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18 December 2013
Columbus Man Sentenced to 44 Years in Prison for Drug Trafficking and Gun CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS – Jack A. Morris, 38, of Columbus was sentenced to 44 years in prison for operating a drug trafficking organization and using violence to protect his drug trade.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Gahanna Police Chief Dennis Murphy announced the sentence imposed today by U.S. District Judge Gregory L. Frost.A jury convicted Morris in August of one count of conspiracy to distribute oxycodone, two gun counts, and nine counts of illegally trafficking marijuana and oxycodone.
Trial testimony showed that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout his house in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.
Two others indicted with Morris in April 2013, Jeremy S. Baker, 25, of Blacklick, and Judy L. Kindle, 45, of Columbus, pleaded guilty to charges of conspiracy and possession with intent to distribute oxycodone. Baker was sentenced to 36 months in prison. Kindle was sentenced to 30 months in prison. Christopher Wilcox, 30, of Reynoldsburg, pleaded guilty to supplying firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking. Wilcox was sentenced to 48 months in prison.
Morris has been in custody since his arrest in May 2013.
U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Stephen C. Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who prosecuted the case.
College Park Policeman Indicted for Illegally Obtaining U.S. CitizenshipRead the Press Release
ATLANTA – Devon Campbell, a/k/a Wilmott Alvin Livingston, a former Jamaican police officer who illegally entered the United States and has since become a U.S. citizen and a College Park police officer, has been arraigned on charges relating to false statements he made on his applications to obtain U.S. citizenship and a passport, and other related crimes.
“According to the indictment, over the last 13 years, Campbell has been engaged in a pervasive scheme to deceive U.S. immigration authorities,” said United States Attorney Sally Quillian Yates. “Even more boldly, Campbell has used his fraudulently obtained citizenship to become a police officer. Simply stated, the citizens of College Park deserve police officers who will follow the laws that they have been sworn to enforce.”
"Law enforcement officers hold positions of public trust requiring the highest levels of integrity," said Brock D. Nicholson, special agent in charge of HSI Atlanta. "The defendant has betrayed that public trust with a life of fraud and deceit. HSI special agents, with assistance from the HSI Jamaica attaché and the Jamaican Constabulary Force, have taken quick action to unmask this impostor and ensure he will never again wear a police officer's uniform in this country."
According to United States Attorney Yates, the charges, and other information presented in court: In 2000, Campbell lived in Jamaica, where he had previously worked as a police officer with the Jamaican Constabulary Force. On November 7, 2000, Campbell left Jamaica and entered the United States using a Jamaican passport bearing the fabricated name Wilmott Alvin Livingston with a false date of birth.
While in the United States, Campbell has lived under the Livingston alias. On April 19, 2001, Campbell (using the Livingston alias) married a United States citizen in Jonesboro, Ga. Shortly thereafter, Campbell (under the Livingston name) petitioned to become a Lawful Permanent Resident. On August 13, 2004, U.S. immigration authorities granted the application and Campbell become a permanent resident of the United States.
On October 15, 2007, Campbell, using the fake name and date of birth, filed an Application for Naturalization with U.S. immigration services. Although the application required Campbell to list any previously-used names, Campbell marked that section with the letters “N/A,” meaning “Not Applicable.” Campbell also signed the form under penalty of perjury using the name Wilmott Alvin Livingston. On April 11, 2008, Campbell (under the Livingston alias) became a naturalized U.S. citizen. Later that month, Campbell applied for and was issued a U.S. passport. On the passport application, Campbell falsely listed his name and date of birth. Campbell has used his fraudulently-obtained passport to travel back and forth to Jamaica.
Two months after becoming a U.S. citizen, on June 12, 2008, Campbell (under the Livingston identity) and his wife divorced. Eight days later, Campbell (under the Livingston identity) married another woman.
Since 2011, Campbell has served as a police officer with the College Park Police Department. In obtaining his Georgia Peace Officer Standards and Training certification, Campbell falsely claimed to be a naturalized United States citizen and submitted an unlawfully obtained Certificate of Naturalization.
On December 17, 2013, Campbell, 46, of Ellenwood, Ga., was indicted by a federal grand jury for one count each of: (a) Unlawfully Procuring Citizenship or Naturalization, (b) Making False Statements in a Passport Application, (c) Misusing Evidence of Citizenship, and (d) Using a Passport Secured by False Statements. The most serious of the charges carries a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Homeland Security Investigations.
Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Codefendant in Methylone Distribution Case sentenced to one year in Federal PrisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Chad Cameron, 19, of Wasilla, Alaska, was sentenced to one year in federal prison for his role in the methylone conspiracy that resulted in the April 2012 death of Matt Scott. Robin Gattis, 20, was sentenced to 16 years in prison earlier this month.
Cameron pled guilty in March 2013, admitting that he attempted to possess 850 grams of methylone that was shipped from China to Alaska in July 2012. In the plea agreement, Cameron also admitted that he had wired money to China to pay for drugs beginning in November 2011, when he was still a juvenile. Cameron also admitted wiring money to China in June 2012, after Scott’s death, to purchase more methylone. That shipment, addressed to Cameron, was intercepted by U.S. Customs in Chicago. Cameron was arrested along with Gattis and codefendant Stephen Kimbrell on the Kenai Peninsula in July 2012, after Customs intercepted another package addressed to Kimbrell in Soldotna.
Chief U.S. District Court Judge Ralph R. Beistline imposed the sentence. Chief Judge Beistline referred to designer drugs such as methylone as “an epidemic” in this community. Cameron told the judge that the drugs were his “escape” and said “I did it for fun.” Cameron said that he thought it was “no big deal” to sell the drugs, and that he expected at most a “slap on the wrist” if he were caught. In addition to Gattis, two other defendants have already been sentenced to terms of probation. Three remaining defendants are scheduled for sentencing in January.
Methylone, a Schedule I controlled substance, also popularly known as “Molly,” “M1,” “MDMC,” and “Rolls,” is a synthetic drug similar to ecstasy (“MDMA”), and is commonly imported from China via the internet for use in the U.S., particularly at clubs, parties and other social gatherings such as “raves.”
Ms. Loeffler commends Homeland Security Investigations, the Drug Enforcement Administration, the Anchorage Police Department, the United States Postal Inspection Service, and the Mat-Su Drug Unit for the investigation of this case.
Child Pornography Offenders Receive A Combined 43 Years in PrisonRead the Press Release
DES MOINES, IA - Nicholas A. Klinefeldt, United States Attorney for the Southern District of Iowa, announced the conclusion of a multi-agency investigation of internet-related child pornography crimes in the Southern District of Iowa.
The investigation, spearheaded by Homeland Security Investigations-Des Moines, Iowa, centered on the trading of child pornography pictures and videos on peer-to-peer file-sharing networks. Five defendants were charged and convicted in separate prosecutions and were sentenced to a combined total of more than 43 years in prison: Francisco Zayas (Marshalltown), 240 months; Monroe Wardlow (Grinnell), 96 months; Enrique Guzman (Osceola), 80 months; William Trimble, Jr. (Albia), 60 months; and Michael Hanold (Creston), 48 months. After serving their terms of imprisonment, each defendant will be required to serve a term of supervised release of at least 5 years and to register as a sex offender.
Other law enforcement agencies assisting with the operation included the Iowa Division of Criminal Investigation, and the Iowa police departments of Albia, Creston, Grinnell, Marshalltown, and Osceola. The cases were prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of its “Project Safe Childhood” initiative.
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Cape Cod Man Sentenced to 15 Years for Child Sex CrimeRead the Press Release
BOSTON - A Teaticket, Mass. man was sentenced today for attempted enticement of two teenage girls.
Kevin B. Reid, 30, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 15 years in prison and five years of supervised release. In April 2013, Reid pleaded guilty to attempted coercion and enticement of a minor.
Reid initiated contact with a 16-year-old Cape Cod girl over Facebook. The girl became bothered by the then 28-year-old defendant's contacts and told her mother. The girl's mother then initiated contact with Reid pretending to be her daughter. Eventually the mother's sister communicated with the defendant pretending to be a 14-year-old girl. When Reid’s communications became sexually explicit, the police were contacted and an undercover federal agent assumed the identity of the two "girls." Reid directed the two girls to make a pornographic video and ultimately instructed them to travel by bus to Cape Cod, where the three could have sex. In March 2012, Reid was arrested in Hyannis, as he ran to greet the bus he believed carried the two teenage girls.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by David G. Tobin of Ortiz’s Major Crimes Unit.
Cambria County Woman Sentenced to Probation for Controlled Substances Distribution SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Elmora, Pa., has been sentenced in federal court to two years probation on her conviction of conspiracy to distribute controlled substances, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Lori A. Weaver, 43.
According to information presented to the court, from July 2008 to May 9, 2011, Weaver conspired to distribute and possess with the intent to distribute quantities of oxycodone and methadone. Evidence presented to the court at the time of Weaver's sentencing reflected that Weaver conspired with George M. Lowmaster and others in order to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Weaver. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Business Owner Indicted for BriberyRead the Press Release
ATLANTA – Jae Jun Bae has been indicted by a federal grand jury for wire fraud and bribery.
“The defendant is charged with offering bribes to subvert the proper operation of Doraville’s government,” said United States Attorney Sally Quillian Yates. “As is usually the case, the government employees reported Bae’s misdeeds – allowing law enforcement officers to thwart his efforts to offer cash for favors.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Public corruption matters at all levels continue to be an investigative priority for the FBI because of the harm that it causes both with government operations and public trust. We ask the public to remain vigilant regarding criminal activities not only by public or elected officials, but also by those engaging the government, and ask that they report those activities to their nearest FBI field office.”
"Doraville is thankful to be able to work in partnership with the FBI,” said Doraville Police Chief John King. “Public corruption erodes the confidence and trust that our citizens have in our government officials and employees. Doraville Police Officers works tirelessly with the citizens and our partnering law-enforcement agencies to make sure that our city is free of corruption and filled with trust."
According to United States Attorney Yates, the charges, and other information presented in court: Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville. At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, ostensibly in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.
In October 2013, Bae asked to meet with an employee of Doraville’s Community Development Department. Based on the allegations from August 2012, the employee (“Doraville Employee”) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae. In particular, on October 17, 2013, Bae met with the Doraville Employee and an undercover officer (“UC”), who was posing member of Doraville’s Community Development Department. During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses. On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the Doraville Employee as a deposit to get the Buford Highway property re-zoned. On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.
