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17 December 2013
Bankruptcy Fraud Results in Federal PrisonRead the Press Release
HOUSTON – Darren David Chaker, 41, of Beverly Hills, Calif., and Las Vegas, Nev., has been ordered to federal prison following his conviction of bankruptcy fraud, announced United States Attorney Kenneth Magidson. Chaker was found guilty April 4, 2013, following a five-day bench trial before U.S. District Judge Nancy Atlas.
Today, Judge Atlas sentenced Chaker to a term of 15 months in prison to be immediately followed by a three-year-term of supervised release. He was further ordered to pay a $2000 fine. As part of the sentencing, Judge Atlas included special conditions that he not stalk or harass anyone and obtain mental health counseling and anger management. In handing down the sentence, Judge Atlas noted that the bankruptcy system depends on the reliability of those who petition for bankruptcy relief and added that the case involved a defendant who could not tell the truth to the court. She rejected Chaker’s request for a sentence of probation, calling this a significant crime and finding that a sentence of custody is critical.
The evidence at trial showed that Chaker filed bankruptcy under Chapter 13, in which a debtor is required to propose a plan of reorganization to pay the debtor’s creditors over time. The debtor is required to pay at least as much as the creditors would receive if the debtor’s assets were liquidated on the date of the filing of the bankruptcy petition. The process is designed to achieve an orderly transfer of a debtor’s assets to creditors from available assets truthfully and accurately disclosed and to provide a “fresh start” to honest debtors by allowing them to obtain a discharge or release of debt incurred prior to filing bankruptcy.
According to the evidence, Chaker filed for bankruptcy under Chapter 13 on March 6, 2007. Specifically, on or about March 26, 2007, during a bankruptcy hearing before the Honorable Jeffrey Bohm, while under oath, Chaker falsely and fraudulently represented to the court that the property was never leased out prior to January 2007, when he had in fact previously contracted with a realtor who secured at least two rental contracts with Chaker personally. Chaker failed to disclose income and the existence of past and present residential leases of a residential property facing foreclosure in Houston to his creditor, Saxon Mortgage in the hearing and to the court.
In order for the bankruptcy system to work for all parties, it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system - the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
Chaker will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI with assistance from the United States Trustee’s Office and is being prosecuted by Assistant United States Attorneys Carolyn Ferko and Sharad Khandelwal.
Baltimore Brothel Operator Sentenced to over 11 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, today to 140 months in prison, followed by five years of supervised release, for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Jamar Simmons. Judge Russell ordered that upon his release from prison, Coit must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, Coit and Simmons operated a brothel in Baltimore City on Madison Avenue. Simmons was a Baltimore City firefighter at the time of the offense. They also rented hotel rooms and a residence in Maryland for prostitution. Coit and Simmons falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women they recruited were in financial distress, had no place to live, or were otherwise vulnerable.Coit and Simmons took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Coit and Simmons shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.
Simmons pleaded guilty to the same charge. Judge Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, on December 13, 2013 to 15 years in prison.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.Attorney General, Director of Executive Office of the U.S. Attorneys and U.S. Attorney of the Western District of Louisiana Recognizes Assistant U.S. Attorney Kelly UebingerRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Assistant U.S. Attorney Kelly P. Uebinger was recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett, with a 2013 Director’s Award.
Each year the Executive Office of the United States Attorneys recognizes the exceptional work, dedication, and distinguished achievements of the men and women of the Department of Justice, the Offices of the United States Attorneys, and partners of the law enforcement community nationwide. The recipients provide support in the United States Attorneys’ Offices, investigate and prosecute the most heinous criminals, and represent the United States in significant criminal and civil cases. All of the recipients continue to make major contributions to the Offices of the United States Attorneys and to the mission of the Department of Justice. The Superior Performance award recognizes Assistant United States Attorneys (AUSAs) who have distinguished themselves through the outstanding performance of their duties in criminal matters. This year marks the 30th anniversary of the Director’s Award.
H. Marshall Jarrett and U.S. Attorney Finley presented the award to AUSA Uebinger today at a gathering at the U.S. Attorney’s Office in Lafayette. Because of sequestration, the awards presentation at the Justice Department in Washington, D.C., was canceled, but Jarrett was able to attend by video teleconference.
AUSA Kelly Uebinger received the Superior Performance as an Assistant U.S. Attorney award recognizing her exceptional work in the case of United States v. Dr. Mehmood M. Patel, a practicing cardiologist in the Lafayette area for more than 25 years.
AUSA Uebinger coordinated a joint investigation by the Department of Health and Human Services, Office of the Inspector General, and the FBI which revealed that Dr. Patel had falsified patient symptoms in medical records, falsified findings on medical tests, and performed unnecessary coronary procedures such as deploying angioplasty balloons and stents, and used radiation in coronary arteries that had little or insignificant disease. In the first criminal case of its kind in the country, Dr. Patel was indicted on 94 counts of health care fraud. During the three-year period covered by the indictment, he billed Medicare and private insurance companies more than $3 million for unnecessary cardiology services, performing procedures at two area hospitals and eventually opening his own catheterization laboratory at his private office.
Uebinger presented the government’s case to a jury during a 3 ½ month trial. Through months of pre-trial preparation, and after more than 100 witnesses and nine expert witness presentations, AUSA Uebinger accurately and effectively presented complex testimony to the jury. The jury deliberated for six days and returned a guilty verdict on 51 counts of health care fraud. Dr. Patel was sentenced to 10 years in prison, received a $175,000 fine, and was ordered to pay $387,511 in restitution.
In a personalized letter to the recipient, Attorney General Holder told the awardee that the Director’s Award for Superior Performance as an Assistant U.S. Attorney was “a significant achievement that recognizes your exceptional efforts to promote the fair and impartial administration of justice for all Americans.”
Jarrett also explained that only 155 out of nearly 800 nominees from across the United Stated were selected, and only 29 received an Award for Superior Performance as an Assistant U.S. Attorney in the criminal category.
“There is no doubt that Kelly’s performance was outstanding and moreover met these lofty requirements to earn her a Director’s Award,” Jarrett added.
“It is Kelly’s tireless work and dedication to justice on this case and throughout the years that garnered this award,” Finley stated. “Her efforts have righted wrongs in our community and continue to bear fruit. I am honored to present this award to such an outstanding member of our office.”
AUSA Kelly Uebinger joined the U.S. Attorney’s Office in August of 1992 and worked in the Shreveport office as an OCDETF AUSA until 1997. While working with the OCDETF program, she received a Director’s Award for her role in the prosecution of the Bottoms Boys, a notorious Shreveport street gang. In 1997, she transferred to the Lafayette office where she prosecutes a variety of complex white collar cases, to include health care fraud, investment fraud, embezzlement fraud and tax fraud. Ms. Uebinger currently serves as the Criminal Health Care Fraud Coordinator for the District. She received the Inspector General’s Integrity Award for the Patel prosecution.
Prior to joining the U.S. Attorney’s Office, AUSA Uebinger clerked for Magistrate Judge John F. Simon in the Alexandria Division. Ms. Uebinger has a Bachelor of Business Administration degree and graduated with a double major in Finance and International Business from Loyola University in New Orleans in 1988, and was chosen as the Outstanding International Business Graduate. In 1991, she received her Juris Doctorate from Tulane Law School.
H. Marshall Jarrett was appointed Director for the Executive Office for United States Attorneys by Attorney General Holder on April 13, 2009. The Executive Office, created in 1953, provides general guidance and supervision to the 94 United States Attorneys’ Offices and its nearly 12 thousand employees.
From left, Assistant U.S. Attorney, Kelly Uebinger and U.S. Attorney, Stephanie A. Finley
Attorney General Holder Announces $1.5 Million to<br /> Reimburse Support Efforts to Victims of the Sandy Hook Elementary School ShootingRead the Press Release
Attorney General Eric Holder today announced a $1,519,713 grant to reimburse organizations and agencies that provided direct support to victims, first responders and the community in the immediate aftermath of the mass shooting at Sandy Hook Elementary School in Newtown, Conn., on Dec. 14, 2012. The Justice Department’s Office for Victims of Crime (OVC) provided this grant to the Connecticut Judicial Branch, which administers funding for services to victims of violent crime. This initial award will be used toward costs incurred by those organizations that provided crisis intervention services, trauma-informed care, select victim-related law enforcement support and costs incurred in moving students from Sandy Hook to a new school location. OVC is working directly with Newtown city officials and the state of Connecticut to develop an additional grant application to provide more funding for long-term victim recovery.
“This funding will provide critical support to the brave women and men who responded to the devastating violence at Sandy Hook Elementary School, as well as the counselors and others who are helping the community to recover,” said Attorney General Eric Holder. “One year after the senseless violence in Newtown, we continue to mourn the innocent children and selfless adults who were taken from us on that terrible day. We admire and continue to support the community that has displayed such strength and resilience since then. And through this grant, and the additional funds that have already been provided to the Newtown Police Department and their law enforcement partners, we reaffirm our commitment to standing with the people of Newtown, the families of the victims, and all who are helping to bring help and healing to those affected by this heartbreaking tragedy.”
“OVC is committed to ensuring that the community of Newtown has the resources necessary to assist victims of this horrific crime,” said OVC Director Joye Frost. “Almost one year ago, our country was shocked to its core with this senseless slaughter of innocents; we have all mourned the loss of these young children and their courageous teachers. Through this funding, which will be administered by the Connecticut state government, OVC is supporting the critically important work of the school system, social service and medical organizations and the city government as they continue to assist victims. I am humbled by the courage and resoluteness of the victims, first responders, educators, town leaders and residents of Newtown for their support of one another and their incredible grace and dignity in the aftermath of this tragedy.”
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an Antiterrorism and Emergency Assistance Program (AEAP) grant award for crisis response, criminal justice support, crime victim compensation and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the shootings in Oak Creek, Wis. (2012); Aurora, Colo. (2012); Tucson, Ariz. (2011); Binghamton, N.Y. (2009); and at the Virginia Polytechnic Institute and State University (2007).
For more information on the AEAP program, please visit: www.ojp.usdoj.gov/ovc/AEAP/index.html.
OVC is one of six components in the Justice Department’s Office of Justice Programs (OJP), which is headed by Assistant Attorney General Karol V. Mason. OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. In addition to OVC, OJP’s components include: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Albuquerque Man Sentenced to Sixty-Three Months in Prison for Federal Wire Fraud and Money Laundering ConvictionRead the Press Release
ALBUQUERQUE – Rodney Chavez, 47, of Albuquerque, N.M., was sentenced yesterday afternoon to 63 months in federal prison followed by three years of supervised release for his wire fraud and money laundering conviction. Chavez also was ordered to pay restitution in the amount of $847,370.52 to the victims of his criminal conduct. He also was ordered to forfeit $233,548.40 in funds that were seized from three bank accounts during the investigation of the case. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Chavez and his co-defendants, Wayne Brian Church, Jr., 28, and Joshua G. Ellis, 43, both of Albuquerque, were charged in Jan. 2012, with wire fraud and money laundering charges in a 22-count indictment that generally alleged that the three men defrauded investors of more than $800,000 in a real estate venture. Chavez and Church were arrested based on the charges in the indictment in Feb. 2012. Ellis has yet to be arrested and is considered a fugitive.
