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16 December 2013
Little Eagle Man Charged with Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by a Habitual Offender.
Theron Makes Him First, 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 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Makes Him First unlawfully committed domestic assaults, one resulting in substantial bodily injury. At the time of the assaults, Makes Him First had a final conviction on at least two separate prior occasions for assaults that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The charge is merely an accusation and Makes Him First is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Makes Him First was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Leader of San Diego Mortgage Company Sentenced to 41 Months in Prison and Ordered to Pay over Half A Million Dollars in RestitutionRead the Press Release
Today United States Attorney Laura E. Duffy announced the sentencing of Brian Nels Peterson, the head of a mortgage company called Terra Finance in San Diego, California, for originating millions of dollars in fraudulent mortgage applications generated between 2005 and 2007, many for properties in two neighborhoods in San Diego County. District Court Judge John A. Houston sentenced Peterson today to 41 months in custody, ordered him to pay a $50,000 fine, and ordered restitution in the amount of $542,075 to Citi Mortgage.
Peterson admitted that he devised a scheme to procure mortgage funds through deceptive means, including falsifying income on applications to qualify borrowers for loans. Terra Finance facilitated loans in several San Diego neighborhoods, including the expensive then-new “Ivy Gate” housing development in North County’s 4S Ranch, and the “Rolling Hills” development in southern San Diego County. Court documents indicate that in its heyday, Terra Finance generated between $80 million and $100 million worth of residential mortgage loans. Peterson, who held a broker’s license with the California Department of Real Estate, personally signed most of the fraudulent loan applications containing false income, employment, asset, and liability information submitted under his license number.
Peterson earned over $1 million from his fraudulent loan business through broker’s fees, kickbacks from cash-out refinances, and other sources in 2006 alone. He admitted that he failed to report his over $1 million income in 2006, and that he evaded paying taxes by arranging to be paid in cash, and other means.
According to court documents, Peterson orchestrated the fraudulent conduct of employees, borrowers, and industry professionals as the head of Terra Finance. Peterson recruited a cadre of loan officers, loan processors, office staff, real estate “investors” and other industry professionals to participate in his scheme, including appraisers, tax preparers, and lender representatives. These knowing participants included people who made up job titles and income figures so borrowers would appear to qualify for a loan, added borrowers to another person’s bank account and then had the borrowers falsely claim the funds in the account as assets, fabricated false “verifications” of phony information in the loan applications, and prepared appraisals “to order” based on the property value Peterson sought. Borrowers used a succession of fake loan applications to purchase multiple properties that they could not afford. The initial loans were often re-financed – through fraudulent loan applications -- to fund additional purchases, in an upward spiral of home ownership built on a foundation of fraud.
Peterson’s real estate empire eventually crumbled, resulting in millions of dollars of losses, dozens of foreclosures, numerous neighborhoods depressed – and the indictment of 26 loan officers, loan processors, appraisers, borrowers, and a lender representative, all who participated in loans with Terra Finance. In a related case, United States v. Berkenfield, case number 11CR3486-JAH, 13 out of 25 arrested defendants have pled guilty and have been sentenced to penalties ranging from probation and home confinement to 5 months in custody. Twelve defendants remain pending in that case. (One defendant remains a fugitive.)
DEFENDANT Criminal Case No. 11CR3486-JAH Brian Nels PetersonCount 1- Wire Fraud (Title 18, United States Code, § 1343): 41 months custody; 3 years of supervised release; $50,000 fine; $542,075 restitution; $100 special assessment.
Count 2 – Willful Failure to File Tax Return (Title 26, United States Code, § 7203): 12 months custody; 1 year of supervised release, $10 special assessment, all to run concurrently with Count 1.
PARTICIPATING AGENCIESDepartment of Homeland Security, Immigration and Customs Enforcement, Office of Professional Responsibility
Internal Revenue Service – Criminal Investigations
Federal Bureau of InvestigationLeader of Kentland Drug Organization Sentenced to over 24 Years in PrisonRead the Press Release
Total of 22 Defendants Prosecuted in Federal Conspiracy Case Targeting Kentland Neighborhood
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Philip Whitehurst, a/k/a Lil Phil, age 32, of Bowie, Maryland, today to 294 months in prison, followed by five years of supervised release, for conspiring to distribute and possess with intent to distribute between 2.8 and 8.4 kilograms of crack cocaine.
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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George=s County Police Department; and Prince George=s County State’s Attorney Angela D. Alsobrooks.
“Federal authorities worked with the Prince George’s County Police Department and State’s Attorney’s Office to dismantle a criminal organization that dealt drugs and despair in the Kentland area of Landover, Maryland,” said U.S. Attorney Rod J. Rosenstein. “This sort of coordinated effort contributes to the crime reduction in the county.”
According to court documents, from June 2010 to August 2011, Whitehurst organized and led a large scale cocaine distribution conspiracy that operated in the Kentland area in Landover, Maryland. Whitehurst maintained a succession of distribution houses near the Kentland area, including a location in an apartment complex on Sheriff Road in Hyattsville, Maryland. Whitehurst was responsible for the distribution of between 2.4 and 8.4 kilograms of cocaine base during the conspiracy.
On September 28, 2011, FBI agents executed a search warrant at Whitehurst’s residence and seized a loaded semi-automatic firearm.
Co-conspirator Antonio Marshall, age 36, of College Park, Maryland, was sentenced to 78 months in prison this morning. Last week, Chris Vondell Rainey, age 43, was sentenced to nine years in prison, Jason Scrivner, age 34, was sentenced to 78 months in prison; and Kenneth Smith, age 30, was sentenced to 30 months in prison, for their participation in the drug conspiracy. Other defendants who participated in the drug conspiracy and have been sentenced include: Xavier D. Eccleston, age 36, of Bethesda, Maryland, who was sentenced to 210 months in prison after being convicted following an eight day trial; Shawn R. Lomax, age 35, of Capitol Heights, Maryland, who was sentenced to 148 months in prison; Demeco Savoy, age 34, of Laurel, and John Holt, age 32, of Temple Hills, Maryland, who were each sentenced to 10 years in prison; Barnell Banks, age 34, of Landover, Maryland, who was sentenced to eight years in prison; Markus J. Humphries, age 34, of Washington, D.C., and Rodney Jennings, age 41, of Suitland, Maryland, who were each sentenced to 70 months in prison; and Robert Sears, age 34, of Suitland, who was sentenced to five years in prison. Seven additional defendants have been convicted and are awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem, Arun Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.Justice Department Requires Divestiture from Gannett Co. Inc. <br /> in Order to Proceed with Its Acquisition of Belo Corp.Read the Press Release
The Department of Justice announced today that it will require Gannett Co. Inc., Belo Corp. and Sander Media LLC to divest their interests in KMOV‑TV, a CBS affiliate in St. Louis, in order to proceed with Gannett’s acquisition of Belo, and Sander’s related acquisition of six Belo television stations that Gannett cannot hold under Federal Communications Commission (FCC) rules. The department said that, without the required divestiture, Gannett would have gained a dominant position in broadcast television spot advertising in the St. Louis area, resulting in higher prices advertisers.
