank accounts opened under the names of the company and Smack’s deceased brother. According to the affidavit, bank surveillance photographs show an individual who looks like Smack either depositing or withdrawing funds into or from these bank accounts.
This past Monday, federal prosecutors served federal seizure warrants on three bank accounts believed to contain embezzled funds – the ZB account and two personal accounts in Smack’s name into which he is believed to have transferred funds derived from the GSGLA checks.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The criminal complaint against Smack is the product of an ongoing investigation by the Federal Bureau of Investigation.
Release No. 13-148
United States Attorney Announces More Prosecutions as Part of Violent Crime InitiativeRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced today three new prosecutions as part of his office’s Violent Crime Initiative, which has charged more than 300 defendants with illegally possessing firearms since 2011. All three defendants are convicted felons face up to a decade or more in federal prison if they are convicted. Hogsett was joined in making this announcement by Mike Boxler, Indiana’s new Special Agent-in-Charge with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“When I was sworn in as U.S. Attorney, the request I heard most often from local law enforcement was to take more illegally armed felons off the streets, and stop the revolving door of justice at our local jails,” Hogsett said. “That is why I stand with our federal partners today in reiterating that it doesn’t matter if you choose to illegally arm yourself, illegally arm other adults, or illegally arm the juveniles of this city. You don’t have to pull the trigger to face lengthy prison time anymore. You will be identified, investigated, and held fully accountable.”
The new prosecutions were all the result of ATF investigations, and include Christopher Walbert, age 26, a convicted felon from Montgomery County with an extensive criminal history who was allegedly found with a .380 caliber handgun in early December. In another case, Daniel Bowen, age 28, was brought into custody at the Indianapolis International Airport when he allegedly attempted to bring a multi-caliber rifle onto the premises. Bowen is a convicted felon with a violent criminal history that stretches across multiple states.
Hogsett and Boxler specifically pointed to the case of Thomas Montgomery, age 39, an Indianapolis resident with a decade-long criminal history that includes prior Marion County convictions for illegally possessing a handgun, possessing cocaine, and dealing cocaine. Montgomery was allegedly arrested by Indianapolis law enforcement in early August and was found to be in possession of a 9mm semi-automatic pistol.
The core mission of ATF is to identify, pursue, and perfect criminal cases against those individuals who illegally possess and use firearms in furtherance of their criminal activities,” stated ATF Special Agent in Charge Michael Boxler. “We will continue to work shoulder to shoulder with all our law enforcement partners to ensure that these types of individuals who terrorize and jeopardize the tranquility of our communities are dealt with accordingly.”
In 2010, there was just one Assistant U.S. Attorney assigned to prosecute violent felons who illegally possessed firearms. In March 2011, Hogsett launched the U.S. Attorney’s Violent Crime Initiative, which prioritized a comprehensive, district-wide strategy to combat drug traffickers and habitual criminals that carry and use illegally-possessed firearms.
Now, there are 18 federal prosecutors who assist in prosecuting federal gun cases. The average number of illegal possession cases has risen from a pre-VCI figure of one new case every month to a record-setting pace of one new defendant every three days. All told, 296 defendants have been charged as part of the VCI since its launch, with 274 defendants sentenced over that same period of time.
Hogsett noted that Indianapolis has struggled over the last two years with an increase in high-profile gun crimes, and the city’s murder rate is the highest it has been in seven years. In response, the U.S. Attorney’s Office teamed up with the ATF and other federal law enforcement agencies to pledge additional resources toward assisting local efforts to combat the rise in violent gun crimes.
Since first announced in May 2013, this renewed federal effort has resulted in more than two-dozen prosecutions of individuals who are charged with illegally possessing firearms in Marion County. The 27 defendants with unsealed federal charges represent more than 100 prior felonies committed in the Indianapolis-area, and all now face a decade or more in prison if they are convicted. Under federal law, a minimum of 85% of those sentences must be served within a correctional institution.
In addition, the Department of Justice and U.S. Attorney’s Office have announced more than $1.5 million in grants to assist with law enforcement and crime prevention efforts. This includes a $997,736 grant to the City of Indianapolis to purchase equipment and ammunition, as well as hire new staff. An additional $511,142 grant was awarded to strengthen Marion County’s crime laboratories, specifically bolstering the city’s DNA forensic equipment.
Boxler noted that ATF and the U.S. Attorney’s Office are also working with IMPD to fully implement the National Integrated Ballistic Information Network (NIBIN). Established in 1999 and administered by the ATF, the program allows for guns and ammunition found in Indianapolis to be matched against a national database of weapons used in criminal activity. This allows investigators to better analyze how firearms get into the hands of convicted felons and juveniles, as well as more quickly discover connections between crime scenes. Hogsett said that the U.S. Attorney’s Office organized a NIBIN training for local officers earlier this year.
A criminal complaint or indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
United States Announces Settlement with Suffolk County to Remedy Federal Leak Prevention Violations at the County’s Underground Storage TanksRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Judith A. Enck, Regional Administrator, United States Environmental Protection Agency (EPA) Region 2, today announced the settlement with Suffolk County (Suffolk) in a federal civil environmental lawsuit alleging that Suffolk violated the federal leak prevention requirements for underground storage tanks at 35 facilities that the County has owned or operated. The violations involve 68 underground storage tanks, which contain gasoline or waste oil in generally large quantities and can cause serious environmental damage if allowed to leak.
All of the facilities at which Suffolk has owned or operated underground storage tanks are located within the boundaries of a federally-designated Sole Source Aquifer, which, among other criteria, is an aquifer that supplies at least 50% of the drinking water consumed within the Sole Source Aquifer boundaries. The Sole Source Aquifer designation is a tool to protect drinking water supplies in areas with few or no alternative sources to the groundwater resources, and where, if contamination occurred, using an alternative source would be extremely expensive. The violations alleged in the complaint do not pose an immediate threat to the drinking water of Suffolk’s residents. However, Suffolk’s compliance with the federal leak prevention requirements of the Resource Conservation and Recovery Act (RCRA) is vital to ensure the integrity of tanks and to prevent the release of petroleum product to soil and groundwater.
The lawsuit also alleges that Suffolk violated RCRA’s hazardous waste management requirements by improper handling of used fluorescent lamps at its facilities. Compliance with these requirements is essential to minimize the present and future threat to human health and the environment of hazardous waste.
Under the Consent Judgment, lodged today in U.S. District Court for the Eastern District of New York, Suffolk County will pay a civil monetary penalty of $500,000 to the United States. Suffolk will also fund a Supplemental Environmental Project in the amount of $1,500,000 to acquire an interest in land, and to manage such land and any associated ecological resources, into perpetuity, to protect or enhance groundwater. This project will secure significant environmental and public health benefits for Suffolk’s residents, including protecting Suffolk County’s sole source aquifer, and enhancing the condition of the ecosystem.
While the settlement was being negotiated, Suffolk undertook measures to achieve compliance with RCRA that the EPA has valued at approximately $2,900,000. This included replacement and upgrade of automated release detection systems, removal and closure of obsolete tanks, upgrade and renovation of fueling stations, adding inventory control equipment at fueling sites, conducting training and inspections, and cleanup and restoration of a fuel spill at one of Suffolk’s facilities. Under the Consent Judgment, Suffolk has committed to remain in compliance with RCRA requirements for all of its underground storage tanks and in its handling of used fluorescent lamps, and to submit regular reports to the EPA to demonstrate that it is in compliance. The EPA has estimated the value of these future compliance measures at approximately $1,115,000.
“Suffolk County’s residents are entitled to full protection of the laws and regulations designed to protect our water, our environment, and our citizens from risk of contamination from gasoline. Suffolk’s commitment to maintain compliance with those laws and to fund the acquisition of an interest in land that will be perpetually managed to protect and enhance groundwater provides a significant benefit to Suffolk’s residents,” stated United States Attorney Lynch. “This Consent Judgment will ensure that Suffolk County’s groundwater, the sole source aquifer for Suffolk County, is protected from releases from Suffolk’s underground storage tanks.”
“As a result of this settlement, the health of people living in communities throughout Suffolk County will be better protected from the threat of petroleum contamination to ground water," said EPA Regional Administrator Judith A. Enck. "Under this agreement, the county will come into compliance with Federal Hazardous Waste Laws, including those laws aimed at preventing leaks of underground petroleum storage tanks, and will undertake a $1.5 million land conservation program to preserve and protect a major source of Long Island's drinking water."
The proposed settlement will be published in the Federal Register for a 30-day public comment period, and to be become effective, it must be approved by the United States District Court for the Eastern District of New York.
The government’s case is being prosecuted by Assistant United States Attorney Sandra L. Levy. EPA is represented by Assistant Regional Counsel Stuart Keith.