After Church pleaded guilty in Aug. 2012 to a felony information charging him with conspiracy to commit wire fraud, Chavez and Ellis were charged in a 21-count superseding indictment filed in Oct. 2012. The superseding indictment charged Chavez and Ellis with conspiracy to commit wire fraud and five substantive wire fraud offenses. It also charged Chavez with conspiracy to launder the proceeds generated by their fraudulent activities and 14 substantive money laundering offenses, and sought forfeiture of the proceeds of the defendants’ unlawful activities.
On Sept. 9, 2013, Chavez pled guilty to Counts 6 and 7 of the superseding indictment, charging him with wire fraud and conspiracy to commit money laundering, respectively. In his plea agreement, Chavez admitted that, between March 2010 and April 2011, he designed and executed a scheme to defraud a group of investors of their interest in certain properties located in Puerto Peñasco, Mexico. Chavez embarked on the scheme after learning that the investors were interested in selling the properties at a substantial loss after realizing that they would not be able to recoup the full amount of their original investments. In March 2010, Chavez contacted a representative of the investor group under an assumed identity and entered into an agreement to sell the properties on behalf of the investors with the understanding that the investors would receive a return of 30% of their original investments. Despite his stated intention to sell the properties and distribute the agreed amount to the investors, Chavez admitted that he never intended to honor that agreement and instead intended to defraud the investors by selling the properties and retaining the proceeds for himself.
According to the plea agreement, while falsely assuring investors of his efforts to sell the properties on their behalf, Chavez hired a real estate agent to sell the properties and sold five properties, the sales of which generated approximately $847,370.52 in proceeds. After the proceeds were wire-transferred to a bank in Albuquerque with assistance from Church, Chavez did not distribute the proceeds to the investors. Instead, Chavez and Church kept the proceeds and conspired to conceal the source of the proceeds by transferring the money to bank accounts held in the names of businesses they exclusively controlled. None of the proceeds from the sale of properties were returned to the investors.
Church remains on conditions of release pending his sentencing hearing when he faces a maximum penalty of 30 years in prison. The charges in the superseding indictment against Ellis are merely accusations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Albuquerque Man Pleads Guilty to Robbing Western Commerce Bank in September 2013Read the Press Release
ALBUQUERQUE – Solas Jansen, 36, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with bank robbery under a plea agreement with the U.S. Attorney’s Office.
Jansen was arrested on Sept. 29, 2013, based on a criminal complaint charging him with robbing the Western Commerce Bank located at 1910 Wyoming Blvd. NE in Albuquerque on Sept. 24, 2013. Jansen committed the robbery by presenting a demand note to a bank teller who complied with Jansen’s demand for money. As Jansen was leaving the bank, surveillance cameras captured video images of Jansen as he ran away from the bank. On Sept. 26, 2013, after the surveillance camera images of Jansen were broadcast by local media outlets, a tipster contacted the Albuquerque Police Department and identified Jansen as the bank robber. On Sept. 27, 2013, the FBI presented a photo array that included Jansen’s photograph to the victim bank teller who identified Jansen as the bank robber.
During today’s plea hearing, Jansen admitted robbing the bank. Jansen has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Jansen faces a maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.ALBUQUERQUE – Solas Jansen, 36, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with bank robbery under a plea agreement with the U.S. Attorney’s Office.
Jansen was arrested on Sept. 29, 2013, based on a criminal complaint charging him with robbing the Western Commerce Bank located at 1910 Wyoming Blvd. NE in Albuquerque on Sept. 24, 2013. Jansen committed the robbery by presenting a demand note to a bank teller who complied with Jansen’s demand for money. As Jansen was leaving the bank, surveillance cameras captured video images of Jansen as he ran away from the bank. On Sept. 26, 2013, after the surveillance camera images of Jansen were broadcast by local media outlets, a tipster contacted the Albuquerque Police Department and identified Jansen as the bank robber. On Sept. 27, 2013, the FBI presented a photo array that included Jansen’s photograph to the victim bank teller who identified Jansen as the bank robber.
During today’s plea hearing, Jansen admitted robbing the bank. Jansen has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Jansen faces a maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Albuquerque Man Pleads Guilty to Being an Armed Career Criminal and Heroin TraffickingRead the Press Release
ALBUQUERQUE – Arthur Sanchez, 35, of Albuquerque, N.M., pleaded guilty this morning to a two-count indictment charging him with heroin trafficking and being an armed career felon in possession of a firearm and ammunition. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Albuquerque Police Chief Allen Banks.
Sanchez was arrested on state charges on March 30, 2011, after officers of the Albuquerque Police Department observed Sanchez throw an object out of his vehicle’s window when they pulled him over for a traffic violation. The object was a package containing approximately 22 grams of heroin. The officers subsequently recovered a pistol with a loaded magazine from Sanchez’s vehicle.
In March 2013, Sanchez was indicted federally and charged with possession of heroin with intent to distribute and being a felon in possession of a firearm and ammunition based on the conduct occurring on March 30, 2011. At the time, Sanchez was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses: aggravated assault and auto burglary; robbery; and aggravated robbery with a firearm. The related state charges were dismissed after Sanchez was transferred to federal custody in April 2013.
During today’s proceedings, Sanchez entered a guilty plea to both counts of the indictment. Sanchez admitted intentionally possessing heroin on March 30, 2011, with the intention of distributing it. He also admitted possessing a loaded pistol on that day.
Sanchez will remain detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Sanchez will be sentenced to 15 years in federal prison followed by three years of supervised release. Sanchez will receive this enhanced sentence because of his status as an armed career criminal.
Sanchez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Alabama Real Estate Developer Pleads Guilty to Filling Protected Mississippi WetlandsRead the Press Release
William R. “Rusty” Miller, a real estate developer from Fairhope, Ala., pleaded guilty today in federal district court in Gulfport, Miss., to the unpermitted filling of wetlands near Bay St. Louis, Miss., in violation of the Clean Water Act, announced U.S. Attorney for the Southern District of Mississippi Gregory K. Davis and Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division.
Miller, admitted to having caused the excavation and filling of wetlands on a 1,710 acre parcel of undeveloped property in Hancock County, west of the intersection of Route 603 and Interstate 10. The charging document to which the defendant pleaded guilty states that Miller was a part-owner of corporations that purchased and intended to develop the land. It alleges that in 2001 when Miller and his companies acquired the property, he was informed by a wetland expert that as much as 80 percent of the land was federally protected wetland connected by streams and bayous to the Gulf of Mexico and as such could not be developed without a permit from the U.S. Army Corps of Engineers. Wetland permits typically require that developers protect and preserve other wetlands to compensate for those they are permitted to fill and destroy. In spite of additional notice he had received of the prohibition against filling and draining wetland without authorization, it is alleged that Miller hired excavation contractors to trench, drain, and fill large portions of the property to lower the water table and thus to destroy the wetland that would otherwise be an impediment to commercial development.
In pleading guilty, defendant Miller has acknowledged that he knowingly ditched, drained and filled wetlands at 10 locations on the Hancock County property without having obtained a permit from the U. S. Army Corps of Engineers.
“This conviction is the latest in a series of enforcement actions the Department of Justice has initiated to preserve the wetlands that protect the Gulf coast from storms and that nourish the Gulf’s fisheries and support its marine life,” said Acting Assistant Attorney General Dreher. “Those who unlawfully destroy this valuable natural resource, either by pollution or by development, will face vigorous prosecution.”
It is a felony under the Clean Water Act for any person knowingly to discharge pollutants into waters of the United States without a permit. Any person convicted of this offense is subject to imprisonment of up to three years and a penalty of not more than $250,000. A sentencing hearing has been scheduled before Chief District Court Judge Louis Guirola, Jr. of the Southern District of Mississippi on March 17, 2014.Alabama Man Sentenced to Maximum 20 Years in Federal Prison for Assault of U.S. Border Patrol Agents Near Langtry, TexasRead the Press Release
Incident resulted in the deaths of two area residents and serious injury to a third
In Del Rio this afternoon, 39-year-old David Steiner of Vinegar Bend, AL, was sentenced to 20 years in federal prison after pleading guilty to felony assault of a U.S. Border Patrol agent announced United States Attorney Robert Pitman and Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol.
In addition to the prison term, United States District Judge Alia Moses ordered that Steiner pay $4,390 restitution to the owner of the vehicle he stole and wrecked. Judge Moses also ordered that Steiner be placed on supervised release for a period of three years after completing his prison term.
In July, Steiner pleaded guilty to one count of assaulting, resisting, or impeding an officer by using a deadly or dangerous weapon. By pleading guilty, Steiner admitted that on May 25, 2012, he used his vehicle to charge at three Border Patrol agents near Langtry, TX, during an attempt to avoid potential detention after fleeing from a traffic stop near Comstock, TX.
As a result of Steiner’s actions, the agents were forced to drive off the paved roadway to avoid being struck by Steiner. While looking for Steiner, agents came upon a vehicle accident near Sanderson, TX, wherein Steiner hit an oncoming vehicle killing two occupants and gravely injuring the driver while trying to evade law enforcement.
This case was investigated by agents with the Department of Homeland Security – U.S. Customs and Border Protection Office of Internal Affairs with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kinney County Sheriff’s Office, Terrell County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney Ralph Paradiso prosecuted this case on behalf of the Government.
ATM "Skimmer" Found Guilty by Orlando JuryRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that a federal jury today found Marin Gigore Dobre (36, a citizen of Romania) guilty of possession of device making equipment. He faces a maximum penalty of 15 years in federal prison. A sentencing hearing has been set for March 10, 2013.
Dobre was indicted on October 9, 2013.
According to testimony and evidence presented at trial, between September 11, 2013 and September 13, 2013, Dobre was part of a team from Romania that had installed skimming devices on at least two bank ATMs in Orlando. A “skimmer” device captures a person’s account information stored in the magnetic strip on credit and debit cards. Bank officials were alerted to installation of the first device by an alert bank customer, and when a second device was installed two days later, the bank notified the Orange County Sheriff’s Office. Sheriff’s deputies began surveillance at the second ATM location and observed Dobre serving as a lookout, while his associate (Cristian Octavian Barbu, 31) removed the skimmer device from the ATM. Both men were apprehended at the scene.
Barbu pleaded guilty on December 2, 2013. His sentencing hearing is scheduled for March 10, 2014.
This case was investigated by the U.S. Secret Service and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
26 Individuals Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2013, a federal grand jury in the District of Puerto Rico returned an indictment against 26 defendants charged with conspiracy to possess with intent to distribute heroin, crack, cocaine and marihuana, and firearms offenses announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department were in charge of the investigation, in collaboration with the US Marshal Services and the Puerto Rico Department of Corrections.
The object of the conspiracy was to distribute controlled substances at the Francisco Figueroa Public Housing Project (PHP) located in the Municipality of Añasco, Puerto Rico, all for significant financial gain and profit. According to the indictment, beginning in 2010, as part of the manner and means of the conspiracy, the drug distribution points would be moved through different locations at the PHP to avoid detection by law enforcement. It was further part of the manner and means of the conspiracy that members of the drug trafficking organization would use force, violence, and intimidation in order to intimidate rival drug trafficking organizations and discipline members of their own drug trafficking organization.