In addition to acquiring the six stations from Belo, Sander will enter into several agreements with Gannett in order to both finance purchasing the stations and facilitate operating the stations. KMOV-TV is one of the six stations Sander would acquire from Belo and would be subject to agreements between Sander and Gannett. These agreements, however, do not include any joint negotiation of retransmission rights in St. Louis. The Gannett-Belo acquisition is valued at approximately $2.2 billion.The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition and related agreements between Gannett and Sander, including an option for Gannett to assign or acquire the Belo stations sold to Sander, a financing guarantee and a long-term shared services agreement. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“Gannett’s KSDK‑TV and Belo’s KMOV‑TV compete head-to-head in the sale of broadcast television spot advertising in the St. Louis area, and this rivalry constrains advertising rates,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The full divestiture required by the department will ensure that KMOV-TV will remain a vigorous competitor in St. Louis.”
The department’s complaint alleges that the proposed acquisition would lessen competition in broadcast television spot advertising in the St. Louis Designated Market Area (DMA). Even though the two stations would maintain separate sales forces, the various agreements between Gannett and Sander, KMOV‑TV’s new owner, would align the incentives of the two stations. To remedy this harm, the proposed settlement requires Gannett, Belo and Sander to divest all assets primarily used in the operation of KMOV‑TV to an independent purchaser to be approved by the United States. That purchaser will not be permitted to have any agreements with Gannett concerning KMOV-TV that could limit competition with KSDK-TV, including options to acquire or assign, financing agreements and shared services or joint sales agreements.
Gannett, a Delaware corporation with headquarters in McLean, Va., owns and operates 23 broadcast television stations nationwide, 12 of which are in the top 25 markets, as well as numerous newspapers. Gannett’s KSDK‑TV is the NBC affiliate in St. Louis.
Belo, a Delaware corporation with headquarters in Dallas, owns and operates 20 broadcast television stations nationwide, nine of which are in the top 25 markets. Belo’s KMOV‑TV is the CBS affiliate in St. Louis.
Sander, a Delaware limited liability company with headquarters in Scottsdale, Ariz., has no current business activity other than preparing to acquire six Belo stations, including KMOV‑TV in St. Louis, as part of the transactions between Gannett, Belo and Sander.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60‑day comment period to Scott A. Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60‑day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Justice Department Files Fair Housing Lawsuit Against Owner and Manager of Rental Housing in New Hampshire for Discrimination Against Families with ChildrenRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against the owner and manager of rental apartments in Jaffrey, N.H., for violating the Fair Housing Act by discriminating against families with children.
The lawsuit, filed in the U.S. District Court for the District of New Hampshire, alleges that Bruce R. Edwards, as Trustee of the Bruce R. Edwards Revocable Trust of 2004 and in his personal capacity, engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the Act. According to the complaint, the defendant allegedly established and implemented a discriminatory “no children” policy for prospective tenants in a boarding house that he owned and managed. The suit also alleges that the defendant violated the Fair Housing Act by enforcing the “no children” provision of the lease against a tenant and requiring the tenant to immediately find other housing arrangements for his daughter, who visited the boarding house on weekends.
“This lawsuit demonstrates the Department of Justice’s commitment to ensuring fair and equal access to housing for all New Hampshire citizens and attempts to erect discriminatory barriers to this fundamental civil right will not be tolerated,” said U.S. Attorney John P. Kacavas for the District of New Hampshire.
“The Fair Housing Act protects tenants with children from facing unfair terms and conditions of rental that do not apply to tenants without children,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that ensure that tenants can secure rental housing for their families without fear of discrimination.”
This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by a tenant who lived in the defendant’s boarding house and had joint custody of his minor daughter. The defendant’s lease stated that no children were allowed in the building, and the defendant made additional oral statements to the tenant that children were not permitted. After receiving noise complaints about the tenant’s child, the defendant notified the tenant in a letter marked “Eviction Notice” that he was enforcing the “no children” provision of the lease and that the tenant had to immediately find other arrangements for his daughter on the weekends. As a result, the tenant began taking his daughter to stay with family members, which resulted in both economic and emotional costs. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
“It’s surprising that 25 years after Congress outlawed housing discrimination against families with children, many landlords don’t know it’s illegal or don’t take the law seriously,” said Acting Assistant Secretary Bryan Greene for HUD’s Office of Fair Housing and Equal Opportunity. “HUD will continue work alongside the Department of Justice in educating people on the law and obtaining housing relief for families denied housing."
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, ext. 3.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Irving, Texas, Man Sentenced to 150 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Travis Olt, 40, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 150 months in federal prison, following his guilty plea in August 2013 to an Information charging one count of transporting and shipping child pornography. Judge Lindsay remanded Olt, who had been on bond, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in May 2013, federal agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Olt’s residence and seized several computers and computer-related items. Olt admitted that he intentionally and knowingly received child pornography using a file-sharing computer software program.
Prior to the execution of the warrant, law enforcement was able to access and download child pornography that Olt received by using the software. Olt admitted that he believed he possessed approximately 1,000 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by ICE HSI and the Plano, Texas Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Investigators in Rx Drug, Immigration Cases Receive Guardian of Justice AwardsRead the Press Release
WICHITA, KAN. - Three investigators who worked on a federal prescription drug trafficking prosecution involving a user who died from an overdose, and another investigator whose mastery of facial recognition software and other digital tools helped build federal immigration cases are this year’s winners of Guardian of Justice Awards, U.S. Attorney Barry Grissom said today.
Grissom presented the awards Monday. Honored during a ceremony at the U.S. Attorney’s Office in Kansas City, Kan., were:
Jeremi Thompson, Franklin County Sheriff’s Office.
Traci Allen, Kansas Bureau of Investigation.
Jeff Thomas, Internal Revenue Service.
Miguel Arellano-Hernandez, special agent in charge of the Kansas Department of Revenue’s Office of Special Investigations.
Thompson, Allen and Thomas investigated a trafficking organization whose business peddling prescription drugs on the streets of Franklin County accounted for at least one overdose death. The other winner, Arellano-Hernandez, used facial recognition software and other tools to investigate several federal criminal immigration cases.
“These are law enforcement professionals who stand out,” said U.S. Attorney Barry Grissom. “They are dedicated and talented individuals who we can depend on to safeguard our neighborhoods and protect the people of Kansas from crime and violence.”
The Guardian of Justice Awards recognizes law enforcement officers who did outstanding work on cases that were successfully prosecuted by the U.S. Attorney’s office. Since 2002, the award has been given to state and local law enforcement officers, as well as federal agents, who were nominated by federal prosecutors for their outstanding work.
Thompson, Allen and Thomas
Thompson, Allen and Thomas uncovered a drug trafficking ring that was distributing oxycodone, morphine and other prescription drugs throughout Franklin County. The case they helped build resulted in the ring leader, Connie Edwards, being convicted and sentenced to federal prison for 25 years. Thompson worked long hours, holidays and weekends on the investigation, following leads, interviewing witnesses and providing prosecutors with sharp, accurate reports. Allen worked as an undercover officer and co-case agent with Thompson. Thomas of the IRS followed the money trail to bring down the traffickers’ money laundering and tax evasion scheme. The investigation also identified Medicare and Medicaid fraud at a local pharmacy.
