Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 28 October 2013
East St. Louis Resident Sentenced to 168 Months for Role in KidnappingRead the Press Release
Jevon M. Jenkins, from East St. Louis, Illinois, was sentenced in federal court today to 168 months in federal prison for Aiding and Abetting Kidnapping, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Court documents indicate that in July 2012, Jenkins and others physically assaulted a Cahokia man in East St. Louis. Jenkins then aided and abetted a co-defendant in confining the Cahokia man in a vehicle and driving him across the Popular Street Bridge into Missouri.
United States Attorney Stephen R. Wigginton noted that, “The facts of this case are unimaginable, atrocious, and inexcusable. We are proud of the sentence imposed today. It sends a strong message to the criminals: these crimes will not be tolerated. My office remains dedicated to seeking justice for all victims. Today, the victim in this case witnessed that first hand.”
United States Attorney Wigginton added: “This case would not have been successful without the courage of the investigators, the witnesses, and the victim. We are especially appreciative of the cooperative efforts of the Federal Bureau of Investigation, the Illinois State Police, the Columbia, Illinois, Police Department, and the East St. Louis, Illinois, Police Department, who comprised the Save Our Streets Task Force active in the summer of 2012.”
The case was prosecuted by Assistant United States Attorney Monica A. Stump.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Antoine T. Thomas, 37, from East St. Louis, Illinois, was sentenced on October 25, 2013, in Federal District Court in East St. Louis, on one count of unlawful possession of a firearm by a user of a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Thomas was sentenced to 12 months and a day in prison; two years supervised release, a $500 fine and ordered to pay a $100 special assessment.
Facts presented in court revealed that on June 29, 2010, law enforcement officers executed a search warrant at a residence in East St. Louis, Illinois. A search of the home led to the seizure of two loaded revolvers, marijuana and three digital scales. Thomas admitted ownership of the two firearms and marijuana found in the household.
This case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime tin East St. Louis, Washington Park, and surrounding communities. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Detroit Man Who Arrived at Huntington Bus Station with Heroin Sentenced to 21 Months in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Detroit drug courier who arrived at a Huntington Greyhound Bus Station in April 2013 in possession of heroin was sentenced today to 21 months in federal prison, announced U.S. Attorney Booth Goodwin. Jalin Tyref McArn, 19, previously pleaded guilty in July to possession of heroin with intent to distribute.
On April 24, 2013, a Drug Enforcement Administration (DEA) agent working undercover received a phone call from a Detroit drug supplier to arrange a heroin transaction. That same day, McArn, acting as a drug courier, arrived at the Greyhound bus station in Huntington to complete the prearranged transaction.
As McArn exited the bus station, he was approached by a federal agent working undercover at the time. Following a brief conversation, McArn got into the undercover agent’s vehicle and indicated that he had heroin on his person. McArn also told the undercover agent that he would provide him with heroin as payment for the ride from the bus station. Police arrested McArn and seized approximately 15 grams of heroin that he had hidden on his person.
The Huntington Police Department and the DEA conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
Defense Contractor Arraigned on Charges She Exported Military Blueprints to India Without A LicenseRead the Press Release
Indictment Alleges She Used Local Church’s Website Illegally to Transmit
Defense Materials to Overseas ConspiratorTRENTON, N.J. – The owner of two New Jersey defense contracting businesses was arraigned today for allegedly transmitting military blueprints to India without a license, in violation of export laws, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 48, North Brunswick, N.J., was arraigned before U.S. District Judge Joel A. Pisano in Trenton federal court. She was indicted by a federal grand jury on Oct. 10, 2013, on one count of violating the Arms Export Control Act and one count of conspiracy to violate the act. She remains under home detention pending trial.
According to the documents filed in this case and statements made in court:
Robert was the founder, owner, and President of One Source USA LLC, a company located at her then-residence in Mount Laurel, N.J., and contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts pursuant to government contracts. In September 2012, Robert opened a second defense-contracting company, Caldwell Components Inc., based at the same address in Mount Laurel.
Along with “R.P,” a resident of India, Robert owned and operated a company in India, One Source (One Source India), that manufactured at its own facility defense hardware items and spare parts. From June 2010 to December 2012, Robert and R.P. conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, in military attack helicopters, and in F-15 fighter aircraft.
Robert allegedly lied on her bids for DoD contracts, stating that she would be supplying American-made products and that her N.J.-based company was a manufacturer, rather than a dealer, of defense spare parts. One Source USA also subcontracted to other American defense contractors, including those in Sussex County, N.J., and Boca Raton, Fla. Robert provided export-controlled items made in India to these defense contractors in the United States in such a way as to appear to the DoD that the items were manufactured in this country.
In addition to United States’ sales, Robert and R.P. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to R.P. in India so that Robert and R.P. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor R.P. obtained approval from the U.S. Department of State for this conduct.
On August 23, 2012, R.P. e-mailed Robert from India requesting the technical drawing for a particular military item. R.P.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to R.P.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
Starting in October 2010, Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, N.J., church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed R.P. the username and password to the church website so that R.P. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for R.P. to download in India.
On June 25, 2012, R.P. e-mailed Robert from India, stating in part: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to, and a quote for, an individual known to Robert as a broker of defense hardware items for an end-user in Pakistan. This individual (the “Pakistan trans-shipper”) employed a UAE address for shipping purposes. Later than day, Robert replied to this e-mail, providing a new username and password for the church website so that R.P. could download the particular defense drawings.
There were quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed the failure of certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s American customers, Robert and R.P. provided the principal of that company with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Robert was, until November 2012, an employee of a separate defense contractor in Burlington County, N.J., where she worked as a System Analyst and had access to thousands of drawings marked with export-control warnings and to information on this defense contractor’s bids on DoD contracts. During her employment, Robert misrepresented to her employer the nature and extent of her involvement with One Source USA.
The conspiracy count with which Robert is charged is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. The substantive violation of the Arms Export Control Act is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. The indictment also seeks forfeiture of Robert’s proceeds from the alleged criminal scheme.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-418
Defense counsel: David Schafer Esq., Assistant Federal Public Defender, TrentonRobert Indictment
Deadwood Man Pleads to Illegally Possessing A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Sean Jason Romanjenko, age 39, of Deadwood, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 18, 2013, and pled guilty to a charge of Felon in Possession of a Firearm.
The charge carries a maximum penalty upon conviction of 10 years and/or a $250,000 fine.
On December 1, 2012, Romanjenko, a previously convicted felon, was illegally in possession of a .45 caliber pistol while at a shooting range near Deadwood.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be set. The defendant remains released from custody pending sentencing.Co-Owner of Company That Originated $30 Million in Fraudulent Mortgages Pleads GuiltyRead the Press Release
NEWARK, N.J. B The co-owner of a mortgage company that was responsible for a long-running, large-scale mortgage fraud that caused losses of more than $30 million today admitted his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Lester Soto, 57, of Freehold, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with two counts of conspiracy to commit bank fraud.
According to the Information and other publicly-filed documents:
From September 2006 to May 2008, Soto and others, including fake document creators, a complicit lawyer and paralegal, and numerous loan officers, engaged in two related mortgage fraud conspiracies through a company called Premier Mortgage Services (APMS). Soto and his conspirators targeted properties in low-income areas of New Jersey. After recruiting “straw buyers,” Soto and his conspirators used a variety of fraudulent documents to make it appear as though the straw buyers possessed far more assets and earned far more income than they actually did.
Soto and his conspirators then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties. Soto and his conspirators then split the proceeds from the mortgages among themselves and others by using fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings. Soto and his conspirators defrauded financial institutions out of more than $30 million. Besides being a part-owner of PMS, Soto also acted as a loan officer on certain PMS mortgage loan applications. Soto took a percentage of PMS’ profits. Soto employed document makers to create false and fraudulent documents and put mortgage brokers at PMS in contact with these document makers to create other false and fraudulent documents. Soto instructed PMS employees to provide him with loan files that PMS employees believed contained suspicious information, and then personally shepherded these loan files through to funding.Other conspirators, including Isaac DePaula, Adilson Silva, and Klary Arcentales were loan officers at PMS. DePaula, Silva, and Arcentales recruited straw buyers, provided false and fraudulent documents to the straw buyers, and incorporated false and fraudulent documents into loan applications to induce financial institutions to fund mortgage loans. The loan officers profited illegally by receiving a commission from PMS for each mortgage loan that they closed and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for themselves, often via shell corporations or nominee bank accounts.
Rodrigo Costa created false and fraudulent documents, including Verifications of Deposit (VODs) and Verifications of Rent (VORs). Other defendants, including DePaula and Silva, then submitted Costa’s fraudulent documents to support the fraudulent mortgage loan applications of various straw buyers. For his participation, Costa received a portion of the illicit proceeds from the mortgages.
Michael Rumore was an attorney licensed in the State of New Jersey. Rumore served as the settlement agent on mortgage loans brokered by DePaula, Silva, and Soto for various subject properties. Rumore used his status as an attorney to further the fraudulent scheme, including by convening closings, receiving funds from lenders, and preparing HUD-1s that purported to reflect the sources and destinations of funds for mortgages on subject properties B when in fact, the HUD-1s were neither true nor accurate. Rumore disbursed mortgage loan proceeds directly to PMS, Soto, DePaula, and Silva, including amounts not reflected on the HUD-1s. Rumore received a fee for each fraudulent loan in which he participated.
Antonio Pimenta owned and managed Kelmar Construction Co. (Kelmar). Kelmar built properties that were then sold to straw buyers utilizing fraudulent mortgage loans brokered by Arcentales.
The counts with which Soto is charged are each punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million. Sentencing is scheduled for Feb. 10, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Zach Intrater of the U.S. Attorney’s Office Criminal Division.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov13-419
Defense counsel: Jeff Smith Esq., of Teaneck, N.J.
Soto Information
Cartel Money Laundering Cell ArrestedRead the Press Release
BROWNSVILLE, Texas – Law enforcement officials have arrested a total of nine individuals alleging they violated the laws of the United States by moving money undetected through the United States banking system from Florida to Texas into Mexico, announced United States Attorney Kenneth Magidson and Janice Ayala, special agent in charge of Homeland Security Investigations (HSI), San Antonio.
Those arrested include Oscar J. Aguilar, 37, Yurixi Guadalupe Vega-Martinez, 29, Bea Marie Fairbanks, 24, Mayte Ayde Diaz, 39, Lorena M. Moreno-Martinez, 39, Teodosa Gonzalez-Rodriguez, 32, and Yezenia V. Campos-Silva, 31, all of Brownsville, and Yamileth Sinai Carballo, 20, and Miguel Jonathan Pereira, 21, both of Bayview. They are expected to make their initial appearance before U.S. Magistrate Judge Ronald G. Morgan tomorrow morning.
Jose M. Rivera, 26, of Brownsville, is also charged but not as yet in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 1-866-DHS-2ICE (1-866-347-2423).
The 21-count indictment was returned under seal Oct. 22, 2013, and unsealed upon the arrests today.
“Those individuals arrested today are members of a money laundering organization that allegedly orchestrated the movement of millions of dollars in illicit proceeds in an attempt to circumvent law enforcement and reap their illicit gains abroad,” said Ayala. “HSI is dedicated to dismantling suspected transnational criminal organizations, seizing their assets and severing their financial life line.”
The alleged money laundering cell opened bank accounts at Bank of America in Brownsville and then sent their account numbers to unknown individuals in Florida, according to allegations. There, the unknown individuals would allegedly deposit cash in amounts under the $10,000 reporting requirement for cash transactions. The indictment alleges that on the same day, defendants in Brownsville would then withdraw the cash in amounts under the $10,000 reporting requirement. They allegedly kept a portion of the cash as their payment and then gave the bulk of the money to another individual for it to be walked across the border at ports of entry in Brownsville. The scheme allegedly occurred from on or about November 2008 through December 2012.
The indictment indicates the money was proceeds of illegal narcotics sales belonging Mexican drug trafficking organizations including the Gulf Cartel.
All are charged with one count of conspiracy and one count of operation of an unlicensed money transmitting business which carries as possible punishment a maximum five-year-term of imprisonment and $250,000 fine on each count. All are also charged with varying counts of structuring withdrawals at a financial institution which also carries the same five years and $250,000 fine on each charge, upon conviction. However, if is determined the financial scheme involved more than $100,000, then the punishment is up to 10 years imprisonment and the same $250,000 fine. Aguilar, Diaz and Moreno-Martinez are also charge with conspiracy to commit international money laundering and further face 20 years in federal prison and a $500,000 fine.
The indictment also includes a notice of forfeiture against the defendants for $1,893,170, alleged proceeds from the criminal activity.