On December 3, 2013, Bae, 34, of Duluth, Ga., was indicted by a federal grand jury on five counts of wire fraud and one count of bribery. The most serious of the charges (wire fraud) carries a maximum sentence of 20 years in prison and a fine of up to $250,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Doraville Police Department.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Buffalo Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
BUFFALO, N.Y.? U.S. Attorney William J. Hochul, Jr. announced today that Juan Lopez, 30, of Buffalo, N.Y., pleaded guilty to possession of firearms in furtherance of drug trafficking activities and being a felon in possession of firearms before U.S. Magistrate Judge Leslie G. Foschio. The charges carry a maximum penalty of life in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that in 2008, the defendant began utilizing Pennsylvania residents as straw purchasers to buy firearms in exchange for money and cocaine. These firearms were then brought to Buffalo for the purpose of drug trafficking. Lopez was a convicted felon at the time and unable to legally purchase firearms in New York.
“This office has made fighting violent criminal organizations a top priority,” said U.S. Attorney Hochul. “Sometimes those efforts require arresting gang members, as we have done on many occasions in the past. Another essential component, however, consists of arresting those who brings guns into the community where they end up in the hands of violent criminals.”
Lopez was arrested in September 2012 along with seven other defendants. A total of eight defendants have been convicted. He is currently serving 25 years in New York State prison for two previous attempted murder convictions.The Indictment is the culmination of an investigation by Special Agents of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Breaux Bridge Man Sentenced to 18 Months in Prison for CounterfeitingRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Joshua J. Dore, 28, of Breaux Bridge, La., was sentenced Tuesday by U.S. District Judge Richard T. Haik to 18 months in prison and two years of supervised release for counterfeiting. He pleaded guilty August 8, 2013.
According to evidence presented at the guilty plea, St. Martin Parish Sheriff’s Office detectives questioned Jacob Boudreaux on November 12, 2012. He was caught on camera in Breaux Bridge attempting to use a counterfeit $5 bill at a convenience store. After questioning, the detectives determined Dore made the fake money. They searched a home where Dore was staying and found a color printer, a bag of résumé paper, and 22 pages of counterfeit U.S. Currency printed with denominations of $5, $10, $20, and $100 bills. Additionally, they found a bag of shredded counterfeit currency. Dore admitted to making the counterfeit money between November 5 and November 12, 2012, and providing the counterfeit bills to his friends. Authorities also found $263 of legitimate currency on his person. One of the bills had a serial number that matched the counterfeit $5 bill found with Boudreaux at the convenience store.
The U.S. Secret Service and the St. Martin Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Ben Avon Man Pleads Guilty to Receiving Pornographic Videos of MinorsRead the Press Release
PITTSBURGH - A Pittsburgh-area resident pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Charles Appel, 71, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Appel received by United States mail, on or about Feb. 21, 2011, a video which depicted the sexual exploitation of minor boys from a Canadian video production company known as “Azov”, which previously operated a website offering DVD’s and streaming videos depicting children being sexually exploited. Appel ordered and received the video, titled “Boy Fights XIX: Triple Threat (2009)”, in both electronic and DVD format for $29.95 on Feb. 21, 2011, which he paid for with a credit card. During the period May 15, 2009 through March 13, 2011, Appel ordered videos from Azov on 29 occasions for a total cost of $1,864.54.
Judge Conti scheduled sentencing for March 28, 2014 at 3:00 p.m. The law provides for a total sentence of not less than 5 years nor more than 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant’s bond with the added condition that he register as a sex offender.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Appel.
Belcourt Man Found Guilty of Assault in Fort YatesRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Dec. 18, 2013, Danny DeLong, 29, Belcourt, N.D., was convicted by a federal jury on a charge of assault with a dangerous weapon.
On Dec. 13, 2012, Danny DeLong and co-defendant Melvin DeLong were at the Diamond Z Bar in Fort Yates. Melvin DeLong and Danny DeLong initiated an altercation with several patrons before leaving the bar. Danny DeLong continued the altercation outside the bar, while Melvin DeLong retrieved his vehicle. Melvin DeLong used his vehicle to drive over the victim twice. Danny DeLong then approached the victim, who was then unconscious, and kicked the victim in the head. The victim’s injuries required medical treatment but were not life threatening.
On July 30, 2013, Melvin DeLong, 25, Belcourt, N.D., pleaded guilty to two counts of assault with a dangerous weapon. On Oct. 21, 2013, Melvin DeLong was sentenced by U.S. District Judge Daniel L. Hovland to serve two years and nine months in federal prison, to be followed by three years of supervised release. Melvin DeLong was ordered to pay restitution of $19,166.65 and to pay a $200 special assessment to the Crime Victim’s Fund.
Sentencing for Danny DeLong has not been scheduled.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Beaumont Jury Convicts Ohio Man in Credit Card Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 28-year-old Columbus, Ohio man has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mohamed Laye Dioubate, a naturalized citizen from Guinea, was found guilty by a jury of possessing 15 or more unauthorized access devices today following a three-day trial before U.S. District Judge Marcia Crone.
“This holiday season, I encourage everyone to be protective of their credit cards and their personal identifying information,” said U.S. Attorney Bales. “Grinches, like identity thieves, are unfortunately common this time of the year.”
According to information presented in court, on June 27, 2012, Dioubate was stopped on Interstate-10 in Beaumont for a traffic violation. A search of the vehicle revealed 158 fraudulent credit cards, a laptop computer and a credit card encoder. The credit cards contained various names and account numbers and had been used in multiple fraudulent purchases throughout the country. In November 2012, Dioubate was stopped on two separate occasions, once in Missouri and once in Indiana. During each of those stops, he was again found in possession of multiple fraudulent credit cards. On Apr. 17, 2013, Dioubate was indicted by a federal grand jury in the Eastern District of Texas and charged with federal violations.
Dioubate faces up to 10 years in federal prison. A sentencing date has not been set.
Citizens can visit the Federal Trade Commission’s website to learn more on how to protect themselves from identity theft schemes: http://www.consumer.ftc.gov/features/feature-0014-identity-theft
This case was investigated by the Beaumont Police Department, U.S. Secret Service, St. Charles County, Missouri, Sheriff’s Office, and the Henry County, Indiana, Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Brit Featherston.
#######Bay Area Woman Guilty in Investment Scam That Caused over $9 Million in LossesRead the Press Release
SANTA ANA, California -- A San Jose woman was convicted today of a federal fraud charge for running a Ponzi scheme that bilked more than 250 victims out of approximately $9.5 million.
Bich Quyen Nguyen, 59, was found guilty conspiring to commit wire fraud, a crime that carries a possible penalty of 20 years in federal prison.
Nguyen was found guilty by a jury before United States District Judge Josephine L. Staton, who remanded Nguyen into custody after the jury’s verdict was returned. Judge Staton is scheduled to sentence Nguyen on March 13.
The evidence presented during a six-day trial showed that Nguyen told victims that she was the chief executive officer of a Swedish credit union that offered guaranteed returns as high as 46.2 percent on one-year certificates of deposit involving at least $1 million. Nguyen told victims that she used “trading platforms” and made trades at a high frequency and velocity to achieve the high rates of return. Nguyen told victims that their investments were safe because the victims’ money would be in “blocked” accounts. Nguyen told victims that she had prepared for the 2008 financial crisis so their returns were still protected and guaranteed.
To get the rates that Nguyen fraudulently promised, victims from southern California and Nevada organized private investment clubs to pool the required $1 million. Several of the victim investment clubs were located in Anaheim and Rialto. During the second half of 2008, Nguyen and co-conspirators made presentations to victims across the region, with some of the presentations taking place at churches.
In the Spring of 2009, the Securities and Exchange Commission obtained orders from United States District Judge David O. Carter that prevented Nguyen and her co-conspirators from continuing to offer these investments. Following the issuance of the injunctions, a receiver and forensic accountant reviewed records and determined that the victims’ money was never “safe,” in part because it was commingled with other victims’ money; some of the victims’ money was used to make Ponzi payments to other investors; and the promised investments were never made. Despite Judge Carter’s orders, Nguyen in May and July 2009 continued to offer investments in Las Vegas and overseas.
Previously in this case, another member of the conspiracy – Johnny Edward Johnson, 70, a former Bay Area resident who was arrested earlier this year while traveling in Central America – pleaded guilty to conspiracy to commit wire fraud. Johnson, who also faces a statutory maximum sentence of 20 years in federal prison, is scheduled to be sentenced by Judge Staton on March 28.
The investigation of Nguyen and Johnson was conducted by the Federal Bureau of Investigation. The SEC provided substantial assistance.
Release No. 13-149
Bangor Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Thomas L. Wright, 63, of Bangor, Michigan, was sentenced in federal court to a term of fifteen years’ incarceration for producing child pornography. Wright was also sentenced to a lifetime term of supervised release. In sentencing Wright, Judge Robert Holmes Bell chastised Wright for sexually exploiting the victim.
Wright befriended a sixteen year-old boy and began a sexual relationship with the boy. In March 2009, Wright took the boy on a trip to Florida and visited Disney World. While in Florida, Wright took multiple sexually explicit pictures of the boy. Wright’s conduct was discovered in 2011, when Wright was identified as a suspect in a ring trading child pornography. Wright was confronted by federal agents from Homeland Security Investigations, Immigration and Customs Enforcement, and confessed to having a sexual relationship with the then-eighteen-year-old-boy and to taking nude pictures of the boy when the boy was sixteen. Wright’s computer was examined and agents found Wright’s collection of child pornography. Wright was convicted after trial of five counts of producing child pornography, transporting child pornography across state lines, and possessing child pornography.
U.S. Attorney Patrick A. Miles, Jr., said, “Protecting children is one of our community’s highest priorities. Children should look to adults for guidance and support, and should not have to fear being exploited by them. We cannot abide those who betray that trust and prey on children for their sexual desires.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from sexual exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, an Internet Crimes Against Children (ICAC) task force, federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who sexually exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
The investigation of this matter was conducted by HSI-ICE. Prosecution of this case was handled by Assistant U.S. Attorney Daniel Mekaru.
END
Baltimore Business Owner Pleads Guilty in Fraud SchemeRead the Press Release
Directed Persons to Steal Merchandise from Retail Stores and Exchange the Stolen Items for Gift Cards
Baltimore, Maryland – John Tadros, age 45, of Baltimore, pleaded guilty today to wire fraud conspiracy and money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service B Baltimore Field Office.
Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. According to his plea agreement, from January 2009 to February 2013, Tadros directed Melissa Perry, Deanna Lynch, Mohamed Al-Omeri and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt.
Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.
On February 27, 2013, the U.S. Secret Service executed a search warrant and seized 32 fraudulently obtained gift cards from his home. From Busy Bee, agents also seized 329 retail store receipts for purchases made with fraudulently obtained gift cards.