The leader of the organization, Nestor Class-Hernàndez, aka “Papito,” had the final approving authority as to the discipline to be imposed upon residents of the PHP, members of the conspiracy, as well as its enemies and rivals. The other leaders/drug point owners are: Ángel A. Méndez-Gonzàlez, aka “Corina;” Amaury Balbino-Nazario, aka “Amaury;” and Carlos L. Carrero-Ramos, aka “Carlitos.”
The other co-conspirators are: Luis Fosse-Morales, aka “Pito,” Henry Rodríguez-López, aka “Moña;” Ovidio Datiz-Rodríguez; Francis H. Roman-Tavares, aka “Fanfi;” José J. López-Calero, aka “El Gordo;” Ana Hernàndez-Valentin, aka “La Tia;” Isoel Cuevas-Medina; Wilmy Pacheco-Ureña, aka “Caco;” Jorge Israel Bonilla-Irizarry; Wilson Quintana-Hernàndez, aka “Bimbo;” Joshua Class-Hernàndez; Mark Anthony Irizarry-Rivera, aka “Mikey;” Josue Class-Hernàndez, aka “Chino;” Ruben Alexis Ruiz-Vàzquez, aka “Mozan;” Johanna Irizarry-Rodríguez; Julio Ruiz-Mayo; Oniel J. Ruiz-Torres; Carlos Claudio-Aquino, aka “Carli Bemba;” Nelson Junio Ruiz-Justiniano, aka “Rockerito;” Annette Gaya-Concepción; Juan C. Bracero-Crespo, aka “Joaquin;” and Christopher Acevedo-Díaz, aka “Bocajo.”
According to the indictment, the 26 co-conspirators had many roles in order to further the goals of the conspiracy. These were: four (4) leaders/drug point owners; five (5) suppliers and facilitators; three (3) enforcers; five (5) runners; twelve (12) sellers; nine (9) drug processors and facilitators. Twenty-five of the twenty-six defendants face one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime.
“This drug trafficking organization has been identified as one of the major narcotic distribution organizations operating in the Western portion of Puerto Rico. Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, while ensuring that they face justice for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, to reduce gang violence and to bring narcotics and firearms violators to justice.”
“Today DEA, with the support of our Commonwealth and Federal counterparts, neutralizes a violent drug trafficking organization terrorizing the law abiding citizens of the Francisco Figueroa Public Housing Project in Añasco and whose tentacles extended to the towns of San Sebastian and Mayagüez,” said Vito Salvatore Guarino, the Special Agent in Charge of the Drug Enforcement Administration in Puerto Rico and the Caribbean. “DEA will continue attacking the drug trafficking organizations in every corner of the Island as part of our commitment to help the Commonwealth authorities reduce the drug related violence affecting our communities.”
The case is being prosecuted by Assistant U.S. Attorney Dennise N. Longo. If convicted, the defendants could face from 10 years up to life in prison.
26 Indicted on Racketeering and Drug Charges Related to Violence and Drug Dealing in the Cherry Hill Area of BaltimoreRead the Press Release
Indictments Allege Gangs Involved in Five Murders, Shootings and Bank Robberies
Baltimore, Maryland - A federal grand jury has indicted 21 individuals in two separate indictments on racketeering conspiracy and drug charges related to their alleged drug dealing and violence in the Cherry Hill section of Baltimore. In a third indictment, an additional five defendants are charged in a drug conspiracy in the same area. The indictments were returned on December 4, and December 11, 2013, and unsealed today upon the arrest of 11 defendants. Nine of the defendants were already detained on state charges.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
“The defendants allegedly belong to rival drug gangs that have terrorized Cherry Hill, resulting in five murders as well as numerous shootings and robberies,” said U.S. Attorney Rod J. Rosenstein. “For other criminals in Cherry Hill who were not arrested today, these indictments send a clear message to stop the violence or be prepared to spend the rest of your life in a federal prison far from home.”
Fifteen individuals are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and oxycodone as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” On July 21, 2013, one of the alleged members of UDH, Gregory Sykes-Bey, posted the following message to Facebook: “They say ur nobody until somebody kills u but where im from ur nobody until u kill somebody.”
In the second indictment, six individuals are charged in a separate racketeering conspiracy as members of the Little Spelman organization, which operates in the “Down the Hill,” section of Cherry Hill, as well as a conspiracy to distribute heroin, powder and crack cocaine and marijuana.
According to the indictments, the members of UDH and Little Spelman were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. Specifically, the indictments allege that beginning in 2011, UDH and Little Spelman were involved in a dispute that resulted in three murders and the shootings of two others. In addition, the indictments allege that members of UDH committed two bank robberies.
Five other defendants are charged with conspiracy to distribute crack cocaine and heroin, and the UDH indictment alleges that UDH was in a long-running dispute with an organization known as Coppin Court that is involved in criminal activity in the ‘Down the Hill’ section of Cherry Hill.
All 26 defendants face a maximum sentence of life in prison.
The defendants arrested today are expected to have an initial appearance in U.S. District Court in Baltimore. Initial appearances for those defendants detained on state charges have not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Joshua Kaul and Brooke Carey, who are prosecuting the case.
See Attachment A for list of defendants.
ATTACHMENT A
Cherry Hill DefendantsUDH Indictment:
Steven Jackson, a/k/a Cutty, age 23, of Baltimore; Eugene Anderson, a/k/a Petey, age 36, of Baltimore; Asim Benns, a/k/a Seem, age 30, of Baltimore; Ronald Hall, a/k/a JJ, age 37, of Baltimore; Delano Johnson, a/k/a Lano, age 36, of Baltimore; Tony Johnson, a/k/a Tony Mack, age 29, of Baltimore; Rashaud Kearney, a/k/a TT, age 20, of Baltimore; Russell Lumpkins, a/k/a Mr. Man, age 26, of Baltimore; Demond Pinkney, a/k/a Cal, age 28, of Baltimore; Clarence Shipley, a/k/a Mook, age 26, of Baltimore; Gregory Sykes-Bey, age 20, of Baltimore; Bryan Turner, a/k/a BT, age 28, of Baltimore; and
Antione White, a/k/a Twan, age 25, of Baltimore.Little Spelman Indictment:
Davon Martin, a/k/a Ack and Black, age 25, of Baltimore; Brian Parker, a/k/a ES, age 35, of Baltimore; Shaquan Robinson, a/k/a Quanny, age 22, of Baltimore; and
Richard Williams, a/k/a Wis, age 22, of Baltimore.Third Indictment:
Danna Fraser, a/k/a Stroke, age 25, of Baltimore; Ernest Thomas, a/k/a EJ, age 25, of Baltimore; and
Melvin Truesdale, a/k/a MJ, age 20, of Baltimore.
16 December 2013
Wichita Man Who Sold ScootersPleads Guilty to Tax EvasionRead the Press Release
WICHITA, KAN. A Wichita man who owned a business that sold scooters has pleaded guilty to tax evasion, U.S. Attorney Barry Grissom said today.
Dinh Nguyen, 31, Wichita, Kan., who owned BN Scooters, pleaded guilty Monday to one count of tax evasion. In his plea, he admitted he owed substantial income tax in addition to the tax liability he reported on his 2006 income tax return. He knew he was making a false statement when he reported he did not owe any income tax.
Sentencing is set for March 3, 2014. He faces a maximum penalty of five years in federal prison and a fine up to $100,000. The parties have agreed that the court will determine the amount of tax owed at the sentencing hearing.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney David Lind for their work on the case.
Wichita Man Sentenced to Five Years for Marijuana TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man has been sentenced to federal prison for marijuana trafficking, U.S. Attorney Barry Grissom said today.
James Kasinger, 38, Wichita, Kan., was sentenced Monday to five years in federal prison. He pleaded guilty to one count of conspiracy to distribute marijuana. In his plea, he admitted that he and other conspirators distributed more than 100 kilograms of marijuana. Specifically, he helped other conspirators break down loads of marijuana, distribute the marijuana and pack U.S. currency to send to Mexico to pay for the marijuana.
One of Kasinger’s co-defendants, Osbaldo Garcia Garcia, was sentenced in November to 41 months. In his plea, Garcia Garcia admitted using a telephone on Dec. 12, 2011, to talk with another conspirator about a problem with a shipment of marijuana. The caller asked Garcia Garcia to find out what had happened. In fact, the Wichita Police Department and the Drug Enforcement Administration had served a search warrant and seized a significant quantity of marijuana from hidden compartments in tractors.
Grissom commended the Drug Enforcement Administration, the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
West Plains Men Sentenced for Drug TraffickingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two West Plains, Mo., men have been sentenced in federal court for their roles in a conspiracy to distribute methamphetamine and marijuana in Howell County, Mo.
Joseph R. Ledwa, 63, and David L. Collins, 38, both of West Plains, were sentenced by U.S. District Judge Beth Phillips on Thursday, Dec. 12, 2013. Ledwa was sentenced to 15 years in federal prison without parole and must forfeit to the government $43,871 that was seized by law enforcement officers during the investigation, as well as 10 firearms and miscellaneous ammunition that were seized during the investigation. Collins was sentenced to eight years and four months in federal prison without parole and must forfeit to the government two rifles that were seized by law enforcement officers during the investigation.
Ledwa pleaded guilty on May 28, 2013, to his role in a conspiracy to distribute 50 grams or more of methamphetamine and 100 kilograms or more of marijuana in Howell County from April 2009 to May 19, 2011. Ledwa also pleaded guilty to one count of possessing a firearm in furtherance of that drug-trafficking conspiracy, and two counts of illegally possessing firearms.
According to Ledwa’s plea agreement, the total amount that the government can prove Ledwa distributed is at least 50 grams, but less than 150 grams of actual methamphetamine and at least 2.5 kilograms but less than five kilograms of marijuana.
Ledwa admitted that he was in possession of a Ruger .45-caliber pistol on Dec. 20, 2009, which he carried in order to protect himself while distributing methamphetamine and marijuana.
Ledwa also admitted that he was in possession of 11 firearms – including pistols, revolvers, shotguns and rifles – on Dec. 20, 2009. He was also in possession of a Saiga 7.62x39-caliber rifle on Aug. 13, 2010. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ledwa has a prior felony conviction for robbery.
On Nov. 19, 2012, Collins pleaded guilty to his role in the drug-trafficking conspiracy, to being a felon in possession of firearms and to possessing a firearm in furtherance of a drug-trafficking crime.
Collins admitted that he initially received “eight ball” (3.5 grams) quantities of methamphetamine from Ledwa to distribute, but then began to receive larger amounts (seven to 14 grams). Within a couple of months, Collins was receiving one to four ounces of methamphetamine a week from Ledwa. During the conspiracy, Collins also received marijuana from Ledwa for distribution.
On two occasions, Collins admitted, he assisted Ledwa in obtaining methamphetamine from Ledwa’s source of supply. On both occasions the two traveled to pick up methamphetamine. On one occasion, Ledwa gave Collins $10,000 and Collins went to Kansas City and obtained 7.5 ounces of methamphetamine from one of Ledwa’s sources.
Collins also admitted that he was in possession of a Smith & Wesson .38-caliber revolver on May 19, 2011. On this date, Collins was in possession of a distribution amount of methamphetamine and marijuana. Law enforcement officers executed a search warrant at Collins’s residence the same day and found various controlled substances in the master bedroom, along with the revolver, which Collins admitted he had for protection.