Today’s arrests came as a result of a year-long investigation by HSI, Financial Crimes Group with the assistance of U.S. Marshals Service, Border Patrol, Cameron County District Attorney’s Office, Cameron County Sheriff’s Office and the Brownsville Police Department. The case is being prosecuted by Assistant United States Attorney Karen Betancourt.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Cahokia Man Pleads Guilty to Firearm OffenseRead the Press Release
On October 25, 2013, Mautaveus T. Ayers, an 18-year old Cahokia, Illinois, man pled guilty in Federal District Court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sentencing is scheduled for February 27, 2014, at which time he faces a maximum sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed that on April 17, 2013, a patrolling officer in Cahokia, Illinois, observed a vehicle driven by Ayers commit a traffic violation and fitting the description of a car involved in a shooting earlier that day. The officer activated his lights for the vehicle to stop, but Ayers continued driving. A short chase followed with Ayers eventually stopping in the parking lot of an apartment complex. Ayers attempted to run after exiting the vehicle, but stopped when the officer drew his service weapon, ordering him to stop and lay on the ground. Ayers was placed under arrest. The police car, equipped with an audiovisual dash-camera, recorded Ayers making statements on his cell phone to an unknown individual about his arrest and directing him to retrieve a weapon from his home, and take it to the unknown individual’s residence. Ayers also directed the unknown party to retrieve a firearm he had hidden underneath his sink. Ayers consented to a search of his home the following day, where a shotgun was found underneath his kitchen sink. Ayers has a prior felony conviction in St. Clair County, Illinois.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cahokia Police Department. Special Assistant United States Attorney Neal C. Hong is prosecuting the case.
Burlington County Man Admits Producing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – A Burlington County, N.J., man today admitted his role in producing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
David Clark, 49, of Southampton, N.J., pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with three counts of producing child pornography. Clark’s detention was continued.
According to documents filed in this case and statements made in court:
From 2004 through March 9, 2011, Clark employed, used, persuaded, induced, enticed or coerced three separate minor victims to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Clark was charged federally in October 2011 by criminal complaint. Under terms of the plea agreement, Clark will be sentenced to 30 years in prison and a lifetime term of supervised release. Sentencing is scheduled for Feb. 4, 2014.
U.S. Attorney Fishman credited special agents of the FBI's Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; investigators with the Burlington County Prosecutor's Office, under the direction of Prosecutor Robert D. Bernardi; and detectives with the N.J. State Police, under the direction of Col. Rick Fuentes, and the N.J. Regional Computer Forensic Laboratory with the investigation leading to today's guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the Criminal Division in Camden.
13-420
Defense counsel: Lori M. Koch Esq., Assistant Federal Public Defender, Camden
Clark Information
Bowie County Man Sentenced for Trafficking MethamphetamineRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Texarkana, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Sonya Lamarcus Hopkins pleaded guilty on June 6, 2013 to possession with intent to distribute and distribution of methamphetamine and was sentenced to 87 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Feb. 28, 2012, Hopkins arranged by telephone to distribute 7 grams of methamphetamine to another individual. The transaction was carried out by another person on behalf of Hopkins in Texarkana, Texas. Hopkins was indicted by a federal grand jury on Sep. 12, 2012 and charged with drug trafficking violations.
This case was investigated by the Bi-State Narcotics Task Force, Texarkana Police Department, Bowie County Sheriff’s Office, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Axway, Inc. Agrees to Pay $6.2 Million to Resolve False Claims Act Allegations Related to GSA Multiple Awards ContractRead the Press Release
Baltimore, Maryland – Axway, Inc. has agreed to pay the United States $6.2 million to settle allegations under the False Claims Act that it and its predecessors provided the General Services Administration (GSA) with defective pricing information in order to obtain and maintain a GSA Multiple Award Schedule (MAS) contract that permitted them to sell software licenses and related services to federal agencies at inflated prices.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Brian D. Miller of the GSA Office of the Inspector General.
“This agreement demonstrates the Department of Justice’s commitment to rooting out fraud in government procurements and protecting taxpayer dollars,” said U.S. Attorney Rod J. Rosenstein. “Companies that attempt to skirt the rules for securing government business should be on notice that they will be held accountable and will not be permitted to undermine the integrity of the procurement process.”
"Companies must provide complete and accurate pricing information during the GSA contracting process," said GSA Inspector General Brian D. Miller. "Failure to do so is cheating the government and ultimately the American taxpayers, and taxpayers deserve a better deal."
Under the MAS Program, prospective vendors agree to disclose their commercial pricing policies and practices to GSA in exchange for the opportunity to gain access to the broad federal marketplace and the ease of administration that comes from selling to hundreds of government purchasers under one central MAS contract. GSA regulations require that, during the initial contract negotiations with GSA, prospective vendors seeking a MAS contract make “current, accurate and complete” disclosures of the standard and non-standard discounts they offer to commercial customers. GSA relies on the accuracy of these disclosures in order to negotiate fair pricing for government purchasers. Additionally, after the MAS contract is awarded, regulations require that MAS Program vendors disclose to GSA any changes in their commercial pricing practices, including new discounts that are offered to commercial customers after the MAS contract is in place.
According to the Settlement Agreement, on October 3, 2001, GSA awarded an MAS contract to Valicert, Inc. for the sale of software licenses and related services. Valicert subsequently merged in 2003 with Tumbleweed Communications Corporation, which in turn merged with Axway in 2009. GSA approved the novation of the MAS contract to these successors. From 2001 to December 31, 2011, numerous federal agencies purchased products and services from Valicert, Tumbleweed and Axway based on the MAS contract pricing.
This settlement resolves allegations that during the initial negotiation of the contract, Valicert knowingly provided GSA with commercial pricing information that was not current, accurate and complete. As a result, the United States alleges that the MAS contract that was awarded to Valicert contained pricing that was less advantageous to the government than would have been negotiated had accurate and complete disclosures been made. In addition, the United States alleges that in 2007, when the MAS contract was renewed, Tumbleweed also failed to provide GSA with accurate and complete commercial pricing disclosures. Finally, the United States contends that after being novated onto the MAS contract, Tumbleweed and Axway failed to comply with the price reduction clause of the contract. As a result, the United States alleges that the MAS contract contained inflated prices, and that numerous government agencies relied on these inflated prices and overpaid for their purchases of software and related services.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain for themselves a portion of the government’s recovery. The civil lawsuit was filed in the District of Maryland by Kenneth Marcus, who is a former employee of Tumbleweed. The case is captioned United States ex rel. Kenneth Marcus v. Tumbleweed Communications Corp., DKC-08-1006. As part of today’s resolution, Mr. Marcus will receive $1,178,000 from the settlement.
The settlement was the result of an investigation by the U.S. Attorney’s Office for the District of Maryland and GSA Office of Inspector General, with assistance from the Defense Criminal Investigative Service and the Naval Criminal Investigative Service. The case was handled by Assistant U.S. Attorneys Michael A. DiPietro and Jason D. Medinger.
Another Telemarketer Sent to Prison for Timeshare Resale FraudRead the Press Release
Robert Thomas, 36, of Lakeworth, Fla., was sentenced to 40 months in federal prison for knowingly participating in a fraudulent telemarketing scam that victimized timeshare owners nationwide, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. In pronouncing the sentence, the United States District Judge explained that the prison term was necessary to promote respect for the law and to deter others from committing the same offense. “This is a very serious crime,” he said, noting that the victims of the scheme – many of whom had financial problems – were particularly vulnerable.
Thomas previously worked as a telemarketer for Universal Marketing Solutions and Creative Vacation Solutions – scam companies that operated out of Palm Beach County, Florida, from October 2007 to January 2010. All told, the companies defrauded 22,000 consumers to the tune of $30 million dollars. Victims were found in all 50 States, the District of Columbia and Puerto Rico, all 10 Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in the Southern District of Illinois, representing 28 of the district’s 38 counties.
In July, Thomas pled guilty to a one-count felony Information charging conspiracy to commit mail fraud and wire fraud in connection with the conduct of telemarketing.
As part of his plea, Thomas admitted that he and other telemarketers lied to consumers over the phone, falsely representing that their company had actual buyers for the consumers’ timeshare properties. In exchange for this false hope, Thomas and others solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the timeshare owner once the closing on the property occurred. Many timeshare owners were told that their closings would take place within 60 to 90 days. Thomas and his co-conspirators, however, simply pocketed the fees. No closings ever took place, and despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold.
Approximately 30 other people have been charged in connection with this scam. The former chief executive of Creative Vacation Solutions, Jennifer Kirk, pled guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years’ supervised release. Over 20 others have also been sentenced, receiving prison terms that range from 8 months to 14 years.
The prosecutions follow an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, working in concert with the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The case against Thomas was prosecuted by Assistant United States Attorneys Nathan D. Stump and Bruce E. Reppert.
As part of his sentence, Thomas was ordered to pay a $500 fine and a $100 special assessment. He will also spend three years on supervised release after his prison term.
Alleged “Zone 4” Gang Members Charged in Peoria’s “Don’t Shoot” Anti-Violence InitiativeRead the Press Release
Peoria, Ill. – This afternoon, 12 more alleged members of a rival Peoria street gang, known as “Zone 4,” are to appear in court on federal charges in the second round-up under the “Don’t Shoot” anti-violence strategy. One year ago, 12 members of the “Bomb Squad” were the first to face similar federal charges in Peoria’s “Don’t Shoot” anti violence strategy.
U.S. Attorney Jim Lewis, Central District of Illinois, and Peoria Mayor Jim Ardis were joined by representatives of local and federal law enforcement agencies, along with others working in support of the ‘Don’t Shoot’ initiative, to announce the indictment. The ongoing investigation is being conducted by the Peoria Police Department and the FBI Safe Streets Task Force. The case is being prosecuted in the Peoria Division of the U.S. Attorney’s Office by Assistant U.S. Attorney K. Tate Chambers.
The indictment was returned by the grand jury last week and sealed pending the arrest of several defendants this past weekend. Those charged are: Alan Fitzpatrick, 34; Aeiral Yarbrough, 25; Daryl McGee, 24; Sam Carpenter, 24; Willie Breedlove, 22; Michael Costic, 24; Shawn Joiner, 28; Jermaine Jones, 30; Deonta White, 24; Tyrell Logan, 26; Robert Nathan, 25; and, Tristan Shelton, 23, all of Peoria, Ill.
The indictment alleges that the 12 men are members and associates of a drug trafficking and violent criminal street gang, as defined by federal criminal statute; that the defendants engaged in a conspiracy to use, carry and possess firearms in relation to and to further a drug conspiracy; and, that they conspired to possess with intent to distribute and to distribute controlled substances, including cocaine, crack cocaine, heroin and marijuana, from about 2005 to the present.
The indictment alleges that “Zone 4,” and its associated subgroups, the “P-Stones” and “4 Corner Hustlers,” operated as a criminal street gang, an ongoing group or association of five or more that has as one of its primary purposes the commission of one or more criminal offenses, including conspiracy to distribute controlled substances, whose members were engaged within the past five years in a continuing series of offenses and the activities affected interstate commerce.
According to the indictment, from 2005 to the present, “Zone 4” and its subgroups, functioned as a continuing unit for a common purpose to achieve the gang’s objectives: acquiring money and other things of value through the trafficking and distribution of drugs, including cocaine, crack cocaine, heroin and marijuana, and committing acts of violence, including murder, attempted murder, armed robbery, carrying and using firearms, and possession of firearms.
Violent acts were allegedly committed, among other purposes: to protect the gang’s territory from encroachment by other gangs to allow associates and members to freely engage in criminal activities, including distribution of controlled substances; to enrich its members by acquiring cash, guns, drugs, and other property; to enforce discipline and loyalty among the gang; to protect the gang from retaliation by others as well as detection, apprehension and prosecution by law enforcement; and to promote and enhance the reputation and standing of the gang, its members and associates.
If convicted, for conspiracy to use, carry, and possess firearms in relation to and in furtherance of a drug conspiracy, the statutory penalty is up to 20 years in prison. For the offense of conspiracy to possess with intent to distribute and to distribute controlled substances, the penalty is five to 40 years in prison; if a defendant has one or more prior felony drug convictions, the enhanced statutory penalty is 10 years to life in prison.
If convicted as a member of a criminal street gang, defendants Fitzpatrick, Yarbrough, Carpenter, Joiner, White, Nathan, and Shelton, face enhanced sentencing penalties of up to 10 years in prison in addition to any other prison term, because, according to the indictment, each has been convicted within the past five years of requisite offenses to be subject to the penalty provision of this federal statute.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent until proven guilty.
Alleged Hacker Indicted in New Jersey for Data Breach Conspiracy Targeting Government Agency NetworksRead the Press Release
NEWARK, N.J. – The New Jersey U.S. Attorney’s Office has charged an alleged hacker in the United Kingdom with breaching thousands of computer systems in the United States and elsewhere – including the computer networks of federal agencies – to steal massive quantities of confidential data, U.S. Attorney Paul J. Fishman announced.
The federal indictment, filed in Newark federal court, charges Lauri Love, 28, of Stradishall, England, with one count of accessing a U.S. department or agency computer without authorization and one count of conspiring to do the same. An investigation led by the U.S. Army Criminal Investigation Command-Computer Crime Investigative Unit and the FBI in Newark revealed that Love allegedly illegally infiltrated U.S. government computer systems – including those of the U.S. Army, U.S. Missile Defense Agency, Environmental Protection Agency and National Aeronautics and Space Administration – resulting in millions of dollars in losses.
Law enforcement authorities in the United Kingdom, including investigators with the Cyber Crime Unit of the National Crime Agency (NCA), announced today that they arrested Love at his residence Friday, Oct. 25, 2013, in connection with an ongoing investigation by the NCA. Love was previously charged in New Jersey by federal complaint, also unsealed in connection with his arrest. He also is charged in a criminal complaint in the Eastern District of Virginia with alleged conduct related to other intrusions.