The actual loss to retailers in Maryland caused by the scheme is $401,326.12.
Tadros faces a maximum sentence of 20 years in prison and a $250,000 fine for the wire fraud conspiracy and a $500,000 fine for money laundering. U.S. District Judge George L. Russell III scheduled his sentencing for April 14, 2014 at 9:30 a.m.
Melissa Perry, age 34; Deanna Lynch, age 44; and Mohamed Al-Omeri, age 39, previously pleaded guilty to their participation in the scheme and scheduled to be sentenced on April 3, March 7 and April 11, 2014, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service B Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.
Ball Cap Bandit Pleads Guilty to Eleven Bank RobberiesRead the Press Release
HUNTSVILLE -- A Huntsville man who was dubbed the Ball Cap Bandit because he often wore a ball cap during his crime spree pleaded guilty today in federal court to 11 counts of bank robbery, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
CEDRICK LAMOND HICKS, 33, entered a guilty plea before U.S. District Judge Virginia Emerson Hopkins to 11 counts of bank robbery. Ten of those were in Alabama and one was in Tennessee. Hicks’ sentencing is scheduled March 25 in Huntsville.The date, location and amount of money stolen in the robberies Hicks pleaded guilty to are as follows:
• Feb. 22, 2012, Regions Bank, Madison Street, Huntsville, $2,870.
• March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894.
• April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500.
• Aug. 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890.
• Aug. 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243.
• Sept. 19, 2012, First National Bank of Pulaski, South First Street, Pulaski, Tenn., $23,067.
• Nov. 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009.
• Jan. 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000.
• March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575.
• Sept. 18, 2012, Cadence Bank, U.S. 431, Albertville, no money taken.
• Nov. 26, 2012, Traditions Bank, Second Avenue NW, Cullman, no money taken.
Hicks faces a maximum penalty of 20 years in prison and a $250,000 fine for each robbery. The government also will seek restitution for the victims of his crimes.
The FBI investigated the case. Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case.Australian National Sentenced to Prison for Child EnticementRead the Press Release
ATLANTA - Geoffrey William Hine, who traveled to Georgia to have a sexual encounter with a 14-year-old girl, has been sentenced on charges of child enticement.
“This office will continue to aggressively pursue individuals who seek to exploit young children, including those who travel here from foreign countries for this purpose,” said United States Attorney Sally Quillian Yates. “Engaging in sexual acts with children is a vile and violent act, and perpetrators will be held accountable for this reprehensible conduct.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Hine, an Australian national, ensures that there will be one less dangerous child predator among us. This was a unique international based child exploitation case that not only speaks to the ambitious state of mind of a predator but also to the determination of law enforcement at all levels and jurisdictions to work together in apprehending these individuals. The FBI will continue to dedicate significant investigative resources toward identifying, investigating, and presenting for prosecution those that prey on and exploit our children.”
According to United States Attorney Yates, the charges and other information presented in court: In August 2011, Hine began a Facebook “relationship” with a 14-year-old girl who lived in Rome, Ga. At the time, Hine was a 33-year-old citizen of Australia. Hine and the girl had numerous online and phone conversations over the next few months. Hine even sent the girl's grandmother money on several occasions. Hine and the 14-year-old then planned a trip for him to come to the United States, specifically to visit her in Rome, Ga. Hine asked the girl if she would sleep in the same bed with him and engage in sexual activity when he visited. Hine continued to send sexually explicit texts to the young girl describing the sexual acts he intended to do with her. When Hine arrived in the U.S. on April 14, 2012, FBI agents met his plane at Hartsfield-Jackson International Airport and arrested him.
Hine, 35, of Western Australia, was sentenced to ten years in prison, to be followed by 30 years of supervised release.
This case is being investigated by the Federal Bureau of Investigation and the Floyd County Police Department.
Assistant United States Attorney Cassandra J. Schansman prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Albuquerque Man Charged with Production and Distribution of Child PornographyRead the Press Release
ALBUQUERQUE – Michael Dameon Blackburn, 28, of Albuquerque, N.M., made his initial appearance in federal court earlier today on a criminal complaint charging him with production and distribution of visual depictions of minors engaged in sexually explicit conduct, announced Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, Bernalillo County Sheriff Dan Houston and Albuquerque Police Chief Allen Banks.
Blackburn was arrested yesterday afternoon by HSI agents on the criminal complaint which charges Blackburn with producing and distributing child pornography in Bernalillo County, N.M., between March 2013 and Dec. 2013. Blackburn remains in federal custody pending a detention hearing scheduled for tomorrow morning.
The criminal complaint is the result of an investigation that began on Nov. 15, 2013, when the HSI in Albuquerque received information from the HSI Cyber Crimes Center about a pornographic image of a young child victim who might be in the Albuquerque area. HSI’s investigative efforts identified a residence in northeast Albuquerque as a potential location for the person who may have distributed the pornographic image of the young child victim.
According to the criminal complaint, on Dec. 17, 2013, law enforcement officers conducted a welfare check at the residence and made contact with Blackburn and two young children, a girl and a boy both two years of age, who apparently were left in Blackburn’s care while their parents were out of town. The complaint alleges that the officers learned that Blackburn had been sexually molesting the two young children from March 2013 through Dec. 2013, and taking photographs and making videos of the victims while he molested them. It further alleges that Blackburn emailed the child pornography images and videos to others.
The two young victims were removed from the residence and are in protective custody.
If convicted of the offenses charged in the criminal complaint, Blackburn faces a mandatory minimum of 15 years and a maximum of 40 years in federal prison for production of child pornography, and a mandatory minimum of five years and a maximum of 20 years in federal prison for distribution of child pornography. If convicted, Blackburn also will be required to register as a sex offender after he completes his prison sentence. Charges in criminal complaints are merely accusations and a criminal defendant is presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque office of HSI, Bernalillo County Sheriff’s Office and the Albuquerque Police Department, all members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
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2 Cases Closed – Last of 25 Violent Bank Robbers Now Headed to Federal PrisonRead the Press Release
HOUSTON – The final of 25 convicted in two separate, but similar bank robbery cases that gripped the Houston and surrounding areas has now been ordered to prison, announced United States Attorney Kenneth Magidson along with Stephen L. Morris, special agent in charge of the FBI in Houston. The two groups were ultimately held accountable in court for approximately 34 robberies of the area banks in 2010-2011.
“The prosecution of these cases should send a strong message that the penalties for robbing banks in a serial fashion will be swift and severe,” said Magidson. “Whatever criminal role is played, be it getaway driver, lookout, firearms supplier, enforcer or shooter, you will be prosecuted to the fullest extent of federal law.”
A total of 11 defendants were convicted in the first case. They were responsible for approximately 16 intimidating robberies inside grocery stores, including the Aug. 4, 2011, robbery of Wells Fargo Bank in Sugar Land during which an off-duty Harris County Sheriff’s Office (HCSO) sergeant was shot. Anthony Demonde Nowlin and Shelton McGowen, both 24, pleaded guilty before a trial, set to begin May 28, 2013. During jury selection, seven opted to enter guilty pleas – Derrick Williams, 28, Marcus Rosemond Tarpley, 32, Reginald Mosley, 37, Joel Keon Jackson, 33, Hakim Ibn Ahmad, 31, Alonzo Horace Harris, 37, and Patrick Wayne Simmons, 29. Calvin Wesley Gray, 34, pleaded guilty the morning of opening statements, while David Dwayne Holmes, 34, pleaded guilty following the government’s opening remarks and with a witness about to take the stand.
Today, U.S. District Judge David Hittner sentenced Holmes to a total sentence of 346 months in federal prison to be followed by five years of supervised release. In October, Mosley - identified as the shooter of the off-duty deputy – received a sentence of 525 months. Simmons, Tarpley and Harris each were sentenced to 480 months in prison, while Ahmad and Gray will serve 444 and 300 months in prison, respectively. Nowlin was ordered to serve 144 months, while McGowen, Jackson and Williams were convicted of one count of conspiracy and will each serve a sentence of 60 months.
“No one goes into a grocery store expecting to be confronted by a group of masked gunman carrying assault rifles. This is absolutely unacceptable in our community,” said Morris. “Today’s sentencing places the final member of this dangerous crew behind bars and demonstrates that anyone playing any role in these crimes will be held accountable to the fullest extent of the law.”
During the course of the sentencings, additional evidence and testimony was presented including statements from the wounded deputy and another victim. The deputy commented upon his actions and that he would not change anything he did that day. He testified that he saw that something was going to happen and that it was his obligation as a law enforcement officer to step up and act. He further noted the effect the shooting has had on him, his family and well as the sheriff and his family.
These defendants were part of a sophisticated criminal organization that planned and executed violent takeover style bank robberies of banks inside grocery stores. The conspiracy began on May 4, 2007, and ended with the arrest of some of the men on Sept. 16, 2011. They would target banks and credit unions that were located in grocery stores, using force, violence and intimidation to rob them. During the robberies, the defendants wore dark clothing, gloves, material over their faces and were armed with semi-automatic pistols, shotguns and Uzi style firearms to intimidate the bank employees.
The second case involved a separate group of violent armed robbers that have been held responsible by the court for 18 incidents, including the Pearland Chase branch bank on Dec. 31, 2010, which resulted in a nearly six-hour standoff with law enforcement.
Larry Smith, 37, and Raymond Tierra Johnson, 32, were convicted by a federal jury in March 2013 after five days of trial, while Jeremy Benton, 22, Glenn Bonner, 42, Gregory Wayne Ferguson, 21, Arlington Davis Wilkes aka AD, 24, Carl Ray Turner Jr. aka CT, 27, Edward Johnson, 29,John Berley Scott aka Fresh, 32, Derrick Lashon Paley aka Crybaby, 35, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26 Roderick Marshall Beagle, 41, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 23, each had previously entered guilty pleas.
U.S. District Judge Gray Miller sentenced Smith, found to be the leader of that group, to 1080 months in federal prison - 90 years. Johnson was considered to be the “muscle” of the crew and, on several occasions, assaulted and/or pistol-whipped victims indiscriminately. He will serve 744 months – 62 years in federal prison. Bonner forced a victim to place a 911 call and subsequently told officers during the standoff that he was going to start to kill victims within minutes if his demands weren’t met. Judge Miller imposed a total sentence for him of 257 months. Benton will serve 235 months, while Scott and Wilson received respective sentences of 271 and 288 months. Wilkes was handed a sentence of 120 months for his role in the conspiracy. Ferguson received a sentence of 12 months and a day, while Edward Johnson and Turner each received an 84-month sentence. Thomas, Duncan, Paley and Beagle received sentences of 70, 207, 231 and 220 months, respectively.