U.S. Citizen Sentenced in Manhattan Federal Court to 25 Years in Prison for Conspiring to Aid the TalibanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ODED ORBACH, a U.S. citizen, was sentenced today in Manhattan federal court to 25 years in prison for conspiring to provide material support to the Taliban and conspiring to acquire anti-aircraft missiles. The case arose out of a DEA undercover operation in which ORBACH and a co-defendant, Alwar Pouryan, also a U.S. citizen, agreed to provide various military-grade weapons, including heat-seeking surface-to-air missiles, to an individual they believed to represent the Taliban. ORBACH and Pouryan were convicted on April 19, 2013, after a two-week bench trial before U.S. District Judge Naomi Reice Buchwald. On September 25, 2013, Pouryan was sentenced to 25 years in prison by Judge Buchwald, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Today’s sentence ensures that Oded Orbach will be held to account for agreeing to provide over $25 million in military-grade weapons, including heat-seeking surface-to-air-missiles, to a source he believed represented the Taliban, and even though he knew the weapons would be used against the U.S. This Office stands ready to pursue and prosecute those who would provide support to terrorist organizations that target our country.”
According to evidence at trial and documents previously filed in Manhattan federal court:
Beginning in the fall of 2010, and continuing through their arrest in February 2011, the defendants communicated with a confidential source (the “CS”) working with the DEA who purported to represent the Taliban. The communications occurred during audio-recorded and videotaped meetings in Ghana, Ukraine, and Romania, as well as by telephone and email. During these communications, ORBACH and Pouryan agreed to arrange the sale of weapons to the CS for the Taliban’s use against U.S. military forces in Afghanistan. At the meetings, Pouryan and ORBACH, at different times, discussed weapons specifications, pricing, and the provision of training for the various weapons, including “Stinger” surface-to-air missiles, anti-tank missiles, grenade launchers, and M-16 assault rifles. ORBACH and Pouryan were informed that the surface-to-air missiles, in particular, were needed to protect Taliban heroin laboratories against attacks by U.S. helicopters. The defendants also offered to provide regular shipments of ammunition. In total, ORBACH and Pouryan agreed to provide over $25 million in weapons, ammunition, and training, and expected to make over $800,000 in commissions in connection with the transaction.
The defendants also discussed various weapons requested by the purported Taliban representative, drafted price lists and payment schedules for the weapons, and created internal budget documents that reflected the expenses and anticipated income from the weapons deal. ORBACH also emailed third-party weapons suppliers seeking to obtain certain of the requested weapons.
Following the final meeting in Bucharest, Romania, on February 10, 2011, ORBACH and Pouryan were arrested by Romanian authorities in coordination with the DEA. In April 2011, the Government of Romania extradited the defendants to the United States to face charges in the Southern District of New York.
In addition to the prison term, ORBACH, 55, Highland Park, Illinois, was ordered to pay $1,596.00 in forfeiture, and a $200 special assessment fee.
Mr. Bharara praised the extraordinary work of the Special Operations Division of the DEA, as well as the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, and the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime). Mr. Bharara also thanked the Department of Justice’s Office of International Affairs and National Security Division, as well as the U.S. Attorney’s Office for the Northern District of Illinois, U.S. Immigration and Customs Enforcement, and the governments of Romania and Ukraine.
Mr. Bharara expressed his sincere gratitude for the work of the Romanian National Prosecutor’s Directorate for Investigating Organized Crime and Terrorism, the Romanian Prosecutor’s Office of the Court of Appeals, and the Romanian National Police Directorate for Investigating Organized Crime.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell and Aimee Hector are in charge of the prosecution.
Two Indicted for Howell County Drug Trafficking, Airplane and Firearms SeizedRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marble Hill, Mo., man and a Shirley, N.Y., man have been indicted by a federal grand jury for a marijuana trafficking conspiracy in which the government has seized an aircraft and dozens of firearms.
Joshua William Vawter, 36, of Marble Hill, and Angelo Charles Vetrano, 33, of Shirley, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Dec. 17, 2013. Vawter and Vetrano were arrested at West Plains Regional Airport in West Plains, Mo., on Oct. 31, 2013.
The federal indictment alleges that Vawter and Vetrano participated in a conspiracy to distribute 50 kilograms or more of marijuana from Oct. 26 to Nov. 1, 2013, in Howell County, Mo. Vawter and Vetrano are also charged with one count of possessing 50 kilograms or more of marijuana with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require Vawter and Vetrano to forfeit to the government any property used to commit the alleged violations, or any property obtained as proceeds of the alleged violations, including a 1968 Piper Cherokee Six aircraft seized from Vawter and $1,800 seized from Vawter and Vetrano on Oct. 31, 2013, as well as $75,000 in cash, a 2009 John Deere tractor and 60 firearms, all of which was seized from Vawter’s residence.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Air and Marine Operations Center (AMOC) of the Department of Homeland Security (DHS), DHS Custom and Border Patrol, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the Bollinger County, Mo., Sheriff’s Department and the Missouri South Central Drug Task Force.Two Area Women Head to Federal Prison in Home Health Services ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Debra Jean Velasquez, of Robstown, and Sylvia Salinas Ramirez, of Driscoll, have been ordered to prison in a scheme to defraud the Texas Medicaid program through fraudulent home health billings, announced United States Attorney Kenneth Magidson along with Texas Attorney General Greg Abbott. The woman entered guilty pleas Sept. 4, 2013, to conspiring to submit false and fraudulent bills to the Texas Medicaid Program by wire transmissions as well as wire fraud.
Today, Senior U.S. District Judge Janis Graham Jack handed Velasquez, 42, and Ramirez, 52, respective terms of 51 and 41 months in federal prison for wire fraud and conspiracy to commit wire fraud. In handing down the sentence, Judge Jack noted that the sentence was necessary considering the number of victims, the need to deter future criminal conduct and to protect the public. Both will also be required to serve a term of two years of supervised release following completion of the prison term.
The two women admitted that from or about Aug. 1, 2009, through on or about June 15, 2010, they were employed by the Corpus Christi office of MRNG Inc. doing business as Caring Touch Home Health. During that time, they conspired to submit false and fraudulent bills through wire transmissions to the Texas Medicaid program and the Medicaid funded managed care organizations known as Evercare of Texas LLC and Superior Health Plan Inc. for home health services that had not been provided. Ramirez and Velasquez admitted they created false and fraudulent time sheets for former Caring Touch employees for home health services that had not been provided and then fraudulently billed Medicaid, Evercare and Superior in the name of Caring Touch for those non-existent services. They sent approximately 562 of those false and fraudulent bills by wire.
Ramirez and Velasquez also admitted that in order to personally profit from their fraudulent billings, they created phony payroll records from the fraudulent time sheet which they then sent to Caring Touch’s payroll staff. Ramirez and Velasquez then obtained the payroll checks generated from the false and fraudulent time records, forged the signatures of the former Caring Touch employees, then cashed the checks and divided the money among themselves. Caring Touch and the former employees whose names were used on the false time sheets and checks were not accused of any wrongdoing.
Ramirez and Velasquez admitted that as a result of their false and fraudulent claims, Texas Medicaid, Evercare and Superior paid the approximate aggregate sum of $155,127.72. As part of their pleas, the women have agreed to pay restitution in that amount.
Previously released on bond, Ramirez and Velasquez were taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of a joint investigation conducted by officers and agents of the Corpus Christi Police Department, the FBI, Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Jeffery D. Preston are prosecuting the case.
Twelve Members of Methamphetamine Trafficking Ring Face Drug ChargesRead the Press Release
Seven Arrested During Round-up; Three Remain Fugitives
ASHEVILLE, N.C. – Twelve members of a methamphetamine trafficking ring have been charged with conspiracy to possess with intent to distribute methamphetamine. Seven of those charged were arrested on Tuesday, December 10, 2013, during an early morning round-up conducted by federal, state and local law enforcement, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Three of the named defendants remain fugitives (please see attached photos).
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The arrests are the result of a multi-agency investigation to target and reduce the trafficking of methamphetamine in Western North Carolina and was conducted by DEA, ATF, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Marion Police Department, the McDowell County Sheriff’s Office, the Yancey County Sheriff’s Office, the Rutherford County Sheriff’s Office, as well as the South Carolina Law Enforcement Division, the Cowpens Police Department and the Spartanburg County Sheriff’s Office in South Carolina.
According to allegations contained in the criminal indictment unsealed on Wednesday, December 11, 2013 in U.S. District Court, from about June 2011 to July 2013, the defendants did knowingly conspire to possess with intent to distribute more than 50 grams of actual methamphetamine or more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine. The indictment alleges that the defendants carried out their drug conspiracy primarily in Buncombe, Cleveland and McDowell counties in Western North Carolina.