“According to the indictment, Lauri Love and conspirators hacked into thousands of networks, including many belonging to the United States military and other government agencies,” said U.S. Attorney Fishman. “As part of their alleged scheme, they stole military data and personal identifying information belonging to servicemen and women. Such conduct endangers the security of our country and is an affront to those who serve.”
According to the indictment unsealed in Newark federal court:
Between October 2012 and October 2013, Love and fellow conspirators sought out and hacked into thousands of computer systems. Once inside the compromised networks, Love and his conspirators placed hidden “shells” or “back doors” within the networks, which allowed them to return to the compromised computer systems at a later date and steal confidential data. The stolen data included the personally identifying information (PII) of thousands of individuals, some of whom were military servicemen and servicewomen, as well as other nonpublic material.
“Computer intrusions present significant risks to national security and our military operations,” said Daniel Andrews, director of the U.S. Army Criminal Investigation Command’s Computer Crime Investigative Unit. “The borderless nature of Internet-based crime underscores the need for robust law enforcement alliances across the globe. We appreciate the bilateral support of the National Crime Agency in bringing cyber criminals to justice.”
“This investigation shows the necessity and value of strong partnerships among law enforcement agencies worldwide in the fight against cyber criminals,” said FBI Special Agent in Charge Aaron T. Ford. “Cybercrime knows no boundaries, and without international collaboration, our efforts to dismantle these operations would be impossible.”
Love and his conspirators planned and executed the attacks in secure online chat forums known as internet relay chats, or “IRC.” They communicated in these chats about identifying and locating computer networks vulnerable to cyber attacks and gaining access to and stealing massive amounts of data from those networks. They also discussed the object of the conspiracy, which was to hack into the computer networks of the government victims and steal large quantities of non-public data, including PII, to disrupt the operations and infrastructure of the United States government.
To gain entry to the government victims’ computer servers, Love and conspirators often deployed what is known as a “SQL injection attack.” Structured Query Language is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. They also exploited vulnerabilities in a web application platform that some of the targeted agencies used known as “Coldfusion.” Like SQL Injection attacks, this method of hacking allowed the conspirators to gain unauthorized access to secure databases of the victims. Once the network was infiltrated, Love and his conspirators placed malicious code, or malware, on the system. This malware created a “back door” or “shell,” leaving the system vulnerable and helping Love and the conspirators maintain access to the network.
The intrusions identified in the indictment are as follows:
Date
Organization
Location
Type of Attack
Data Involved
Army Corps - Engineer Research and Development Center
Vicksburg, Miss.
ColdFusion
demolition and disposal of military facilities
Oct. 6, 2012
Army Corps
Vicksburg, Miss.
ColdFusion
natural resource management
Oct. 6-9, 2012
U.S. Army – Network Enterprise Technology Command
Aberdeen Proving Ground, Md.
SQL Injection
PII (more than 1,000 individuals)
Oct. 7,8, 2012
U.S. Army – Army Contracting command
Redstone Arsenal, Ala.
SQL Injection
nonpublic competitive acquisition bid data and attachments
Oct. 9, 2012
U.S. military – Plans and Analysis Integration Office
Aberdeen Proving Ground, Md.
ColdFusion
defense program budgeting data
October 2012
U.S. Department of Defense – Missile Defense Agency
not specified in indictment
ColdFusion
PII (more than 4,000 individuals)
Dec. 23, 2012
Army Corps - Engineer Research and Development Center
Vicksburg, Miss.
ColdFusion
not specified in indictment
Jan. 11, 2013
U.S. Army War College – Strategic Studies Institute
Carlisle, Pa.
ColdFusion
not specified in indictment
July 10, 2013
National Aeronautics and Space Administration
not specified in indictment
ColdFusion
PII of numerous NASA employees
Jan. 3, 2013
Environmental Protection Agency - Federal Facilities Environmental Stewardship and Compliance Assistance Center
Newark, Del.
ColdFusion
non-PII personnel data
Love and his conspirators took steps to conceal their identities and illegal hacking activities. To mask their IP addresses, the conspirators used “proxy” and “tor” servers to launch the attacks. They also frequently changed their nicknames in online chat rooms, using multiple identities to communicate with each other.
If convicted, the defendant faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, on each of the two counts with which he is charged.
U.S. Attorney Fishman credited special agents of the U.S. Army Criminal Investigation Command - Computer Crime Investigative Unit, under the direction of Director Andrews, and the FBI in Newark, under the direction of Special Agent in Charge Ford, with the investigation leading to the indictment. Fishman also recognized the important work of the U.S. Department of Defense, Office of Inspector General Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffrey Thorpe, Cyber Field Office; EPA Office of Inspector General, under the direction of Michael Daggett, Deputy Assistant Inspector General for Investigations; the NASA Office of Inspector General, Computer Crimes Division; and U.S. Department of Energy, Office of Inspector General, Deputy Inspector General for Investigations under the direction of John Hartman, in this case.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Information on the charges in the Eastern District of Virginia can be obtained from the U.S. Attorney’s Office for that district at 703-842-4050 or by email at [email protected]
Love Indictment
13-417Alleged Hacker Charged in Virginia with Breaching Multiple Government Agency ComputersRead the Press Release
ALEXANDRIA, Va. – Lauri Love, 28, of Stradishall, England was charged in a criminal complaint unsealed today with conspiracy to access and damage the protected computer networks of multiple U.S. government agencies.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the Federal Bureau of Investigation’s Washington Field Office; John R. Hartman, Deputy Inspector General for Investigations at the U.S. Department of Energy; and Nick DiGiulio, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, made the announcement after the unsealing of the criminal complaint in federal court.
Law enforcement authorities in the United Kingdom arrested Love at his residence on Friday, October 25, 2013, in connection with an ongoing investigation by the Cyber Crime Unit of the National Crime Agency. In addition, the United States Attorney’s Office for the District of New Jersey announced the unsealing of an indictment charging Love with allegedly infiltrating U.S. government computer systems—including those of the U.S. Army, U.S. Missile Defense Agency, Environmental Protection Agency, and National Aeronautics and Space Administration.
According to the criminal complaint filed in Virginia, between approximately October 2012 and August 2013, Love and his conspirators accessed without authorization protected computers belonging to the U.S. Department of Energy (DOE), U.S. Department of Health and Human Services (HHS), U.S. Sentencing Commission, and Regional Computer Forensics Laboratory. Love and his conspirators gained unauthorized access to the protected computers by exploiting a known vulnerability in Adobe ColdFusion, a software program that is designed to build and administer websites and databases. The vulnerability, which has since been corrected, allowed Love and his conspirators to access protected areas of the victims’ computer servers without proper login credentials—in other words, to bypass security on the protected computers.
After gaining unauthorized access to the protected servers, Love and his conspirators obtained administrator-level access to the networks using custom file managers, which allowed the conspirators to upload and download files, as well as create, edit, remove, and search for data. As detailed in the criminal complaint, Love and his conspirators used these techniques in order to engage in the following data breaches:
- From on or about July 24, 2013 through on or about August 8, 2013, Love and his conspirators gained unauthorized access to DOE’s protected computers. In an online conversation obtained by law enforcement, Love and his conspirators discussed the data breach in real time during the offense. Love commented, “they [the DOE] must have about 30k employees[,]” and he then copied the personal information of various employees from the protected computer to the online conversation.
- On or about December 24, 2012, Love and his conspirators gained unauthorized access to protected networks operated by HHS’s Health Resources and Services Administration and the National Institutes of Health.
- From on or about December 25, 2012 through on or about January 27, 2013, Love and his conspirators breached the U.S. Sentencing Commission’s servers, and after gaining unauthorized access, the conspirators altered the website to display a video that criticized the Sentencing Guidelines with respect to Internet-related crimes.
- From on or about January 11, 2013 through on or about February 14, 2013, Love and his conspirators gained unauthorized access to the computer networks of the Regional Computer Forensics Laboratory (RCFL), a national digital forensics lab and training center overseen by the FBI. Through the unauthorized access, Love and his conspirators successfully stole the personal information—including names, phone numbers, and e-mail addresses—of RCFL and FBI employees.
This was a joint investigation of the DOE and HHS Offices of Inspector General as part of the FBI Washington Field Office’s Cyber Task Force. Assistant United States Attorneys Ryan K. Dickey and Jay V. Prabhu are prosecuting the case on behalf of the United States.
Love faces a maximum penalty of 10 years’ imprisonment if convicted of the offenses charged in Virginia. Criminal complaints 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 information regarding the charges filed in New Jersey may be obtained at http://www.justice.gov/usao/nj.Alabama Man Pleads Guilty to His Involvement in an Identity Theft Scheme Using Stolen Prisoner NamesRead the Press Release
Montgomery, Alabama -
Harvey James pleaded guilty to one count of mail fraud and one count of aggravated identity theft for his role in a Stolen Identity Refund Fraud (“SIRF”) scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.
According to court documents and court proceedings, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. For several years, James, his sister, Jacqueline Slaton, and others used those inmate names to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. In 2012, James and Slaton enlisted the assistance of U.S. Postal Service mail carrier Vernon Harrison in the scheme. Harrison, who provided James and his co-conspirators with mailing addresses to which they could mail debit cards, retrieved the debit cards from the mail and delivered them to James and his co-conspirators. In exchange, Harrison received substantial payments. Between 2010 and 2012, James and his co-conspirators filed hundreds of federal and state income tax returns that claimed over $1,000,000 in fraudulent tax refunds.
Sentencing has not yet been scheduled. James faces a minimum sentence of two years in prison and a maximum sentence of twenty-two years in prison, along with three years of supervised release, restitution and a maximum fine of $250,000. Slaton has already pleaded guilty and was sentenced to 70 months in prison. In July 2013, Harrison was found guilty by a jury for his role in the scheme. Harrison will be sentenced on Oct. 31, 2013.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Accountant Sentenced for Fraudulent ReturnRead the Press Release
United States Attorney Deborah R. Gilg announced that Donald Ray Ondrak, 61, of Lexington, Nebraska, was sentenced today in Lincoln, to 1 year and 1 day in prison by United States District Judge Laurie Smith-Camp, for aiding in the preparation of a false tax return. After prison, Ondrak will be required to serve 1 year of supervised release, and pay a fine in the amount of $5,000. Ondrak previously surrendered his CPA license.
Ondrak was a Certified Public Accountant in Lexington, Nebraska, who prepared tax returns for many farmers, businessmen, and businesses, in the central Nebraska area. In 2007, Ondrak filed a Form 1120 tax return for a medical equipment business that reflected a fraudulent $800,000 management fee expense as a “cost of labor”. This had the effect of lowering taxable income for the business, thereby reducing its tax liability by $254,715.
IRS Criminal Investigation Special Agent in Charge Sybil Smith said, “Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are accurate. IRS Criminal Investigation wants to make sure taxpayers do not pay good money for bad advice.”
This case was investigated by the Internal Revenue Service, Criminal Investigations Division.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Friday 25 October 2013
Woman Pleads Guilty to Deepwater Horizon Oil Spill FraudRead the Press Release
Gulfport, Miss. – Kimberly Marie Isabell, 32, of Gulfport, pled guilty in U.S. District Court on Tuesday, October 22, 2013, to one count of mail fraud, announced U.S. Attorney Gregory K. Davis.
Isabell admitted making a false claim to BP’s Gulf Coast Claims Facility, alleging that she lost earnings and work hours from her job at Isabell Janitorial Services in Gulfport as a result of the Deepwater Horizon Oil Spill. She received a check in the amount of $12,000 as a result of her false claim.
Isabell will be sentenced on Tuesday, January 28, 2014, at 9:30 a.m. by U. S. District Judge Sul Ozerden and faces a maximum sentence of 20 years in prison and a $250,000 fine. This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Andrea Jones.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Wisconsin Man Found Guilty of Possessing Child PornographyRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Oct. 25, 2013, Robert Carey Evans, 58, of Waukesha, Wis., was found guilty by a 12-person jury of 14 counts of possession of materials containing child pornography. The jury deliberated approximately three hours before returning the guilty verdicts. U.S. District Judge Ralph R. Erickson presided over the four-day trial.
This case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigations special agent assigned to the Internet Crimes Against Children Task Force discovered two computers geographically located in North Dakota that were sharing child pornography in a peer-to-peer network.
An agent from Homeland Security Investigations eventually traced the computers to Evan’s apartment located in South Fargo. Evans, a resident of Wisconsin, was living and doing consultant work in Fargo at the time. A search warrant was issued for Evan’s Fargo apartment where task force officers seized more than 13 hard drives and 43 DVDs containing child pornography.