This 14-man conspiracy involved the organized recruitment of co-conspirators, who would engage in advanced coordination and planning Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. Most bank robberies were affected through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands. Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance.
One victim specifically mentioned the individual trauma she has experienced and admits suffering from post-traumatic stress syndrome as a result of the horrific event. Another victim, also a witness at the trial, described the event as a life changing experience. That victim had been beaten in the course of the robbery and was off work for a great deal of time. Both victims also reported they have been unable to return to the banking industry for work and have even been unable to enter a bank since the violent event. The government also provided evidence to the court that during the course of this bank robbery conspiracy, more than 80 victims have been identified.
“Our office will continue to work with the FBI Bank Robbery Task Force and its state and local partners and utilize all available resources to secure both prosecution and stiff sentences for the perpetrators of such crimes,” Magidson added.
All 25 men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Both cases were investigated by the FBI Bank Robbery Task Force and included personnel from the FBI, HCSO, police departments in Houston, Pearland, Friendswood, Baytown and Pasadena, Fort Bend County Sheriff’s Office, Harris County Precinct 4 Constable’s Office, District Attorney’s Offices in Harris and Brazoria counties as well as Crimestoppers. The cases were both prosecuted by Assistant U.S. Attorneys Suzanne Elmilady and Kebharu H. Smith.
17 December 2013
Woman Extradited from Hong KongRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - United States Attorney David Capp announced that Rita Law, 55, of Chicago, Illinois was charged in a sealed Complaint filed on October 17, 2013, now unsealed, with transporting an individual for the purposes of prostitution.
According to the Complaint, Law is suspected of operating a prostitution ring out of three massage parlors in the Northern District of Indiana.Law was arrested on October 18, 2013 after deplaning from a Cathay Pacific airline flight in Hong Kong.HSI’s (“Homeland Security Investigations”) Hong Kong office coordinated with the Hong Kong Department of Justice and the Hong Kong Police Force to both arrest and extradite Ms. Law back to the United States to face the charge contained in the Complaint.
This charge was filed as the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with the assistance of Homeland Security Investigations Hong Kong.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Waynesboro Man Sentenced to Years for Distribution and Receipt of Child PornographyRead the Press Release
AUGUSTA, GA – Stephen Jeffrey Babb, 28, of Waynesboro, Georgia was sentenced today by United States District Court Judge J. Randal Hall to over 24 years in prison, followed by lifetime of supervised release, for distributing and receiving child pornography. He was also ordered to pay $6,000 in restitution to victims of this offense. Babb had pled guilty to the charges January 2013. Babb will be required to register as a sex offender.According to the evidence presented at Babb’s plea and sentencing hearings in September 2012, Babb was actively trading child pornography images through the use of various email addresses while using the free wireless services of Augusta-area fast food restaurants. Babb also posted information on one or more international websites where he advertised the availability of child pornography. Babb was identified through the combined investigative efforts of Homeland Security Investigations and the Burke County Sheriff’s Office. Following the execution of a search warrant, Babb’s computer was found to contain over 870 still images and 93 video images of child pornography. At the conclusion of the sentencing hearing, Babb was returned to the custody of the United States Marshal Service to serve his sentence.
United States Attorney Edward J. Tarver stated, “It is beyond belief that an adult would create images that show the sexual abuse of innocent children. It is beyond shocking that an adult would take steps to avoid detection so that he could knowingly sell, trade and swap the despicable images with others. Babb committed a serious crime for which lengthy punishment is justified. There is no higher priority than the protection of our nation’s children. This United States Attorney’s Office will continue its efforts to prosecute those who endanger the safety of our children.”
“Despite the defendant’s attempts to cover his tracks by using an open Wi-Fi network at a fast food restaurant, he couldn’t hide from the Homeland Security Investigation special agents who brought him to justice for the crimes he committed against the most innocent,” said Brock D. Nicholson, special agent in charge of HSI Atlanta, who oversees agency operations in Georgia and the Carolinas. “Trafficking in child pornography is an outrageous offense that has no place in our society. This successful prosecution by the U. S. Attorney’s Office and stiff prison sentence sends a strong message to other predators: stop victimizing children or be prepared to spend decades behind bars.”
Burke County Sheriff Gregory Coursey added, “Because this was a joint effort between the Department of Homeland Security and the Burke County Sheriff’s Office, I would like to take this opportunity to thank the Department of Homeland Security for their assistance. This is a prime example of what can be accomplished when agencies come together, share information and work towards a common goal.”
This case was brought as part of Project Safe Childhood, a U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Volusia County Man Sentenced to 10 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Tyler Andrew Smith (23, Port Orange) to 10 years in federal prison for distributing and possessing child pornography. As part of his sentence, he was ordered to serve a 15-year term of supervision, following his release from prison, and required to register as a sex offender. The court also ordered Smith to forfeit the devices upon which he used to store the child pornography.
Smith pleaded guilty on August 13, 2013.
According to court documents, on July 31, 2012, Smith used his email account to send an email containing an image of child pornography to an individual in another state. In April 2013, during an investigation into the individual in the other state, law enforcement discovered Smith's email, along with the attached pornographic image. On March 16, 2013, Homeland Security Investigations (HIS) agents interviewed Smith at his residence, in Volusia County. Smith turned over, to agents, a cellular telephone containing a memory card, a netbook computer, and an SD memory card, all three of which contained child pornography. Smith admitted to sending the email with the attached child pornography image, using email accounts and the Internet to collect and trade child pornography, and that the devices containing child pornography belonged to him. Smith was subsequently arrested. Smith’s child pornography collection included images of children less than 12 years of age being sexually abused, exploited, and being subjected to sadistic and masochistic conduct.
"Individuals who download child pornography further the victimization of innocent children who have already experienced horrific abuse," said Susan McCormick, special agent in charge of HSI Tampa. "I issue this warning to child predators – we will find you, arrest you and ensure you are prosecuted to the fullest extent of the law."
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Brevard County Sheriff's Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Vero Beach Resident Sentenced for Importing Illegal Catch from the BahamasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries, Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Toby Lamm, 46, of Vero Beach, was sentenced in Fort Pierce, Florida today for importing illegal catch from the Bahamas.
U.S. District Judge Jose E. Martinez sentenced Lamm to two years’ probation and a $2,500.00 fine. Lamm previously pled guilty to a one-count information, charging him with importing and attempting to import queen conch (Strombus gigus), spiny lobster (Panulirus argus), stone crab (Menippe mercenaria) claws and demersal (fin fish) namely: snapper (Lutjanus) and grouper (Serranidae), in violation of the possession limits for each of the species as set forth in the laws and regulations of the Commonwealth of the Bahamas, specifically, the Fisheries Resources (Jurisdiction & Conservation) Regulations, Part X, Sections 47(1)(a), (b) and 48(1)(f) and the laws and regulations of the State of Florida, specifically 68B-16.003(1), 68B-24.003(4), and 68B-13.005(2) contrary to the federal Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).
According to the allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted to import from the Bahamas approximately 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.
Mr. Ferrer commended the investigative efforts of the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
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.
Unsealed Indictment Charges Pair with ExtortionRead the Press Release
Mohammad Hamdan, a/k/a "Alex Hamdan," 36, of Raleigh, North Carolina and Mohammad Sabbar, a/k/a "Ali," 31, of Schnecksville, Pennsylvania, are charged by indictment , unsealed today, with conspiracy to commit extortion, extortion, and aiding abetting have been arrested, announced United States Attorney Zane David Memeger. The defendants were arrested today.
If convicted, the defendants face a maximum possible sentence of 40 years imprisonment, three years of supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by the U.S. Department of Transportation's Office of Inspector General and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Attorney Announces Conviction and Sentencing of Evansville Man for Tax FraudRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Gregory P. Stodghill, age 46, of Vincennes, has been convicted and sentenced by U.S. District Chief Judge Richard L. Young to 60 months (5 years, the statutory maximum) in federal prison after admitting that he engaged in tax evasion that cost taxpayers more than $407,000. He was remanded into custody immediately.
“Tax evasion schemes make victims of all taxpayers, with millions of dollars in losses every year,” Hogsett said. “That is why our office is working with IRS Criminal Investigations and our law enforcement partners to hold fully accountable those who refuse to play by the rules.”
Court documents reveal that Stodghill engaged in a series of complicated financial schemes that funneled outside investor funds through a number of off-shore shell companies. As a result of these and other financial transactions including a real estate flipping scheme conducted in Evansville in 2006, Stodghill generated over one million dollars in personal income, although he did not pay income taxes for this income in 2006 or 2008.
When initially interviewed by case agents, Stodghill falsely claimed that his tax preparer had prepared all of his tax returns and that he had filed them. After the interview, the defendant contacted his return preparer and explained that the IRS and FBI had contacted him and he needed to get his delinquent tax returns prepared. The defendant never provided sufficient accurate documentation for the return preparer to complete his returns. Following this scheme, Stodghill filed a false 2006 federal income tax return and never filed one for 2008. Stodghill later filed a number of frivolous documents with the IRS claiming he had no tax liability.
According to Assistant U.S. Attorney James M. Warden, who prosecuted the case for the government, Stodghill was ordered to fully repay the $407324 lost to taxpayers, and must serve three years of federally-supervised release at the end of his prison term. Under federal law, the defendant is required to serve at least 85% of his prison term within a federal correctional facility.
U.S. Attorney Releases Findings Regarding Death of Mr. Sammie Davis, Jr.Read the Press Release
Following an extensive investigation, Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that insufficient evidence exists to support a federal criminal civil rights prosecution in the death of Mr. Sammie Davis, Jr. in December, 2012.
During the federal investigation into the shooting death of Mr. Sammie Davis, Jr., prosecutors and investigators reviewed voluminous materials, including investigative reports generated by the Federal Bureau of Investigation (FBI), the Georgia Bureau of Investigation (GBI), and the Macon Police Department; videotaped and audio-taped witness interviews; DNA evidence reports; the medical examiner’s report; photographs; video footage from the officers’ patrol cars; medical records; and ballistic evidence.The federal investigation into Mr. Davis’ death focused on the possible application of the federal criminal civil rights statute, found in Title 18 of the United State Code, Section 242, which prohibits certain types of official misconduct. “Based upon all of the available evidence, the United Stated Department of Justice’s Civil Rights Division, in conjunction with my office, has determined that the evidence in this case is insufficient to meet the rigorous requirements of a federal criminal civil rights prosecution. Based on the totality of the evidence, including DNA evidence, the government could not prove, beyond a reasonable doubt, that the officer willfully used more force than he believed was necessary under the circumstances,” U.S. Attorney Michael J. Moore stated.