Collins, who has a prior felony conviction, was also in possession of a Mossberg .22-calbier rifle and a Remington .22-caliber rifle on May 19, 2011.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Central Drug Task Force, the Howell County, Mo., Sheriff’s Department, the Kansas City, Mo., Police Department, and the Grandview, Mo., Police Department.Veteran Sentenced for Fraudulent Receipt of Travel Reimbursement Benefits from Department of Veterans Affairs Medical Center in White River JunctionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on December 12, 2013, Scott Lavertue, 45, of Vershire, Vermont, was sentenced to five years of probation, including a four-month period of home confinement, and restitution in the amount of $24,637.29.
Under certain circumstances, the Department of Veterans Affairs reimburses veterans’ transportation costs when they travel to and from a VA medical facility for treatment. According to court records, Lavertue submitted 340 mileage reimbursement claims between November 2, 2009 and April 20, 2011. The bulk of these reimbursement forms Lavertue submitted indicated that he was living in Richford, Vermont, which is located along the U.S./Canada border approximately 127 miles from the VA Medical Center in White River Junction, Vermont. At the time he made these claims for reimbursement, Lavertue was not actually living at the Richford address, but rather at a location much closer to the VA facility.
On August 12, 2013, Lavertue pled guilty to knowingly submitting false claims for reimbursement to the VA, and agreed to pay restitution in the amount of the fraudulent proceeds.
United States Attorney Tristram, J. Coffin commented that the travel program provides financial reimbursement to veterans so that they can more easily receive the medical treatment they deserve at VA medical facilities. The fraud in this case diverted important financial resources from the VA’s critical mission of caring for our veterans.
This case was investigated by the Department of Veterans Affairs Office of Inspector General with assistance from the Veterans Affairs Police and VA Medical Center Management.This case was prosecuted by Assistant United States Attorney Kevin J. Doyle. Lavertue is represented by Michael L. Desautels, Federal Defender for the District of Vermont.
Valentino Bagola Sentenced to Life in Prison for First Degree Murders of Two Children on Spirit Lake ReservationRead the Press Release
FARGO—U.S. Attorney Timothy Q. Purdon announced that on Dec.16, 2013, Valentino Bagola, 20, of St. Michael, N. D., was sentenced by U.S. District Judge Ralph R. Erickson on two charges of first-degree murder.
Judge Erickson sentenced Bagola to life in prison on each of two counts of first degree murder. The life sentences will be served concurrently. Bagola was convicted by a federal jury on September 23, 2013, for the May 19, 2011, stabbing deaths of 9-year-old Destiny Shaw and 6-year-old Travis DuBois, Jr. in St. Michael, on the Spirit Lake Reservation.
In Fargo, U.S. Attorney Timothy Purdon said, “The life sentences imposed today cannot bring Destiny and Travis, Jr. back or undo any of the horror of these criminal acts. It does, however, provide some measure of justice to these victims, their family, and the Spirit Lake Community. It was this commitment to obtaining justice for Destiny and Travis, Jr. that kept us going in the 14-month search-for-the-truth between the discovery of the bodies of these children and the Indictment in this case. It was this same desire that sustained our incredibly skilled trial team of Assistant United States Attorneys, trial support staff from the U.S. Attorney’s Office, FBI Agents and FBI Laboratory personnel through a grueling three-week trial. The resources and effort brought to bear on this investigation by the federal law enforcement agencies and the U.S. Attorney’s Office should leave no doubt as to the Department of Justice’s commitment to the cause of public safety in Indian country.”
In Minneapolis, Special Agent in Charge Chris Warrener, who heads the FBI’s Minneapolis Division that includes North Dakota said, ”The FBI remains steadfast in its commitment to ensuring that those who commit such horrific crimes on Spirit Lake Nation lands are brought to justice. We, along with our partners at the Bureau of Indian Affairs and the Spirit Lake Tribal authorities, will continue in our efforts to safeguard public safety at Spirit Lake."
In the early morning hours of May 19, 2011, Bagola entered the Dubois/Shaw residence in the St. Michael housing area located on the Spirit Lake Indian Reservation. Bagola, an enrolled member of the Sisseton-Wahpeton Sioux tribe, armed himself with a knife found in the residence and entered the bedroom of Destiny Shaw, age 9, and began to sexually assault her. At some point, Destiny’s brother, Travis Dubois, Jr., age 6, interrupted the sexual assault. Using the knife, Bagola stabbed Travis, Jr. approximately 60 times. Travis, Jr. died from these stab wounds. During the murder of Travis Dubois, Jr., the knife Bagola was using broke. Bagola then retrieved another knife from the residence and stabbed Destiny Shaw, inflicting approximately 40 stab wounds which led to her death.
After discovery of the bodies of the two child victims, a 14-month investigation ensued to identify the killer. This investigation was complicated by the fact that the children’s father falsely confessed to the killings in the days following the discovery of their bodies. The investigation included the thorough examination of a vast amount of forensic evidence gathered at the murder scene and law enforcement interviews of many, many individuals. Eventually, forensic analysis by the FBI laboratory of DNA found under the fingernails of Destiny Shaw and of a bloody palm-print found at the murder scene identified Bagola as a suspect in the killings. Bagola was then interviewed by FBI Agents, confessed to the sexual assault of Destiny Shaw and the murders of the two children, and relayed to the FBI Agents non-public details that were known only to the killer.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, the North Dakota Bureau of Criminal Investigation, and the FBI Laboratory in Quantico, Virginia.
Assistant U.S. Attorneys Chris Myers, Clare Hochhalter, Janice Morley and Scott Schneider prosecuted the case.
U.S. Attorney’s Office for the Western District of Michigan Honored by Department of Defense for Support of Employees Serving in the Guard and ReserveRead the Press Release
GRAND RAPIDS, MICHIGAN – Michigan Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, joined U.S. Attorney Patrick A. Miles, Jr., in announcing today that the US Attorney’s Office for the Western District of Michigan was honored with a Patriot Award in recognition of its extraordinary support of its employees serving in the United States military Reserve Components. U.S. Attorney Miles accepted the award on behalf of the office.
According to Paul Ryan, Michigan ESGR State Chair, “the Patriot Award was created by ESGR to publicly recognize individuals who provide outstanding patriotic support and cooperation to their employees, who like the citizen warriors before them, have answered their nation’s call to serve. U.S. Attorney Patrick A. Miles, Jr. and the U.S. Attorney’s Office for the Western District of Michigan were nominated for being highly supportive of the Reserve Service. Supportive supervisors are critical to maintaining the strength and readiness of the nation’s Guard and Reserve units.”
U.S. Attorney Patrick A. Miles said, “Many of my relatives served in the U.S. Military so I place great value on hiring veterans and supporting Reserve Component members as they complete their military obligations throughout the year. The skills, training, and contributions to the U.S. Attorney’s Office of these outstanding citizens is critical to accomplish the mission of the U.S. Attorney’s Office and the Department of Justice.”
ESGR, a Department of Defense office, seeks to foster a culture in which all employers support and value the employment and military service of members of the National Guard and Reserve in the United States. ESGR facilitates and promotes a cooperative culture of employer support for National Guard and Reserve service by developing and advocating mutually beneficial initiatives, recognizing outstanding employer support, increasing awareness of applicable laws and policies, resolving potential conflicts between employers and their service members, and acting as the employers’ principal advocate within the Department of Defense. Paramount to ESGR's mission is encouraging employment of Guardsmen and Reservists who bring integrity, global perspective and proven leadership to the civilian workforce.
END
Two admit to conspiracy for identity theft and wire fraud in connection with the filing of false income tax returnsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Lucille Stansberry, 40, of Anchorage, Alaska, and Joe Murl Douglas, Jr., 54, of Los Angeles, California, entered guilty pleas in federal court on Friday, December 13, 2013, before U.S. District Court Judge Timothy M. Burgess, to conspiracy to commit wire fraud in connection with filing false income tax returns, and aggravated identity theft.
Stansberry and Douglas admitted conspiring with two others to obtain identifying information, such as names, dates of birth, and Social Security numbers, which were then used to prepare false IRS Forms W-2 that contained fabricated wage and withholding amounts. The identifying information and falsified documents were taken to tax return preparation services in Anchorage, Eagle River, and Palmer, Alaska, as well as in Los Angeles and Orange Counties, California, to have tax returns prepared and electronically submitted to the IRS.
In order to increase the refunds claimed on the false returns, in some instances, stolen identifying information was used to claim dependent children on the false returns. The returns requested refunds totaling between $1,400 and $8,600. In many cases the defendants applied for refund anticipation loans and had the fraudulently obtained tax refunds loaded onto reloadable stored value cards allowing them instant access to the money even if the IRS later rejected the falsely filed returns.
The fraudulently obtained tax refunds were used to purchase personal items, including a 2002 Mercedes E320 Sedan. Title to the Mercedes will be forfeited to the government and a money judgment of up to $102,313 – representing the total amount of money involved in the offenses alleged in the indictment – may be entered jointly and severally against convicted defendants.
Douglas and Stansberry will be sentenced on March 21, 2014.
Two other defendants were charged as co-conspirators in the case, Demetrick Ruffin, who is a fugitive, and Jameane Bolton-Williams, a/k/a Jameane Williams, who is scheduled for a court appearance on January 6, 2014.
According to Assistant U.S. Attorneys Retta Randall and Stephanie Courter, the defendants face up to 20 years in prison for the wire fraud, and a mandatory two-year consecutive sentence for the aggravated identity theft. The potential maximum fine is $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Tamera Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation. “Filing fraudulent tax returns in the names of other individuals may result in significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury.”
Ms. Loeffler commends the IRS Criminal Investigation Division for the investigation of this case.
Trio Sentenced in Fake Id Conspiracy CaseRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The three Charlottesville residents convicted of producing tens of thousands of fraudulent driver’s licenses and shipping them across the country were sentenced this morning in the United States District Court for the Western District of Virginia in Charlottesville.
Alan McNeil Jones, 32, Kelly Erin McPhee, 31, and Mark Gil Bernardo, 28, all of Charlottesville, Va., previously waived their rights to be indicted and pled guilty to a two-count Information. The three defendants each pled guilty to one count of conspiracy to commit identification document fraud and one count of aggravated identity theft.
This morning in District Court, they three were sentenced to the following: Jones was sentenced to 60 months of federal incarceration; Bernardo was sentenced to 40 months of federal incarceration and McPhee was sentenced to 25 months of federal incarceration. In addition, each defendant will serve three years of supervised release after their respective prison terms.
“These three defendants developed a sophisticated scheme to produce and sell high-quality false identification documents throughout the nation,” United States Attorney Timothy J. Heaphy said today. “Their criminal enterprise was tremendously lucrative, generating profits of more than $3 million over several years. The sentences handed down today reflect how serious these crimes were. Law enforcement personnel will continue to take every available step to recover these counterfeit driver’s licenses and ensure that they cannot be used to facilitate additional criminal activity.”
“Regardless of the reasons for seeking fraudulent documents we focus to detect, deter and dismantle individuals and organizations that present an active threat to national security or public safety, and who seek to undermine the integrity of the laws and regulations of the United States,” said Scot Rittenberg, Acting Special Agent in Charge, ICE Homeland Security Investigations, Washington.