A subsequent forensic examination of this media revealed more than 22,000 images and videos depicting mostly young girls engaged in sexually explicit conduct.The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
Sentencing for Evans has been set for Jan. 15, 2014, in Fargo.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Kahley Vergon-Mayotte, 28, of Monticello, Indiana, a defendant in the case US v Hoosier EMS Inc. et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiracy to commit health care fraud.Sentencing has been set for 1/8/2014.This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit and the United States Department of Health and Human Services.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Jacalyn Selman, 54, of Kouts, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of embezzling mail. Magistrate Nuechterleinis recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 1/30/2014. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
Evan Vanator, 23, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of possession of a firearm while being an illegal user of controlled substances. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 1/21/2014. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Lorenzo Coben, 33, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of using a firearm in relation to a crime of violence. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation .This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Joshua Robinson, 23, of Lafayette, Indiana, was sentenced by Senior District Judge James Moody to 33 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm with an obliterated serial number.According to documents filed in this case, Robinson, who has an extensive criminal history consisting of juvenile adjudications and adult criminal convictions, burglarized a residence where a .20 gauge shotgun and a .223 caliber rifle were taken. After the firearms were stolen, Robinson and a co-defendant proceeded to take the serial number off one of the firearms in preparation of selling the firearms in Chicago, Illinois. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tippecanoe County Police Department and the Lafayette Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Che Williams, Jr., 21, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm with an obliterated serial number.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Ramon Salinas, Jr., 37, of East Chicago, Indiana, was sentenced by Senior District Judge Rudy Lozano to 210 months imprisonment and 25 years of supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, law enforcement conducted an online Internet investigation to identify those possessing and sharing child pornography.The investigation identified an IP address belonging to the Salinas residence sharing files containing material depicting minors under the age of 16 engaged in sexual acts or poses.A search warrant was executed at this residence where law enforcement found that Salinas possessed at least 60 videos depicting minors engaging in sexually explicit conduct. Salinas also has a prior conviction for possession of child pornography in Marion County in 2005. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Indiana State Police, the Indianapolis Metropolitan Police Department and the Highland Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
James Urschel, 47, of Lafayette, Indiana, was sentenced by Senior District Judge James Moody to 3 years of probation after pleading guilty to the felony offense of false impersonation of a federal officer.According to documents filed in this case, Urschel impersonated a Deputy United States Marshal while buying numerous firearms at Gander Mountain in Lafayette, Indiana.He would then pawn the guns at a local pawn shop for cash. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Charles E. Johnson, Jr., 33, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 37 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine.According to documents filed in this case, law enforcement executed a search warrant at Johnson’s residence and found 17.9 grams of crack cocaine in a safe.Johnson had a felony conviction for dealing in cocaine in 2008 and was on probation for that offense when he was charged in this case. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Daryl V. Johnson, 40, of East Chicago, Indiana, was sentenced by Senior District Judge James Moody to 180 months of imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Johnson has 15 prior felony convictions and 9 misdemeanor convictions over a period of 18 years.Johnson was in a motor vehicle that was pursued by Hammond Police Department due to the occupants violating the seat belt law. After the vehicle fled from police, Johnson exited the vehicle and fled on foot. The police recovered a handgun from the route on which Johnson fled. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Regina Cabell, 39, of Lafayette, Indiana, was sentenced by Senior District Judge Rudy Lozano to 18 months imprisonment and $79,000 in restitution after pleading guilty to the felony offense of health care fraud ---submitting a claim to Indiana Medicaid for providing a service to an Indiana Medicaid recipient to whom she did not actually provide the claimed service ---and failing to file a federal income tax return for her gross income of $297,567 in the 2011 tax year.According to documents filed in this case, Cabell, d/b/a L&G Transportation, submitted approximately $96,600 in false claims to Indiana Medicaid for providing transportation services that did not actually occur.This case was the result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Demarcus White, 30, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 46 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, several firearms were discovered in White’s custody during a traffic violation stop. White had two rifles and one handgun in his possession.In June 2003, White was convicted of armed bank robbery and brandishing and using a firearm during and in relation to a crime of violence.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Ron Luthe, 40, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 30 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, in May 2012, Luthe was arrested with a Glock .40 handgun while working at a gun shop.In 2002, Luthe was sentenced for a conviction for Theft and Receiving Stolen Property.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Tina Nommay.
WASHINGTON – Harvey James Pleaded Guilty to One Count of Mail Fraud and One Count of Aggravated Identity Theft for His Role in A Stolen Identity Refund Fraud (“SIRF”) Scheme, Announced Assistant Attorney General Kathryn Keneally of the Justice DepartmentRead the Press Release
ALABAMA MAN PLEADS GUILTY TO HIS INVOVLEMENT IN AN
IDENTITY THEFT SCHEME USING STOLEN PRISONER NAMES AND A CORRUPT POSTAL EMPLOYEEAccording to court documents and court proceedings, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. For several years, James, his sister, Jacqueline Slaton, and others used those inmate names to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. In 2012, James and Slaton enlisted the assistance of U.S. Postal Service mail carrier Vernon Harrison in the scheme. Harrison, who provided James and his co-conspirators with mailing addresses to which they could mail debit cards, retrieved the debit cards from the mail and delivered them to James and his co-conspirators. In exchange, Harrison received substantial payments. Between 2010 and 2012, James and his co-conspirators filed hundreds of federal and state income tax returns that claimed over $1,000,000 in fraudulent tax refunds.
Sentencing has not yet been scheduled. James faces a minimum sentence of two years in prison and a maximum sentence of twenty-two years in prison, three years of supervised release, restitution and a maximum fine of $250,000. Slaton already pleaded guilty and was sentenced to 70 months in prison. In July 2013, Harrison was found guilty by a jury for his role in the scheme. Harrison will be sentenced on Oct. 31, 2013.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
13-1138U.S. Attorney Hartunian is asking everyone to look in their medicine cabinets and dispose of unused prescription drugs this Saturday Prescription drug abuse remains a serious threat to our children, yet there are simple things everyone can do to helpRead the Press Release
Albany, NY United States Attorney Richard S. Hartunian is once again urging parents, grandparents, teachers, nurses and the community as a whole to help stop the abuse of prescription drugs among young people. The problem is more widespread than people think, and there are simple things everyone can do to save those who may fall into such abuse.
"The abuse of prescription and over-the-counter drugs happens in many, often innocent, ways, but the costs of such abuse can be astronomical," said U. S. Attorney Hartunian. "1 in 8 teens has reported getting high on over-the-counter cough medicine1 and 1 in 12 high school seniors reported nonmedical use of the prescription pain reliever Vicodin along with 1 in 20 reporting they've used OxyContin.2 After marijuana, prescription and over-the-counter medications account for most of the commonly abused drugs by our youth.3 These aren't drugs being manufactured behind closed doors and sold on street comers. These are substances readily available in each of our homes. We all have a responsibility in helping to stop this scary and upward trend of prescription drug abuse."
The trends of prescription drug abuse are escalating. More than one-half of the estimated 2.4 million first-time prescription drug abusers were females and about one-third of them were between 12 and 17 years old.4 Worse yet, among all young adults ages 18 to 25, 5.9% report using nonmedical drugs within the past month in the National Survey on Drug Use and Health study.5
"What's most alarming about these trends of use is where young people are obtaining these drugs," warns U.S. Attorney Hartunian. "Over half of those who reported nonmedical drug use said they were given the drugs by a friend or relative.6 Close to 20 percent said they took the substances from a friend or relative.7 In response, we must do all we can to monitor the prescription drugs that are in our possession, discard unused medications properly and talk with young people about the very real dangers of prescription drug abuse."
Each year the Drug Enforcement Administration hosts a national "Take-Back" day. This year's event is this Saturday, Oct. 26th. Plan to dispose safely of unused prescription drugs on that day at collection sites which will be open between 1 0 am to 2 pm. The public can find a nearby collection site by visiting www.dea.gov, clicking on the "Got Drugs?" icon, and following the links to a database where they can enter their zip code. Or they can call 1-800-882-9539.
The Partnership at Drugfree.org has new ads aimed at helping parents and grandparents understand how important it is to monitor the possession of their prescription medications, especially pain killers. You can view and share these ads with everyone you know:
http://www.drugfree.org/videos/Talk can be one of the most effective tools we have. Talking with your own children and grandchildren about the dangers of prescription drug abuse is important, just as in the past we have talked about the dangers of drinking, drinking and driving and the use of tobacco. When adults have open, honest discussions with young people, they take it to heart. And it just might be one of those conversations, in the end, that keeps your teen from trying nonmedical drugs.
"Take time this week. Don't put it off. Dispose of your unused prescriptions. Talk with the young people around you about these dangers. You may be saving a loved one's life," suggested U.S. Attorney Hartunian.
Steps YOU can take this week to help stop prescription drug abuse
1. DISPOSE of your unused prescription drugs, especially unused pain killers, on Saturday, Oct. 26th. Find a location near you by visiting http://www.dea.gov/index.shtml and clicking on the "Got Drugs?" icon or call1-800-882-9539.
2. WATCH AND SHARE these ads to learn how easy it is to obtain prescription drugs:
http://www.drugfree.org/videos/3. TALK with your own children and grandchildren about the dangers of using prescription drugs and over-the-counter medications that aren't meant for them. For ideas of what to say, go to www.drugfree.org
FREE EDUCATIONAL WEBINAR
Clink on this webinar link and share this link to learn more about Prescription Drug Abuse Link: http://neric.welearntube.org/?q=node/314
_________________
1The Medicine Abuse Project, The Partnership at Drugfree.org website
http://medicineabuseproject.org/assets/documents/Preventing_teen_over_the_counter_cough_med_abuse_2014.pdf
2National Institute on Drug Abuse's Monitoring the Future Survey, 2010
3National Institute on Drug Abuse Research Report Series 5
4Ibid.
5National Survey on Drug Use and Health, 2010
6University of Michigan, 2010 Monitoring the Future Study
7Ibid.Three Time Convicted Felon Pleads Guilty to Firearms and Drugs ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jewell D. Wiggins, 46, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to possession of cocaine with intent to distribute and possession of a firearm and ammunition as a convicted felon. The charges carry a maximum penalty of 30 years in prison, a fine of $2,000,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that the defendant was arrested after members of the Rochester Police Department, while conducting a routine traffic stop of his car, found the defendant in possession of a loaded .45 caliber Colt Combat Commander semiautomatic handgun. During the investigation, Wiggins made several admissions to possessing the firearm.
Once under arrest for possessing the firearm, the defendant was transported to the Rochester Police Department Public Safety Building. During this transport, the Rochester Police Department officer observed Wiggins moving around in the backseat of the police vehicle. As this was happening, the defendant stated, “I just want you to know, I’m only moving around back here because I have a bad leg, not because I’m doing anything funny.” The officer searched the rear of his patrol vehicle after he had turned the defendant over the Monroe County Jail and found that the defendant had discarded thirty small bags of cocaine and five small bags of marijuana. Officers also found that the defendant possessed over $300.00 in United States currency.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent-in-Charge, Scott Heagney, members of the Rochester Police Department, under the direction of Police Chief James Sheppard.
Sentencing is scheduled for January 15, 2014, at 2:00 p.m. before Judge Larimer.Three South Floridians Convicted in $2.2 Million Dollar Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department announce today that a federal jury in Miami found defendants Frantz Pierre, 33, of Parkland, and Terry Pierre, 29, and Christmanie Bissainthe, 33, of Miami, guilty of charges relating to their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $2.2 million in fraudulent refund claims to the Internal Revenue Service.
Specifically, the jury convicted Frantz Pierre, Terry Pierre and Christmanie Bissainthe on 12 counts, including conspiracy to submit fraudulent claims to the government, access device fraud, and aggravated identity theft.
According to trial evidence and testimony, 1,000 pre-paid debit cards were sent to Frantz Pierre’s business in the name of Tax Professors in May 2010. Co-conspirators subsequently caused approximately 338 fraudulent and unauthorized tax returns using stolen prisoners’ identities to be submitted to the IRS seeking $2.2 million in refunds for payment onto the Tax Professors’ debit cards. The IRS paid approximately $1.9 million in refunds in connection with these fraudulent returns to these debit cards. Evidence at trial included, among other things, video evidence of all three defendants withdrawing funds from these debit cards.
According to trial evidence and testimony, law enforcement executed a search warrant at defendant Frantz Pierre’s seven-bedroom residence in Parkland, Florida in July 2012. The evidence showed that this residence had been purchased primarily with fraudulent tax refund proceeds. After law enforcement announced their presence, an individual was observed tossing laptops from the second floor of Pierre’s residence towards the pool. Law enforcement found over 70 pre-paid debit cards and a thumb drive with over 2,000 people’s names, dates of birth, Social Security numbers, and IRS pin numbers in Frantz Pierre’s bedside dresser.
Sentencing is scheduled for January 22, 2014 at 10:00 a.m. before U.S. District Judge Marcia G. Cooke. At sentencing, Frantz Pierre faces a maximum sentence of 41 years in prison, Terry Pierre faces a maximum sentence of 31 years in prison, and Christmanie Bissainthe faces a maximum sentence of 29 years in prison.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI (Miami and St. Paul), the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Cristina Moreno.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third Defendant Sentenced in $14 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Matthew Boyd, Chief, Miami Gardens Police Department, and Larry Gomer, Chief, North Miami Beach Police Department, announce that defendant Serge St-Vil, 61, of Miami, was sentenced today for his participation in a stolen identity tax refund scheme that resulted in the submission of approximately $14 million in fraudulent refund claims. St-Vil was sentenced to 96 months in prison, followed by three years of supervised release and a $7 million forfeiture money judgment. St-Vil previously pled guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A.
According to court documents, in 2010, St-Vil, Muller Pierre, and Finshley Fanor were involved in a scheme to file fraudulent and unauthorized tax returns seeking refunds. During the course of the scheme, there were over 5,000 fraudulent and unauthorized returns submitted to the Internal Revenue Service seeking over $14 million in refunds. Nearly all of these returns were submitted in the names of deceased persons. St-Vil was responsible for the filing of thousands of these returns using an Electronic Filing Identification Number obtained by Fanor.