“I have spoken with the Davis family about this decision, and while I know that their hearts remain heavy, I appreciate their cooperation during this investigation. Sheriff David Davis, who will soon assume command of all local law enforcement in Macon and Bibb County, and I have spoken about policies which can be implemented and which will most assuredly encourage public confidence in investigations like this one, where a law enforcement officer is involved in a shooting. While the findings of the local investigation and review were confirmed by our investigation, I am pleased that Sheriff Davis has put in place a policy which will now require that the GBI will immediately be called to assist in any shooting in which an officer is involved. As we approach the anniversary of Mr. Davis’ death, I offer my condolences to the Davis family and remain committed to ensuring that our civil rights laws are enforced,” said United States Attorney Michael Moore.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Two Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Real Estate Foreclosure AuctionsRead the Press Release
Two Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California, in San Francisco, against Florence Fung of Sacramento, Calif, and Michael Navone of San Rafael, Calif. Fung and Navone are the 39th and 40th individuals to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Fung and Navone conspired with others, for various lengths of time between February 2009 and January 2011, not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County. Fung and Navone also were charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others. Navone was also charged with participating in similar conspiracies in San Francisco County beginning as early as October 2009 until about January 2011.
“Instead of competing at real estate foreclosure auctions, the conspirators agreed not to bid against one another and determined among themselves who would submit the winning bid, stifling honest and fair competition,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners at the FBI continue to remain committed to holding accountable investors who attempt to subvert the competitiveness of the bidding process.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo and San Francisco county public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The FBI continues to join the Antitrust Division in holding criminals accountable for bid rigging and fraudulent practices at public real estate foreclosure auctions,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “Anticompetitive practices disrupt a fair marketplace and the FBI will investigate these types of crimes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Two More Retailers Plead Guilty to Food Stamp FraudRead the Press Release
To Date, Four Retailers Have Pleaded Guilty to Food Stamp Fraud
Baltimore, Maryland – Dae Cho, age 66, and her son Hyung Cho, age 40, both of Catonsville, Maryland, and citizens of Korea who are illegally present in the United States, pleaded guilty today to food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Dae Cho co-owned K&S Market, a convenience store located at 3910 West Belvedere Avenue in Baltimore. Dae and Hyung Cho operated the store. According to their plea agreements and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Dae Cho completed the required government form in March of 2004 to become an authorized retailer in the program. Dae and Hyung received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from June 2011 through May 2013, Dae and Hyung Cho exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills. Dae Cho has estimated that about $25,000 to $30,000 worth of food stamp benefits were exchanged in this manner per month and that this occurred approximately 50 times a day.
As a result of these unlawful cash transactions, Dae and Hyung Cho obtained more than $1,400,000 in payments for food sales that never occurred.
The defendants face a maximum sentence of 20 years in prison. U.S. District Judge George L. Russell, III scheduled their sentencing for February 21, 2014, at 10:00 a.m. The defendants have agreed to the entry of an order to forfeit $1,400,000. The defendants have further agreed not to object to any removal proceedings that may be brought to remove them from the United States upon completion of their sentence.Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, pleaded guilty on December 3, 2013 to food stamp fraud in connection with a similar scheme to illegally redeem food stamp benefits in exchange for cash. They are scheduled to be sentenced on March 6, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Judson T. Mihok, who is prosecuting the case.
Two Georgetown Men Plead Guilty to Social Security FraudRead the Press Release
BOSTON - Two Georgetown men pleaded guilty today to defrauding the Social Security Administration of $105,158.
Charles Flynn, 35, and Steven Grondell, 44, pleaded guilty to theft of public money. In November 2013, they were charged in a felony Information. Sentencing is scheduled for March 18, 2014.
Flynn began receiving Social Security disability benefits in 2004. In 2008, however, while still collecting disability benefits, Flynn began working at the iParty store in Peabody under the identity of his partner, Steven Grondell. Flynn did not report this work to Social Security. In fact, in a benefits review in November 2012, he falsely stated that he had not worked since about 2003. Flynn’s income from iParty, which totaled about $30,000 to $40,000 per year, would have made him ineligible to receive disability benefits. Grondell aided and abetted this scheme by allowing Flynn to use his identity to work at iParty and by helping to cover up the fraud by claiming the iParty income on his own tax returns.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Trenton Man Admits Possession of Three Guns, Including Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – A Trenton, N.J., man with a previous conviction for drug distribution today admitted possessing three firearms, including a loaded semi-automatic rifle and a loaded revolver, U.S. Attorney Paul J. Fishman announced.
Isaiah Harris, 26, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of being a convicted felon in possession of firearms and ammunition.
According to documents filed in this case and statements made in court:
At approximately 6:00 a.m. on Nov. 15, 2012, law enforcement officers entered a residence on Stuyvesant Avenue in Trenton to execute an unrelated warrant for Harris’ arrest and encountered Harris in a bedroom on the second floor. They recovered a loaded Taurus .38-caliber revolver from the bed Harris had been occupying and later discovered in the bedroom a loaded Norinco SKS, 7.62 semi-automatic rifle and a partially disassembled second Norinco SKS, 7.62 semi-automatic rifle. Harris admitted at his plea hearing that he possessed these weapons.
The firearms charge to which Harris pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 25, 2014.
U.S. Attorney Fishman credited special agents and task force officers of the ATF’s Trenton Field Office, under the direction of Acting Special Agent in Charge George Belsky in Newark, N.J., and law enforcement officers from the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr.; the Mercer County Sheriff’s Office, under the direction of Sheriff John Kemler; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr., for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-471
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
Harris, Isaiah Information
Trenton Man Admits Possession of Three Guns, Including Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – A Trenton, N.J., man with a previous conviction for drug distribution today admitted possessing three firearms, including a loaded semi-automatic rifle and a loaded revolver, U.S. Attorney Paul J. Fishman announced.
Isaiah Harris, 26, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of being a convicted felon in possession of firearms and ammunition.
According to documents filed in this case and statements made in court:
At approximately 6:00 a.m. on Nov. 15, 2012, law enforcement officers entered a residence on Stuyvesant Avenue in Trenton to execute an unrelated warrant for Harris’ arrest and encountered Harris in a bedroom on the second floor. They recovered a loaded Taurus .38-caliber revolver from the bed Harris had been occupying and later discovered in the bedroom a loaded Norinco SKS, 7.62 semi-automatic rifle and a partially disassembled second Norinco SKS, 7.62 semi-automatic rifle. Harris admitted at his plea hearing that he possessed these weapons.
The firearms charge to which Harris pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 25, 2014.
U.S. Attorney Fishman credited special agents and task force officers of the ATF’s Trenton Field Office, under the direction of Acting Special Agent in Charge George Belsky in Newark, N.J., and law enforcement officers from the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr.; the Mercer County Sheriff’s Office, under the direction of Sheriff Jeff Gray; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr., for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-471
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
Harris, Isaiah Information
Topeka Man Sentenced for Possessing Pipe BombRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced for possessing a pipe bomb, U.S. Attorney Barry Grissom said today.
Kyle C. Roe, 29, Topeka, Kan., was sentenced today to 33 months in federal prison. Roe pleaded guilty to one count of receiving and possessing a pipe bomb. In his plea, he admitted that on Nov. 13, 2012, officers of the Topeka Police Department stopped a car in which he was a passenger. Roe was arrested on an active felony warrant. He told officers that he had a bomb in his pocket. An examination showed the device to consist of metal tubing, PVC pipe, a cardboard tube, pyrotechnic fuse, paper and lead end plugs and smokeless powder. Explosion of the device would propel fragments of the tubes and end plugs in all directions at velocities that could cause serious injury or death to anyone near the explosion.
Co-defendant Joseph E. Rogers, who was the driver of the car, is set for sentencing Jan. 27.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Topeka Man Sentenced for Possessing Gun During Drug TraffickingRead the Press Release
TOPEKA, KAN. - A Topeka man who pleaded guilty to possessing a .40 caliber pistol in furtherance of drug trafficking has been sentenced to federal prison, U.S. Attorney Barry Grissom said today.
Malik T. Yates, 20, Topeka, Kan., was sentenced Monday to 30 months in federal prison. He pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted that on March 1, 2013, members of the Kansas Bureau of Investigation Task Force served a search warrant at his residence in Topeka. They seized methamphetamine, a .40 caliber pistol and $3,000 cash.
Grissom commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Three Defendants Indicted for Allegedly Swindling 54 Victims of $220,000 in Fees in Mortgage “Rescue” Fraud SchemeRead the Press Release
CHICAGO ― Three defendants who operated Washington National Trust, which was not licensed in Illinois as either a trust or a mortgage company, are facing federal fraud charges for allegedly swindling approximately $220,000 from at least 54 homeowners after falsely promising to save their homes from foreclosure and lower their monthly mortgage payments. The alleged mortgage “rescue” fraud scheme primarily preyed upon Hispanic victims in and around Aurora since late 2011.
One defendant, CARLOS RAYAS, 39, of Aurora, whose loan originator license was revoked by state regulators, was arrested today. He pleaded not guilty before U.S. Magistrate Judge Sheila Finnegan and was released on his own recognizance. A status hearing was set for Jan. 10 in U.S. District Court.
Arrest warrants were issued for MELVIN T. BELL, 37, also known as “Alex Crown,” “Minister Bey,” “Sovereign King Bey,” “King Bey,” and “S.K. Bey,” and MONICA HERNANDEZ, 43, Rayas’ cousin and a former licensed real estate broker. Both Bell and Hernandez were last known to reside in Oswego.
Bell and Hernandez were each charged with four counts of mail fraud, and Rayas was charged with two counts of mail fraud, in an indictment that was returned last week by a federal grand jury and unsealed today. The indictment also seeks forfeiture of approximately $220,000.
According to the indictment, the defendants marketed the official-sounding Washington National Trust as a business providing a financial assistance program for homeowners that was operated and controlled by wealthy Native Americans and was exempt from state and federal laws. In exchange for fees ranging between $5,000 and $10,000 per property, the defendants claimed that Washington National Trust would lower the homeowners’ existing mortgage payments by half and defeat any foreclosure. All three defendants knew, however, that Washington National Trust was not licensed to conduct loan originations and modifications in Illinois and could not lower mortgage payments or defeat foreclosure.