The following individuals were named and charged in the methamphetamine conspiracy indictment.
• George Wade Cook (a/k/a “Rooster”), 52 , of Caser, N.C. (in custody)
• Gergory Ray DeHart, 44, of Marion, N.C. (in custody)
• Ramona Jamison Lail, 48 ,of Marion. (in custody)
• Jimmy Dwayne Lawing (a/k/a “Dick”), 45 of Marion. (in custody)
• Carlos Alvarado Mendoza (a/k/a “Tequila”), 39 of Candler, N.C. (in custody)
• John Louis Pivonka, 42 of Marion. (in custody)
• Tommy Ray Sisk, 56 of Old Fort, N.C. (in custody)
• John Matthew Frady, (a/k/a “Ghost”), 39, of Cowpens, S.C. (in state custody)
• Jeffrey Kirkland, 41, of Gainesville, Ga. (in federal custody in Georgia)
• Miguel Santos-Maldonado (a/k/a “Mateo Segura”), 42, of Gainesville, Ga. (fugitive)
• Rigoberto Alvarado Mendoza (a/k/a “Big Boy”), 42 of Arden, N.C.(fugitive)
• Taide Alvarado Vergara, 27, of Candler. (fugitive)All twelve defendants in the methamphetamine trafficking ring have been charged with engaging in a narcotics conspiracy and they face a statutory minimum prison term of ten years and a maximum term of life imprisonment, and a $10 million fine. (See chart below for a breakdown of additional federal charges and maximum penalties for each defendant).
The seven defendants arrested in North Carolina had their arraignment and detention hearings on Monday, December 16, 2013, before U.S. District Court before U.S. Magistrate Judge Dennis L. Howell. All seven were detained pending trial.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The investigation is being handled by DEA, ATF, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Marion Police Department, the McDowell County Sheriff’s Office, the Yancey County Sheriff’s Office, the Rutherford County Sheriff’s Office, as well as the South Carolina Law Enforcement Division, the Cowpens Police Department and the Spartanburg County Sheriff’s Office in South Carolina.
The prosecution is being handled for the government by Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville.
Turtle Creek Man Charged with Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH – A Turtle Creek man was indicted on Dec. 10, 2013 by a federal grand jury in Pittsburgh on a charge of failing to register as a convicted sex offender, United States Attorney David J. Hickton announced today.
The one-count indictment named Kevin McCree, 30, as the sole defendant.
According to the indictment, McCree was required to register under the Sex Offender Registration and Notification Act after having been convicted in 2007 in Utah of the felony sex offenses of Enticing a Minor over the Internet and Dealing in Material Harmful to a Minor. The indictment states that between in and around March 2013, and Dec. 10, 2013, McCree traveled in interstate commerce and knowingly failed to register and update a registration, as required by the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of up to 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Miami-Dade Residents Sentenced for Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce today’s sentencing of defendants Mario R. Triana Martinez, 24, of Miami, Emilio Mederos, 24, of Miami, and Francisco Cartaya, 25, of Hialeah, for charges relating to their participation in a scheme to defraud T-Mobile and Wal-Mart by fraudulently obtaining cellular telephones through the unauthorized use of account information of valid T-Mobile customers.
At today’s hearing, U.S. District Judge Donald L. Graham sentenced Mario R. Triana Martinez to 41 months in prison, to be followed by three years of supervised release. Emilio Mederos was sentenced to 33 months in prison, to be followed by three years supervised release. Francisco Cartaya was sentenced to six months in prison, to be followed by one year of supervised release. Triana Martinez, Mederos and Cartaya were also ordered to pay restitution in the amount of $232,803.88. All of the defendants pled guilty on October 8, 2013 to conspiracy to commit wire fraud.
According to court documents, between May 2010 and July 31, 2011, Triana Martinez, Mederos, Cartaya, co-defendant Yandy Rosell Trujillo and others, participated in a scheme to defraud T-Mobile and Wal-Mart by fraudulently obtaining cellular telephones using the personal identification information, such as account numbers and social security numbers, of valid T-Mobile customers, and then re-selling the cellular telephones at a profit. As part of the fraud, Triana Martinez and Mederos, who had unauthorized access to valid T-Mobile customer account information, called T-Mobile, and impersonating a T-Mobile dealer over the telephone, caused the name on a valid T-Mobile account to be changed to match the name of one of the co-conspirators. Once the name on the T-Mobile account was changed, Triana Martinez, Mederos, Cartaya and Rosell Trujillo visited Wal-Mart locations in eleven different states, including locations in the Southern District of Florida; provided the account number or social security number of the valid T-Mobile customer; and proceeded to purchase cellular telephones, such as BlackBerrys or HTCs, at a deeply discounted rate reserved for qualified T-Mobile customers. Triana Martinez and Mederos thereafter sold the fraudulently-obtained cellular telephones at a profit. This fraudulent scheme resulted in losses to T-Mobile and Wal-Mart in excess of $200,000.00.
Defendant Yandy Rosell Trujillo, 28, of Hialeah, pled guilty to conspiracy to commit wire fraud on October 16, 2013, and is scheduled to be sentenced on January 9, 2014.
Mr. Ferrer commended the investigative efforts of the Secret Service. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
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.
Statement of Manhattan U.S. Attorney Preet Bharara on U.S. V. Devyani KhobragadeRead the Press Release
There has been much misinformation and factual inaccuracy in the reporting on the charges against Devyani Khobragade. It is important to correct these inaccuracies because they are misleading people and creating an inflammatory atmosphere on an unfounded basis. Although I am quite limited in my role as a prosecutor in what I can say, which in many ways constrains my ability here to explain the case to the extent I would like, I can nevertheless make sure the public record is clearer than it has been thus far.
First, Ms. Khobragade was charged based on conduct, as is alleged in the Complaint, that shows she clearly tried to evade U.S. law designed to protect from exploitation the domestic employees of diplomats and consular officers. Not only did she try to evade the law, but as further alleged, she caused the victim and her spouse to attest to false documents and be a part of her scheme to lie to U.S. government officials. So it is alleged not merely that she sought to evade the law, but that she affirmatively created false documents and went ahead with lying to the U.S. government about what she was doing. One wonders whether any government would not take action regarding false documents being submitted to it in order to bring immigrants into the country. One wonders even more pointedly whether any government would not take action regarding that alleged conduct where the purpose of the scheme was to unfairly treat a domestic worker in ways that violate the law. And one wonders why there is so much outrage about the alleged treatment of the Indian national accused of perpetrating these acts, but precious little outrage about the alleged treatment of the Indian victim and her spouse?
Second, as the alleged conduct of Ms. Khobragade makes clear, there can be no plausible claim that this case was somehow unexpected or an injustice. Indeed, the law is clearly set forth on the State Department website. Further, there have been other public cases in the United States involving other countries, and some involving India, where the mistreatment of domestic workers by diplomats or consular officers was charged criminally, and there have been civil suits as well. In fact, the Indian government itself has been aware of this legal issue, and that its diplomats and consular officers were at risk of violating the law. The question then may be asked: Is it for U.S. prosecutors to look the other way, ignore the law and the civil rights of victims (again, here an Indian national), or is it the responsibility of the diplomats and consular officers and their government to make sure the law is observed?
Third, Ms. Khobragade, the Deputy General Consul for Political, Economic, Commercial and Women’s Affairs, is alleged to have treated this victim illegally in numerous ways by paying her far below minimum wage, despite her child care responsibilities and many household duties, such that it was not a legal wage. The victim is also alleged to have worked far more than the 40 hours per week she was contracted to work, and which exceeded the maximum hour limit set forth in the visa application. Ms. Khobragade, as the Complaint charges, created a second contract that was not to be revealed to the U.S. government, that changed the amount to be paid to far below minimum wage, deleted the required language protecting the victim from other forms of exploitation and abuse, and also deleted language that stated that Ms. Khobragade agreed to “abide by all Federal, state, and local laws in the U.S.” As the Complaint states, these are only “in part” the facts, and there are other facts regarding the treatment of the victim – that were not consistent with the law or the representations made by Ms. Khobragade -- that caused this Office and the State Department, to take legal action.