Court documents show that the Internal Revenue Service paid out $12.1 million in refunds into bank accounts controlled by the defendants and co-conspirators connected to the scheme. There was over $6 million in refunds deposited into accounts controlled directly by St-Vil and an additional $1.6 million deposited indirectly into St-Vil’s bank account from co-conspirators’ accounts. In addition, there was $600,000 in refunds deposited into accounts controlled by Pierre and an additional $1.7 million deposited indirectly into Pierre’s bank account from co-conspirators’ accounts.
On June 26, 2013, Muller Pierre, 62, of North Miami Beach, was sentenced to 57 months in prison, to be followed by 3 years of supervised release. Pierre pled guilty to wire fraud in violation of Title 18, United States Code, Section 1343. On May 22, 2013, Finshley Fanor, 34, of Lauderhill, was sentenced to two years of probation. Fanor pled guilty to conspiracy to defraud the government with respect to claims in violation of Title 18, United States Code, Section 286.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, the U.S. Secret Service, the Miami Gardens Police Department, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Syracuse Trucking Company Settles Environmental ViolationRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that his office has settled a civil prosecution under the Clean Water Act. Riccelli Enterprises, Inc. filled in over 5 acres of federally regulated wetlands with a parking lot. Riccelli agreed to remove the illegal parking lot and pay a $50,000.00 fine. Riccelli signed a similar agreement with the State of New York, agreeing to remove the illegal parking lot and to pay an additional $50,000.00 fine.
Complaint
The federal settlement is based upon a Complaint filed in the U.S. District Court for the Northern District of New York. The Complaint’s allegations include the following: Riccelli Enterprises, Inc. and Riccelli Enterprises, LLC are corporations with offices located at 6131 East Taft Road, North Syracuse, Onondaga County, New York. The Clean Water Act prohibits the discharge of pollutants into navigable waters unless a permit is obtained from the U.S. Army Corps of Engineers (Corps). Sometime prior to July 30, 2008, and without seeking a permit from the Corps, Riccelli filled in wetlands to construct a parking lot at 6131 East Taft Road, North Syracuse. Riccelli used mechanized land-clearing and earth-moving equipment to fill in the parking lot.
An environmental study concluded that Riccelli had disturbed 6.06 acres of land, including 5.39 acres of regulated wetlands. The fill used by Riccelli to create the parking lot included dirt, spoil, rock, and sand, all of which are described as “pollutants” by the Clean Water Act. The Corps issued a Notice of Violation to Riccelli, which stated that Riccelli had filled in the parking lot without Department of the Army authorization and in violation of the Clean Water Act.
Consent Decree
In August, 2013 Riccelli and the United States signed a Consent Decree. The Consent Decree provides in part that 1) Riccelli shall pay a civil penalty to the United States in the amount of $50,000.00, 2) Riccelli shall restore the 5.39 acres of disturbed wetlands, pursuant to a “Wetland Restoration and Monitoring Plan” prepared by an environmental firm in January, 2013, and 3) the United States may enter Riccelli’s premises at all reasonable times to monitor Riccelli’s activities, obtain samples, verify data submitted to the United States, and inspect and evaluate Riccelli’s restoration efforts. The Wetland Restoration and Monitoring Plan provides that Riccelli shall excavate and remove the fill material, add topsoil as needed, reseed and revegetate the area, restore the area to its condition before the parking lot was installed, and its environmental firm will submit annual monitoring reports for five years, which will include studies of hydrology, and samples of vegetation from 15 plots.
After the parties signed the Consent Decree a notice was published in the Federal Register and public comment was invited. No comments or objections were received. On October 24, 2013 the Consent Decree was approved and ordered by the Hon. Gary L. Sharpe, Chief U.S. District Judge.
Diane Kozlowski, the Chief of the Regulatory Branch of the U.S. Army Corps of Engineers, Buffalo District, stated that, "[T]his resolution directly supports the Corps Regulatory Program's goal to provide strong protection of the nation’s aquatic environment, including wetlands, and help maintain the physical, chemical and biologic integrity of the nation’s waters. This resolution will help deter those entities who contemplate proceeding with a project in the vicinity of waters subject to regulation under the Clean Water Act without first contacting and coordinating with the Corps to obtain the proper authorizations required by law.”
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States Attorney’s Office is committed to the protection of the environment and the aggressive enforcement of the Clean Water Act. This case reflects a coordinated effort by this office,the Department of Justice, and the U.S. Army Corps of Engineers.”
This matter is assigned to Assistant U.S. Attorney Charles E. Roberts. Colin Ozanne, Esq. of the U.S. Army Corps of Engineers Buffalo District, and Eric Hostetler, Esq. of the U.S. Department of Justice are also assigned. News inquiries should be directed to Executive Assistant U.S. Attorney John Duncan, tele. (315) 448-0672.
Six Individuals Charged in Manhattan Federal Court in Connection with Armed Robberies of Cell Phone StoresRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the unsealing of an Indictment charging six members of an armed robbery crew operating in the Bronx, Brooklyn and Queens, with robbery conspiracy and firearms offenses. Five of the defendants charged in the Indictment – HENRY JAMES, EDWARD MATTHEWS, KELVIN GREEN, UNTRA JONES JR., and TYRELL JONES – were previously charged by complaint in September 2013. Of the five defendants charged in September 2013, all but HENRY JAMES were previously arrested, remanded, and remain in custody. JAMES and previously uncharged defendant JEROME ORTIZ were arrested on Wednesday and presented before U.S. Magistrate Judge Frank Maas yesterday. JAMES and ORTIZ were detained.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants unleashed a rash of robberies at gunpoint across three boroughs, in which they stole money and cell phones while dressed in disguise. The perpetrators of violence cannot hide from the law, as the arrests of these defendants show.”
NYPD Commissioner Raymond W. Kelly said: “New York City is a safer place for residents and businesses because of our continued efforts to stop the source of violent crime. In this case, our investigators tracked down and apprehended a gang that allegedly robbed numerous stores across three boroughs at gunpoint. I commend our detectives for their diligent efforts as well as our federal partners and the prosecutors with the U.S. Attorney’s Office for their fine work throughout this investigation.”
According to the allegations contained in the Superseding Indictment and other court documents previously filed in Manhattan federal court:
Between approximately July 2013 and October 2013, members of the robbery crew engaged in a series of over 30 armed robberies and attempted armed robberies of cellular phone stores located throughout the Bronx, Queens, and Brooklyn.
The robberies followed a simple but violent pattern: On each occasion, two or three members of the crew would enter a cellular phone store, often wearing masks, wigs and other disguises; each member of the crew would have a gun; and the robbers would brandish their guns and demand money and cellular phones from employees of the stores.
JAMES, 45, of Brooklyn, New York; ORTIZ, 40, of Brooklyn, New York; MATTHEWS, 61, of Brooklyn, New York; GREEN, 44, of Brooklyn, New York; TYRELL JONES, 26, of Bronx, New York; and UNTA JONES, 27, of Brooklyn, New York, are each charged with one count of Hobbs Act robbery conspiracy, which carries a maximum sentence of life in prison, and one count of brandishing a firearm in furtherance of the Hobbs Act robbery conspiracy, which carries a maximum sentence of life in prison.
Mr. Bharara praised the investigative work of the NYPD, especially detectives from the Bronx Robbery Squad and Brooklyn Robbery Squad. Mr. Bharara also thanked the U.S. Marshals Service Fugitive Squad for their outstanding assistance in the pursuit and arrest of JAMES.
The case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Andrew Bauer and Andrea Griswold are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Henry James et al. Indictment
Shawn Anthony Fernandez Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on October 25, 2013, before U.S. District Judge Sam E. Haddon, SHAWN ANTHONY FERNANDEZ, a 49-year-old resident of Butte, was sentenced to a term of:
- ison: 48 months
- ecial Assessment: $100
- pervised Release: 5 years
FERNANDEZ was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From approximately December 2011 until approximately July 2012, FERNANDEZ and others possessed with the intent to distribute methamphetamine in Butte and other places in Montana. The methamphetamine came from Las Vegas for distribution in the Butte area.
FERNANDEZ was arrested by law enforcement on July 29, 2012, with approximately 110 grams of pure methamphetamine in the trunk of his vehicle and hidden in the bottom of a cereal box.
FERNANDEZ admitted to this conduct when interviewed by law enforcement. This information was confirmed through the interview of other witnesses. Money Gram records also confirmed FERNANDEZ's admissions.
A laboratory analysis confirmed the presence of methamphetamine that was confiscated by law enforcement during their investigation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations, the Butte-Silver Bow Law Enforcement, and the Drug Enforcement Administration Lab.
Rhode Island Man Sentenced to Life in Prison for Murder and Robbery of Gas Station ManagerRead the Press Release
Jason W. Pleau, 35, of Providence, R.I., was sentenced today to life in prison for the murder and robbery of Woonsocket, R.I., gas station manager David D. Main. Pleau chased, shot at close range and robbed Main on Sep. 20, 2010, as Main approached the doorstep of a Woonsocket bank where he was to have deposited receipts belonging to the gas station that he managed.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Peter F. Neronha of the District of Rhode Island; Rhode Island Attorney General Peter F. Kilmartin; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Woonsocket Police Chief Thomas S. Carey; and Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office made the announcement following sentencing by U.S. District Court Judge William E. Smith.
Pleau pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death.
Co-defendant Jose A. Santiago, 36, formerly of Springfield, Mass., pleaded guilty on Sep. 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. Santiago is scheduled to be sentenced on Jan. 9, 2014.
A third defendant, Kelly Marie Lajoie, 35, formerly of Springfield, Mass., pleaded guilty on Dec. 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery, and use of a firearm during a federal crime of violence. A sentencing hearing has not been scheduled.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division's Capital Case Section.
Real Estate Developer Pleads Guilty to ERISA Fraud and Failure to Pay over TaxesRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware announced that Michael A. Stortini – the managing member of the Frank Robino Companies, LLC, (“FRC”) a real estate development company in Wilmington, Delaware – pleaded guilty yesterday before United States District Court Judge Richard G. Andrews to charges of Theft from an Employee Pension Benefit Plan and Willful Failure to Pay Over Tax. Sentencing has been scheduled for March 11, 2014.
From facts disclosed at the plea hearing, in 2009, Stortini diverted over $600,000 in funds from an employee 401(k) account to pay business expenses associated with the company. Moreover, in 2009 and 2010, Stortini failed to pay over $450,000 in payroll taxes to the Internal Revenue Service for entities related to FRC. Over the same time period, Stortini transferred over $900,000 from company accounts for his personal use.
This case was investigated by IRS, Criminal Investigation and the United States Department of Labor, Office of the Inspector General, and prosecuted by Assistant United States Attorney Shawn A. Weede. For further information, please contact Public Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.Pierre Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man charged with Failure to Pay Child Support has pled guilty and was sentenced on October 23, 2013, by U.S. District Judge Roberto A. Lange
Jason Hackett, age 36, was sentenced to 5 years' unsupervised probation, restitution in the amount of $41,610.26, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from nonpayment of past due child support obligations as ordered by the Sixth Judicial Circuit, Hughes County, South Dakota. From on or about May 1, 2012, and continuing to the present, Hackett has resided in a different state than his minor child, and failed to pay past due support obligations.
The investigation was conducted by the U.S. Department of Health and Human Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Pierce County Man who Killed Two While Protecting his Marijuana Grow Pleads Guilty to Drug and Gun CrimesRead the Press Release
A Puyallup, Washington man who shot and killed two men who had entered the garage where he was growing marijuana, pleaded guilty today in U.S. District Court in Tacoma to manufacturing marijuana and possession of a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jenny A. Durkan. JEREMY PETER CAPODANNO, 36, was arrested in April 2013. Use of a firearm in relation to drug trafficking carries a five year mandatory minimum term. Under the terms of the plea agreement, CAPODANNO is forfeiting nearly $670,000 in proceeds from the sale of two properties -- his Puyallup home and a second home in Kent, Washington. CAPODANO is also forfeiting a 2008 Mercedes, a 2008 Toyota pickup truck and five firearms seized at the crime scene. Sentencing is scheduled before U.S. District Judge Ronald B. Leighton on January 17, 2014.
“The defendant’s conduct put the safety of our community and his family at risk. He armed himself expecting trouble, and unfortunately he got it,” said U. S. Attorney Jenny A. Durkan. “Consistent with our enforcement priorities, we continue to focus on those who bring violence and use firearms to protect illegal drug businesses.”
On December 6, 2012, CAPODANNO shot two people who had broken into the garage of his Puyallup residence – killing both of them. In the garage loft was a marijuana grow with nearly 200 plants. When police officers arrived, they found CAPODANNO in possession of a Glock 17, 9mm semiautomatic pistol, which is the gun that CAPODANNO used to kill the two men. While searching CAPODANNO’S truck, police found additional marijuana as well as other weapons including a Bushmaster XM-15 assault rifle; an Intratec Tec-9 9mm pistol; a Benelli 12 gauge shotgun; and a Professional Ordinance MDL Carbon 15.
The case is being investigated by the Drug Enforcement Administration (DEA), the Pierce County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Matthew Thomas.