Arellano-Hernandez
Miguel Arellano-Hernandez is the special agent in charge of the Kansas Department of Revenue’s Office of Special Investigations. In the past three years, he has worked on a series of cases successfully prosecuted by the U.S. Attorney’s office. In addition to his work ethic and dedication, his expertise in using facial recognition tools and motor vehicle and financial records, have proven to be invaluable assets during investigations. He and his agents received national attention, for instance, in the prosecution of Benita Cardona Gonzalez, a case in which the defendant stole a Texas school teacher’s identity in order to buy a house and pay hospital bills for the birth of her own children.Assistant U.S. Attorney Brent Anderson nominated Arellano-Hernandez. Assistant U.S. Attorney Sheri McCracken nominated Thompson, Allen and Thomas.
Immigration Attorney Pleads Guilty to Bribing an Immigration OfficialRead the Press Release
Client Also Pleads Guilty to Immigration Fraud
Baltimore, Maryland – Attorney Kiran Dewan, age 59, of Woodbine, Maryland pleaded guilty late on December 13, 2013, to bribery, and one of his clients, Mohammad Khan, age 58, of Baltimore, also pleaded guilty to immigration fraud.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.“Immigration attorneys hold positions of public trust and it is disturbing that anyone would defraud the very system in which they work for their own personal profit,” said HSI Special Agent in Charge in Baltimore William Winter. “Document and benefit fraud poses a significant vulnerability to our national security and exploits America's legal immigration system. Whether you are trying to illegally obtain an immigration benefit or facilitating the fraud, know this – you will be found, arrested and held accountable for your actions.”
Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.According to his plea agreement, from March 2011 to May 2013, Dewan conspired with clients, including Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official who was willing, in return for cash, to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unbeknownst to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.
Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan was afraid that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice of removal, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.
In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the $5,000 bribe.
In 2012, Dewan also spoke extensively about his knowledge of establishing an overseas Hawala to transfer the purported public official’s alleged bribery profits. A Hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this Hawala method for other clients, including a $400,000 transfer via a reverse Hawala method.
Dewan faces a maximum sentence of 15 years in prison and a $250,000 fine for bribery. U.S. District Judge William D. Quarles, Jr. scheduled Dewan’s sentencing for March 6, 2014, at 9:30 a.m.
Khan, a citizen of Pakistan living in Baltimore, who operated Pizza City in Brooklyn Park, Maryland, faces a maximum sentence of 10 years in prison and a $250,000 fine for immigration fraud. Judge Quarles scheduled Khan’s sentencing for February 25, 2014, at 1:00 p.m.
Amjad Israr, age 46, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison on September 20, 2013.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who are prosecuting the case.
Illinois Man Sentenced for Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chicago, Illinois, man charged with Criminal Trespass pled guilty to and was sentenced on December 13, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Steven Nichols, age 42, was sentenced to 6 months' custody, 1 year probation, $50 to the Federal Crime Victims Fund and was ordered to not reenter the Rosebud Sioux Indian Reservation.
The conviction stems from incidents that took place in August and September, 2013, when Nichols, a non-Indian, entered or remained on the Rosebud Sioux Indian Reservation after the Rosebud Sioux Tribal Court and the Rosebud Sioux Tribal Council excluded him from entering its lands.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Nichols was remanded to the custody of the U.S. Marshals Service.
INTERPOL and INTERPOL Washington request public assistance to track international fugitives across AmericasRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Friday, December 16, 2013INTERPOL and INTERPOL Washington request public assistance to track international fugitives across Americas
LYON, France - INTERPOL is calling for the public's assistance in helping to track down international fugitives linked to organized crime networks and wanted for offenses including murder and drug trafficking.
Operation Infra (International Fugitive Round Up and Arrest) Americas was launched in Costa Rica on 18 November, involving 46 countries and territories and targeting 266 fugitives. Members of the public are now being asked to provide information to help locate 15 individuals, including Rafael Caro-Quintero the former leader of the Guadalajara Cartel in Mexico.
The fugitives are believed to be hiding out in Central America, Colombia, Ecuador, Peru, Venezuela or the Caribbean. They are all cases where no new leads were generated during the initial phase of Infra Americas or where there is no current intelligence on the potential location of these individuals.
“Any piece of information, no matter how small or apparently insignificant could be the missing piece in the puzzle which will help locate these dangerous criminals,” said Ervin Prenci, criminal intelligence officer with INTERPOL's Fugitive Investigative Unit.
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Hunters plead guilty to shooting two bull moose in Denali National ParkRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that three Southcentral men plead guilty and were sentenced for violating the Lacey Act in the illegal hunting, take and transport of two bull moose shot in Denali National Park in September, 2012.
On Monday, December 16, 2013, Anchorage residents, Charlie W. Hart, 55, and Deric C. Hart, 33, pled guilty to the illegal take and transportation of bull moose from within Denali National Park. Homer resident Michael J. Barth pled guilty last Friday, December 13th. In connection with their guilty pleas, all three men were sentenced before the Hon. Deborah M. Smith, United States Magistrate Judge, to a term of probation of two years, the payment of $15,000 in restitution to Denali National Park for the two moose illegally taken, a $2500 fine, no hunting for one year, and forfeiture of moose antlers, and moose meat as well as one firearm used in the illegal take of a moose.
According to Assistant U.S. Attorney Steven Skrocki, in September 2012, Charles Hart sought permission to moose hunt on a private in-holding of land in the Kantishna area of Denali National Park through a third party. Based on Charles Hart’s request, the third-party contacted a landowner who granted permission to Charlie Hart’s party to hunt the inholding on the express condition that only one (1) bull moose be taken, and that the hunt occur within the confines of the private inholding.
Charlie Hart and Deric Hart admitted that in September 2012 they travelled with co-defendant James Riggs and another individual on the Denali National Park Road to the Kantishna area of Denali National Park to the private inholding. The hunting party obtained appropriate Denali Park Road permits prior to traveling.
During the hunt, all members of the hunt party hunted for bull moose outside the confines of the private inholding and on Denali National Park property. While doing so, the party used electronic moose cow calls and hunted the lands well outside the boundary of the inholding, including the mountainsides above the inholding. Using an electronic cow call for hunting is illegal under state law.
On September 3, 2012, Deric Hart, in the company of Michael Barth and another individual, hunted for bull moose outside of the inholding. While hunting outside the property the group spotted a bull moose a short distance outside the property boundary and/or adjacent the boundary line which Deric Hart killed. Thereafter, the hunt party dragged the unlawfully hunted and killed bull moose onto the private inholding by ATV. The bull moose was thereafter field dressed and the antlers removed from the skull. The bull moose’s antlers measured approximately 64”.
Two days later, on September 5, 2012, Michael Barth and Deric Hart continued to hunt moose on Denali National Park property. As part of his guilty plea, Michael Barth admitted that he was stalking a Moose on Denali National Park property and that co-defendant James Riggs shot and killed the moose and allowed Barth to tag the moose as if Barth had shot and killed it. After shooting the second moose, the party illegally used ATV’s and a UTV in a closed ORV area to drag the moose from the location where it fell, on Denali National Park property, approximately another ½ mile back to the inholding property for field dressing. The second moose’s antlers measured approximately 65”.