Previously, Jones, McPhee and Bernardo admitted to conspiring to create high-quality, fraudulent driver’s licenses out of the home they shared on Rugby Road in Charlottesville. The conspiracy, which began in 2010 and operated under the name Novel Design, produced and sold more than 25,000 fraudulent driver’s licenses, primarily to college students, throughout the nation.
As part of the scheme, Jones paid commissions to students at the University of Virginia, and elsewhere, to refer his service to other students interested in obtaining fraudulent driver’s licenses. He also outsourced some of the manufacturing work to companies in Bangladesh and China.
During the entire period of time in which Novel Design was in operation, Jones, McPhee and Bernardo produced approximately 25,000 fraudulent driver’s licenses for customers. They charged customers anywhere from $75 to $125 per fake license and the three obtained more than $3 million from customers. To date, over $2.7 million in assets have been seized by law enforcement.
At the height of the conspiracy, Jones, McPhee and Bernardo, were able to create fraudulent driver’s licenses for the states of Arizona, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Maine, Mississippi, Montana, New Jersey, Pennsylvania, Ohio, Rhode Island, South Carolina, Tennessee and Virginia.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HIS) Washington, the United States Postal Inspection Service, the Virginia State Police and the Virginia Attorney General’s Computer Forensics Unit. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
Top Lieutenant in Fernando Sanchez Arellano Cartel SentencedRead the Press Release
SAN DIEGO - Armando Villareal Heredia, who was extradited to the United States from Mexico last year to face federal racketeering and drug charges, was sentenced today to 30 years in prison for his role as a leader in the Fernando Sanchez Arellano (FSO) drug trafficking organization and his participation in cartel activities such as murder, kidnapping and the importation and sale of methamphetamine.
Villareal, who was sentenced by U.S. District Judge William Q. Hayes, pleaded guilty in September to Conspiracy to Conduct Enterprise Affairs through a Pattern of Racketeering Activity (RICO conspiracy) and Conspiracy to Distribute Controlled Substances.
“This sentence is a major blow to the Fernando Sanchez Arellano organization,” said U.S. Attorney Laura Duffy. “We and our law enforcement partners are committed to keeping cartel violence out of our communities.”
Villareal acknowledged in his plea agreement that the FSO’s activities included assaults on law enforcement officers attempting to arrest FSO members, bribing public officials to release FSO members from prison, and payments to public officials for confidential law enforcement information.
According to the plea agreement, Villareal also admitted that the cartel attempted to keep rival traffickers, potential informants, witnesses against the cartel, law enforcement, the media and the public in fear through intimidation, threats of violence, assaults and murders, and the organization “taxed” other criminals who operated within FSO territory, which includes Tijuana and parts of San Diego.
Villareal, aka “El Gordo,” was arrested in Sonora, Mexico in July of 2011 and extradited to the U.S. in May of 2012. Villareal is the lead defendant in a 43-defendant prosecution which has been ongoing in the Southern District of California since July 2010. Villareal was arrested by Mexican law enforcement officers at the request of the United States.
To date, 40 of 42 defendants have entered guilty pleas in the case. Like Villareal, those defendants admitted to participating in a violent transnational racketeering enterprise controlled by Fernando Sanchez-Arellano, and to committing murders, kidnappings, robberies, assaults, money laundering and a wide range of drug trafficking offenses. Among those who have pleaded guilty is Jesús Quiñónez Màrquez, then- international liaison officer with the Baja California Attorney General’s Office.
Two defendants remain fugitives.
The indictment in this case resulted from a long-term investigation conducted by the multi-agency San Diego Cross Border Violence Task Force (CBVTF). The CBVTF was formulated to target those individuals involved in organized crime-related violent activities affecting both the United States and Mexico. Law enforcement personnel assigned to the CBVTF made extensive use of court-authorized wiretaps and other sophisticated investigative techniques to develop the significant evidence which led to the charges in this case.
United States Attorney Duffy praised the Mexican government for their assistance in the extradition of Villareal. She also commended the Organized Crime Drug Enforcement Task Force (OCDETF) for the coordinated team effort in handling this investigation, “Operation Luz Verde.” Agents and officers from the Federal Bureau of Investigation, San Diego Police Department, Drug Enforcement Administration, San Diego Sheriff’s Office, Chula Vista Police Department, U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms, San Diego District Attorney’s Office, and California Department of Justice participated in this OCDETF investigation. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against organized crime and major drug trafficking organizations.
DEFENDANT Case Number 10CR3044-WQH Armando Villareal Heredia SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum penalties: Life in prison, Maximum $250,000 fine, 5 years of supervised release
Title 21, United States Code, Sections 846 and 841(a)(1) - Conspiracy to Distribute Methamphetamine
Maximum penalties: Mandatory Minimum of 10 years in prison; Maximum of Life in prison; Maximum
AGENCIES
$10 million fine; 5 years of supervised releaseFederal Bureau of Investigation
San Diego Police Department
Drug Enforcement Administration
San Diego Sheriff's Office
Chula Vista Police Department
U.S. Marshals Service
Bureau of Alcohol Tobacco and Firearms
California Department of Justice
San Diego District Attorney's OfficeToledo Man Sentenced to Prison for His Role in Illegal Dumping of AsbestosRead the Press Release
A Toledo man was sentenced to one year in prison and ordered to pay a $2,000 fine for his role in the illegal removal and disposal of asbestos-containing material, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
John J. Mayer, 52, pleaded guilty in July to violating the Clean Air Act.
“Mr. Mayer ignored the laws and regulations that are in place to protect the public,” Dettelbach said. “Protecting the environment, including the air we breathe, is a priority of my office and the Justice Department.”
“Improper removal and disposal of asbestos endangers human health, and exposure to asbestos fibers can prove fatal,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio. “The Defendant oversaw the illegal removal of large quantities of asbestos-containing materials, which were ultimately dumped in three residential areas in Toledo. This case should serve notice that U.S. EPA and its partner agencies are prepared to prosecute those who 'cut corners' by avoiding the costs of handling or disposing of asbestos properly.”
Mayer directed individuals to remove asbestos-containing insulation from boilers, duct work and pipes in a former manufacturing facility in Toledo between September and December 2010, in order that Mayer could sell the scrap metal from those items. This work was performed in violation of the federal Clean Air Act regulations regarding asbestos abatement, according to court documents.
The asbestos-containing insulation was not wetted at any time during the removal process; the City of Toledo, Division of Environmental Services, was not notified prior to the work commencing and there was not on site a person trained in the provisions of the federal asbestos regulations, according to court documents.
The illegally removed asbestos-containing insulation was placed into approximately 82 garbage bags, which were dumped at various locations throughout Toledo in violation of the requirement that such material be disposed at a site operated in accordance with federal law, according to court documents.
Timothy Byes, 32, of Toledo, also pleaded guilty to violating the Clean Air Act and is scheduled to be sentenced at a later date.
The investigating agencies in this case are the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, the Ohio Environmental Protection Agency – Office of Special Investigations, the City of Toledo – Division of Environmental Services, all members of the Northwest Ohio Environmental Crimes Task Force. The case was prosecuted by Assistant United States Attorney Gene Crawford and Special Assistant United States Attorney James J. Cha.
Three of 20 Defendants Sentenced in Meth Distribution RingRead the Press Release
BOISE – Jason Lee Holmberg, 39, of Middleton, Idaho, Ute Hornak, 47, of Nampa, Idaho, and Patrick Siemsen, 56, of Meridian, Idaho, were sentenced today for their role in distributing methamphetamine and/or interstate travel and transportation in aid of racketeering, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge sentenced Holmberg to 180 months in federal prison, followed by five years of supervised release for conspiracy and interstate travel or transportation in aid of racketeering enterprises; Siemsen was sentenced to 60 months in prison, followed by three years of supervised release for interstate travel and transporting drugs and money; Ute Hornak was sentenced to time-served and three years of supervised release for her role in traveling with Siemsen to transport drugs and money.
The conspiracy involved two methamphetamine distribution cells in the Treasure Valley, one led by Holmberg and the other led by Andrew Polney. Siemsen and Hornak made five or six round- trips to Sacramento, California, where co-defendant Kenneth Jones supplied them each time with multiple pound shipments of methamphetamine to transport for Holmberg in the Nampa-Caldwell area, and to Polney in Boise. The group operated from about June 2012 through the time of their arrests on April 18, 2013.
Fourteen other defendants have pleaded guilty and are awaiting sentencing in January 2014: Andrew Polney, Kenneth Jones, Doreen O’Brien, Jerry Holmberg, John Odenwalt, Randi Seferos, Crystal Clark, Lena Kettle, Steven Richard, Robbie Gallegos, Adrea Smith, Randy Beal, Heidi Aguilar, and Cynthia Prado. Three other defendants are scheduled for trial in January 2014.
The case was investigated by the Drug Enforcement Agency (DEA) Task Force, which includes agents of the DEA as well as task force officers from Nampa Police Department.
Susan Wells Sentenced for Oxycodone DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Susan Wells, 40, of Colchester, was sentenced today in United States District Court in Burlington following her guilty plea to a charge that she distributed oxycodone. U.S. District Judge William K. Sessions III sentenced Wells to two years of probation. As one condition of probation, Wells must perform 100 hours of community service.
This past June, the government filed a criminal information alleging that Wells distributed oxycodone on three dates in April and May 2012; Wells pled guilty to the charge one week later. According to court records, after authorities learned that employees and others had participated in the embezzlement of more than $550,000 from Brault's Mobile Homes, Inc. of Colchester, they interviewed two former employees. The employees admitted to embezzling funds from the company and stated that they had used the money to buy prescription pain medications. They identified Wells as their source for some of the drugs they bought between 2009 and 2011. In the spring of 2012, police arranged for one of the embezzlers to make three controlled purchases of oxycodone from Wells.
This case was investigated by the Colchester Police Department and the Office of Inspector General, U.S. Department of Housing and Urban Development.
Wells is represented by David Kidney. The prosecutor is Assistant U.S. Attorney Gregory Waples.
St. Louis Man Sentenced for Possession with Intent to Distribution HeroinRead the Press Release
Royce Spann, 28, of St. Louis, Missouri, was sentenced in federal court on December 16, 2013, to 97 months’ in prison, 5 years’ supervised release after his imprisonment, and a $100 special assessment, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spann had previously pled guilty to Possession with Intent to Distribute Heroin, on August 6, 2013.
United States Attorney Stephen Wigginton commented that, “I am proud that we were able to get Spann off the streets. Heroin is the most dangerous drug in the world. These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. The prosecution and sentencing of Royce Spann is part of our ongoing anti-heroin initiative.”
According to public documents filed with the Court, Spann was riding an Amtrak passenger train from Chicago, Illinois, on March 27, 2013 with large amounts of heroin. Drug Enforcement Administration (DEA) agents confronted Spann at the St. Louis, Missouri train station where Spann dropped his bag and ran away on foot. Inside the bag, DEA agents found over $10,000 in cash and over three-quarters of a kilogram of heroin.
The case was investigated by the Drug Enforcement Administration in the Southern District of Illinois and was prosecuted by Special Assistant United States Attorney Jungmin Lee.
St. Francis Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Fabian McCloskey, age 38, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
McCloskey is accused of assaulting his domestic partner on November 29, 2013, when at the time of the assault, McCloskey had a final conviction on a least three separate prior occasions in Rosebud Sioux Tribal Court proceedings for offenses that would have been, if subject to federal jurisdiction, an assault against a domestic partner.