Fourth, as to Ms. Khobragade’s arrest by State Department agents, this is a prosecutor’s office in charge of prosecution, not the arrest or custody, of the defendant, and therefore those questions may be better referred to other agencies. I will address these issues based on the facts as I understand them. Ms. Khobragade was accorded courtesies well beyond what other defendants, most of whom are American citizens, are accorded. She was not, as has been incorrectly reported, arrested in front of her children. The agents arrested her in the most discreet way possible, and unlike most defendants, she was not then handcuffed or restrained. In fact, the arresting officers did not even seize her phone as they normally would have. Instead, they offered her the opportunity to make numerous calls to arrange personal matters and contact whomever she needed, including allowing her to arrange for child care. This lasted approximately two hours. Because it was cold outside, the agents let her make those calls from their car and even brought her coffee and offered to get her food. It is true that she was fully searched by a female Deputy Marshal -- in a private setting -- when she was brought into the U.S. Marshals’ custody, but this is standard practice for every defendant, rich or poor, American or not, in order to make sure that no prisoner keeps anything on his person that could harm anyone, including himself. This is in the interests of everyone’s safety.
Fifth, as has been reported, the victim’s family has been brought to the United States. As also has been reported, legal process was started in India against the victim, attempting to silence her, and attempts were made to compel her to return to India. Further, the Victim’s family reportedly was confronted in numerous ways regarding this case. Speculation about why the family was brought here has been rampant and incorrect. Some focus should perhaps be put on why it was necessary to evacuate the family and what actions were taken in India vis-à-vis them. This Office and the Justice Department are compelled to make sure that victims, witnesses and their families are safe and secure while cases are pending.
Finally, this Office’s sole motivation in this case, as in all cases, is to uphold the rule of law, protect victims, and hold accountable anyone who breaks the law – no matter what their societal status and no matter how powerful, rich or connected they are.
Statement of Manhattan U.S. Attorney Preet Bharara on the Conviction of Michael SteinbergRead the Press Release
“The jury has found what the Government contended from the outset; in search of an edge, Michael Steinberg crossed the line into criminal insider trading. Like many other traders before him who, blinded by profits, lost their sense of right and wrong, Steinberg now stands convicted of federal crimes and faces the prospect of losing his liberty.”
Stash House Operator Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
McALLEN, Texas – Martin Saucedo-Mata, 48, of Pharr, has been ordered to prison for 121 months for storing cocaine at his residence, announced United States Attorney Kenneth Magidson. Saucedo-Mata pleaded guilty to conspiracy to possess with intent to distribute cocaine on Oct. 3, 2013.
On June 20, 2013, federal and state agents and local task force officers followed a taxi cab after it made entry into the United States from Mexico to the residence of Saucedo-Mata in Pharr. After the cab departed, Saucedo-Mata gave agents permission to search the residence, at which time they found 25 bundles of cocaine weighing approximately 28.6 kilograms.
At the sentencing hearing today, it was determined Saucedo-Mata had previously stored cocaine at his residence during the week prior to his arrest. U.S. District Judge Micaela Alvarez took that fact into consideration as well as his prior criminal history and handed him the 121-month-term, noting it was a poor decision on his part to commit this serious crime. Judge Alvarez also ordered him to pay a $5,000 fine to serve a five-year-term of supervised release after his incarceration. A legal resident alien from Mexico, Saucedo-Mata is expected to face deportation proceedings following completion of his prison term.
Saucedo-Mata had been in custody since his arrest on June 20, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Texas Department of Public Safety with assistance from the City of Pharr Police Department. Assistant United States Attorney Juan F. Alanis is prosecuting.
South Florida Man Pleads Guilty for Role<br /> in $10.5 Million Medicare Fraud SchemeRead the Press Release
A south Florida man has pleaded guilty today for his role in a $10.5 million Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations made the announcement.
Luis Alberto Garcia Perojo, 42, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiring to commit health care fraud. He faces a maximum penalty of 10 years in prison, and his sentencing will be scheduled at a later date.
According to documents filed in the case, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy Center of Port St. Lucie LLC, a comprehensive outpatient rehabilitation facility that he helped operate. From November 2007 through August 2009, Renew Therapy submitted approximately $10,549,361 in fraudulent claims for reimbursement to Medicare for therapy services that were not legitimately prescribed and not legitimately provided to Medicare beneficiaries. As a result of those fraudulent claims, Medicare deposited approximately $6,248,056 into a Renew Therapy bank account. The fraud proceeds in that account were later disbursed to various entities, including a combined total of $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc. Garcia was President of Ariguanabo Investment Group and had authority over bank accounts for Ariguanabo Investment Group and IRE Diagnostic Center, both of which were shell companies. Garcia and others used this money from Renew Therapy for, among other purposes, paying kickbacks to obtain Medicare beneficiary identifying information that was used in Renew Therapy’s fraudulent reimbursement claims.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .South Florida Man Pleads Guilty for Role in $10.5 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – A south Florida man has pleaded guilty today for his role in a $10.5 million Medicare fraud scheme involving physical and occupational therapy services.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations made the announcement.
Luis Alberto Garcia Perojo, 42, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiring to commit health care fraud. He faces a maximum penalty of 10 years in prison, and his sentencing will be scheduled at a later date.
According to documents filed in the case, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy Center of Port St. Lucie LLC, a comprehensive outpatient rehabilitation facility that he helped operate. From November 2007 through August 2009, Renew Therapy submitted approximately $10,549,361 in fraudulent claims for reimbursement to Medicare for therapy services that were not legitimately prescribed and not legitimately provided to Medicare beneficiaries. As a result of those fraudulent claims, Medicare deposited approximately $6,248,056 into a Renew Therapy bank account. The fraud proceeds in that account were later disbursed to various entities, including a combined total of $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc. Garcia was President of Ariguanabo Investment Group and had authority over bank accounts for Ariguanabo Investment Group and IRE Diagnostic Center, both of which were shell companies. Garcia and others used this money from Renew Therapy for, among other purposes, paying kickbacks to obtain Medicare beneficiary identifying information that was used in Renew Therapy’s fraudulent reimbursement claims.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Silk Road Methamphetamine Distributors Indicted in Federal Case Involving Four DefendantsRead the Press Release
PORTLAND, Ore. – U.S. Attorney for the District of Oregon Amanda Marshall announced today that a federal indictment has been returned charging four individuals involved in a conspiracy to distribute methamphetamine over the Internet, conspiracy to export methamphetamine to other countries, and fifteen counts of international and domestic money laundering.
The Oregon indictment is an outgrowth of an investigation which began when, in September 2011, Homeland Security Investigations (HSI) special agents in Baltimore received information regarding an online illegal drug marketplace known as “Silk Road.” Subsequently, the Baltimore Silk Road Task Force, led by HSI, and including U.S. Secret Service, the Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service (USPIS), and the Internal Revenue Service (IRS), was created. The ensuing investigation revealed the Silk Road website had been in operation since approximately March 2011 and had more than 957,079 registered users who conducted over $1.2 billion in transactions. Silk Road provided a forum for drug distributors and suppliers to offer their products via the Internet to buyers through an encrypted network known as The Onion Router (TOR) network. Silk Road also facilitated the sale of weapons and fraudulent ID. This encrypted network used by suppliers and users masked their true IP addresses, thereby providing complete anonymity.
The indictment unsealed today alleges Jason Weld Hagen, 39, and Chelsea Leah Reder, 23, both residents of the Vancouver, Washington area, and Richard Egan Webster, 45, and Donald Ross Bechen, 39, both Washington County residents, conspired to distribute methamphetamine across the globe using the Silk Road website. The indictment alleges the conspirators used internet anonymizing software, including Pretty Good Privacy and TOR, to distribute methamphetamine in exchange for the virtual currency known as BitCoins. The indictment alleges that the conspirators would then use commercial carriers to deliver the methamphetamine to various buyers throughout the United States and in Australia, Canada, the Czech Republic, Italy, and the United Kingdom. The Silk Road web site was seized in October, 2013, when FBI agents arrested the alleged administrator.
The indictment alleges that Hagen and his three Portland-area conspirators were responsible for the sale of over 17 pounds of methamphetamine to various buyers via Silk Road on approximately 3,169 occasions. In addition, the indictment alleges that Hagen, using the Silk Road alias “hammertime,” would receive payment in Bitcoins and then convert them to U.S. currency using various electronic money transfer systems including Paypal and Western Union, along with various reloadable and stored value cards.
The matter is scheduled for a seven-day jury trial before Senior U.S. District Judge Robert E. Jones on February 18, 2014. All defendants appeared before U.S. Magistrate Judge John V. Acosta today for arraignment and detention hearings. Judge Acosta ordered defendants Hagen, Webster, and Bechen held in federal custody pending trial, and released defendant Reder under conditions of pre-trial supervision.
Agencies cooperating in the Portland-area investigation include HSI, IRS—Criminal Investigations Division, U.S. Postal Inspection Service, U.S. Marshals Service, U.S. Secret Service, DEA, Portland Police Bureau, Washington County Sheriff’s Office, Westside Interagency Narcotics (WIN) Team, Clark-Vancouver Drug Task Force, the Beaverton Police Department and the Washington County District Attorney’s Office.