Pennsylvania Man Convicted of Drug Conspiracy Following Trial in Federal CourtRead the Press Release
Members of International Drug Trafficking Organization
Conspired to Acquire 80 Kilograms of Cocaine from Federal AgentALBANY, NEW YORK – A jury in Albany convicted a Reading, Pennsylvania man of conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine following a two-day jury trial, announced United States Attorney Richard S. Hartunian and James Spero, Special Agent-in-Charge, Homeland Security Investigations. Miguel Reyes, 50, faces at least ten years of imprisonment, a maximum term of imprisonment of up to life, and a $10,000,000 fine. Sentencing is scheduled for February 10, 2014 at 11:30 a.m. in Albany, New York before the Honorable Thomas J. McAvoy.
The evidence at trial showed that, in 2004, REYES conspired to obtain 80 kilograms of cocaine from undercover law enforcement officers posing as cocaine traffickers from Montreal, Quebec. Members of the conspiracy intended to distribute the cocaine throughout the United States. Two other members of the conspiracy, who were convicted in 2004 and 2005, delivered $200,000 in U.S. currency to undercover law enforcement officers in exchange for a portion of the cocaine. REYES was arrested in early 2013 after attempting to enter the United States from Mexico.
The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the Montreal Police Department. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Parmelee Woman Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that Kamelia No Moccasin, a/k/a Kamelia Shoulders, age 29, of Parmelee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 24, 2013, and pled guilty to Failure to Appear.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Previously, No Moccasin was placed on personal recognizance after an initial appearance and arraignment on an Involuntary Manslaughter charge in U.S. District Court, which required her to attend all court proceedings as a condition of release. On June 11, 2013, No Moccasin did not appear for her trial at 9:00 am, as ordered. She was apprehended and arrested on June 20, 2013.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for December 3, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Nationwide Prescription Drug Take-Back Event – October 26Read the Press Release
SAN FRANCISCO – The Drug Enforcement Administration (DEA) and its national, tribal, and community partners will hold a seventh National Prescription Drug Take Back Day at thousands of sites across the country on Saturday, October 26, 2013. These Take Back Day events give the public the opportunity to prevent prescription drug abuse and theft by ridding their homes of potentially dangerous expired, unused, or unwanted prescription drugs.
Prescription drugs that languish in medicine cabinets create a public health and safety concern because they are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high; almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those abusing cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
“Prescription drug abuse brings harm to our community, endangering those who obtain these controlled substances without proper medical supervision,” stated U.S. Attorney Melinda Haag. “By properly removing these outdated and dangerous products from our medicine cabinets, we eliminate a temptation that often has disastrous consequences. The U.S. Attorney’s Office commends the DEA for addressing this challenging topic and for their efforts in organizing this Prescription Drug Take-Back Event.”
“The DEA’s San Francisco Field Division is committed to the National Prescription Drug Take Back Day and we are proud to host more than 226 collection sites with our law enforcement and corporate partners. Cumulatively, Northern California residents have turned in more than 65 tons of prescription drugs during the past six National Prescription Drug Take Back Days, and we expect that this Saturday will be even more successful than the prior events. Prescription drug abuse is a serious health issue that should concern all parents. Studies show that more than 54 percent of children 12 and older abuse pain relievers they get from friends or family, so it only makes sense to dispose of unused, unneeded, expired prescription medications from the home,” said Acting Special Agent in Charge Bruce C. Balzano.
Americans participating in the DEA’s six previous Take-Back Days turned in nearly 2.8 million pounds—almost 1,409 tons—of prescription drugs, most recently at more than 5,800 sites operated by over 4,300 of DEA’s law enforcement partners.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they can enter their zip code. Or, they can call 1-800-882-9539 for additional information. The service is free and anonymous.
Mission Man Charged with Assault by Striking, Beating and Wounding, and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Hubert Desersa, age 23, of Mission, South Dakota, appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2013, and pled guilty to Assault by Striking, Beating and Wounding, and Simple Assault.
The maximum penalty upon conviction is 18 months in custody and/or a $105,000 fine, and $35 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on May 31, 2013, when Desersa slapped and hit the victim, knocking her to the floor and tearing her clothes off during the assault. Desersa then followed the victim into another room, where the two struggled over a knife, and the victim was cut on the web of her hand.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing. A sentencing date has not been set.
Mission Man Acquitted of Aggravated Sexual Abuse and Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man was acquitted on October 23, 2013, of Aggravated Sexual Abuse and Sexual Abuse as a result of a federal jury trial in Pierre, South Dakota.
Mart Kirkland, age 23, was indicted by a federal grand jury on March 13, 2013.
The charges relate to the alleged sexual abuse of a woman on October 29, 2013, in Todd County.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The U.S. Attorney's Office prosecuted the case.
Men Charged with Alien Smuggling Resulting in Death After Boat Capsizes, Four DieRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rear Admiral John H. Korn, Commander, 7th Coast Guard District, announce the indictment of six defendants following last week’s vessel capsize that resulted in the deaths of four women.
The twenty-four count indictment returned today by a federal Grand Jury, charges Naaman Davis, 53, and George Lewis, 38, both of the Bahamas, with conspiracy to encourage and induce aliens to enter the United States resulting in death, in violation of Title 8, United States Code Section 1324(a)(1)(A)(v)(I), and encouraging and inducing aliens to enter the United States resulting in death, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv). Davis is additionally charged with involuntary manslaughter, in violation of Title 18, United States Code, Section 1112, and illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a). Lewis is also charged with illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2).
In addition, three other individuals who were onboard the vessel, Matthew Williams, 30, Everton Jones, a/k/a “Everton Bryce,” 40, and Kenard Hagigal, 35, all of Jamaica, were charged with illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). A fourth passenger, Sean Gaynor, 37, of Jamaica, was charged with illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a).
If convicted, Davis and Lewis face a maximum sentence of life in prison or death; Williams, Jones, Bryce, and Hagigal face a maximum sentence of twenty years in prison; and Gaynor faces a maximum sentence of two years in prison.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the U.S. Coast Guard. This case is being handled by Special Assistant U.S. Attorney Kelly Blackburn.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Indictment (PDF)
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.
Member of Drug and Money Laundering Conspiracy SentencedRead the Press Release
BOSTON – A leading member of a drug trafficking and money laundering conspiracy was sentenced yesterday after a multi-year FBI task force investigation into illegal activity in Boston’s Chinatown.
Brant Welty, 41, of South Boston, was sentenced by United States District Court Judge Joseph L. Tauro to 100 months in prison and ordered to pay a criminal forfeiture money judgment of $85,500. In March 2013, he pleaded guilty to conspiracy to distribute oxycodone and money laundering conspiracy. Welty, along with 12 others, was first charged in 2011 for a conspiracy which spanned Massachusetts, Florida, New York, Rhode Island, South Carolina and elsewhere, trafficked hundreds of thousands of oxycodone pills and generated over $4 million in proceeds.
The FBI’s Organized Crime Task Force led a long-term investigation into drug-trafficking, illegal gambling, extortion, prostitution, and other criminal activity in Boston’s Chinatown and elsewhere. The investigation included a seven month, court-authorized wire surveillance of cell phones, including the phones of five of the defendants associated with the conspiracy. The investigation has resulted in the seizure of over $480,000 in cash, a 38-foot speed boat, numerous luxury vehicles, 13 firearms and approximately 12,000 oxycodone pills. Investigators also uncovered extensive evidence of illegal gambling and prostitution as well as the use of extortionate threats to collect loans to gamblers and others.The following were also convicted of the drug-trafficking conspiracy and, in the cases of some defendants, money laundering conspiracy: John Willis a/k/a Bac Guai John (White Devil John), 42, of Dorchester, the leader of the conspiracy, sentenced to 20 years; Kevin Baranowski, 41, of Boston, sentenced to 80 months; Peter Melendez, 50, of Sunrise, Fla., sentenced to 160 months; Colby Deering, 41, of Quincy, sentenced to 60 months; Brian Bowes, 42, of Sunrise, Fla., sentenced to 57 months; and Michael Clemente, 29 of Sunrise, Fla., sentenced to 36 months. Bridget Welty, 40, of Boston, was convicted of structuring and was sentenced to one year of supervised release. Anh Nguyen, 28, of Boston, was convicted of witness tampering, and sentenced to one year of probation. Aibun Eng, 38, of Quincy, was convicted of drug conspiracy and has yet to be sentenced.
In another case arising from this investigation, the following defendants were convicted of operating an illegal gambling business, which had been based at 17-23 Beach Street in Chinatown since 2010. Minh Cam Luong, a/k/a Ming Jai, 46; Hin Pau, 45; Judy Huyen Truong, 41, of Quincy; Jian Ming Chen, 38, of Brighton; Elburke Lamson, 47, of Chelsea; and Tan Ngo, 54, of Waltham. Luong and Pau also were convicted of conspiring to use and/or using extortionate means, including threats or actual use of violence, to collect debts, including debts owed to the illegal gambling business.
Luong, was sentenced to 84 months; Pau to 96 months; Chen to one year and one day; Lamson to six months; Ngo to18 months; and Truong to time served and seven months supervised release. Chien Van Tran, 43, of Malden, whose case is pending, is charged with operating an illegal gambling business and extortion conspiracy.
In another case arising from this investigation, Wei Xing Chen, 50, of Cambridge, was convicted of possession with intent to distribute benzylpiperazine (BZP), also known as ecstasy, and conspiracy to distribute BZP. In addition, Chen and Xiaohong Xue, 41, of Cambridge, were convicted of conspiring to induce travel to engage in prostitution. Chen also was convicted of money laundering conspiracy. Chen, who operated brothels in Cambridge and Boston, was sentenced to 70 months while Xue was sentenced to two years of probation, including six months of home detention.
Several members of the drug conspiracy, including Brant Welty and John Willis, frequented Chen’s brothels and/or Luong’s gambling den. Employees of Luong’s gambling business frequented Chen’s brothels. Some of Luong’s employees associated with Willis, and Willis also served as an enforcer for Chen.
In a final case arising from this investigation, brothers Stanley Gonsalves, 34, of Sandwich, and Joshua Gonsalves, 33, of Dennisport, have been charged with distribution and conspiracy to possess with intent to distribute oxycodone. Both defendants are detained pending trial.
U.S. Attorney Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated by the FBI’s Organized Crime Task Force which includes IRS Criminal Investigation, Massachusetts State Police, Massachusetts Department of Correction, and Quincy, Medford and Boston Police Departments. Assistance was also received from the DEA, ICE Homeland Security Investigations, Cambridge Police Department, New York City Police Department, Broward County (Fla.) Sheriff’s Office and the Ridgeland and Dillon Police Departments in South Carolina. The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Richard L. Hoffman of Ortiz's Strike Force Unit.
Martial Arts Instructor Pleads Guilty to Six Counts of Sexual Exploitation of A MinorRead the Press Release
Christopher M. Horton, 20, of Highland, Illinois, plead guilty today in the United States District Court to an indictment charging him with five counts of Sexual Exploitation of a Minor and one count of Attempt Sexual Exploitation of a Minor, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Documents filed in US District Court establish that while employed as a martial arts instructor at a studio in Belleville, Illinois, Horton sexually abused three students between the ages of 6 and 10 years and video recorded these acts using his Apple i-Phone. Horton also attempted to engage a fourth minor in sexually explicit conduct for the purposes of producing a recording of the conduct. Approximately 57 video files containing child pornography were recovered from Horton’s cellular phone, which were created between the dates of May 1, 2012, and February 9, 2013. During an interview with law enforcement, Horton confessed to sexually abusing the minors and to having produced video recordings of the abuse using his cellular telephone.
Horton is scheduled to be sentenced on March 7, 2014, at which time he faces a term in prison of not less than fifteen (15) years but not more than 30 years on each count, a fine up to $250,000, and a term of supervised release of not less than five (5) years, up to and including, a lifetime of supervision once he is released.
The case was investigated by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Highland, Illinois, Police Department and the Belleville, Illinois, Police Department. The case is being prosecuted by Assistant United States Attorney Ali Summers.
Manhattan U.S. Attorney Announces Seizure of Additional $28 Million Worth of Bitcoins Belonging to Ross William Ulbricht, Alleged Owner and Operator of “Silk Road” WebsiteRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Brian R. Crowell, the Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), today announced the unsealing of a protective order authorizing the seizure of approximately 144,336 Bitcoins found on computer hardware belonging to ROSS WILLIAM ULBRICHT, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” the alleged owner and operator of “Silk Road,” a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. Along with a prior seizure of approximately 29,655 Bitcoins, federal law enforcement agents have now seized a total of approximately 173,991 Bitcoins in connection with the Silk Road case, which, at today’s Bitcoin exchange rate, are worth over $33.6 million.