The charge is merely an accusation and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sixth Alien Found Guilty of Conspiracy to Grow Marijuana in a National Forest and of Damaging Government Property in Largest Marijuana Grow Ever Found in OregonRead the Press Release
91,000 Plants Found Encompassing a Stretch Over A Mile and a HalfPORTLAND, Ore. – A federal jury in Portland returned verdicts of guilty Monday, December 16, 2013, in the trial of Fredy Figueroa-Montes, age 34. The counts of conviction included conspiracy to manufacture marijuana which carries a maximum penalty of 20 years in prison and a fine of $1,000,000; and depredation of government property which carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Trial evidence showed that the defendant joined five co-defendants in growing more than 91,000 marijuana plants in the Wallowa Whitman National Forest, and that they used more than 500 pounds of illegal rodenticides, pesticides, herbicides and fertilizer to cultivate the marijuana, causing an estimated $97,000 in damage to the Wildcat Creek riparian area. Investigating officers found an Uzi long gun and two pistols in the campsite. The five co-defendants previously pled guilty and were sentenced to periods of incarceration ranging from 30 months to 120 months.
“These convictions are the result of the effective collaboration between local, state and federal law enforcement partners,” said U.S. Attorney Amanda Marshall. “Here in Oregon, federal prosecutors will remain aggressive when it comes to protecting federal enforcement interests that include preventing marijuana from growing on public lands, as well as preventing violence and the use of firearms in the cultivation and distribution of marijuana.”
Testimony presented by the government described the outdoor grow as “staggering”, encompassing a stretch over one mile and a half in the Wildcat Creek riparian zone, where the marijuana growers disrupted the natural terrain with extensive terracing. The plants were concealed in several separate pods developed by removing trees and underbrush to camouflage the grow site, and miles of plastic irrigation tubing was found. The Marijuana Enforcement Team, a trained group of state troopers who work with law enforcement agencies during the summer months to assist with marijuana eradication and investigations related to outdoor marijuana grows, called this the largest marijuana grow ever found in the State of Oregon saying many people would be outraged at the damage to public lands caused by illegal marijuana growers. Evidence presented identified an extensive amount of trash including tubing, plastic planter containers, herbicide and other toxic chemicals that were dumped along a river’s edge.
The five-day trial was held in the Federal District Court in Portland, Oregon, with Judge Michael W. Mosman presiding.
The investigation of the marijuana grow site was led by the Wallowa County Sheriff's Office, the La Grande Police Department, and the Union/Wallowa County Drug Task Force, the Oregon State Police SWAT Team, the Blue Mountain Enforcement Narcotics Team (BENT), Wallowa County Search & Rescue, Enterprise Police Department, the Union County Sheriff’s Office, the United States Forest Service Law Enforcement and Investigations, Union County Sheriff's Office, the Baker County Narcotics Enforcement Team, the Oregon Army National Guard Counterdrug Program, and the Oregon State Police Marijuana Enforcement Team, as well as the Oregon Department of Justice, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Drug Enforcement Administration, Immigration and Customs Enforcement Homeland Security Investigations and the Wallowa County District Attorney’s Office.
Assistant U. S. Attorney Jennifer J. Martin and Certified Law Clerk Courtney Peck prosecuted the case.
Six Indicted in International Investment Fraud SchemeRead the Press Release
Six individuals have been indicted for their role in an investment scam perpetrated from the United States and Switzerland, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office announced today.
The U.S. District Court for the District of Nevada has unsealed indictments against Anthony Brandel, 46, of Las Vegas; Joseph Micelli, 59, of Las Vegas; James Warras, 67, of Waterford, Wis.; Sean Finn, 44, of Whitefish, Mont.; Martin Schlaepfer, 55, of Zurich, Switzerland; and Hans-Jurg Lips, 50, of Zurich, Switzerland. Brandel and Micelli were arrested on Dec. 12, 2013, in Las Vegas, and Warras was arrested on Dec. 13, 2013, in Wisconsin. Finn, Schalepfer and Lips remain at large.
According to court documents, from October 2009 through October 2013, the defendants used a Swiss corporation known as Malom Group AG to promote investments in European equities and debt offerings, which they said would yield high rates of return. The indictment alleges that the defendants created and provided to investors fake bank statements representing that Malom Group AG had large deposit balances at prominent European banks. The defendants collected payments of between $200,000 and $1.2 million per investor but did not put the funds toward the advertised investments. Instead, the defendants used the money for their own purposes. Court documents allege that Brandel, Micelli, Finn and Warras attempted to conceal the proceeds of the conspiracy by not filing tax returns with the Internal Revenue Service (IRS).
According to allegations in the indictment, the investments that the defendants promoted did not yield any returns to their victims. When victims complained, the defendants told investors that the Malom Group AG would refund their money with the proceeds of pending transactions the defendants knew were fictitious and would not generate any proceeds. Despite the defendants’ promises of refunds, court documents allege that none of the investors identified in the indictment received a refund. The indictment alleges that Micelli, Warras and Lips went so far as to submit to a U.S. Bankruptcy Court declarations they knew contained false statements about a transaction that the Malom Group AG had promoted to an investor who had an interest in a company that had filed for bankruptcy protection.
According to the indictment, Anthony Brandel acted as the director of MY Consultants Inc., a Nevada corporation that purported to review potential investments for the Malom Group AG. Micelli, a disbarred former attorney, identified himself to victims as Malom Group AG’s “compliance officer.” Warras served as Malom Group AG’s Executive Vice President for U.S. Operations and Finn acted as a broker who recruited victims and referred them to Malom Group AG. Schlaepfer was Malom Group AG’s Chief Executive Officer and Lips identified himself as the head of Malom Group AG’s Structured Finance Group. Schlaepfer and Lips presently reside in Switzerland.
The case was investigated by the Las Vegas Field Office of the FBI. The Enforcement Division of the U.S. Securities and Exchange Commission, which referred the matter to the Department of Justice, provided valuable assistance and is conducting a parallel civil enforcement investigation. The Public Prosecutor of the Canton of Zurich State Attorney’s Office assisted with the investigation.
This case is being prosecuted by Trial Attorneys Brian R. Young, Stephen J. Spiegelhalter and Anna Kaminska of the Criminal Division’s Fraud Section, with assistance from the Criminal Division’s Office of International Affairs and the Office of the United States Attorney for the District of Nevada.
Today’s indictment was a result of efforts 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. Attorney’s 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 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 .Sioux Falls Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on December 12, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jeremy Jeunesse, a/k/a Jeremy Chasing Horse, a/k/a Jeremy Trudell, age 34, was sentenced to 30 months in custody to run consecutive to his North Dakota sentence, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Jeunesse pled guilty to the charge on September 5, 2013. The charge related to Jeunesse failing to register as a convicted sex offender in Pennington County on September 1, 2012.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Jeunesse was immediately turned over to the custody of the U.S. Marshals Service.
Shirley Man Charged for Stealing Military Humvee from Fort DevensRead the Press Release
BOSTON - A Shirley man was charged today with stealing a Humvee from Fort Devens.
Lowell A. Shorey, 26, was indicted with theft of government property.
The indictment alleges that on Oct. 16, 2013, Shorey stole a Humvee from Fort Devens. According to the affidavit, Shorey then attempted to sell the stolen military Humvee, which is worth $60,000, to an undercover police officer. After stealing the military vehicle, Shorey drove it out of the motor pool through a hole he cut in a fence. He then parked the vehicle in the woods near his Shirley home, which is in close proximity to Fort Devens. Additionally, Shorey told the undercover officer that we wanted to “boost” the other 12 Humvees at Fort Devens all in one day.
If convicted, Shorey faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and the Department of Defense’s Police Department at Fort Devens made the announcement today. The case is being prosecuted by David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Individuals Indicted for Operating Million Dollar Marijuana ConspiracyRead the Press Release
BOSTON – Seven individuals from central Massachusetts were charged today in U.S. District Court in Worcester for operating a million dollar marijuana conspiracy.
Lam Ly, 43, and Tam Pham, 36, of Leicester; Nhi Le, 32, Diep Pham, 52, Ut Le, 33, and Minh Bui, 43, of Webster; and Luan Bui, 42, of Worcester were charged in a superseding indictment with conspiracy to manufacture marijuana, manufacturing and possession with the intent to distribute marijuana, and maintaining several drug involved premises. The indictment and arrests announced today are the culmination of a lengthy joint federal, state, and local investigation.
The indictment alleges that Lam Ly, Tam Pham, Nhi Le, Diep Pham, Ut Le, Luan Bui, Minh Bui, and others, maintained indoor marijuana growing operations in Douglas, three locations in Webster, Worcester, Paxton, and Leominster. To date, the investigation has led to the seizure of over $124,000 in cash and over 2,000 marijuana plants – a quantity that is capable of producing over a $1 million worth of marijuana.
If convicted, Lam Ly faces a mandatory minimum of 10 years and up to a lifetime in prison, a minimum of five years of supervised release, and a fine of up to $10 million dollars. If convicted, Tam Pham, Nhi Le, Diep Pham, Ut Le, Luan Bui, and Minh Bui faces a mandatory minimum of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Timothy J. Bent of the Webster Police Department; Chief Gary J. Gemme of the Worcester Police Department; Chief Patrick T. Foley of the Douglas Police Department; Chief Michael Hassett of the Oxford Police Department; Chief Robert Desrosiers of the Paxton Police Department; and Chief Robert Healey of the Leominster Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Antonio Man Guilty of Armed Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas – Joseph C. M. Krist, 41, has been convicted of bank robbery and using a firearm during the commission of a crime of violence, announced United States Attorney Kenneth Magidson. The Corpus Christi federal jury convicted Krist following a two-day trial and less than three hours of deliberation.
On Jan. 13, 2013, Krist robbed the IBC Bank on the corner of Everhart and Burney in Corpus Christi. Krist entered the bank wearing a hoodie and a green shirt sleeve covering part of his face while carrying a .40 caliber pistol. He pointed the weapon at the tellers and told them to “hurry up.” He obtained a large amount of currency and fled the bank.
The Corpus Christi Police Department (CCPD) responded to the robbery, but were unable to apprehend Krist at that time. Three days later, the U.S. Marshals Service (USMS) was able to locate Krist at a camp ground in Uvalde and arrested him. At that time, authorities found a large amount of cash, the firearm, a hoodie and a green t-shirt missing a single shirt sleeve. Krist admitted to committing the robbery.
At the time of the robbery, Krist was a prior convicted bank robber both in state and federal court and was wanted by the authorities for violations of his state parole and federal supervised release.
At trial, Krist claimed he was not in Corpus Christi at the time of the robbery and that he knew the robber’s identity and is prepared to assist the authorities.
U.S. District Judge Nelva Gonzalez Ramos, who presided over trial, has set sentencing for March 28, 2014. At that time, he faces up to 20 years in federal prison for the bank robbery as well as a mandatory seven-year-term for using the firearm during the commission of the crime which must be served consecutively to any other prison term imposed.
The case was investigated by the FBI and CCPD with the assistance of USMS. Assistant United States Attorney Lance Duke prosecuted the case.