A criminal indictment is only an allegation and is not evidence of guilt. All defendants are presumed to be innocent unless and until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Johnathan S. Haub and Assistant U.S. Attorney AnneMarie Sgarlata.
Siblings Sentenced for Armed Robbery of Reynoldsburg Jewelry StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Darnell J. Harris, 26, of Canal Winchester, Ohio, was sentenced to 171 months in prison and his sister, Mariah Harris, 20, was sentenced to 108 months in prison for committing a takeover style armed robbery of a Reynoldsburg jewelry store in May, 2012. They were also ordered to pay $58,519.31 in restitution to the business, the victims and the business’s insurance company.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the sentences handed down today by Senior U.S. District Judge Peter C. Economus.
According to court documents, Mariah Harris entered Heins Jewelers posing as a customer shopping for engagement rings. Once she had the attention of both employees, Darnell Harris entered the store carrying a handgun and ordered both employees into a back room where he tied up the employees. One loosened his restraints and tried to escape. Darnell viciously beat the employee with the gun, causing severe face and head trauma. The siblings fled the store with cash and jewelry.
Reynoldsburg and Pickerington police officers arrested Darnell Harris in March 2013 following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Darnell Harris has been in custody since his arrest. They pleaded guilty in September 2013 to one count of obstructing interstate commerce (Hobbs Act). Darnell Harris pleaded guilty to one count of brandishing a firearm during a crime of violence.
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorneys David J. Bosley and Doug Squires prosecuted the case.
Sex Offender Indicted for Failure to Register, Possessing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marble Hill, Mo., man and a Shirley, N.Y., man have been indicted by a federal grand jury for a marijuana trafficking conspiracy in which the government has seized an aircraft and dozens of firearms.
Joshua William Vawter, 36, of Marble Hill, and Angelo Charles Vetrano, 33, of Shirley, were charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Dec. 17, 2013. Vawter and Vetrano were arrested at West Plains Regional Airport in West Plains, Mo., on Oct. 31, 2013.
The federal indictment alleges that Vawter and Vetrano participated in a conspiracy to distribute 50 kilograms or more of marijuana from Oct. 26 to Nov. 1, 2013, in Howell County, Mo. Vawter and Vetrano are also charged with one count of possessing 50 kilograms or more of marijuana with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require Vawter and Vetrano to forfeit to the government any property used to commit the alleged violations, or any property obtained as proceeds of the alleged violations, including a 1968 Piper Cherokee Six aircraft seized from Vawter and $1,800 seized from Vawter and Vetrano on Oct. 31, 2013, as well as $75,000 in cash, a 2009 John Deere tractor and 60 firearms, all of which was seized from Vawter’s residence.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Air and Marine Operations Center (AMOC) of the Department of Homeland Security (DHS), DHS Custom and Border Patrol, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the Bollinger County, Mo., Sheriff’s Department and the Missouri South Central Drug Task Force.Septic Pumping Company and Owner Found Guilty of Repeatedly Violating the Clean Water ActRead the Press Release
A Longview septic tank pumping business and its owner were found guilty Monday of multiple felony criminal violations of the Clean Water Act, announced U.S. Attorney Jenny A. Durkan. RAY CALDWELL, age 60, and his company ALL-OUT SEWER AND DRAIN SERVICE, INC., were found guilty following a bench trial before U.S. District Judge Benjamin Settle. CALDWELL was found guilty of twenty-five counts of violating the Clean Water Act, six counts of mail fraud, and two counts of making false statements. ALL OUT was found guilty of the same Clean Water Act violations, the same mail fraud charges, and one of the false statement counts. Sentencing is set for March 10, 2014. Violations of the Clean Water Act are punishable by up to five years in prison and a fine of $5,000 to $50,000 per violation.
“These defendants engaged in a longstanding scheme of illegally dumping more than two million gallons of pollutants to the sewer system over a period of four and a half years,” said U.S. Attorney Jenny A. Durkan. “They cheated the public by depriving those public utilities, funded by taxpayers, of hundreds of thousands of dollars in user fees. Mr. Caldwell put himself and his company’s bottom line above his obligation to comply with environmental requirements and pay for public services.”
According to records filed in the case, the defendants’ scheme to defraud the City of Longview, Cowlitz County and the Three Rivers Regional Wastewater Authority went on for more than ten years. ALL-OUT was engaged in the business of pumping, hauling, and disposing of septic tank waste, grease trap waste, and industrial wastewater. Federal, state and local regulations require that all trucked and hauled wastes of the type handled by ALL OUT be discharged to approved treatment facilities. It was ALL OUT’s practice to transport the waste to its facility in Longview where it was minimally treated and stored in a 10,000 gallon storage tank. While some of the tank contents were appropriately trucked to approved treatment facilities, a majority of the commingled waste was routinely dumped down an unauthorized sewer port located on the ALL OUT facility.
Based on video surveillance footage seized by law enforcement authorities, CALDWELL and his business partner, Randy Dingus, undertook the illegal discharges in the early morning hours, under the cover of darkness, to avoid being detected by passersby or unsuspecting employees. When a records review conducted by the City of Longview in 2010 threatened to expose the scheme, the defendants began submitting false documents underreporting the true volume of trucked and hauled waste. This deception worked until August 2012 when law enforcement surveillance activities prompted by citizen complaints revealed the early morning dumping.
On August 17, 2012, EPA criminal agents executed a search warrant at the ALL OUT facility and seized video footage from the company’s surveillance system. The footage depicted twenty-four separate illegal dumping incidents over a six week period in July and August of 2012. EPA criminal agents returned to the ALL OUT facility in the early morning of December 18, 2012 after receiving reports that the illegal dumping was still occurring. The agents arrested CALDWELL after observing him using large flexible hoses to dump waste from the storage tank directly into the sewer port.
CALDWELL was convicted of illegally dumping waste on each of the days captured on the video footage as well as the December 18, 2012 dumping event. CALDWELL was also convicted of using the mail system to further his scheme of defrauding the public utilities. Finally, CALDWELL was convicted for making false statements in a mandated user survey seeking information regarding ALL OUT’s discharges to the sewer system and for lying to EPA agents when confronted in August 2012.
CALDWELL’s business partner, Randy Dingus, 54, had previously pleaded guilty to violating the Clean Water Act for his participation in the illegal dumping scheme and will be sentenced January 27, 2014.
The case was investigated by the Environmental Protection Agency Criminal Investigation, with assistance from the Washington State Department of Ecology, Cowlitz County, the City of Longview, and the Three Rivers Regional Wastewater Authority. The case was prosecuted by Assistant United States Attorneys Jim Oesterle and Lawrence Lincoln.
Santa Rosa Man Sentenced to Forty Years for the Production, Advertisement, Distribution, and Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Dylan Josh Zara was sentenced yesterday to 40 years in prison for the production, advertisement, distribution, and possession of child pornography, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Zara pleaded guilty on June 12, 2013, to two counts of production of child pornography, one count of advertisement of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography. Zara admitted to using two child victims, both under the age of seven, to produce child pornography, which he advertised and distributed.
Zara, 31, of Santa Rosa, was indicted by a federal grand jury on November 3, 2011. He was charged with the production, advertisement, distribution, and possession of child pornography.
The sentence was handed down by The Honorable Susan Illston, United States District Court Judge, following a guilty plea on six counts in violation of 18 U.S.C. §§ 2251(a), 2241(d), 2252(a)(2) and 2252(a)(4)(B). Judge Illston also sentenced the defendant to a lifetime period of supervised release. The defendant has been in custody since his arrest.
Laura Vartain Horn is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the National Center for Missing and Exploited Children.
(Zara indictment )
Santa Cruz Man Sentenced to 140 Months in Prison for Drug TraffickingRead the Press Release
SAN JOSE – Rudy Martinez was sentenced on December 16, 2013, to 140 months in prison, for trafficking in methamphetamine, heroin, and cocaine in Santa Cruz County, United States Attorney Melinda Haag announced.
Martinez pleaded guilty on August 26, 2013, to possession of heroin and methamphetamine with intent to distribute these drugs. According to the plea agreement, Martinez admitted to possessing over 244 grams of heroin, 32 grams of methamphetamine, and 152 grams of cocaine. At the time of his arrest, he had over $12,000 in his possession, which was proceeds of his criminal activity. Martinez further admitted at sentencing that he was acting as a “middleman” for others actively distributing these drugs in the City of Santa Cruz and elsewhere.