Bell, Hernandez, and Rayas allegedly falsely promised that Washington National Trust would pay off and acquire homeowners’ mortgages, and once that happened, the homeowners would owe only half the original mortgage to Washington National Trust, due over five years and free of any interest and property taxes. To effect this so-called “mortgage rescue,” the defendants had homeowners sign documents and deeds purportedly appointing Washington National Trust as trustee and transferring title of their homes to the business, the indictment alleges. As part of the scheme, the defendants recorded fraudulent documents and deeds in Kane, Kendall and other counties to delay foreclosure and to make it appear that their business was the homeowners’ trustee, the charges add.
The indictment also alleges that the defendants falsely promised that the fees paid by homeowners would go toward reducing their principal balance after Washington National Trust acquired the loan from the lender. Instead, Bell and Hernandez used the fees to pay for marketing and operating the business, including making payments to Rayas and others who referred homeowners to them, as well as for various personal expenses, including meals, travel, and merchandise.
All three defendants allegedly concealed from homeowners that the Kane County Circuit Court had issued orders in September and October 2012 barring Washington National Trust from further filing and recording deeds. They also allegedly concealed that the Illinois Department of Financial and Professional Regulation had issued orders in December 2012 and February 2013, first, to Washington National Trust to stop using the word “trust” and, later, to all three defendants to stop engaging in unlawful residential mortgage activity.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois State Police also participated in the investigation.
The government is being represented by Assistant U.S. Attorney Jessica Romero.
Each count of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Tax Preparer Sentenced for Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A Tax Preparer has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Wellington Mandhlazi pleaded guilty on May 16, 2013 to aiding and assisting in the preparation of fraudulent tax returns and was sentenced to 21 months in federal prison on Dec. 16, 2013 by U.S. District Judge Ron Clark. Mandhlazi was also ordered to pay restitution in the amount of $147,851.00.
According to the court documents, in 2009, Mandhlazi operated an income tax preparation business. Mandhlazi admitted that he assisted in the preparation of false federal income tax returns and included false items for educational expenses and education tax credits. Mandhlazi also admitted that his false statements were made for the purpose of defrauding the Internal Revenue Service.
The estimated tax loss related to the false federal income tax returns prepared as a result of Mandhlazi’s fraudulent conduct, on behalf of himself and other taxpayers, was $147,851.00. Mandhlazi must report on or before Feb. 4, 2014, to begin serving his prison sentence.
This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andy Williams.
St. Louis City Man Sentenced on Charges Involving the Assault of A Federal OfficerRead the Press Release
St. Louis, MO - JAMES EDWARD JONES was sentenced to 20 years in prison. Jones pled guilty in September to federal gun and assault charges involving the April 18, 2013, assault of a federal officer and selling crack cocaine to an undercover officer. He appeared today before United States District Judge Audrey G. Fleissig.
According to court documents, on April 15, 2013, Dwayne Crayton sold crack cocaine to an undercover agent. Three days later on April 18, 2013, his brother Frederick Crayton and James Jones arranged to sell three firearms to an ATF undercover agent and two confidential informants. During a struggle involving several firearms, Frederick Crayton assaulted the undercover agent in an attempt to rob the agent of the money that was to be used to buy the three firearms.
Frederick Crayton, St. Louis City, was sentenced to 168 months in prison on gun and assault charges involving the April 18, 2013, assault of a federal officer. His brother Dwayne Crayton, also of St. Louis City, was sentenced to 32 months in prison on charges of selling crack cocaine to an undercover officer. Both were sentenced on October 23, 2013, by United States District Judge Audrey G. Fleissig.
This case was investigated by the Bureau Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney's Office.
Smoke Shop Owner and Realtor Head to Federal Prison for Structuring Financial TransactionsRead the Press Release
CORPUS CHRISTI, Texas – The co-owner of Mr. Nice Guys Smoke Shop and a local real estate agent have been ordered to federal prison following their convictions related to a multi-agency investigation into the structuring of financial transactions, announced United States Attorney Kenneth Magidson. Leroy Mitchan Jr., 34, and Justin Colmenero, 30, previously pleaded guilty as did Mitchan’s wife, Kimberly Davis, 27. All are from Corpus Christi.
Today, U.S. District Judge John D. Rainey, handed Mitchan a sentence of 20 months to be followed by one year of supervised release, while Colmenero will be on probation for three years, but must pay a $6000 fine. In handing down the sentence, Judge Rainey distinguished the roles of all the defendants and noted he had never in his career seen a structuring case this extensive. Davis was sentenced to five months in custody and five months of home confinement on Nov. 18, 2013.
All were arrested in May 2013 on charges relating to their participation in a conspiracy to structure more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
The charges came as a result of an investigation in reference to the sale of synthetic marijuana. Mitchan and Davis, who own Mr. Nice Guys, also own another smoke shop located at 5433 S. Staples St. in Corpus Christi as well as a used car dealership located at 5757 Everhart Rd. From February 2012 through January 2013, officers with the Corpus Christi Police Department (CCPD) seized more than 40.93 grams of synthetic marijuana during numerous undercover purchases from both of the smoke shops. On Feb. 1, 2013, CCPD executed state search warrants at the shops and seized a total of 1.5 kilograms of synthetic marijuana as well as various smoking paraphernalia such as pipes, bongs, glassware, grinders and scales. Also seized were detailed drug ledgers and price lists relating to the sale of synthetic marijuana along with documents guiding employees on the proper coded vocabulary to use when describing the illegal items being sold to customers.
The Drug Enforcement Administration (DEA) learned Mitchan and Davis had recently purchased three real estate properties in Corpus Christi and were making payments on these properties with large cash transactions. A preliminary review of bank accounts revealed several cash deposits under $10,000. Internal Revenue Service – Criminal Investigation (IRS-CI) then initiated the financial investigation.
The Bank Secrecy Act of 1970 (BSA) requires financial institutions to file reports with the Treasury Department of cash transactions exceeding $10,000.
As part of the plea, Davis admitted she conducted three separate deposits in one morning at Members First Credit Union. She first deposited $9,000 in the drive-thru at 7:39 a.m., then drove away and immediately re-entered the drive-thru lane and conducted a second cash deposit of $9,000 at 8:17 a.m. She drove away again but returned and conducted a third cash deposit of $8,801 at 9:16 a.m. In another instance, she conducted two separate deposits right after the other – the first in the lobby of the bank and the another in the drive-thru lane approximately 30 minutes later. The total amount for all five deposits was $44,101. All of these deposits did not exceed the $10,000 currency transaction filing requirement for financial institutions and were made in an attempt to avoid the reporting requirements.
Mitchan admitted he worked with Colmenero, a local real estate agent, and provided him with large amounts of cash. Mitchan told Colmenero to deposit it into his personal bank account and later withdraw the money in the form of cashier’s checks or via Moneygram to pay for property he was purchasing. The total amount Colmenero structured at the direction of Mitchan was approximately $461,000. Mitchan directed him and others to structure currency transactions to avoid the threshold reporting requirement and had even asked about the success of structuring the money without having any of the bank tellers ask any questions.
Mitchan and Davis have also agreed to the criminal forfeiture of three pieces of real property located in Nueces County, valued at approximately $1,200,000, approximately $396,000 in cash as well as 42 vehicles valued at approximately $409,000.
Previously released on bond, Mitchan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, DEA and CCPD. The case is being prosecuted by Assistant Unites States Attorneys Hugo R. Martinez and Lance A. Watt.
Seven Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA – Seven individuals have been sentenced by Judge Gina M. Groh in Federal Court.
United States Attorney William J. Ihlenfeld, II announced that:
DANIEL ROBERT MYERS, JR., age 35, and JORDAN BROOKE GAMBRELL, age 20, both of Hedgesville, West Virginia, were sentenced to 46 months in prison and 18 months in prison respectively, for “Possession with Intent to Distribute Heroin” on November 15, 2012. MYERS and GAMBRELL were remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
DANNY RAY TERRY, age 54, of Martinsburg, was sentenced to 37 months in prison for “Failure to Register and Update Registration as a Sex Offender” when he moved to West Virginia in 2011. TERRY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the United States Marshals Service.
BRIAN NICKENS, age 38, of Shenandoah Junction, West Virginia, was sentenced to 30 months in prison for “Drug User in Possession of a Firearm” on March 26, 2012. NICKENS was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the Jefferson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
ERIC SCOTT TAYLOR, age 34, of Gerrardstown, West Virginia, was sentenced to 4 months in prison for the “Distribution of Marijuana.” TAYLOR was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Douglas and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives.
PERRY JOSEPH JENKINS, age 33, of Martinsburg, was sentenced to 4 years probation for the “Sale of Firearms to a Prohibited Person.” This case was prosecuted by Camilletti and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
BENJAMIN CHAVIS, II, age 54, of Martinsburg was sentenced to 3 years probation for the “Distribution of Heroin.” This case was prosecuted by Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
Santa Ana Pueblo Woman Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Jayleen Armijo, 30, a member and resident of Santa Ana Pueblo, N.M., was sentenced to 24 months in federal prison followed by two years of supervised release for her conviction on an assault charge.
Armijo was indicted in Feb. 2013, and charged with assault resulting in serious bodily injury. According to the indictment, Armijo assaulted a woman on Dec. 20, 2012, in a location within the Santa Ana Pueblo. The victim sustained a broken orbital socket, a broken nose and over a dozen bite wounds which left permanent scars as a result of the assault.
On August 29, 2013, Armijo entered a guilty plea without the benefit of a plea agreement and admitted assaulting the victim on Dec. 20, 2013. Armijo further admitted that the victim sustained serious injuries as a result of the assault.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Santa Ana Tribal Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Roswell Man Pleads Guilty to Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Robert Lopez, 27, of Roswell, N.M., pleaded guilty this morning in Las Cruces federal court to being a felon in possession of a firearm and ammunition. Lopez entered his guilty plea without the benefit of a plea agreement.
Lopez was arrested in June 2013, based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition, and subsequently was indicted on that same charge. The indictment charged Lopez with unlawfully possessing a firearm and ammunition in Chaves County, N.M., on July 19, 2012. At the time, Lopez was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense, possession of methamphetamine, in the 5th Judicial District Court for the State of New Mexico.
Court filings reflect that on July 19, 2012, Lopez assaulted a Chaves County Sheriff’s deputy while the deputy was attempting to execute a warrant for Lopez’s arrest. Lopez initially fled from the deputy and then assumed a fighting stance, hitting the deputy in the head and biting the deputy’s right ear. After the deputy subdued and arrested Lopez, Lopez told the deputy that he had a firearm in his vehicle. The Chaves County Sheriff’s Office then obtained a search warrant for the vehicle and recovered a pistol loaded with ten rounds.