The following day, the hunt party loaded the meat and antlers of the two unlawfully killed moose into vehicles and transported them to Anchorage. On the way out of Denali National Park, the party was stopped by the National Park Service and questioned. During the questioning, the hunting party lied to a National Park Ranger about the location and other details of the kills.
Co-defendant James Riggs is scheduled to appear in court on January 6, 2014.
Ms. Loeffler commends the National Park Service and the United States Fish and Wildlife Service, and the Bureau of Land Management for their work in the investigation of this case.
Houston Man Heads to Prison for Area Bank RobberyRead the Press Release
HOUSTON – Terrance Trent Batiste, 21, has been ordered to prison for his involvement in the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Kenneth Hoyt sentenced Batiste to 60 months for conspiracy to commit bank robbery as well as 78 months for aiding and abetting aggravated bank robbery which will be served concurrently. He was also convicted of aiding and abetting the brandishing of a firearm during a crime of violence for which he received a consecutive 84-month sentence for a total term of imprisonment of 162 months in federal prison. He will be further required to serve five years of supervised release following completion of the prison term.Kendrick Deswhan Castille, 20, Joshua Demond Clay, 29, also pleaded guilty to the bank robbery and are pending sentencing.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed that Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money from the victim teller. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.Hogsett Announces Breakup of Sophisticated Indianapolis-area Counterfeiting OperationRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the filing of federal counterfeiting charges against Brandon Clark, age 24, of Indianapolis. In a criminal complaint filed today, it is alleged that Clark manufactured more than a quarter-million dollars in counterfeit bills at a home on the eastside of Indianapolis.
“During this city’s busiest shopping season, this alleged scheme was flooding the area with counterfeit currency designed to victimize both consumers and businesses,” Hogsett said. “This operation was as sophisticated as any this city has ever seen, but was brought to a halt thanks to great investigative work by the U.S. Secret Service and our IMPD partners.”
A federal criminal complaint filed by prosecutors this morning alleges that since September 2013, more than $250,000 in counterfeit currency was distributed in the Indianapolis area, all of which was traced by investigators to a single source. On December 5, a confidential informant identified an individual known as “Brandon” that was distributing counterfeit currency from a home on the eastside of Indianapolis. The informant alleged that the defendant spoke openly about technical aspects related to the manufacture of counterfeit currency, and was willing to trade counterfeit bills as part of drug transactions.
Five days later, on December 10, it is alleged that a second confidential informant provided investigators with information about a counterfeit operation being run out of a house on Riley Avenue. This informant allegedly admitted to having purchased counterfeit $100 bills from the defendant on a number of occasions, with a negotiated price of $20 in real currency for each counterfeit $100 bill. The informant alleged that he had purchased approximately $10,000 in fake currency during each of these transactions. The informant also alleged that he purchased firearms for the defendant, who had armed himself in order to protect his counterfeit materials.
Based on this information, a state search warrant was executed by the Indianapolis Metropolitan Police Department at a Riley Avenue house on December 10, 2013. The defendant allegedly made post-arrest statements indicating that the production of counterfeit currency is something he considers an “art,” and made statements implying that the operation had at times sold counterfeit bills in quantities exceeding $100,000.
It is alleged that in executing the search warrants, investigators seized materials related to an incredibly sophisticated counterfeit operation, including:
• approximately $60-70,000 in counterfeit currency;
• six firearms;
• methamphetamine;
• six high-quality printers;
• six paper cutters;
• a laminating machine;
• a money counting machine;
• a counterfeit detection machine;
• various bottles of ink;
• and a large quantity of blank paper stock.According to Assistant U.S. Attorney Winfield Ong, who is prosecuting the case for the government, the counterfeit bills found within the home allegedly resembles the approximately $250,000 in counterfeit currency previously identified by investigators. Clark could face up to 20 years in federal prison if he is found guilty, as well as significant fines and years of federally-supervised release.
This case was the result of a collaborative investigation led by the United States Secret Service and the Indianapolis Metropolitan Police Department, with significant assistance from the Marion County Prosecutor’s Office. Hogsett specifically applauded the work of IMPD’s Violent Crime Unit for their tireless investigative work into the scheme.
A criminal complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Goodwin Awards Former Mingo Pill Mill Bldg. and Forfeited Cash to the West Virginia State PoliceRead the Press Release
Total of more than $1.5 million has been seized from pill mill operators
WILLIAMSON, W.Va. – A Williamson-based office building that formerly housed Mountain Medical Care Clinic, a notorious pill mill, along with more than $340,000 in cash proceeds forfeited by one of its operators now will belong to the West Virginia State Police, U.S. Attorney Booth Goodwin today announced.
Goodwin, joined by U.S. Marshal John Foster, Federal Bureau of Investigation (FBI) Senior Supervisory Resident Agent in Charge Chris Courtright and other members of law enforcement, presented West Virginia State Police Superintendent Col. C.R. “Jay” Smithers with a check in amount of $341,937.61 today in front of the former West Third Avenue pill mill, shut down in 2010 following an extensive federal investigation that ended with several criminal convictions.
“This pill mill did enormous harm across a wide swath of Mingo County and beyond,” U.S. Attorney Booth Goodwin said. “Now we’ve put its operators in prison and hit them in the pocketbook, to the tune of more than $1.5 million.”
Goodwin continued, “A few years back, I made a commitment to go after pill dealers, along with the proceeds generated from their illegal activities. Today’s announcement is a result of that commitment. Every time we put a pill mill out of business, it’s a big step toward getting this district’s biggest crime problem under control.”
A final order of forfeiture was entered in federal court in Charleston on Oct. 23 in the civil forfeiture case against Myra Miller, which concluded all forfeiture cases linked to Mountain Medical.
Myra Sue Miller, a former office manager at Mountain Medical, agreed to forfeit her interest in the clinic’s two commercial buildings valued at approximately $610,000, along with $475,823.75 in cash seized from her residence. Miller, 50, of South Williamson, Ky., previously pleaded guilty in March 2013 to misusing a Drug Enforcement Administration (DEA) registration number that belonged to her former boss, Mingo County doctor William F. Ryckman. Miller, who gave out prescriptions for powerful narcotics in exchange for cash from individuals at Mountain Medical, was sentenced in September 2013 to six months in federal prison.
Dr. Ryckman, 66, was previously convicted in March 2012 for his role in the conspiracy. Ryckman was sentenced to six months in prison followed by one year of supervised release for conspiracy to misuse his DEA registration number. From February 17, 2010, until February 19, 2010, Ryckman caused numerous controlled substances to be prescribed using his DEA registration number to individuals who were not evaluated or seen by him.
A total of $413,050.89 from a Mountain Medical bank account listed in Ryckman’s name has been seized and forfeited by federal authorities.
In a separate case, former Mingo County doctor Diane E. Shafer forfeited $134,550. Shafer, 60, was previously sentenced in September 2012 to six months in prison for conspiracy to misuse her DEA registration number. She also prescribed powerful narcotics to individuals she did not examine.