Martinez, 40, of Santa Cruz, was indicted by a federal grand jury on October 24, 2012. He was charged with possessing significant quantities of methamphetamine, heroin, and cocaine with the intent to distribute those drugs to others. Because the drugs were located at his home directly across from a Santa Cruz city park, he was also charged with possessing those drugs with intent to distribute them within 1,000 feet of a playground.
The investigation began after Martinez was allegedly involved in a violent street altercation which took place in the Beach Flats neighborhood of Santa Cruz on July 4, 2012. Police searched Martinez’s home on July 19, 2012, and discovered the methamphetamine, heroin, and cocaine, together with scales and packaging materials. Martinez was arrested by Santa Cruz police that day.
The sentence was handed down by The Honorable Edward J. Davila, United States District Court Judge. Judge Davila also sentenced the defendant to a 5-year period of supervised release, and ordered him to forfeit $12,715 to the United States. The defendant, who has been in custody since his guilty plea in August, will begin serving the sentence immediately.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of an investigation by the Department of Homeland Security and the Santa Cruz City Police Department.
(Martinez indictment )
SAC Capital Portfolio Manager Michael Steinberg Found Guilty in Manhattan Federal Court of Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL STEINBERG, a portfolio manager of Sigma Capital Management, LLC (“Sigma”), a division of the Connecticut-based hedge fund S.A.C. Capital, was found guilty today in Manhattan federal court based on his participation in an insider trading scheme. STEINBERG was convicted after a five-week jury trial presided over by U.S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara said: “The jury has found what the government contended from the outset; in search of an edge, Michael Steinberg crossed the line into criminal insider trading. Like many other traders before him who, blinded by profits, lost their sense of right and wrong, Steinberg now stands convicted of federal crimes and faces the prospect of losing his liberty.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents, and the evidence presented at trial:
STEINBERG traded in the securities of two publicly traded technology companies, Dell, Inc. (“Dell”) and NVIDIA Corporation (“NVIDIA”), based on inside information that his research analyst Jon Horvath obtained from a circle of analyst friends at different investment firms. Horvath previously pled guilty to insider trading, as did analysts Jesse Tortora, formerly of Diamondback Capital, Spyridon “Sam” Adondakis, formerly of Level Global, Danny Kuo, formerly of Whittier Trust, and Sandeep Goyal, formerly of Neuberger Berman. STEINBERG’s trading in Dell and NVIDIA resulted in approximately $1.9 million in illegal profits for his hedge fund.
In particular, Tortora provided Horvath and others with Inside Information related to Dell’s quarterly earnings (the “Dell Inside Information”), which Tortora obtained from Goyal who, in turn, had obtained the information from an employee at Dell (the “Dell Insider”). For Dell’s quarter which was announced by Dell on August 28, 2008 (the “Dell Announcement”), the Dell Inside Information indicated that Dell would report gross margins that were materially lower than market expectations. In advance of the Dell Announcement, Horvath reported this negative inside information to STEINBERG.
On August 18, 2008, after a series of calls from the Dell Insider to Goyal and from Goyal to Tortora and Horvath, Horvath then called STEINBERG. Within a minute of the telephone call between STEINBERG and Horvath, STEINBERG’s portfolio began shorting shares of Dell. One minute later, Horvath wrote an email to STEINBERG stating: “Pls keep the DELL stuff especially on the down low . . . just mentioning that because JT [Jesse Tortora] asked me specifically to be extra sensitive with the info.” By the end of the day on August 18, 2008, STEINBERG had accumulated a net short position of over 167,000 shares of Dell. On August 26, 2008, Horvath confirmed in an email to STEINBERG and another portfolio manager at Sigma that Horvath’s Dell information had been based on a “2nd hand read from someone at the company.” STEINBERG responded: “Yes normally we would never divulge data like this, so please be discreet.” And on August 27, 2008, STEINBERG sent an email to Horvath with the subject line, “Dell action,” in which he asked, “Have u double checked [with] JT this week?” Horvath responded, “Yes he [Tortora] checked in [a] couple days ago, same read no change.” The following day, STEINBERG executed additional short trades based on the Dell Inside Information.
On August 28, 2008, before Dell’s Announcement, STEINBERG executed or caused to be executed additional short trades. STEINBERG also executed or caused to be executed options trades in Dell in advance of the Dell Announcement.
After the close of the market on August 28, 2008, Dell publicly announced gross margins that were substantially below market expectations. At the end of the next trading day following Dell’s Announcement, its stock price dropped by nearly 14%. Shortly thereafter, STEINBERG covered his short position, and closed out his position in Dell option contracts, resulting in an illegal profit for Sigma of approximately $1 million.
In addition, in 2009, Kuo obtained inside information regarding NVIDIA’s financial results (the “NVIDIA Inside Information”) in advance of NVIDIA’s quarterly earnings announcements. The NVIDIA Inside Information indicated, among other things, that NVIDIA’s gross margins would be lower than market expectations. Kuo obtained the NVIDIA Inside Information from a friend, Hyung Lim, who received it from an employee at NVIDIA (the “NVIDIA Insider”). In advance of NVIDIA’s May 7, 2009, quarterly earnings announcement (the “NVIDIA Announcement”), Kuo provided the NVIDIA Inside Information, which he had obtained from Lim, to Tortora, Horvath, and others. Horvath, in turn, provided the NVIDIA Inside Information to STEINBERG, who executed or caused to be executed transactions in NVIDIA in advance of the NVIDIA Announcement.
On May 7, 2009, NVIDIA publicly announced gross margins that were substantially lower than the market expected. At the end of the trading day following the NVIDIA Announcement, NVIDIA’s stock price dropped by more than 13%. Shortly thereafter, STEINBERG caused Sigma to liquidate its position in NVIDIA, resulting in an illegal profit for Sigma of over $400,000.
STEINBERG, 41, of New York, New York, was found guilty of conspiracy to commit securities fraud and four counts of securities fraud. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
STEINBERG is scheduled to be sentenced by Judge Sullivan on April 25, 2014.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission.
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. Attorneys Antonia M. Apps and Harry A. Chernoff are in charge of the prosecution.
U.S. v. Michael Steinberg S4 Indictment
Russell Allen Erxleben Pleads Guilty to Role in Ponzi Scheme That Generated an Estimated $2 MillionRead the Press Release
In Austin this afternoon, 56–year-old Russell Allen Erxleben of Dripping Springs, TX, pleaded guilty to federal wire fraud and money laundering charges in connection with a Ponzi scheme that authorities believe generated more than $2 million. As a result, Erxleben faces an agreed sentence of 90 months in federal prison plus full restitution to be determined by the Court.
According to court records, from 2005 until October 2009, Erxleben devised and implemented a scheme to defraud and to obtain money from investors by the use of fraudulent pretenses, representations and promises. Erxleben used several companies, including WALTEC Consultants, LRE Holdings, and The MDM Group, to promote investments in fraudulent ventures including investments in post-WWI German government gold bearer bonds and in a work of art purportedly by Paul Gauguin, a famous late 19th-early 20th century artist. By pleading guilty, Erxleben admittedly used investment proceeds for the benefit of himself and his family, to pay dividends to previous investors, and to fund other undisclosed endeavors, contrary to promises and representations made by the defendant. In furtherance of the fraudulent scheme, Erxleben made various wire transfers using numerous financial accounts which were opened and maintained by others, including one or more family members, in an effort to avoid detection by authorities.
Internal Revenue Service-Criminal Investigation Special Agent In Charge Steven McCollough noted that all investors need to be wary when investing their hard earned money. “Investors should not allow themselves to be blinded by the quasi-celebrity status of individuals like Russell Allen Erxleben, a former University of Texas and NFL football player, when making investment decisions,” McCollough said.
Erxleben remains in federal custody pending formal sentencing scheduled for February 24, 2014, before U.S. District Judge Lee Yeakel.
This indictment resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the Texas State Securities Board along with assistance from Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Devlin and Alan Buie are prosecuting this case on behalf of the Government.
Rowan County Men Plead Guilty to Train RobberyRead the Press Release
GREENSBORO, N.C. – Three Rowan County men have entered guilty pleas related to a Salisbury train robbery that occurred in 2012, announced United States Attorney Ripley Rand.
ALTISE SHAHEED BRIDGES, 25, of China Grove, North Carolina, and WILLIAM JAMES JOHNSON, JR., 20, of Salisbury, North Carolina, pleaded guilty to train robbery on December 11, 2013. KENYAD LAQUAN KELLY, 19, of Salisbury, North Carolina, pleaded guilty to accessory after the fact to train robbery on December 3, 2013.