During today’s proceedings, Lopez pled guilty to the indictment and admitted that he unlawfully possessed a firearm and ammunition on July 19, 2012. At his sentencing hearing, which has yet to be scheduled, Lopez faces a maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chaves County Sheriff’s Office, with assistance from the 5th Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Resident of Florida and Ohio Admits Defrauding Charter Flight Company and Others of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. - A resident of Florida and Ohio today admitted his role in defrauding a charter flight company and other merchants of hundreds of thousands of dollars in luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Dante G. Dixon, 45, of Miami, Fla., and Akron, Ohio, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit wire fraud.According to documents filed in this case and statements made in court:
From May through June of 2013, Dixon and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation, an international business aviation services company, with U.S. headquarters in Teterboro, N.J., which provides charter flight services. Dixon and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution, for the defendants and others’ use by misrepresenting that they were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation=s offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. A Jet Aviation employee sent a draft Charter Services Agreement to the provided email address. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Dixon as a vice president at the well-known financial institution. The aviation company established an account and a line of credit for $350,000, which the defendants and others used to take four private charter flights.
As a result of their misrepresentations to Jet Aviation, Dixon and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790, for which Jet Aviation never received payment.
Dixon and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, and sterling silver and leather business cardholders, and approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of their scheme, Dixon and others fraudulently obtained more than $220,000 in luxury goods and services.The conspiracy to commit wire fraud to which Dixon pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for April 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today=s guilty plea.
The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney=s Office Economic Crimes Unit in Newark.
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.gov
13-468
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.Dixon, Dante Information
Resident of Florida and Ohio Admits Defrauding Charter Flight Company and Others of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. - A resident of Florida and Ohio today admitted his role in defrauding a charter flight company and other merchants of hundreds of thousands of dollars in luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Dante G. Dixon, 45, of Miami, Fla., and Akron, Ohio, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit wire fraud.According to documents filed in this case and statements made in court:
From May through June of 2013, Dixon and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation, an international business aviation services company, with U.S. headquarters in Teterboro, N.J., which provides charter flight services. Dixon and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution, for the defendants and others’ use by misrepresenting that they were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation=s offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. A Jet Aviation employee sent a draft Charter Services Agreement to the provided email address. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Dixon as a vice president at the well-known financial institution. The aviation company established an account and a line of credit for $350,000, which the defendants and others used to take four private charter flights.
As a result of their misrepresentations to Jet Aviation, Dixon and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790, for which Jet Aviation never received payment.
Dixon and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, and sterling silver and leather business cardholders, and approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of their scheme, Dixon and others fraudulently obtained more than $220,000 in luxury goods and services.The conspiracy to commit wire fraud to which Dixon pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for April 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today=s guilty plea.
The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney=s Office Economic Crimes Unit in Newark.
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.gov
13-468
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.Dixon, Dante Information
Repeat Fraudster Sentenced for Falsely Claiming over $23 Million in Tax Refunds and Scheming to Defraud Credit UnionsRead the Press Release
IRS Paid More Than $12 Million in “Refunds” to Illegal Alien Previously Convicted of Fraud
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Makushamari Gozo, age 41, a native of Zimbabwe residing in Baltimore, Maryland, to 11 years in prison, followed by five years of supervised release, for filing claims for more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds, as well as engaging in schemes to fraudulently obtain more than $3 million in loans from credit unions. Judge Blake also ordered Gozo to pay restitution totaling $202,667.23.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Gozo previously was convicted of mortgage fraud in 2004 and sentenced to serve 57 months in federal prison. He was determined to be a deportable alien, but was not deported because of issues related to his travel documents.
“Makushamari Gozo was convicted of mortgage fraud in 2004, sentenced to serve 57 months in federal prison, and escaped deportation only because of a technicality,” said U.S. Attorney Rod J. Rosenstein. “He responded by filing fabricated tax returns claiming refunds, which caused the IRS to issue checks for more than $12 million in fraudulent refunds. Mr. Gozo also attempted to obtain over $3 million in fraudulent loans from credit unions.”
According to evidence presented at his one week trial, beginning in 2010, Gozo used several entities he controlled to file fraudulent claims for tax refunds. Gozo filed individual income tax returns falsely claiming that from 2007 to 2011, he earned wages from two of his companies and was entitled to tax refunds totaling more the $417,000. In addition, Gozo filed tax returns falsely claiming that a third company had sustained losses in 2007 through 2009 which entitled Gozo to more than $76,000 in tax refunds. From October 31, 2011 to February 17, 2012, Gozo also filed false excise tax returns claiming that a fourth company was entitled to approximately $22,657,137 in alternative fuel tax refunds and credits based on having purchased or used over 39 million gallons of alternative fuel. In fact, the entities were all sham businesses that existed in name only.
Trial evidence also showed that between July and September 2010, Gozo defrauded several credit unions to obtain fraudulent automobile and business loans. Gozo submitted four loan applications to the credit unions in which he misrepresented his income and employment in order to buy luxury automobiles that Gozo never actually purchased. Gozo also submitted a fraudulent loan application for a $3 million business loan in the name of another one of his sham companies. On the business loan application, Gozo made fraudulent statements about the financial and business affairs of the company in order to make it appear financially successful, and submitted several false corporate tax returns claiming that the company controlled millions of dollars in assets.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorneys David I. Sharfstein and Peter M. Nothstein, who prosecuted the case.
Raymore Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man was sentenced in federal court today for possessing thousands of images of child pornography.
Malcolm J. Wolf, 33, of Raymore, was sentenced by U.S. District Judge Dean Whipple to seven years in federal prison without parole. According to court documents, Wolf legally changed his name on April 8, 2011, from Jose Lorenzo Lopez.
On Feb. 4, 2013, Wolf pleaded guilty to one count of attempting to receive child pornography and one count of possessing child pornography.
Federal agents, while conducting an undercover investigation of a Web site sharing child pornography, identified Wolf’s computer as having accessed images of child pornography from the site in January 2011. When agents executed a search warrant at Wolf’s residence, they found six computers and seven loose hard drives that contained thousands of images of child pornography, including hundreds of movies of child pornography. The children depicted in those images and movies ranged in age from babies to teens.
Under the terms of his plea agreement, Wolf must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days of his sentencing date.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Queens Man Sentenced to 15 Years in PrisonFor Attempting to Rob and Extort A Bedford FamilyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BARTEK ZAJKOWSKI, a Polish national, who resided in Queens, New York, was sentenced today by U.S. District Judge Kenneth M. Karas in White Plains federal court to 15 years in prison, consecutive to any sentence imposed in his pending state case in Connecticut, where he is charged with participating in a home invasion. ZAJKOWSKI’s criminal conduct included the attempted extortion of a family by whom he was previously employed and attempted robbery of them in their home in Bedford, Westchester County, New York.
U.S. Attorney Preet Bharara stated: “Bartek Zajkowski became one family’s nightmare of terror and violence. Now, thankfully, the nightmare is over, and we hope his victims can breathe easier. Mr. Zajkowski will be locked up for a long time. The conclusion of this case is a tribute to the cooperative and devoted efforts of law enforcement at every level.”
According to public documents filed in White Plains federal court, and related court proceedings:
ZAJKOWSKI, 23, a Polish citizen living in the United States illegally, had previously worked for a contractor in 2010 at the victims’ residence in Bedford Hills, New York.
On the evening of May 5, 2012, ZAJKOWSKI, dressed in black and armed with a gun, approached the victims’ house. He encountered Victim-1(“the Husband”), bound him with duct tape and plastic ties, and demanded to know where money and valuables were located in the house. The Husband told ZAJKOWSKI that he had expensive paintings and gold and silver items in the residence. ZAJKOWSKI then entered the house, encountered and struggled with Victim-2 (“the Wife”), ultimately shooting her in the stomach with a BB gun. ZAJKOWSKI bound Victim-2 with duct tape and plastic ties, and asked her to direct him to the expensive paintings. After ZAJKOWSKI left the Wife to look for the paintings, she was able to free herself and trigger the house’s alarm. ZAJKOWSKI escaped with no property other than the Husband’s wallet.
Two days later, in the early morning hours of May 7, 2012, ZAJKOWSKI burned down a barn located on the victims’ property. One week later, on May 14, 2012 and May 17, 2012, the victims received two extortion letters from an individual later determined to be ZAJKOWSKI. The letters demanded that the victims pay ZAJKOWSKI $3 million ($1 million for each of their three children) to ensure their family’s safety. In the letters, ZAJKOWSKI also discussed his struggle with the Wife, claimed responsibility for the barn fire, detailed what he had learned about the family through his surveillance of their home, and threatened harm to the victims’ children. ZAJKOWSKI also demanded that the victims deposit the money into a bank account in the Netherlands – a bank account that law enforcement officials later determined to be held by ZAJKOWSKI’s mother’s partner.
On June 1, 2012, the FBI and other law enforcement agents arrested ZAJKOWSKI pursuant to an arrest warrant stemming from a September 2011 home invasion in Ridgefield, Connecticut. Those Connecticut charges are still pending.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester County Violent Crimes Task Force, the Westchester County District Attorney’s Office, the Bedford Police Department, the New York State Police, the Westchester County Department of Public Safety and the United States Marshals Service, NY/NJ Regional Fugitive Task Force.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Andrew Bauer and Michael Gerber are in charge of the prosecution.
Prison Sentences Imposed on Three Former Owners of Summt Accommodators in Bend for $13.7 Million FraudRead the Press Release
PORTLAND, Ore. –Yesterday, U.S. District Court Judge Anna J. Brown imposed prison sentences on Mark Neuman (78 months), Tim Larkin (54 months), and Lane Lyons (54 months), for lying to and misleading clients about how they held and used millions in client funds while operating Summit Accommodators, Inc., previously headquartered in Bend, Oregon. In addition to their prison sentences, the defendants must each serve three years of supervised release.
“Attorneys, certified public accountants and business executives who, motivated by greed, lie to clients to gain use of their money for personal purposes are especially deserving of prosecution and punishment,” said U.S. Attorney Amanda Marshall. “This office and our federal and state partners will do whatever it takes to bring dishonest professionals to justice. Besides seeking tough sentences for white-collar fraudsters, we will continue to go after their ill-begotten assets to compensate victims of these schemes.”
On July 3, 2013, on the 17th day of trial, a jury in federal court in Portland convicted the three former owner/operators of Summit Accommodators, Inc., of Bend, of conspiracy to commit mail fraud and conspiracy to commit money laundering in connection with a 10-year fraud scheme. About 10,000 clients entrusted them with almost $1 billion from 1999 to 2008, when the business closed and filed for bankruptcy. The defendants used $75 million of client funds for undisclosed personal investments in real estate, investments in businesses in the Bend area, and loans to business associates and family members.