Records indicate between 2003 and early 2010, Shafer wrote more than 118,000 prescriptions for controlled substances. Though she was a solo practitioner, Shafer, by herself, wrote more prescriptions for controlled substances than several West Virginia hospitals did during that period.The government also seized $88,029 from former Mingo County practitioner, Katherine Hoover. Hoover, who did not work at Mountain Medical but had close ties to several employees at the clinic, has not been charged criminally to date.
A total of $1,586,903.72 in assets held by former employees, clinic bank accounts and related commercial property tied to the former Williamson clinic have been forfeited to the government.
The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.
Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
The criminal cases were investigated by the Drug Enforcement Administration, the West Virginia State Police, the FBI and the Department of Health and Human Services – Office of Inspector General.
Pictured from left to right: West Virginia State Police (WVSP) Superintendent Col. C.R. “Jay” Smithers, U.S. Attorney Booth Goodwin, FBI Senior Supervisory Resident Agent in Charge Chris Courtright, U.S. Marshal John Foster and WVSP Maj. Tim Bradley today in front of the former Mountain Medical Clinic in Williamson.
Gloversville Man Arraigned on Marijuana Manucaturing ChargesRead the Press Release
ALBANY, NEW YORK – DAVID M. GAMBUZZA, 40, of Gloversville, was arraigned today on an indictment charging him with manufacturing marijuana by Magistrate Judge Randolph F. Treece announced United States Attorney Richard S. Hartunian and New York State Police Bureau of Criminal Investigations Captain Scott P. Coburn. The case is set for trial on February 18, 2014. According to the indictment, GAMBUZZA manufactured 50 or more marijuana plants. If convicted, GAMBUZZA faces up to 20 years in prison. He could also be ordered to pay a fine of up to $1,000,000. GAMBUZZA was released pending trial.
The case was investigated by the New York State Police and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
Getaway Driver in Takeover-Style Armed Bank Robbery Is Sentenced to 140 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Gabriel Tenorio, 30, the getaway driver in the May 1, 2013, armed robbery of a Lubbock National Bank, was sentenced on Friday by U.S. District Judge Sam R. Cummings to 140 months in in federal prison. A resident of Lubbock, Tenorio has been in custody since his arrest in early June 2013. He pleaded guilty in August 2013 to one count of aggravated bank robbery and aiding and abetting as charged in a superseding indictment Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Tenorio’s co-defendant, Russell Eugene Heath, 44, also of Lubbock, was arrested in August in Calexico, California. He pleaded guilty last month to one count of aggravated bank robbery and aiding and abetting and one count of possession of a firearm in furtherance of a crime of violence and aiding and abetting. He faces a maximum statutory penalty of 25 years in federal prison on the robbery conviction and at least five years and up to life on the firearm offense. Each count of conviction also each carries a maximum statutory fine of $250,000. A sentencing date has not yet been set for Heath.
According to Tenorio’s factual resume, he and Heath planned and executed the robbery of the Lubbock National Bank located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying what appeared to be a Glock firearm, entered the bank, pointed the firearm at the tellers and began yelling at them to give him money. He jumped over a counter, opened a teller drawer and began stuffing money in his pockets. He then ran from the bank to a waiting vehicle driven by Tenorio. Tenorio and Heath split the proceeds of the robbery.
According to the factual resume filed in Heath’s case, he and Tenoria also robbed the FirstBank Southwest Bank, located at 5701 SW 34th Street in Amarillo, Texas, on May 20, 2013. In that robbery, Heath entered the bank carrying a short-barreled shotgun, vaulted over the teller counter and stole money. Heath then ran to the vehicle being driven by Tenoria and they fled the area.
The investigation was conducted by the FBI, the Lubbock Police Department, the Amarillo Police Department and the Lubbock County Sheriff’s Office. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Fremont Man Sentenced to 24 Years in Prison for Child Pornography ConvictionRead the Press Release
A Fremont man was sentenced to more than 24 years in prison after previously being found guilty of three counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Lehman, 57, was arrested in January after investigators determined he downloaded more than 50 images of young boys being sexually abused.
Lehman was previously sentenced to eight years in state prison for corruption of a minor in 1987 and nine years in state prison for corruption of a minor and sexual imposition in 2009, according to court documents.
This case was prosecuted by Assistant U.S Attorney Alissa Sterling following an investigation by Immigration and Customs Enforcement -- Homeland Security Investigations.
Four Sentenced in San Antonio Hermanos Pistoleros Latinos Methamphetamine Trafficking CaseRead the Press Release
In San Antonio today, Senior U.S. District Judge David Ezra sentenced four individuals for their roles in a San Antonio methamphetamine trafficking conspiracy announced United States Attorney Robert Pitman and San Antonio Police Chief William McManus.
Judge Ezra sentenced 37-year-old Serafin Villanueva, an active member of the Hermanos Pistoleros Latinos (HPL), to 130 months in federal prison; 27-year-old James Lopez to 70 months in federal prison; 46-year-old Gilbert Guzman to 50 months in federal prison; and 26-year-old Felisha Salinas to five years of probation.
Previously, all four defendants pleaded guilty to conspiracy to distribute a controlled substance from September 2012, until January 2013. Court documents reveal that in September 2012, investigators with the San Antonio Police Department Gang and Intelligence Units began investigating the defendants and others connected to a methamphetamine distribution network operating out of the custom paint and auto body shop, A-1 Kustom.
On January 28, 2013, investigators arrested Guzman, Salinas, Lopez and Villanueva following a drug transaction and seized approximately 80 grams of methamphetamine.
In a separate, but related indictment, 41-year-old Andres Sanchez, a high ranking HPL member, was sentenced last week to 63 months in federal prison for being a convicted felon in possession of a firearm.
Assistant United States Attorney David Shearer prosecuted this case on behalf of the Government.
Fort Pierce Man Pleads Guilty to Firearms and Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announce that defendant Samuel George Brown, 49, of Fort Pierce, pled guilty today to charges of possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c); and possessing a firearm with an altered or obliterated serial number, in violation of Title 18, United States Code, Section 922(k).
Sentencing is scheduled for March 6, 2014 before U.S. District Judge Donald Graham in Fort Pierce, Florida. At sentencing, Brown faces a possible maximum statutory sentence of up to five years in prison, on the charge of possessing a firearm with an altered or obliterated serial number; to be followed by a mandatory minimum five years consecutive sentence for the charge of possessing a firearm in furtherance of a drug trafficking crime.
According to statements made in open court and documents filed in the case, Brown was a dealer selling marijuana from his house in Fort Pierce. Following two separate drug sales by Brown to confidential informants working with local law enforcement, on June 8, 2013, officers obtained and executed a search warrant for Brown’s home. On arrival, the officers found on the kitchen counter, alongside marijuana, packaging material, and electronic scales for measuring drug sales, and a loaded Hi-Point .380 caliber handgun. The serial number on the .380 caliber handgun had been obliterated. In a post arrest interview, Brown admitted to keeping the handgun for his personal protection as part of his drug sales business.
Mr. Ferrer commended the investigative efforts of ATF and the St. Lucie County Sheriff’s Office, together with the Fort Pierce Police Department. 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.
Former South Plainfield, N.J., Police Captain Pleads Guilty to Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield, N.J., police captain admitted today to exploiting a minor girl by enticing her to live-stream sexually explicit acts via the Internet in exchange for payment, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 51, of South Plainfield, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of production of child pornography. Grennier was charged by complaint on Feb. 19, 2013, and has been in custody since that date.