According to court documents, two masked men carrying firearms climbed aboard a Norfolk Southern train traveling from Columbia, South Carolina, to Asheville, North Carolina, on April 29, 2012, while the train was stopped at the station in Salisbury for a crew change. When the robbers entered the engine car, one of the robbers brandished a shotgun while another brandished a revolver. The robbers demanded money from the train engineer and conductor and took cash and a wallet before fleeing. Subsequent investigation determined that BRIDGES and JOHNSON committed the robbery and that KELLY assisted in destroying and hiding evidence.
The guilty pleas were accepted by United States District Judge Catherine C. Eagles. The maximum punishment for BRIDGES and JOHNSON is twenty years imprisonment, a $250,000 fine, and three years of supervised release. The maximum punishment for KELLY is ten years imprisonment, a $125,000 fine, and three years of supervised release. Sentencing for both BRIDGES and JOHNSON is set for March 25, 2014, while KELLY’s sentencing is scheduled for March 19, 2014.
The case was investigated by the Salisbury Police Department, the Norfolk Southern Police Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Terry Meinecke.
Rochester Man Pleads Guilty to Performing Phantom Testing on Military Radios and SonobuoysRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Steve Wysocki, 50, of Newark, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci to four counts of filing a filing a false statement with the United States Government. Each count carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Wysocki was in charge of the testing department for Flightline Systems, a Victor based defense contractor working on United States Army and Navy projects. The defendant oversaw product testing for the KG-40 military radio system as well as the SH-60 Sonobuoy system.
The KG-40 is a tactical radio encryption system used by the US Army and Navy and sold for export to foreign countries. It consists of several components including the radio, a remote, and a tray. The SH-60 Sonobuoy system is an Anti-Submarine Warfare (ASW) device. The system includes a small sonar unit which is released from both fixed and rotor wing ASW aircraft as well as various other components including external preamps.
Both the KG-40 and Sonobuoy programs have contractual manufacturing and testing requirements imposed by the United States Department of Defense. Among these protocols is something know as vibration testing. This process subjects the various items to prolonged vibration exposure using a vibration table equipped with pressure plates. The items are placed on the vibration table during the manufacturing process for a pre-set period of time to ensure that they will survive real world conditions on ships and aircraft.
The components are hooked up to a computer during testing which monitors their performance and then produces a unique graph upon successful completion. Due to many individual testing variables, no two items will produce the exact same testing graph. The graphs are unique to each item, and are stamped with the time and date of the test as well as the serial number of the item tested. The graphs are signed by the table operator and are then made part of the items “traveler file” which accompanies each item throughout the assembly and testing process. Each item tested must have a copy of a passing vibration table graph in the file in order to be released to the military. The vibration tests were run at Flightline’s Victor facility.
During the investigation, Special Agents from the FBI and Army Criminal Investigation Division learned that Wysocki was both personally falsifying vibration graphs as well as directing other subordinates to do so. Wysocki would then print the false graph, or direct others to do so, and include this false document in the items history, thus proving that it was successfully tested, even though as he knew, the item was not properly tested. He referred to this process as “phantom vibe testing.”
As a result of the defendant’s conduct, individual components had to be re-tested costing the Department of Defense $299,094.00
“This Office will not tolerate anybody who, by their actions, hurts or impacts the products used by our military men and women to carry out their critical mission,” said U.S. Attorney Hochul. “This case should serve as a warning to any individual involved in the testing of products to be used by the military, if you attempt to disrupt the process, you will be prosecuted and punished accordingly.”
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig; Special Agents of the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU), under the direction of Special Agent in Charge, L. Scott Moreland; Naval Criminal Investigative Service (NCIS), under the direction of Special Agent in Charge, Cheryl A. DiPrizio; and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), under the direction of Special Agent in Charge, Craig Rupert.
Sentencing is set for March 21, 2014 at 3pm before U. S. District Court Judge Frank P. Geraci.Reno Man Charged with Conspiring to Provide Material Support to Terrorism Groups in India and PakistanRead the Press Release
A Reno, Nev. man has been charged with providing material support to terrorism groups in India and Pakistan in order to intimidate the Indian government and to harm persons that were not supporting their cause, announced John Carlin, Acting Assistant Attorney General for National Security, Daniel G. Bogden, U.S. Attorney for the District of Nevada, and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
“A thorough investigation and cooperation among agencies led to these charges,” said U.S. Attorney Bogden. “Investigating and prosecuting matters of national security is the top priority of the U.S. Department of Justice.”Balwinder Singh, aka Jhajj, aka, Happy, aka Possi, aka Baljit Singh, 39, of Reno, is charged in an indictment with one count of conspiracy to murder, kidnap, and maim persons in a foreign country, one count of conspiracy to provide material support to terrorists, one count of making a false statement on an immigration document, two counts of use of an immigration document procured by fraud, and one count of unlawful production of an identification document. Singh was arrested on Tuesday, Dec. 17, 2013, in Reno, and is scheduled to appear before a U.S. Magistrate Judge on Friday, Dec. 20, 2013, for an initial appearance and arraignment.
“After an extensive investigation, the FBI-led Joint Terrorism Task Force (JTTF) of Northern Nevada has disrupted an individual’s involvement in facilitation activities in support of a foreign terrorist organization, targeting an ally of the United States,” said FBI Special Agent in Charge Bucheit. “We will continue to work with our international partners to prevent acts of terrorism on U.S. soil or, as in this case, on that of an ally. This investigation demonstrates the importance of law enforcement coordination and collaboration here and around the world.”
According to the indictment, Singh was a citizen of India who fled to the United States and claimed asylum. Singh lived in the United States where he eventually obtained a permanent resident card from the United States. The indictment alleges that Singh is a member of two terrorist organizations, Babbar Khalsa International (BKI) and Khalistan Zindabad Force (KZF), whose members aim to establish an independent Sikh state in part of the Punjab region of India known as Khalistan. These groups engage in bombings, kidnappings and murders in India to intimidate and compel the Indian government to create the state of Khalistan. These groups also target for assassination persons they consider traitors to the Sikh religion and government officials who they consider responsible for atrocities against the Sikhs.
The indictment alleges that the object of the conspiracy was to advance the goals of BKI and KZF by raising money and obtaining weapons to support acts of terrorism in India. It is alleged that the conspiracy began on a date unknown but no later than Nov. 30, 1997. It is alleged that Singh used a false identity and obtained false identification documents in the United States so that he could travel back to India without being apprehended by the Indian authorities. It is alleged that Singh communicated with other coconspirators by telephone while he was in the United States to discuss acts of terrorism to be carried out in India. It is alleged that Singh sent money from Reno, Nev., to co-conspirators in India for the purchase of weapons that would be provided to members of the BKI and KZF to support acts of terrorism in India. It is alleged that Singh traveled from the United States to Pakistan, India, and other countries to meet with coconspirators to assist in the planning of terrorism in India, and that Singh provided advice to coconspirators about how to carry out acts of terrorism.If convicted, Singh faces up to life in prison and fines of up to $250,000 on each count.
The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada, and prosecuted by Assistant U.S. Attorneys Sue Fahami and Brian L. Sullivan, and Trial Attorney Mara M. Kohn of the U.S. Department of Justice Counterterrorism Section.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Reno Man Charged with Conspiring to Provide Material Support to Terrorism Groups in India and PakistanRead the Press Release
RENO, Nev. – A Reno man has been charged with providing material support to terrorism groups in India and Pakistan in order to intimidate the Indian government and to harm persons that were not supporting their cause, announced Daniel G. Bogden, United States Attorney for the District of Nevada, John Carlin, Acting Assistant Attorney General for National Security, and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
“A thorough investigation and cooperation among agencies led to these charges,” said U.S. Attorney Bogden. “We believe that this arrest has disrupted plans for a potential terrorist attack and has exposed the persons who were involved in the planning of these crimes.”
Balwinder Singh, aka Jhajj, aka, Happy, aka Possi, aka Baljit Singh, 39, of Reno, is charged in an indictment with one count of conspiracy to murder, kidnap, and maim persons in a foreign country, one count of conspiracy to provide material support to terrorists, one count of making a false statement on an immigration document, two counts of use of an immigration document procured by fraud, and one count of unlawful production of an identification document. Singh was arrested on Tuesday, Dec. 17, 2013, in Reno, and is scheduled to appear before a United States Magistrate Judge in the near future for an initial appearance and arraignment and plea.
“After an extensive investigation, the FBI-led Joint Terrorism Task Force (JTTF) of Northern Nevada has disrupted a potential terrorist attack directed against an ally of the United States,” said FBI Special Agent in Charge Bucheit. “We will continue to act thoroughly and decisively, with our international partners, to prevent acts of terrorism on U.S. soil or, as in this case, on that of an ally. This investigation demonstrates the importance and success of law enforcement coordination and collaboration here and around the world.”