Rosebud Woman Charged with Acquiring Controlled Substances by Fraud and Theft in Connection with HealthcareRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Acquiring Controlled Substances by Fraud and Theft in Connection with Healthcare.
Bonnie Melissa Levy, age 38, was indicted on December 10, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 4 years in custody and/or a $250,000 fine, 1 year of supervised release, and $125 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2013, and October 30, 2013, Levy knowingly and intentionally acquired and obtained possession of a controlled substance, Morphine. Further alleged is that she embezzled, stole, and converted without authority to her own use when she was not the rightful owner, Morphine and Benadryl, of a value of less than $100. The items were the property of the Rosebud Indian Health Services Facility, a healthcare benefit program in Rosebud.
The charges are merely accusations and Levy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Levy was released on bond pending trial. A trial date has not been set.
Rhode Island Estate Planning CEO, Employee Sentenced to Federal Prison for Obtaining Millions in Death Benefits in the Names of Terminally-Ill IndividualsRead the Press Release
PROVIDENCE, R.I. – Joseph A. Caramadre, 53, president, CEO and majority owner of Estate Planning Resources in Cranston, R.I., was sentenced today to 72 months in federal prison for conspiring to steal and use the identities of terminally-ill patients to obtain millions of dollars in illicit profits from insurance companies and bond issuers. In addition, Caramadre was ordered by U.S. District Court Chief Judge William E. Smith to serve 3 years of supervised release upon completion of his prison term, during which time he is required to perform 3,000 hours of community service to the elderly and terminally-ill individuals.
Raymour Radhakrishnan, 29, a former employee of Estate Planning Resources, was sentenced to 12 months and one day in federal prison for his participation in the scheme. In addition, Radhakrishnan was ordered by U.S. District Court Chief Judge William E. Smith to serve 3 years of supervised release upon completion of his prison term, the first six months to be served in home confinement, during which time he is required to perform 3,000 hours of community service to the elderly and terminally-ill individuals.
At today’s sentencing hearing, Chief Judge Smith announced that he would determine restitution in this matter at a later date. U.S. District Court Magistrate Judge Patricia A. Sullivan previously recommended to Chief Judge Smith that Joseph Caramadre pay approximately $46 million dollars in restitution to insurance companies and bond issuers, and that Radhakrishnan pay approximately $33 million dollars in restitution. Caramadre and Radhakrishnan pleaded guilty on November 19, 2012, prior to the start of testimony in the second week of their trial, to conspiracy to commit identity theft and wire fraud.
The sentences were announced by Peter F. Neronha, United States Attorney; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation.
“Both men are going to prison for what they did, as they should,” commented United States Attorney Peter F. Neronha. “The reality is that Joseph Caramadre saw death as a holiday. He saw it as a cause for celebration. He saw it as an opportunity to make money. Both defendants, particularly Mr. Caramadre, wrapped themselves in morality. Having sat through a week of trial and knowing as much about this case as I do, it is at best ironic. At its worst it is reprehensible.”According to information presented to the court, in the mid-1990s, Joseph Caramadre developed investment strategies that depended upon, among other things, the identity of terminally-ill individuals. On his own behalf, and on behalf of investors, friends and family members, Caramadre purchased variable annuities from insurance companies. The annuities offered death benefits upon the death of the person identified as the annuitant. These benefits included a guaranteed return of all monies invested plus, in many instances, a guaranteed profit and various other bonuses and enhancements.
According to information presented to the court, Caramadre and Radhakrishnan made misrepresentations to terminally-ill and elderly patients and their family members in order to obtain their personal identifying information. They used the information, including names, dates of birth, and social security numbers, to obtain more than 200 variable annuities and to open more than 75 brokerage accounts in order to purchase “death-put" bonds in the victims’ names without their knowledge and consent. Caramadre and Radhakrishnan either forged the signatures of terminally-ill people on account documents or obtained the signatures by means of misrepresentations. When the terminally-ill person died, Caramadre and others reaped substantial profits by exercising death benefits associated with the investments. Under the terms of these bonds, the owner of the bond is able to redeem the bond years or decades prior to the maturity date upon the death of the bond’s co-owner.
According to information presented to the court, Caramadre located terminally-ill individuals in various ways, including visits to AIDS patients at a House of Compassion, through family members and associates of the terminally-ill, and by soliciting individuals who were terminally ill to purchase life insurance policies. Caramadre also placed advertisements in a local Catholic newspaper that provided that there was a compassionate organization that would immediately give $2000 in cash to terminally-ill individuals. Dozens of terminally-ill individuals or family members responded to the ad. Caramadre gave Raymour Radhakrishnan, who began working for Caramadre in July 2007, the job of meeting with the people who responded to the ad for the purpose of obtaining their identity information and using that information on annuities and brokerage accounts.
“From Bernie Madoff to Mr. Caramadre and Mr. Radhakrishnan, devious schemes concocted for greedy purposes always end the same way,” said Vincent Lisi, Special Agent in Charge of the FBI. “Others who think they can victimize people for personal gain without ending up in the same company as them should think twice because our team of agents, investigators and prosecutors who specialize in white collar crime can’t be outmatched.”
“What makes these defendants’ conduct particularly disturbing is that they targeted individuals who were terminally ill,” said Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “It's difficult enough when a family member loses a loved one; to have to endure the additional financial strain brought about by this type of scam artist is just not right. The U.S. Postal Inspection Service remains vigilant pursuing criminals like Mr. Caramadre, and bringing them to justice.”
John Collins, Acting Special Agent in Charge, IRS Criminal Investigation stated, "Today's sentencing of Joseph Caramadre and Raymour Radhakrishnan brings to justice two individuals who have committed despicable crimes against our society. Not only have they defrauded insurance companies and financial institutions but they have taken advantage of a community of our most vulnerable citizens. Caramadre and Radhakrishnan benefitted from a sophisticated scheme that preyed on terminally ill individuals and allowed them to line their pockets with the fruits of their crime. Individuals who commit identity theft and fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. This investigation highlights the positive impact on justice which is obtained through the collaborative efforts of multiple Federal law enforcement agencies and the U.S. Attorney's Office."
The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams, with the assistance of paralegal Kellyann Anderson.
The matter was investigated by the U.S. Attorney’s Office, FBI, U.S. Postal Inspection Service inspectors and IRS – Criminal Investigation.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Reed Springs Man Pleads Guilty to Making False Tax ClaimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reed Springs, Mo., man pleaded guilty in federal court today to making more than $124,000 in fraudulent tax refund claims.
Michael R. Jett, 47, of Reed Springs, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with making a false claim against the government.
By pleading guilty today, Jett admitted that he filed 22 false or fraudulent tax returns in order to obtain larger tax refunds between January 2009 and January 2012. Jett prepared tax returns for himself, his family and for other individuals using fraudulent W-2 forms issued by companies under his control, including Air1Assault, Creative Designs, Southwest Missouri Home Products and Corvette Specialist. Using the fraudulent W-2 forms, Jett prepared tax returns requesting tax refunds in amounts larger than actually owed. Those refunds were electronically deposited in bank accounts in his name, or the names of family members.
Jett requested a total of $124,493 in refunds on those 22 tax returns, which actually qualified for only $19,137 in legitimate refunds. The total loss for the scheme was $105,356.
Under federal statutes, Jett is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by IRS-Criminal Investigation.
Poplar Bluff Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
St. Louis, MO - DAVID L. CATHEY of Poplar Bluff, Missouri, was sentenced to 30 years imprisonment on two felony charges for producing child pornography. He appeared before U.S. District Judge John A. Ross in Cape Girardeau. Upon completion of that sentence, he will be placed on supervised release for the remainder of his life.
Previously with his plea, Cathey admitted that over a period of several years he took photographic images of two minor females whom he caused to engage in sexually explicit conduct. Both children were less than twelve years old when Cathey started taking the photographs. Cathey stored some of the sexually explicit images on a compact disc. The images of the children were discovered when Cathey sold his computer and failed to remove the compact disc containing the photographs.
The Poplar Bluff Police Department, the Southeast Cyber Crimes Task Force, the Butler County Sheriff’s Department and the Federal Bureau of Investigation are commended for their efforts to jointly investigate this case. Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the Government.
Philadelphia Doctor Sentenced to 30 Years for Running Pill MillRead the Press Release
PHILADELPHIA - Kermit Gosnell, 72, of Philadelphia, was sentenced today to 360 months in prison for running a pill mill out of his clinic located at 3801-3805 Lancaster Avenue in Philadelphia. Gosnell pleaded guilty on July 9, 2013 to 12 counts including conspiracy to distribute controlled substances (oxycodone, alprazolam, and codeine), distribution and aiding and abetting the distribution of oxycodone, and maintaining a place for the illegal distribution of controlled substances. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered a fine in the amount of $50,000, a $1200 special assessment, and $200,000 in forfeiture.
Gosnell, with the assistance of several of his former office staff at Family Medical Society, A Division of Women’s Medical Society, Inc. (“WMS”), ran a prescription pill mill from June of 2008 through February 18, 2010. Gosnell wrote fraudulent prescriptions for hundreds of thousands of prescription pills and the frequently-abused syrups Phenergan and Promethazine with Codeine, to drug “seekers,” who met with Gosnell briefly for a cursory exam or no exam. Gosnell wrote and sold prescriptions from his medical office for over 600,000 pills containing oxycodone (a Schedule II controlled substance, brand names Percocet, Endocet and OxyContin) including over 100,000 pills of the highly addictive OxyContin 80mg; over 800,000 pills containing alprazolam (a Schedule IV controlled substance, brand name Xanax); and over 27,000 ounces of cough syrup containing codeine (a Schedule V controlled substance, brand name Phenergan with Codeine cough syrup) to cash-paying customers without there being any medical necessity for these prescriptions. Gosnell and his staff allowed customers to purchase multiple prescriptions under multiple names; customers could place orders for refills in person, over the phone, or by leaving a message on a WMS office answering machine; the WMS office staff would give the refill orders to Gosnell, who, without seeing the customer, would write the requested prescription and give it to WMS staff who would then collect cash and “tips” from customers. Gosnell went from writing several hundred prescriptions for controlled substances per month filled at pharmacies in 2008 to over 2,300 filled at pharmacies in January of 2010. Gosnell charged from $115.00 to $150.00, with a follow up visit fee of $50.00 and a $20 fee for refills of controlled substances for cash paying customers.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office. It was prosecuted by Assistant United States Attorneys Joan E. Burnes and Jessica Natali.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pearl City Man Sentenced to 13 Years in Jail for Child Pornography OffensesRead the Press Release
HONOLULU – Kyle Tom Kamaiopili, 40, a resident of Pearl City, was sentenced in federal court on December 13, 2013 to a jail term of 13 years for five federal child pornography offenses. Kamaiopili previously pled guilty to four counts of distributing child pornography over the Internet, and to one count of possessing approximately 4,300 still images and 125 videos of child pornography at his residence.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information presented in court, federal agents learned of Kamaiopili’s identity following the arrest of a Tennessee individual for exchanging child pornography. A review of the Tennessee individuals’ email accounts revealed that he had exchanged images with Kamaiopoli. Agents then searched Kamaiopili’s Pearl City residence, and recovered computers and storage media containing child pornography files. Kamaiopili was arrested on May 24, 2013, and has been in custody since then.