According to documents and evidence in this case and statements made in court:
On Feb. 14, 2013, Grennier enticed a girl to perform sexually explicit acts and stream images of herself over the Internet while he watched remotely from his home computer. During the webcam session, Grennier exchanged text messages with the minor in which he directed her actions. Grennier admitted during his guilty plea proceeding that he promised to buy his victim clothing in exchange for her performance.
At the time of his arrest, Grennier was working for a private computer forensics firm. Prior to his retirement, he was a computer forensics specialist for the South Plainfield Police Department.
The production count carries a maximum potential penalty of 30 years in prison and a $250,000 fine. The mandatory minimum sentence for this offense is 15 years in prison. Sentencing is currently scheduled for March 27, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea. He also thanked the South Plainfield Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew Carey, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Harvey Bartle, Attorney-in-Charge of the U.S. Attorney’s Office in Trenton.
13-465
Defense counsel: Frank Arleo Esq., West Orange, N.J.
Grennier Information
Former El Paso ISD Trustee Salvador "Sal" Mena Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
In El Paso this morning, former El Paso Independent School District Trustee Salvador “Sal” Mena was sentenced to three years in federal prison for accepting more than $176,000 in cash bribes in exchange for his vote and official influence announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Mena forfeit to the federal government $176,455 and be placed under supervised release for a period of three years after completing his prison term. Mena was remanded into federal custody following today’s hearing.
Previously, Mena pleaded guilty to conspiracy to commit mail and wire fraud, and deprivation of honest services. By pleading guilty, Mena admitted that he set up a sham consulting contract with an EPISD vendor whereby he received income, but provided no consulting services. Additionally, in exchange for his vote, support and influence for vendors, he instructed vendors seeking to do business with EPISD to make contributions to his election and re-election campaigns.
This morning, Judge Montalvo also sentenced former El Paso resident Christopher Chol-Su Pak, to three years of probation and ordered him to pay a $20,000 fine for helping former El Paso businessman Roberto “Bobby” Ruiz in carrying out his bribery scheme which focused on a $40 million El Paso County debt refinancing contract. Earlier this month, Ruiz received a two-year federal prison term and a $175,000 fine for his role in the scheme.
In sentencing Pak to a term of probation, Judge Montalvo took into consideration the Government’s recommendation regarding Pak’s sentencing based on Pak’s expeditious cooperation with the Government and minimal benefit as a result of the corrupt conduct.
“Today’s sentencing of Mr. Mena and Mr. Pak demonstrates the FBI’s unwavering commitment to target those individuals involved in public corruption in the El Paso community. Entrusted to serve the citizens of El Paso, Mena and Pak instead used their influence to promote their own personal interest,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorneys Debra Kanof and Jose Luis Gonzalez prosecuted this case on behalf of the Government.
Former Contractor of a Florida Property Management Company <br /> Sentenced to Serve Time in Prison for Wire FraudRead the Press Release
A former repair contractor of a Florida property management company was sentenced to serve time in prison for his participation in a wire fraud scheme related to housing repairs made under a contract between Ocwen Loan Servicing LLC, and the U.S. Department of Veterans Affairs (VA), the Department of Justice announced today.Ronald B. Hurst was sentenced by Judge Philip G. Reinhard of the U.S. District Court for the Northern District of Illinois in Rockford to serve 24 months in prison for his role in the conspiracy.
In addition, a second former repair contractor, Bryant A. Carbonell, was sentenced by Judge Reinhard to serve six months of home confinement for his role in the conspiracy. Hurst and Carbonell were sentenced to pay $147,825 jointly and severally in restitution to the VA. Hurst pleaded guilty on Feb. 15, 2013, to two wire fraud counts of a 10-count indictment and Carbonell pleaded guilty on Sept. 21, 2012, to the same charges.An indictment, originally filed in January 2012, charged Hurst, Carbonell and Ryan J. Piana with conspiring to commit bribery and wire fraud from at least January 2006 until as late as September 2007. Hurst, Carbonell and Piana were also charged with bribery and wire fraud. As part of the plea agreements, the United States agreed to dismiss the remaining counts against Hurst and Carbonell at the time of their sentencing.
“By paying kickbacks in exchange for contracts to companies they secretly owned or with which they were affiliated, the conspirators created the illusion of competition while illegally steering contracts to themselves,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Today’s sentencing reaffirms the Antitrust Division’s commitment to prosecuting schemes that undermine competition in the VA Mortgage Guarantee Program.”
Hurst and Carbonell were former contractors for West Palm Beach, Fla.-based Ocwen Loan Servicing LLC. Piana was a former residential sales manager at Ocwen. According to court documents, Ocwen managed foreclosed properties under contract with the VA, which guaranteed qualifying residential mortgages for veterans. Under the contract between the VA and Ocwen, if a veteran defaulted, Ocwen completed necessary repairs and re-sold the property. Proceeds from the re-sale of VA-acquired properties directly benefit the VA by reducing the cost of guaranteeing residential mortgages to veterans.
According to the charges, Hurst and Carbonell paid Piana to steer housing repair work to companies affiliated with Hurst and Carbonell. Piana recruited other Ocwen employees into the scheme and paid them on behalf of himself and the other conspirators. The department said in order to execute the scheme, the conspirators sent, or caused to be sent, various transmissions via wire communication.This is the third case involving properties managed by Ocwen under contract with the VA. On Dec. 3, 2010, Benjamin K. Graves, also a former Ocwen employee, pleaded guilty in U.S. District Court in Orlando, Fla., to wire fraud in connection with the VA contract. On Jan. 25, 2012, Joshua R. Nusbaum, another former Ocwen employee, and Andrew J. Nusbaum, a former Ocwen contractor, pleaded guilty in U.S. District Court in Orlando, Fla., to wire fraud in connection with the same VA contract. Piana pleaded guilty to the same counts as Carbonell and Hurst on July 16, 2013, in U.S. District Court in Orlando, Fla. Piana was sentenced on Sept. 30, 2013, to serve 24 months in prison and to pay $147,285 in restitution to the VA.
The sentence announced today resulted from a federal investigation of housing repair contracts performed under contract with the VA. The investigation is being conducted by the Antitrust Division’s Chicago Office and the Central Field Office of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, located in Hines, Ill. Anyone with information concerning suspicious activity relating to housing repairs performed under a contract with the VA should contact the Antitrust Division s Chicago Office at 312-353-7530 or visit www.justice.gov/atr/contact/newcase.htm.
Former Clarkston Councilwoman Pleads Guilty to Embezzlement SchemeRead the Press Release
ATLANTA – Former Clarkston City Councilwoman Joan Swaney has pleaded guilty to embezzling over $60,000 from a local community center.
“As a Clarkston councilwoman, Swaney’s personal motto was ‘live with purpose, act with integrity,’” said United States Attorney Sally Quillian Yates. “Unfortunately, she failed to live up to these ideals when she stole tens of thousands of dollars from the Clarkston Community Center.”