The Bitcoins have been seized in connection with a civil action previously filed in Manhattan federal court on September 30, 2013, seeking the forfeiture of all assets of Silk Road, including its website and all of its Bitcoins because those assets allegedly were used to facilitate money laundering and constitute property involved in money laundering. Also in connection with that civil action, federal law enforcement agents previously seized the Silk Road website itself. In addition to the civil action, a criminal Complaint against ULBRICHT was filed in Manhattan federal court charging him with one count of narcotics conspiracy, one of count of conspiracy to commit computer hacking, and one count of money laundering conspiracy. ULBRICHT was arrested in San Francisco, California, on October 1, 2013, he was subsequently ordered detained, and he is expected to appear in Manhattan federal court within the next few weeks. ULBRICHT has also been charged in a separate indictment pending in federal court in Baltimore, Maryland.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ross William Ulbricht operated Silk Road – a global illegal cyber business designed to broker criminal transactions – protected by a presumed anonymity and motivated by profit. With his arrest and our subsequent seizures of millions of dollars worth of Silk Road’s Bitcoins, we have sent a clear message to him and everyone else running criminal enterprises on the dark web: we are determined and equipped to hold you to account.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged in court documents, the creator of Silk Road, Ross William Ulbricht, created a black market bazaar for drugs and illegal services where customer service and anonymity were added value to shoppers and sellers. This market generated millions in illegal profits for Ulbricht in the form of Bitcoins. However, what Ulbricht didn’t count on was that Silk Road’s coffers would not be out of reach of the FBI and our partners to seize. We want to thank our law enforcement partners here and abroad for their support and work on this case.”
DEA Special-Agent-in-Charge Brian R. Crowell said: “The Silk Road underground website was the global venue for drug trafficking and money laundering, producing millions in dirty profits. DEA and others followed the money throughout this investigation, leading to this seizure. The website was used by drug dealers to put illicit drugs into our communities and literally at our doorsteps nationwide. 200,000 people die annually from drug abuse throughout the world, and our investigators worked tirelessly to bring to justice a facilitator who made every effort to hide behind highly encrypted technology while providing 24/7 anonymous services to global drug traffickers and money launderers. Ulbricht’s goals were to make millions from drug use and money laundering while protecting the world’s criminals from law enforcement. Our goal is to shut these people down and protect our children and DEA will continue to be relentless in this effort.”
IRS Special-Agent-in-Charge Toni Weirauch said: “This seizure sends a clear notice to those who think they can commit crimes and conceal the fruits of their criminal activities in digital anonymity. The resolve of the government to uncover criminality and identify criminal proceeds is strong and its investigative capabilities are magnified when different federal agencies, each with its own areas of expertise, unite to achieve a common objective.”
According to the allegations in the Complaint, the civil forfeiture action, and the application and protective order unsealed today in Manhattan federal court:
Background on Silk Road and ROSS WILLIAM ULBRICHT
Since approximately January 2011, ROSS WILLIAM ULBRICHT owned and operated the underground website known as Silk Road, which emerged as the most sophisticated and extensive criminal marketplace on the Internet. Throughout the time that ULBRICHT controlled Silk Road, it served as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually every variety, were bought and sold regularly by the site’s users.
During its approximately two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions. All told, the site generated sales revenue of more than 9.5 million Bitcoins and collected commissions from these sales totaling more than 600,000 Bitcoins. Although the value of Bitcoins has varied over time, these figures are roughly equivalent to approximately $1.2 billion in sales and approximately $80 million in commissions, using the Bitcoin exchange rate in effect when the Silk Road website was seized.
ULBRICHT deliberately operated Silk Road as an online criminal marketplace designed to enable its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. He sought to anonymize transactions on Silk Road in two principal ways. First, ULBRICHT operated Silk Road on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses and therefore the identities of the networks' users. The Tor network is designed to make it practically impossible to physically locate the computers hosting or accessing websites on the network. Second, ULBRICHT required that all transactions on Silk Road be paid with Bitcoins, an electronic currency that is as anonymous as cash. Although Tor and Bitcoins have known legitimate uses, they were intentionally used by Silk Road to further the site’s unlawful goals.
The Silk Road website provided a sales platform that allowed vendors and buyers using the site to conduct transactions online. Silk Road is believed to have been visited by hundreds of thousands of unique users from countries across the globe, nearly 30 percent of whom indicated upon registering on the site that they were from the United States. The illegal nature of the items sold on the website was readily apparent to any user browsing through its offerings. Indeed, the vast majority of the items for sale on Silk Road were illegal drugs, which were openly advertised as such on the site. As of September 23, 2013, Silk Road had nearly 13,000 listings for controlled substances, listed under such categories as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opioids,” “Precursors,” “Prescription,” “Psychedelics,” and “Stimulants.” From November 2011 to September 2013, law enforcement agents made more than 100 individual undercover purchases of controlled substances from Silk Road vendors. These purchases included heroin, cocaine, ecstasy, and LSD, among other illegal drugs, and were filled by vendors believed to be located in more than ten different countries, including the United States, Germany, the Netherlands, Canada, the United Kingdom, Spain, Ireland, Italy, Austria and France.
In addition to illegal narcotics, other illicit goods and services were also openly bought and sold on Silk Road. For example, as of September 23, 2013, there were: 159 listings under the category “Services,” most of which offered computer-hacking services, such as a listing by a vendor offering to hack into social networking accounts of the customer’s choosing; 801 listings under the category “Digital goods,” including malicious software, hacked accounts at various online services, and pirated media content; and 169 listings under the category “Forgeries,” including offers to produce fake driver’s licenses, passports, Social Security cards, utility bills, credit card statements, car insurance records, and other forms of false identification documents.
The only form of payment accepted on Silk Road was Bitcoins, an anonymous, decentralized form of electronic currency, existing entirely on the Internet and not in any physical form. Silk Road’s payment system essentially consisted of an internal Bitcoin “bank,” where every Silk Road user had to hold an account in order to conduct transactions on the site. Every Silk Road user had at least one Silk Road Bitcoin address associated with the user’s Silk Road account. These addresses were stored on wallets maintained on servers controlled by Silk Road. In order to make a purchase on Silk Road, a user had to obtain Bitcoins (typically through a Bitcoin exchanger) and then send those Bitcoins to a Bitcoin address associated with his or her Silk Road account. Once a user’s account was funded in this way, the user was free to make purchases on Silk Road. When a purchase was made, the user’s Bitcoins were first transferred to an escrow account maintained by Silk Road, pending completion of the transaction. When the transaction was completed, the buyer’s Bitcoins were transferred from the escrow account to the Silk Road Bitcoin address of the vendor involved in the sale. Silk Road also used a so-called “tumbler” which, as the site explained, “sen[t] all payments through a complex, semi-random series of dummy transactions…making it nearly impossible to link your payment with any coins leaving the site.” Silk Road charged a commission for every transaction conducted by its users. The commission rate varied depending on the size of the transaction, but generally ranged from 8 to 15 percent of the total sales price.
Using the online moniker “Dread Pirate Roberts,” or “DPR,” ULBRICHT controlled and oversaw every aspect of Silk Road. ULBRICHT, for example, maintained the computer infrastructure and programming code underlying the Silk Road website; determined vendor and customer policies, including deciding what can be sold on the site; managed a small staff of online administrators who assisted with the day-to-day operation of the site; and controlled the enormous profits generated from the operation of the site. ULBRICHT did so while fully aware of the illegal nature of the enterprise; indeed, he deliberately sought to ensure the anonymity of the drug dealers and other illegal vendors operating on the site, as well as to conceal his own identity as the site’s owner and operator.
ULBRICHT was also willing to use violent means to protect the Silk Road enterprise and the anonymity of its users. For example, in March and April 2013, ULBRICHT solicited a murder-for-hire of a Silk Road vendor, known as “FriendlyChemist,” who was threatening to reveal the real names and addresses of a long list of Silk Road users unless ULBRICHT paid him $500,000. Upon receiving the threat from “FriendlyChemist” to expose the names of Silk Road users, ULBRICHT wrote to another Silk Road user, telling that user that “FriendlyChemist” is “causing me problems,” and adding: “I would like to put a bounty on his head if it’s not too much trouble for you. What would be an adequate amount to motivate you to find him? Necessities like this do happen from time to time for a person in my position.” ULBRICHT later explained that the threat by “FriendlyChemist” to expose the names of Silk Road users “is unforgivable to me. Especially here on Silk Road, anonymity is sacrosanct.” However, there is no record of a homicide at or about that time in the area where “FriendlyChemist” supposedly lived.
The Seizure of Computer Hardware Belonging to ROSS WILLIAM ULBRICHT
ROSS WILLIAM ULBRICHT was arrested in San Francisco, California, on October 1, 2013. At the time of his arrest, ULBRICHT was using a laptop computer, which was seized in connection with his arrest and subsequently searched pursuant to a search warrant. ULBRICHT’s residence was also searched on October 1, 2013, pursuant to a search warrant, and federal law enforcement agents conducting that search found several pieces of computer hardware belonging to ULBRICHT (collectively, along with ULBRICHT’s laptop, the “computer hardware”). Through forensic analysis of the computer hardware, federal law enforcement agents recovered a Bitcoin wallet containing approximately 144,336 Bitcoins.
ULBRICHT, 29, of San Francisco, California, is charged with one count of narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; one of count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the outstanding investigative work of the FBI and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the IRS, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and NY Department of Taxation. Mr. Bharara also thanked the Chicago field office of ICE-HSI for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Reykjavik Metropolitan Police of the Republic of Iceland and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Ross William Ulbricht Application for Second Post-Complaint Protective Order - Silk Road
U.S. v. Ross William Ulbricht Second Post-Complaint Protective Order - Silk RoadManhattan U.S. Attorney Announces Charges Against Dual U.S.-Iran Citizen for Conspiring to Acquire Surface-To-Air Missiles for the Government of IranRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Derek Maltz, the Special Operations Division Agent in-Charge of the United States Drug Enforcement Administration (“DEA”), today announced the unsealing of charges against REZA OLANGIAN, a dual citizen of the United States and Iran, in connection with his efforts to acquire surface-to-air missiles (“SAMs”) for the government of Iran. OLANGIAN was arrested in Estonia on October 10, 2012, pursuant to a U.S. request for his provisional arrest, and he was extradited to the United States on March 26, 2013. The case is assigned to U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, after having been thwarted in his first attempt, Reza Olangian seized on a second opportunity to help arm the Iranian military with surface-to-air missiles and airline parts in violation of international trade sanctions and other laws. Thanks to the outstanding work of our law enforcement partners, Olangian struck out on his second attempt and he will now answer for his alleged willingness to jeopardize this country’s national security.”
DEA Special Operations Division Agent in-Charge Derek Maltz said: “Mr. Olangian’s conspiracy could have put American lives at risk, as well as those of our friends across the globe, if put into action. DEA possesses the unique ability to direct complex undercover operations thanks to our intelligence capabilities, close partnerships, and vast informant network around the world. These tools have allowed us to infiltrate global criminal networks that threaten America's security.”
According to the allegations in the Indictment, the Amended Complaint, and other documents filed in Manhattan federal court:
In 2007, OLANGIAN worked with Iranian officials to obtain approximately 100 SAMs for use by the Iranian government. Ultimately, that missile deal was unsuccessful.
Beginning in early 2012, OLANGIAN worked to negotiate a separate missile deal, this time with a confidential source working with the DEA (the “CS”), who purported to be a weapons and aircraft broker. From his base of operations in Tehran from approximately May 2012 through October 2012, OLANGIAN arranged for the purchase of “IGLA-S” SAMs and various aircraft components. During a covertly recorded meeting in May 2012, and in subsequent recorded conversations and e-mails with the CS, he described in detail his plans for procuring the SAMs and aircraft parts and then smuggling them over land into Iran, from Afghanistan or from another neighboring country.
OLANGIAN’s 2012 negotiations included his participation in a videoconference with the CS, during which OLANGIAN remotely inspected a bona fide SAM, which the CS presented as a sample of the larger quantity of SAMs that OLANGIAN sought to purchase. After inspecting the SAM and inquiring about its specifications, OLANGIAN stated that he would want “at least 200 . . . minimum 200” of such SAMs. In his communications with the CS, OLANGIAN also indicated that he was arranging for a missile expert to inspect and test the SAMs.
During October of 2012, OLANGIAN traveled to Estonia, where he was arrested. Following his arrest, OLANGIAN stated, among other things, that he had been working with Iranian government officials; that the SAMs he had arranged to purchase were being obtained for the Iranian government; and that the aircraft parts he attempted to acquire were to be used in Iranian military aircraft.
The Indictment charges OLANGIAN in four Counts. Counts One and Two charge him with conspiring to acquire and transfer surface-to-air missile systems and attempting to acquire and transfer surface-to-air missile systems. Counts Three and Four charge him with conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and attempting to violate IEEPA.
If convicted, OLANGIAN faces a maximum sentence of life in prison on each of Counts One and Two, including a mandatory minimum sentence of 25 years in prison on each count. He faces a maximum sentence of 20 years in prison on each of Counts Three and Four.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA and the DEA Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Sean Buckley and Shane Stansbury are in charge of the prosecution.