Neuman and his business partner Brian Stevens, both Certified Public Accountants, created Summit in 1991 to help customers take advantage of lawful federal income tax deferral transactions. In a typical transaction, a customer would sell income producing property, allow Summit to hold the proceeds of the sale, and then buy another income producing property within 180 days. Federal income tax laws then allowed the customer to defer paying taxes on the profits from sale of the first property. Summit eventually opened affiliate offices in Texas, Washington, Utah, Montana, Wyoming, Nevada, and Lake Oswego, Oregon.
In 2002, Neuman and Stevens hired Larkin as Summit’s Chief Operating Officer. In 2005, Neuman and Stevens hired Lyons as Summit’s in-house counsel. In 2006, Larkin and Lyons became equal partners in Summit with Neuman and Stevens.
The trial evidence showed that although Neuman and Stevens began using their clients’ exchange funds for personal investments before 1999, they promised their clients their exchange funds would remain in Summit bank accounts and would only be used to complete their tax deferral exchanges. Neuman was responsible for language in Summit marketing brochures and Summit’s website. Both falsely promised Summit would maintain client funds in bank accounts or in government securities.
From 2004 through October 2008, Summit held between $49 million and $109 million of its customers’ money in a typical month. The defendants routinely transferred large amounts of client money to Inland Capital Corp., another company they owned and controlled. Through Inland, the conspirators used client funds for over 100 real estate projects in Central Oregon in which one or more of them had direct personal interests.
In 2006, defendant Lyons warned his partners in a confidential memo that “the use of exchange funds by Inland constitutes … a misrepresentation to our clients under their exchange agreements” and further stated if the use of client funds came to light “fraud charges will be leveled” against each owner. Despite this warning, the defendants continued to solicit and take in new client funds until days before shutting their doors.
The co-conspirators hid the fraud scheme by concealing from most of Summit’s employees and from most of the owner-operators of Summit’s branch offices that the conspirators were using Summit customer money to invest in real estate and for loans to themselves and others. In February 2007, when Summit’s clients and branch owner-operators began to express concern about the safety of Summit client money, the conspirators lied by saying that all Summit client money was deposited and maintained in financial institutions or invested in highly-secured short term notes.
“Summit clients lost millions while the owners of Summit Accommodators tried to make easy money,” said Kevin Rickett, Acting Special Agent in Charge of the FBI in Oregon. “While today’s sentencing brings about closure to this criminal investigation, we should remember the long-term toll that such scams can have on the victims.”
“Fraud, like many financial crimes, threatens the financial health of our communities,” stated Tamera Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation. “IRS Criminal Investigation is committed to ensure that those who engage in these illegal activities are investigated and brought to justice.”
Summit co-owner Brian Stevens previously pleaded guilty to identical charges and testified against his former partners at trial.
This case was investigated by the Federal Bureau of Investigation; IRS, Criminal Investigation; the United States Postal Inspection Service; and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorneys Seth D. Uram and Donna Maddux handled the prosecution of the case.
Phoenix Drug Trafficker Sentenced to 25 Years PrisonRead the Press Release
PHOENIX – On Dec. 16, 2013, Ralph C. Moreno, 53, of Phoenix, was sentenced by Senior U.S. District Judge Roslyn O. Silver to 300 months (25 years) in prison followed by 10 years supervised release, and a $3000 fine. Judge Silver further ordered forfeiture of Moreno’s interest in a Stoeger .40 caliber handgun, a Bushmaster .223 caliber rifle, and $75,366 in U.S. currency. Moreno was found guilty by a federal jury on Sept. 18, 2013, of three felonies - conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and felon in possession of a firearm.
At trial, it was proven that Moreno sold methamphetamine at his Phoenix residence to persons who ultimately intended it to reach associates of the Arizona “Mexican Mafia,” a prison based gang. After a search warrant was obtained for Moreno’s residence, law enforcement found the two firearms listed above and drug proceeds amounting to $75,366 in cash. At the time he committed the offenses, Moreno had two prior state felony convictions for drug trafficking.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Federal Bureau of Prisons, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Department of Public Safety, and the Arizona Department of Corrections. The prosecution was handled by Michael Lee and Brian Larson, Assistant U.S. Attorney’s, District of Arizona, Phoenix.
CASE NUMBER: CR-11-1865-PHX-ROS
RELEASE NUMBER: 2013-097_MorenoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Parkersburg Man Sentenced to 2 ½ Years in Prison for Violating Federal Sex Offender Registration LawRead the Press Release
HUNTINGTON, W.Va. – A Parkersburg man was sentenced yesterday to two and a half years in federal prison, followed by 10 years of supervised release for failing to update his sex offender registration as required by the Sex Offender Registration and Notification Act, U.S. Attorney Booth Goodwin announced. Dwaine Allen Collins, also known as “Dwaine Allen Cline,” 54, previously was convicted after a bench trial in September.
“Just last week, I joined fellow law enforcement officials in Beckley to announce the results of a blitz that netted 54 sex offenders who were out of compliance with the law,” U.S. Attorney Booth Goodwin said. “Our message was straightforward: If you are out of compliance, we will track you down and we will bring you to justice.” Goodwin added, “This sentencing helps underscore that sex offender registration is not optional.”
On July 8, 1998, Collins was convicted of two counts of indecent liberties with a child in the Cumberland County Superior Court, in Cumberland, North Carolina. As a result of this sex offense conviction, Collins was required to register as a sex offender for 15 years under federal law.
An investigation conducted by the United States Marshals Service revealed that Collins registered as a sex offender in Ohio on August 22, 2001.The investigation further revealed that on or after February 23, 2011, Collins traveled from Ohio to West Virginia, where he resided in Parkersburg, Wood County, W.Va. Collins was found to have not his sex offender registration in West Virginia as required by the Sex Offender Registration and Notification Act.
As a result of three law enforcement-led regional sweeps, a combined total of more than 1000 sex offender compliance checks have completed over the past year.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Jennifer Rada handled the prosecution. The sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Parkersburg Man Sentenced to 2 ½ Years in Prison for Violating Federal Sex Offender Registration LawRead the Press Release
HUNTINGTON, W.Va. – A Parkersburg man was sentenced yesterday to two and a half years in federal prison, followed by 10 years of supervised release for failing to update his sex offender registration as required by the Sex Offender Registration and Notification Act, U.S. Attorney Booth Goodwin announced. Dwaine Allen Collins, also known as “Dwaine Allen Cline,” 54, previously was convicted after a bench trial in September.
“Just last week, I joined fellow law enforcement officials in Beckley to announce the results of a blitz that netted 54 sex offenders who were out of compliance with the law,” U.S. Attorney Booth Goodwin said. “Our message was straightforward: If you are out of compliance, we will track you down and we will bring you to justice.” Goodwin added, “This sentencing helps underscore that sex offender registration is not optional.”
On July 8, 1998, Collins was convicted of two counts of indecent liberties with a child in the Cumberland County Superior Court, in Cumberland, North Carolina. As a result of this sex offense conviction, Collins was required to register as a sex offender for 15 years under federal law.
An investigation conducted by the United States Marshals Service revealed that Collins registered as a sex offender in Ohio on August 22, 2001.The investigation further revealed that on or after February 23, 2011, Collins traveled from Ohio to West Virginia, where he resided in Parkersburg, Wood County, W.Va. Collins was found to have not his sex offender registration in West Virginia as required by the Sex Offender Registration and Notification Act.
As a result of three law enforcement-led regional sweeps, a combined total of more than 1000 sex offender compliance checks have completed over the past year.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Jennifer Rada handled the prosecution. The sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Olmsted Falls Man Sentenced to Two Years in Prison for Copper TheftRead the Press Release
An Olmsted Falls man was sentenced to two years in prison today, the fifth person sentenced to prison for their roles in a conspiracy to steal copper from two dozen substations in Northeast Ohio owned by First Energy or Cleveland Public Power, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
William Bertini, 26, was also ordered to pay more than $206,000 in resitution to First Energy Corp. by U.S. District Judge Benita Pearson.
Bertini and six other men pleaded guilty earlier this year to conspiracy to damage energy facilities. Previously sentenced are:
Christopher M. Butts, 27, of Cleveland, to four years and seven months in prison.
Jason B. Kauffman, 35, of Cleveland, to three years and one month in prison.
Julio Torres, 46, of Cleveland, to two year and three months in prison.
Jon T. Lefort, 26, of Cleveland, to one year and three months in prison
Keven Wenson, 22, of Lakewood, to two years of supervised release.
Michael T. Butts, 33, of Brooklyn, is scheduled to be sentenced early next year.
“These sentences should send a message that the theft of copper and other scrap metal is a serious problem in our region, and the targeting of energy facilities additionally poses a significant threat to our national security infrastructure.” Dettelbach said.
“The potential of harm posed by these individuals to enrich themselves while risking lives and posing serious threats to our community will not be tolerated. The FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community in harm’s way.”
The thefts took place between January and May 2013 and included substations in Brooklyn, Parma, Brecksville, Fairlawn, Medina, Cleveland, Wadsworth, Lakewood, Cuyahoga Heights, Independence, Vermillion, Lorain, Avon Lake, Westlake and Valley View, according to court documents.The 24 substations listed in the indictment have copper material around their bases that facilitated the transmission of electricity. Removal of the copper material from a substation causes a substantial risk of electrical blackouts as well as possible injury or death to utility company employees responsible for maintaining, servicing and repairing the substations, according to court documents.
Christopher and Michael Butts instructed Lefort, Bertini, Kauffman, Wenson and Torres how to remove the copper material from the substation in a way that would minimize the risk of physical harm to the person cutting the wire or cable. The defendants used bolt cutters to cut fencing and/or locks protecting the substations, according to court records.
The defendants then unlawfully extracted the copper wire and materials from the substations, manually carrying it in garbage cans, duffel bags, contractor bags and other containers to “staging areas.” From there, the copper material was transported to scrap yards, where it was sold for cash, according to court documents.
Court documents detail 25 copper thefts and five attempted thefts. It also lists 53 instances where at least some of the defendants sold stolen copper to area scrap yards between January and April 2013.
The defendants collectively sold the stolen copper for more than $15,000. They have collectively been ordered to pay $242,626 to First Energy Corp. for the cost of repairs to the substations.
This case is being prosecuted by Assistant U.S. Attorneys Thomas E. Getz and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Avon Lake Police Department, Brecksville Police Department, Medina County Sheriff’s Office, Middleburgh Heights Police Department, Valley View Police Department and Northeast Ohio Regional Fusion Center, and assistance from the Medina County Prosecutor’s Office.