According to United States Attorney Yates, the charges and other information presented in court: The Clarkston Community Center (CCC) was established in 1994 in the former Clarkston High School and serves a diverse community in the Clarkston area. The CCC includes classrooms and an auditorium as well as activity fields for sports and other outdoor events. The CCC focuses on educational and recreational activities in the Clarkston area. Swaney was employed by the CCC from November 2003 until December 2012. During this time, Swaney was its office manager. Her responsibilities included bookkeeping and other administrative tasks.
In 2010, Joan Swaney, 67, of Clarkston, Ga., was elected to serve on the City Council in Clarkston. She also served as Clarkston's Vice Mayor during her tenure. Swaney resigned her position in October 2013 after she was indicted by a federal grand jury in this case.
As part of her normal duties, Swaney regularly received reimbursements for supplies she purchased on behalf of the CCC. Normally, receipts for expenses incurred and a purchase authorization form for CCC expenses were maintained for each transaction in order to document expenses. In 2010, Swaney began to write checks to herself from the CCC's bank account at BB&T. Between 2010 and 2012, she made the checks payable directly to herself and forged the signature of the CCC's Director. The checks were written without the authorization of the CCC's Director who managed the day-to-day affairs of the CCC.
Swaney deposited the forged checks into her personal account and used the CCC's funds to pay personal expenses and her personal credit card bills. During this period, she used CCC funds to pay for a variety of personal expenses including:
- Charges totaling $1,424 in June 2010 for a family vacation;
- Charges totaling approximately $3,000 in September 2010 for personal vehicle repairs; and
- Charges totaling $1,590 in June 2011 for a charter boat rental.
Swaney varied the check amounts and made fictitious entries in the memo lines of the checks in order to make it appear the funds had been spent on expenses relating to the CCC's operations. At the same time, she also used the CCC debit card to withdraw cash from the CCC's BB&T bank account, generally withdrawing between $300 and $600 at a time. Swaney made cash withdrawals using the debit card at least once or twice a month. The loss to the CCC exceeded $60,000.
The charges in this case carry a maximum sentence of 30 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Swaney’s sentencing is scheduled for March 6th, 2014, at 10:00 a.m.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Kurt Erskine is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Big Spring, Texas, Man Sentenced to Six Years in Federal Prison for E-Mailing Obscene Video to Undercover Law Enforcement OfficerRead the Press Release
Defendant Believed He Was Sending Video to a 15-Year-Old Girl
LUBBOCK, Texas — Paul Harvilicz, 62, of Copperas Cove, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to six years in federal prison following his guilty plea in August 2013 to a superseding indictment charging one count of attempted transfer of obscene material to a minor. Harvilicz has been in custody since he was arrested in Waco, Texas, on March 27, 2013, on related charges. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, announced today.
According to the factual resume filed in the case, from May 29, 2011, through mid-October 2011, while living in Big Spring, Texas, Harvilicz engaged in a series of communications using Yahoo! messaging and email with a person he believed to be a 15-year-old girl, who represented that she lived in Kentucky. In fact, Harvilicz was actually communicating with a law enforcement officer in Kentucky. On June 28, 2011, Harvilicz emailed this person an obscene video file, depicting an adult male and female engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kenton County Police Department, Kenton County, Kentucky. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Florida Investment Fund Manager Sentenced in Manhattan Federal Court to Six Years in Prison for $13 Million Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CRAIG L. BERKMAN was sentenced today in Manhattan federal court to six years in prison for securities fraud and wire fraud in connection with a more than $13 million scheme to defraud investors through false ownership claims of stock in Facebook, Inc. (“Facebook”); Groupon, Inc. (“Groupon”); LinkedIn, Inc. (“LinkedIn”); and Zynga, Inc. (“Zynga”) before their respective initial public offerings, and in other private companies. In addition to the prison sentence, BERKMAN was ordered to forfeit to the United States $13,239,006, representing the proceeds of the fraud. BERKMAN pled guilty on June 25, 2013, and was sentenced today by U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara stated: “For several years Craig Berkman repeatedly lured investors with the false promise of benefiting from his companies’ ownership of pre-IPO stock all the while draining their money into his own pockets in a fraud that was part Ponzi scheme and part plain old theft. He is now paying a heavy price for his lies, forfeiting both his liberty and his money, and today’s sentence is a just and fitting conclusion to the multimillion-dollar fraud he perpetrated.”
According to the charging instruments in this case and statements made in open court today at the plea proceeding:
From 2010 until his arrest in March 2013, BERKMAN served as the managing member of a series of limited liability companies, which he effectively controlled, including Face-Off Acquisitions, LLC; Assensus Capital, LLC; and several LLCs with variations of the words “Ventures Trust” in their names (the “Ventures Trust LLCs”). Beginning in about October 2010, BERKMAN and others offered investors the opportunity to purchase units of each of these LLCs. In doing so, BERKMAN misrepresented to investors that the LLCs either owned or would soon acquire pre-initial public offering shares in various technology companies, including Facebook, Groupon, LinkedIn, and Zynga. BERKMAN also misappropriated millions of dollars of investor funds for his own use and benefit.
The ways in which BERKMAN carried out his scheme varied with each of the LLCs. In one instance, BERKMAN represented to investors that various Ventures Trust LLCs held large quantities of pre-IPO shares of Facebook, Groupon, LinkedIn, and Zynga. In fact, the Ventures Trust LLCs held no shares of Groupon, LinkedIn, or Zynga, and held only a small, indirect interest in pre-IPO Facebook shares. In another example, BERKMAN falsely told investors with Face-Off Acquisitions, LLC, that their money would be used to purchase an existing special purpose vehicle, which already held a significant stake in Facebook. BERKMAN also misrepresented to Assensus Capital Investors, LLC, investors that he would use their money to fund various start-ups, including technology, medical device, and energy companies, and that the investors’ funds would be partially secured by interests in pre-IPO Facebook stock. In fact, BERKMAN misappropriated most, if not all, of the investors’ money for his own use and benefit.
Ultimately, BERKMAN raised at least approximately $13.2 million in funds from more than 120 different investors, which he used for various unauthorized purposes. BERKMAN used approximately $6 million in stolen investor funds to pay off creditors in his personal bankruptcy, and in doing so, he misrepresented the source of those funds to the Bankruptcy Court. BERKMAN also used approximately $4.8 million of new investor money to pay off earlier investors, and spent approximately $1.6 million on legal fees, travel, other personal expenses, and in cash withdrawals, among other things.
BERKMAN, 71, of Odessa, Florida, was also sentenced to three years of supervised release and ordered to pay a mandatory $200 special assessment. Restitution will be determined at a later date.
Mr. Bharara praised the work of the Criminal Investigators of the U.S. Attorney’s Office and the United States Postal Inspection Service, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John J. O’Donnell and Matthew L. Schwartz are in charge of the prosecution.
Federal Jury Convicts Greeneville Oncologist and Practice Manager of Violating Food, Drug and Cosmetic ActRead the Press Release
Cancer Clinic Purchased Unapproved Drugs For Three Years
GREENEVILLE, Tenn. - Following a six day trial in U.S. District Court, Greeneville, Tenn. a jury convicted Anindya Kumar Sen, M.D., 65, and his wife and practice manager Patricia Posey Sen, 66, of Greeneville, Tenn., of causing the introduction of misbranded drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act.