The charges contained in the Indictment and the Amended Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Reza Olangian Indictment (12 Cr 798)
U.S. v. Reza Olangian Amended Complaint (12 Mag 2553)Lubbock Man Sentenced to 142 Months Federal Prison for Robbing First United Bank, Plains Capital Bank and Alliance Federal Credit UnionRead the Press Release
LUBBOCK, Texas — Jeffrey Hensley, 42, appeared in federal court this morning, before U.S. District Judge Sam R. Cummings, who upwardly departed from the U.S. Sentencing Guidelines and sentenced him to 142 months in federal prison. Hensley pleaded guilty in July 2013 to three counts of bank robbery and credit union robbery, and he has been in custody since his arrest on April 22, 2013, following the execution of a federal search warrant at his residence in Lubbock. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on September 14, 2012, at approximately 1:25 p.m., Hensley, carrying a bank bag and wearing blue jeans, a gray pull-over and a black baseball cap, entered the First United Bank, 9801 Indiana Avenue, in Lubbock, opened the bag and removed a note that he passed to a teller. The note stated words to the effect of: “Don’t make me show my weapon.” Hensley told the teller, “Give me your bundles. Keep your hand away from your button and quit stalling.” The teller surrendered cash to Hensley who placed most of it in the bank bag, retrieved the note and exited the bank.
On December 8, 2012, at approximately 4:54 p.m., Hensley, carrying a bank bag, entered the Plains Capital Bank, 6002 Slide Road in Lubbock and handed a teller a note that read: “Fill the bag with all the money in the drawer - if I have to show my weapon I will use it - you have 15 seconds!!” Hensley ordered the teller to put the money in the bag and lifted his hooded sweatshirt as if to partially display a firearm. The teller surrendered cash and Hensley stuffed the money inside the bank bag and exited the bank.
On February 13, 2013, at approximately 3:45 p.m., Hensley entered the Alliance Federal Credit Union, 6601 Indiana Avenue in Lubbock, walked up to a teller and handed him a note. Hensley then handed a pink cosmetic bag to the teller and told her: “Hurry up! Everything in the drawer goes in the bag. Put the money in the bag. Put the money in the bag.” The teller surrendered the cash to Hensley who put it in the pink bag and exited the bank.
This case was investigated by the FBI, the Texas Department of Public Safety, the Lubbock Police Department and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Leader and Others Ordered to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
HOUSTON - Francisco Chao-Martinez, 31, and five others have been ordered to prison for their roles in a conspiracy to transport or harbor aliens illegally present in the country, announced United States Attorney Kenneth Magidson. Mexican National Chao-Martinez pleaded guilty to conspiracy to transport aliens as did Juan Carlos Solis-Sanchez, 31, of Mexico, Daniel Sanchez-Cabarello, 31, of El Salvador, and Edgar Carranza-Espinal, 36, and Carlos Benegas-Benetiz, 36, both of Honduras. A sixth defendant, Fredis Sanchez-Martinez, 22, of Honduras, was convicted of conspiracy to harbor aliens illegal present in the United States
Late yesterday, U.S. District Judge Sim Lake, who accepted all the guilty pleas, handed Chao-Martinez a 57-month sentence. In handing down the sentence, Judge Lake found Chao-Martinez was the organizer and leader of the two-year conspiracy involving a conservative estimate of 500 undocumented aliens.
Solis-Sanchez was sentenced Tuesday of this week to a term of 27 months in prison, while Sanchez-Cabarello and Benegas-Benetiz received respective sentences of 18 and four months. Sanchez-Martinez was also sentenced Tuesday to a 12-month and one day term of imprisonment. Carranza-Espinal will be sentenced today at 3:00 p.m.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
Charges in the case stem from an investigation that began in January 2013 after federal agents received information that Chao-Martinez was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In June 2013, Chao-Martinez, Solis-Sanchez and Sanchez-Caballero were arrested in connection with arranging the transportation of 14 aliens illegally present in the United States. Later, agents executed a search warrant at a residence in Houston which was being used by Chao-Martinez and his conspirators to stash aliens awaiting transportation. Agents encountered 10 additional aliens illegally present in the United States. Agents also encountered Sanchez-Martinez, Cararranza-Espinal and Benegas-Benetiz, all of whom were determined to be employees of Chao-Martinez involved in the alien smuggling conspiracy.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
KC Man Charged with Extortion Related to Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with attempting to extort money from the FBI related to a threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
“I want to assure the community that our water supply is safe,” Dickinson said. “We don’t believe there was ever a credible threat to public health and safety. There is no evidence that anyone actually possessed any chemicals to contaminate public water supplies. The chemicals were as fictional as the conspirators in this imaginary plot.
“We must nevertheless take such threats seriously,” Dickinson added, “and prosecute those who not only make threats, but attempt to illicitly profit from them.”
Manuel Garcia, 69, of Kansas City, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Garcia was arrested today and remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s federal criminal complaint, Garcia made several telephone calls in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. An FBI agent recognized Garcia’s voice on the phone calls, and agents contacted Garcia on Wednesday, Oct. 23, 2013.
Garcia told the federal agents that two of his acquaintances, named Raul and Shariff, were going to carry out the plan to put an unknown chemical into the water supply of the four cities. They had tested their plan out on some horses, Garcia said, and the animals went into convulsions and died. Garcia stated that for $10,000 and a grant of immunity he would attempt to locate Raul and Shariff.
The affidavit alleges that Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia allegedly claimed that the water supplies of Kansas City, St. Louis, Wichita, and Topeka, Kansas would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked about an officer returning the call and Garcia hung up.
On the same day, the affidavit says, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat.
Garcia allegedly called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice on all three phone calls, the affidavit says. Garcia’s residence is close to the exact location the cellular tower system identified as the vicinity from which one of the calls originated.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Brian Casey. It was investigated by the FBI.Justice Department Charges California Apartment Owner and Staff with Discrimination Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owner and operators of a Fremont, Calif., apartment complex, alleging that they had discriminated against families with children in violation of the Fair Housing Act by prohibiting children from playing in the common grassy areas of the complex.
“Families with children should have the same ability to enjoy their homes as all other tenants,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that the owners and rental staff of Woodland Garden Apartments, a 37 unit apartment complex, adopted and enforced a policy prohibiting children from playing outside in the common grassy areas of the complex. The complex is owned by Fred Martin and managed by Fatima Rivera, both of whom are named in the suit. Alfredo Rivera, a former maintenance worker who participated in enforcing the policy, is also named as a defendant in the suit.
This lawsuit arose as a result of complaints filed with the Department of Housing and Urban Development (HUD) by five families with children who lived at Woodland Garden Apartments, and Project Sentinel, a non-profit organization based in Santa Clara, Calif., that promotes fair housing. After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Housing providers cannot impose more restrictive policies on families with children or evict them simply because their children leave the unit,” said Bryan Greene, HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the fair housing rights of all people, including families with children.”
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe they may have been victims of housing discrimination may contact the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] ., or contact HUD at 1-800-669-9777 or through www.hud.gov/fairhousing .
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Joshua Hampton Murphy Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte, on October 25, 2013, before U.S. District Judge Sam E. Haddon, JOSHUA HAMPTON MURPHY, a 29-year-old resident of Flint, Michigan, was sentenced to a term of:
- ison: 120 months
- ecial Assessment: $100
- pervised Release: 8 years
MURPHY was sentenced in connection with his guilty plea to conspiracy to distribute 100 or more grams of heroin.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In August 2012, law enforcement officers received information that Blair Clymer was selling prescription pills in the Bozeman area.
In October 2012, they received information that she was selling heroin.
On December 2, 2012, an anonymous male advised the Bozeman Police Department that Clymer was selling heroin in Bozeman. The man misspelled Clymer's name, but provided a physical description and said that Clymer was originally from Michigan. The man said he was providing information because Clymer got his friend addicted to heroin.
During the week of December 10, 2012, a DEA agent in Flint, Michigan told a detective with the Missouri River Drug Task Force (MRDTF) he had learned that Clymer had been receiving shipments of heroin in Montana from a man in Michigan named Joshua Hampton Murphy.
On January 4, 2013, the DEA agent located two USPS shipping labels from the post office in Flint, Michigan, which indicated packages were sent to Clymer on December 27, 2012.
On January 9, 2013, MRDTF made a controlled purchase of five "points" of heroin from Clymer for $350. The heroin received from Clymer was packaged in individual "jeweler's" style bags with batman symbols on them. The bags, including the heroin, weighed approximately one gram.
On January 17, 2013, the DEA in Flint, Michigan intercepted a package intended for Clymer. During a subsequent search, law enforcement officers discovered the package contained a bubble-wrapped jar of peanut butter and the seal on the peanut butter had been broken. Inside the jar they located three separate plastic bags. Two of the bags contained what the DEA listed as "pharmaceutical controlled substances" and one package contained 90 gross grams of heroin.
After reviewing surveillance video from the post office in Flint, Michigan, the DEA was able to see that the package had been shipped by a person believed to be MURPHY. The tracking number for the package was EH807537175US. Law enforcement eventually discovered a series of text messages between MURPHY and Clymer on January 19, 2013, during which MURPHY provided Clymer with that tracking number.
On January 25, 2013, Clymer contacted a U.S. Postal Inspector to inquire as to the whereabouts of the package that was intercepted by the DEA in Michigan on January 17.
On January 29, 2013, MRDTF agents made a controlled purchase of five points of heroin from Clymer for $350. The heroin received from Clymer was packaged in individual baggies. The baggies and the heroin had a combined weight of 0.8 grams.
On February 1, 2013, MRDTF agents made another controlled purchase of heroin from Clymer. During that transaction, a confidential informant paid Clymer $400 and received seven points of heroin in baggies that had a Nike "Swoosh" and Batman symbols on them. The total weight of the seven bags and the heroin was 1.1 grams. During this controlled purchase MURPHY was identified as being with Clymer.
On February 7, 2013, the DEA in Michigan informed the MRDTF that the U.S. Postal Inspector in Michigan had identified another package being sent to a salon in Bozeman, from a person believed to be MURPHY. The DEA and a postal inspector searched the package pursuant to a search warrant and found that it contained a peanut butter jar with approximately 45 grams of heroin, among other items. This package was sent to the Postal Inspector in Montana who assisted the MRDTF with a controlled delivery of the package on February 9, 2013. A search of Clymer's cell phone on February 27, 2013, included a text conversation between Clymer and MURPHY where Clymer provided MURPHY the "To" and "From" addresses to be used for the package. MURPHY later provided the tracking number for the package of EG937161986US, which was the same number on the package received by the Postal Inspector for the controlled delivery.
On February 9, 2013, the MRDTF performed a controlled delivery of the package sent by MURPHY to the salon. During the controlled delivery, both the addressee and Clymer were present in the business. Clymer was found to be in possession of 12 individual jewelry-style baggies containing heroin that weighed a total of 2.9 grams.
Additional investigation revealed that Clymer used Money Gram to send money to MURPHY. Records were subpoenaed and analyzed. From August 29, 2012 to January 30, 2013, Clymer sent approximately $9,700 from Montana to MURPHY in Michigan.
On May 23, 2013, law enforcement officers in Michigan arrested MURPHY for his involvement in the conspiracy in this case. After he was arrested, MURPHY admitted that he had been sending heroin to Clymer in Montana.
Clymer pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MURPHY will likely serve all of the time imposed by the court. In the federal system, MURPHY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Missouri River Drug Task Force, the Drug Enforcement Administration in Michigan, and the U.S. Postal Inspection Service.
Jonathan W. Walker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 24, 2013, before U.S. District Judge Sam E. Haddon, JONATHAN W. WALKER, a 29-year-old resident of Billings, was sentenced to a term of:
- ison: 24 months
- ecial Assessment: $200
- pervised Release: 3 years
WALKER was sentenced in connection with his guilty plea to (2) counts of possession of stolen firearms.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
In May of 2012, a resident of Billings (L.L.) reported to the police that several items, including numerous firearms, were stolen from his home while his was out of the country for work. At a local pawn shop, L.L. recognized some of his stolen property. The store's records showed that WALKER had sold the items to the store. The store's records further revealed that WALKER had pawned about ninety items in a one to two week period. One of the items WALKER pawned was an Interarms, model Virginia Dragoon, .44 magnum revolver, which was one of the firearms L.L. reported missing.
On November 8, 2012, there was a report of numerous burglaries at a storage facility in Billings. One individual, J.O. reported that two of his firearms were stolen, including a Mossberg pump action, wood stock shotgun.
On November 18, 2012, Billings resident J.K. reported that sometime between November 17th and 18th someone broke into his vehicle and stole numerous items including a Savage Model 16 caliber .300 rifle.
On January 3, 2013, a detective with the Billings Police Department went to a store as part of his investigation into numerous burglaries in Billings. An employee informed the detective that a couple months prior he had bought two firearms from WALKER. He stated that he personally purchased the firearms and it was not related to the store where he was employed. The employee first purchased a Savage Model 16 caliber .300 rifle. Two weeks later, he purchased a Mossberg .12 gauge shotgun.
The employee stated that WALKER sold the firearms out of a U-Haul truck. When the employee purchased the firearms, he also saw many other items such as books, dolls, and couches in the U-Haul.
Detectives continued to investigate a string a burglaries at the storage facility. They learned that during the time period that the burglaries allegedly occurred, the passcode of one renter, B.C., was used numerous times to enter the facility. Detectives then spoke with B.C. and she stated that a man who lived in her apartment complex, T.B., had offered to clear out the items from her storage unit.
Detectives then spoke with T.B. T.B. admitted to using B.C.(s password to gain entry into the facility. He and two other people, WALKER and A.L., would steal items from other peoples' storage units. T.B. said that WALKER would cut the locks and then they would steal the items. WALKER and A.L. would use a U-Haul truck to load the stolen items. WALKER also rented his own unit at the facility, and they would keep the stolen items there before transporting them to a different location.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.