According to the indictment, Singh was a citizen of India who fled to the United States and claimed asylum. Singh lived in the United States where he eventually obtained a permanent resident card from the United States. The indictment alleges that Singh is a member of two terrorist organizations, Babbar Khalsa International (BKI) and Khalistan Zindabad Force (KZF), whose members aim to establish an independent Sikh state in part of the Punjab region of India known as Khalistan. These groups engage in bombings, kidnappings and murders in India to intimidate and compel the Indian government to create the state of Khalistan. These groups also target for assassination persons they consider traitors to the Sikh religion and government officials who they consider responsible for atrocities against the Sikhs.
The indictment alleges that the object of the conspiracy was to advance the goals of BKI and KZF by raising money and obtaining weapons to support acts of terrorism in India. It is alleged that the conspiracy began on a date unknown but no later than Nov. 30, 1997. It is alleged that Singh used a false identity and obtained false identification documents in the United States so that he could travel back to India without being apprehended by the Indian authorities. It is alleged that Singh communicated with other coconspirators by telephone while he was in the United States to discuss acts of terrorism to be carried out in India. It is alleged that Singh sent money from Reno, Nev., to co-conspirators in India for the purchase of weapons that would be provided to members of the BKI and KZF to support acts of terrorism in India. It is alleged that Singh traveled from the United States to Pakistan, India, and other countries to meet with coconspirators to assist in the planning of terrorism in India, and that Singh provided advice to coconspirators about how to carry out acts of terrorism.
If convicted, Singh faces up to life in prison and fines of up to $250,000 on each count.
The case is being investigated by the FBI-led Joint Terrorism Task Force in northern Nevada, and prosecuted by Assistant U.S. Attorneys Sue Fahami and Brian L. Sullivan, and Trial Attorney Mara M. Kohn of the U.S. Department of Justice Counterterrorism Section.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Remarks as Prepared for Delivery by <br /> Acting Assistant Attorney General Mythili Raman<br /> for the Convergex Resolution Press CallRead the Press Release
Today, we announce significant developments in a securities fraud investigation involving the large-scale theft of client funds by a global brokerage and trading firm.
This afternoon, ConvergEx Global Markets Limited, or CGM – a brokerage subsidiary of ConvergEx Group located in Bermuda – pleaded guilty to conspiring to commit securities and wire fraud and to substantive wire fraud charges. In addition, two traders, Jonathan Daspin – who was the head of trading at CGM – and Thomas Lekargeren – who was a sales trader of a ConvergEx affiliate – also pleaded guilty to conspiracy to commit wire and securities fraud. The Justice Department has also charged CGM Limited’s parent company, ConvergEx Group, for its role in the same criminal conduct. ConvergEx Group has entered into a two-year deferred prosecution agreement to resolve those charges. Together, ConvergEx Group and CGM are paying criminal penalties and restitution of over $43 million.
As described in the guilty plea agreements and charging documents, ConvergEx – which was a broker for some of the most sophisticated institutional investors in the world – engaged in a concerted and coordinated effort to fleece its clients by charging them millions of dollars in unwarranted fees – which ConvergEx called “trading profits,” or “spread” – and then concealing those charges from its clients through a pattern of deception. Although the theft of money from ConvergEx’s clients was large in scale, the fraud scheme was committed in the most basic of ways: ConvergEx and its traders, plain and simple, lied to their clients to hide that they were stealing their money.
As described in the court documents, ConvergEx’s lies were repeated, deliberate, and came in many different forms. As one example, ConvergEx employees simply doctored up false transaction reports – which included completely fabricated details about execution orders, including the number of shares involved in a trade, the time a trade was executed, and the price at which shares were bought or sold – to hide that they were charging a “spread” to their clients. In one instance, Jonathan Daspin (the head trader at CGM) instructed a sales trader while creating a false report to “Please put all Prints in one spreadsheet in the least Friendly Format….If possible take this out of spreadsheet Format and make a PDF – Or put this in picture file or something tricky to manipulate.” At other times, when clients questioned the payments, ConvergEx employees intentionally provided misleading explanations to conceal the “spread” they were charging. And, to avoid having their scheme uncovered, ConvergEx employees deliberately took smaller spreads on their more sophisticated, price-sensitive clients; and they took larger spreads when they were less likely to be discovered. In addition, at times, they used multiple local brokers during the course of a trade so that a client would not be able to track the execution of its order through publicly available resources.
The scheme itself, and the lies told by ConvergEx to its clients to conceal the scheme, were astonishingly brazen. As just one example, when certain clients instructed ConvergEx to provide them their transactional data in real time so that they could more closely track the trades that ConvergEx was executing for them, Jonathan Daspin, along with others, quickly realized that such a real-time data feed would make it far more difficult for them to steal client funds and conceal the theft from their clients. So, their response was simply to “turn off” the real-time data feed for certain portions of their clients’ orders – during which periods they took the spread on their clients’ trades – and then blamed the purported failure of the real-time data feed on “IT issues.”
This coordinated bilking of clients by a broker-dealer – accomplished through intentional and repeated misrepresentations – caused significant harm. This kind of scheme not only inflicts real financial losses on investors, but also undermines investors’ confidence in the integrity and reliability of the financial markets. As today’s announcement demonstrates, we will not tolerate this type of criminal conduct and we will hold both institutions and individuals to account.
We would like to thank the FBI and Postal Inspection Service, which tirelessly investigated the case. We are also grateful to the SEC for referring the matter to the Criminal Division and for its significant assistance in the investigation. We also acknowledge the substantial cooperation that ConvergEx provided during the investigation. Finally, I would like to thank the dedicated prosecutors at the Criminal Division’s Fraud Section for their excellent work on this important, and ongoing, investigation.Port St. Lucie Resident Sentenced to Ten Years in Prison on Charges of Receipt and Transportation of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office, announce the sentencing of defendant Joshua Adams Bagala, 25, of Port Saint Lucie. At yesterday’s hearing, U.S. District Judge Donald L. Graham sentenced Bagala to ten years in prison on charges of receipt and transportation of child pornography.
According to the criminal complaint and evidence presented to the Court for sentencing, on April 16, 2013, a Nebraska State Patrol Sergeant, who is a member of the Internet Crimes against Children (ICAC) Task Force, was acting in an undercover capacity, investigating the online exploitation of children on the internet and persons who knowingly distribute visual depictions of sexually explicit conduct involving children. While posing as a 14 year-old female in an online children’s chat room, the undercover investigator was contacted by Bagala. During the ensuing private chat, Bagala uploaded two graphic child pornography videos. The screen name and I.P. address was traced to Bagala’s residence in Port Saint Lucie, Florida.
On April 26, 2013, law enforcement executed a Florida state search warrant at Bagala’s residence and seized several items of electronic media. A forensic examination revealed numerous images of child pornography. A subsequent search warrant executed at Yahoo! Inc. revealed hundreds of instant messenger chat logs where Bagala was in contact with numerous individuals, holding themselves out to be minors, discussing trading and downloading child pornography videos. During one such chat, Bagala claimed to be a talent agent looking for underage girls to perform in underage porn movies. Bagala claimed he was looking for girls between the ages of 9 to 17.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff's Office, the South Florida Internet Crimes against Children (ICAC) Task Force, and the Nebraska State Patrol. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Owner of Monterey Wine Cellar Pleaded Guilty to Tax EvasionRead the Press Release
SAN JOSE – Brenda Jo Kibbee pleaded guilty in federal court in San Jose, California, yesterday to one count of failing to pay an excise tax on wine with an intent to defraud the United States, United States Attorney Melinda Haag announced.
Kibbee, 43, of Salinas, California, was indicted on September 26, 2012, with 11 counts of failing to pay an excise tax on wine. As alleged in the plea agreement, Kibbee owned and operated Monterey Wine Services, a bonded wine cellar located in Monterey County, California. For each of the reporting periods between August 1, 2008, and December 31, 2008, Monterey Wine Services had taxable removals of wine from its bonded wine cellar, which resulted in a wine excise tax due and owing to the Alcohol and Tobacco Tax and Trade Bureau (TTB). Kibbee failed to pay the excise tax due to TTB with intent to defraud the United States. Per the terms of the plea agreement, the parties agree that the tax loss resulting from Kibbee’s misconduct is at least $877,126.94.
Kibbee’s sentencing hearing is scheduled for April 17, 2014, before The Honorable D. Lowell Jensen, United States District Court Judge, in San Jose. The maximum statutory penalty for each count, in violation of 26 U.S.C, § 5661(a), is five years and a fine of $250,000 or 2 times the gross gain or loss, plus restitution of $877,126.94. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Matthew J. Kluge, Trial Attorney with the United States Department of Justice, and Thomas Moore, Assistant United States Attorney for the Northern District of California, are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Kibbee indictment )