During sentencing proceedings, the government pointed out that Kamaiopili had admitted viewing and collecting child pornography since 2001, including a five year period when he was serving a state probationary sentence for a negligent homicide case arising out of an incident in which he drove a vehicle while intoxicated. Kamaiopili also exchanged non-graphic images of a nine-year old girl who was the daughter of his friend. Chief U.S. District Judge Susan Oki Mollway imposed a jail term of 156 months, following which he will be on supervised release for ten years, during which he will be monitored by the probation office and have restrictions on his access to the Internet.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Larry Tong.
Okeechobee Woman Sentenced for Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Maria Garcia, 33, of Okeechobee County, was sentenced today on charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Garcia was sentenced by U.S. District Judge Donald Graham in Fort Pierce to 18 months in prison, followed by one year of supervised release and a special assessment of $100. In addition, the Court ordered Garcia to pay restitution to the Government for tax losses of $534,946. The Court also noted that Garcia is permanently enjoined by a Consent Judgment and Order filed in a parallel civil case, barring her in the future from ever preparing federal income tax returns for other persons.
According to statements made in open court and documents filed in the case, Garcia prepared multiple fraudulent tax returns for customers from January 2008 through May 2013, first while working for other tax preparers and then in her own tax preparation business. She prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Ohio Woman Sentenced to Probation for Conspiring to Distribute Oxycodone and MethadoneRead the Press Release
JOHNSTOWN, Pa. - A resident of Hubbard, Ohio, 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 Kelley S. Johns, 43.
According to information presented to the court, from July 2008 to May 9, 2011, Johns conspired to distribute and possess with the intent to distribute quantities of oxycodone and methadone. Evidence presented to the court at the time of Johns' sentencing reflected that Johns 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.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Johns. 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.
North Dakota Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Brandon Wutzke, age 28, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on December 13, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 25, 2012, Wutzke knowingly engaged, or attempted to engage, in sexual contact with a female who had not attained the age of 16 years.
The charge is merely an accusation and Wutzke is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Wutzke was released on bond pending trial. A trial date has not been set.
New York Man Charged with Purchasing Atv in Enosburg with Counterfeit MoneyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Francis Hamblin, 30, of Fort Ann, New York, entered a not guilty plea to a one-count indictment charging that he used counterfeit currency to purchase an ATV in Enosburg, Vermont. Hamblin was ordered detained, without bail, pending trial by Magistrate-Judge John Conroy.
According to court records, the government alleges that, on October 19, 2013, Hamblin, in response to an advertisement on Craig’s List, purchased a Yamaha ATV vehicle from a man in Enosburg with $3,500 in counterfeit U.S. currency. The seller of the ATV later became suspicious of the currency and contacted the Franklin County Sheriff’s Office who confirmed the currency was counterfeit. Investigation by the Franklin County Sheriff’s Office then led to Hamblin’s arrest.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty. If he is convicted, Hamblin faces a maximum possible term of imprisonment of twenty years.
This case was investigated jointly by the United States Secret Service and the Franklin County Sheriff’s Office. The United States is represented by Assistant U.S. Attorney Joseph Perella. The defendant is represented by the Federal Public Defender’s Office in Burlington.
New Kensington Man Admits Possessing, Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa., pleaded guilty in federal court to charges of violating the federal child exploitation laws, United States Attorney David J. Hickton announced today.
Mark Randall Salego, 53, pleaded guilty to one count of possession and one count of distribution of material depicting the sexual exploitation of a minor before Senior United States District Judge Donetta W. Ambrose. He possessed the materials on Feb. 28, 2013 and distributed them on Jan. 27, 2013.
Judge Ambrose scheduled sentencing for April 8, 2014. The law provides for a total sentence of not less than 5 years and up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Mark Salego.
New Jersey Attorney and Tax Preparer Admit Roles in $30 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. — A New Jersey attorney and a tax preparer today admitted their roles in a long-running, large-scale mortgage fraud that caused losses of more than $30 million, U.S. Attorney Paul J. Fishman announced.
Michael Rumore, 55, of Toms River, N.J., and Kenneth Jones, 64, of Elizabeth, N.J., both pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with conspiracy to commit bank fraud. Jones also pleaded guilty to aiding and abetting the filing of false and fraudulent tax returns.
According to documents filed in this case and statements made in court: From 2006 to 2010, Rumore, Jones and numerous others engaged in two related mortgage fraud conspiracies through a company called Premier Mortgage Services (PMS). The conspirators targeted properties in low-income areas of New Jersey. After recruiting “straw buyers,” they used a variety of fraudulent documents, some of them created by Jones, to make it appear as though the straw buyers possessed far more assets and earned far more income than they actually did.
The conspirators then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties. The conspirators then split the proceeds from the mortgages among themselves at closing time, including at closings presided over by Rumore. The closings went forward through the use of fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings. The conspirators defrauded financial institutions out of more than $30 million.
The conspirators each performed different roles in the scheme. Michael Rumore was an attorney licensed in New Jersey and served as the settlement agent on mortgage loans brokered by other conspirators. Rumore used his status as an attorney to further the fraudulent scheme, including by convening closings, receiving funds from lenders, and preparing HUD-1s that purported to reflect the sources and destinations of funds for mortgages on subject properties B when in fact, the HUD-1s were neither true nor accurate. Rumore disbursed mortgage loan proceeds directly to PMS and other conspirators, including amounts not reflected on the HUD-1s. Rumore received a fee for each fraudulent loan in which he participated.
Jones, a tax preparer, created numerous false documents used in the scheme. When contacted by loan officers, Jones would create fraudulent verifications of employment for straw buyers, which claimed falsely that the straw buyers were employed by certain businesses. Jones included his own phone numbers on the verifications of employment, so that when financial institutions called to verify the information, Jones would answer and confirm the false statements. Jones received a fee for each fraudulent document that he created. Jones also engaged in a separate scheme in his capacity as a tax preparer, to which he also pleaded guilty. Jones would inflate the deductible expenses to which his clients were purportedly entitled, obtaining larger tax refunds for his clients than they should have received.
The bank fraud conspiracy count to which Rumore and Jones pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million. The aiding and abetting false tax returns to which Jones pleaded guilty is punishable by a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for March 31, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Zach Intrater of the Criminal Division.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
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Defense counsel: Rumore: Donna Newman Esq., Westfield, N.J., and New York
Jones: Hassan Abdellah Esq., Elizabeth, N.J.Rumore Information
Jones InformationNew Fairfield Resident Sentenced to More Than Five Years in Federal Prison for Trafficking MarijuanaRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS CALAMARAS, 30, of New Fairfield, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 63 months of imprisonment, followed by four years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation that revealed that CALAMARAS was a lead participant in a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation, which included the use of court-authorized wiretaps, revealed that CALAMARAS obtained large quantities of marijuana from other members of the conspiracy and then redistributed the drug in the New Fairfield and Danbury areas. He also partnered with co-conspirators to establish grow-house operations and to cultivate hundreds of marijuana plants.
CALAMARAS has been detained since his arrest on June 13, 2012. On that date, law enforcement officers executed a court-authorized search of CALAMARAS’s Macbean Drive residence and seized marijuana plants, approximately 18 pounds of processed marijuana, more than $378,000 in cash and a .223 caliber, semi-automatic rifle.
CALAMARAS was ordered to forfeit the seized cash and firearm.
On June 5, 2013, CALAMARAS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 100 kilograms of marijuana.
The investigation resulted in charges against 13 individuals and the seizure of processed marijuana, approximately 140 marijuana plants, more than $520,000 in cash, 10 firearms, vehicles and real property.
This matter was investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant U.S. Attorneys Tracy L. Dayton and David X. Sullivan.
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(203) 821-3722 [email protected]Man who Torched Vancouver Business Under Construction Sentenced to 30 Months in PrisonRead the Press Release
A 61-year old Vancouver, Washington man was sentenced today in U.S. District Court in Tacoma to 30 months in prison for conspiracy to commit arson in connection with a March 2003 fire, announced U.S. Attorney Jenny A. Durkan. MARK DUANE FUSTON, also known as “Mau Mau,” pleaded guilty in October 2013, to using propane and various flammable liquids to burn down the ‘Desire Video’ store that was nearing completion on NE 94th Avenue in Vancouver. The fire destroyed the building causing some $850,000 in damage. U.S. District Judge Benjamin H. Settle imposed the prison sentence and three years of supervised release saying FUSTON was “an outlaw,” and had been for “way too much of (his) life.”
According to the plea agreement signed in October, FUSTON was hired to torch the building. FUSTON and another man (now deceased) acted together to commit the arson. On the night of March 27, 2003, FUSTON rerouted a propane line into the building and placed a remote control incendiary device intended to ignite the propane and destroy the building. However, when the remote control device malfunctioned, FUSTON returned to the building and left a fuel trail to the building which he later ignited manually. The fire ignited the propane trapped inside the building causing the explosion and fire.
FUSTON was indicted March 27, 2013. A hearing will be held in February 2014 to determine the amount of restitution FUSTON must pay.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Vancouver Police Department and the Vancouver Fire Department. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Man Charged for Escape from Coolidge HouseRead the Press Release
BOSTON - A Providence man was charged today with escaping from a halfway house.
Jason Shepard, 34, was indicted with escape from the Coolidge House. Coolidge House is a residential reentry center in Boston that assists incarcerated individuals successfully transition to the community after they are released. Shepard was confined there in connection with his federal conviction for being a felon in possession of a firearm.
If convicted, Shepard faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U. S. Marshals Service, District of Massachusetts, made the announcement today. The case is being prosecuted by Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lower Burrell Man Sentenced to Probation for Participating in Cambria County Marijuana Distribution RingRead the Press Release
JOHNSTOWN, Pa. - A resident of Lower Burrell, Pa., has been sentenced in federal court to three years probation on his conviction of possession of marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anthony T. Digirolamo, 65.
According to information presented to the court, on May 2, 2011, Digirolamo possessed with the intent to distribute less than 50 kilograms of marijuana.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Digirolamo. 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.
Lowell Woman Indicted for Misuse of Social Security Account Number and False Statement to Federal AgentsRead the Press Release
BOSTON – A Lowell woman was charged with misuse of a social security account number.
Estafany Elizabeth Montero Munoz, 28, of Lowell, was indicted with misuse of a social security account number and making false statements.
It is alleged that Montero Munoz provided a false social security account number on her driver's license application and misrepresented her name to a federal agent.
If convicted, Montero Munoz faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Gregory K. Null, Special Agent in Charge of the U.S. Department of Homeland Security, Office of Inspector General, Office of Investigations; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - A federal indictment was unsealed today naming RONALD L. ROBERTS as the culprit in a multi-million-dollar loan fraud scheme. The indictment alleges that Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, from which Roberts claimed he would receive between $7 million and $22 million in proceeds after the property was sold to Wal-Mart. According to the indictment, there was no such real estate transaction pending, the property in question was worth substantially less than Roberts represented and the funds provided by lenders were instead diverted to Roberts’ personal use, including gambling at the River City Casino. The indictment alleges that Roberts caused more than $2.5 million in losses as a result of the fraud.
Roberts was indicted by a federal grand jury on three felony counts of wire fraud and one felony count of mail fraud. The indictment was returned December 11th, but remained sealed until the defendant turned himself in to authorities earlier today.
If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.