Sentencing is set for 1:30 p.m. on Apr. 30, 2014 in U.S. District Court in Greeneville. Both face a possible sentence of up to 29 years in prison and up to $2.9 million in fines.
According to evidence presented at trial, the Sens’ medical practice, East Tennessee Hematology Oncology and Internal Medicine (ETHOIM), also known as East Tennessee Cancer and Blood Center, purchased over $3 million in misbranded and unapproved chemotherapy and chemotherapy supportive medications between April 2009 and March 2012. Patricia Sen purchased the drugs through a Canadian business which obtained the drugs through a United Kingdom distributor. The drugs were not approved by the Food and Drug Administration (FDA) for distribution and use in the United States, the drugs having been distributed in Turkey, India, and Europe. Many of the drugs bore names different from the drugs approved for use in the United States, such as Altuzan, MabThera, and Bonviva. Patricia Sen told employees that she was purchasing drugs from Clinical Care because the drugs were cheaper, and records confirmed that the drugs from Clinical Care cost from eighty percent to half the cost of the FDA approved drugs. Because reimbursement by health care benefit programs such as Medicare is fixed at a percentage of the national average sale price of the drug (106% for Medicare), a provider can increase his profits by purchasing cheaper unapproved drugs.
The Food, Drug and Cosmetic Act (FDCA) establishes a “closed” system to protect the safety and efficacy of drugs used in the United States, particularly prescription drugs. Domestic and foreign drug manufacturers must register with the FDA and must list with the FDA all drugs which the manufacturer intends to distribute in the United States. Drugs go through an extensive review process before being approved for distribution to assure that they are safe and effective for their intended use. Drug manufacturers are also subject to inspection of their facilities by the FDA to insure that the drugs are manufactured properly. The FDCA’s labeling requirements insure that users, particularly health care providers, have adequate information on the use of the drug, to include information on dangers and side effects. Foreign drugs not approved for use in the United States do not have on their labels and packaging the required information. The listing of FDA-approved drugs allows the FDA to quickly track drugs which may have been found to be contaminated or have some other safety risk. Purchasing unapproved drugs impedes the FDA’s ability to track the drugs being used in the United States and thwarts the approval process designed to insure that drugs used in the United States are safe and effective.
Genentech, the U.S. manufacturer of the FDA-approved bevacizumab drug product Avastin®, alerted health care providers in February 2012, that counterfeit versions of the drug had been found in the United States. A nurse at ETHOIM testified that the bevacizumab drug product at the practice, a foreign product labeled Altuzan®, bore the same lot numbers as the suspected counterfeit product. Rather than alert the FDA, Patricia Sen had the drugs mailed back to the United Kingdom on Mar. 8, 2012, the day after news reports aired concerning the FDA’s execution of a search warrant at McLeod Cancer and Blood Center in Johnson City, Tennessee.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent convictions of the Sens included the Federal Drug Administration Office of Criminal Investigation, Federal Bureau of Investigation, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Neil Smith and Special Assistant U.S. Attorney Ben Cunningham represented the United States at trial.
Federal Judge Sentences Somerset County Kidnapper to 14 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., has been sentenced in federal court to 168 months in prison, five years supervised release, and ordered to pay restitution to the victim, on his conviction of kidnapping, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Lawrence R. Horner, III, 37.
According to information presented to the court, on July 9, 2011, Horner kidnaped a person whose identity is known and referred to as "L.N.," and did willfully travel and transport L.N. in interstate commerce in commission of the kidnaping offense.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Richland Township Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Horner.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
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Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on December 16, 2013: Brandon S. Keister, 21, of Russell, Kentucky, is charged in a single count Indictment with stealing a firearm from a Federal Firearms License person on or about September 10, 2012. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Steuben County Sheriff’s Department and the Kendallville Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Stephen M. Long, 28, of Auburn, Indiana, is charged in a single count Indictment with bank robbery on or about November 18, 2013. This investigation is being conducted by the FBI Northeast Indiana Federal Bank Robbery Task Force (NEIFBRTF), with assistance from the Anderson Police Department and the Madison County Sheriff’s Department. The NEIFBRTF is comprised of FBI agents, and personnel from the Indiana State Police, Allen County Police Department, Fort Wayne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Charles R. Seals, 23, of Fort Wayne, Indiana, Calvin L. Miller, 22, of Indianapolis, Indiana, and Brandon D. Sizemore, 24, of Fort Wayne, Indiana were all charged in a four count Indictment respectively with armed bank robbery (all defendants), use of a firearm during and in relation to a crime of violence (Seals (in two counts) and Miller), assault of a United States government employee (Seals and Miller), all occurring on or about December 5, 2013. This investigation is being conducted by the FBI Northeast Indiana Federal Bank Robbery Task Force (NEIFBRTF) and the United States Postal Inspection Service. The NEIFBRTF is comprised of FBI agents, and personnel from the Indiana State Police, Allen County Police Department, Fort Wayne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and
Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.East St. Louis Man Pleads Guilty to Firearm OffenseRead the Press Release
On December 13, 2013, Dwayne R. Ramsey, a 33-year old East St. Louis, Illinois, man pled guilty in United States Federal District Court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ramsey is scheduled for sentencing on March 28, 2014, at which at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed that on July 28, 2013, a St. Clair County deputy observed Ramsey lying unconscious next to a pay phone at Emerson Park Metro Station. Ramsey was believed to be intoxicated, due to his speech pattern and the strong odor coming from his breath. A background check on Ramsey indicated an active warrant. He was placed under arrest and searched, where a firearm was recovered on him. Prior to July 28, 2013, Ramsey had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated the St. Clair County Sheriff’s Department and is being prosecuted by Special Assistant United States Attorney Neal C. Hong.
\East Haven Police Officer Sentenced to Prison for Obstructing Justice to Cover up Civil Rights ViolationsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police officer JASON ZULLO, 35, was sentenced today by United States District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by one year of supervised release. ZULLO also was ordered to perform 50 hours of community service.
According to court documents and statements made in court, this matter stems from a criminal investigation into members of the East Haven Police Department use of excessive force during arrests, unconstitutional searches and seizures, and the filing of false police reports. As a result of the investigation, ZULLO, Sergeant John Miller and Officers Dennis Spaulding and David Cari were charged with various civil rights offenses.
On October 23, 2012, ZULLO pleaded guilty to one count of obstruction of justice, and admitted that on October 18, 2008, he struck a motorcycle with his police car at least three times during a chase, ultimately causing the motorcycle to crash and throwing the male driver and female passenger to the ground. Both victims suffered injuries. Following the incident, in order to obstruct any potential investigation of his use of excessive force, ZULLO prepared and filed a false police report that failed to mention that he struck the motorcycle during the chase.
“This defendant attempted to cover up his misconduct and obstruct a civil rights investigation by filing a false police report,” said U.S. Attorney Daly. “His report failed to disclose that he had injured two civilians when he used his patrol car to repeatedly strike the motorcycle they were riding. The evidence obtained during this long-term investigation also revealed other examples of this officer’s abuse of his police powers. This prosecution and the resulting significant prison term demonstrate that criminal conduct by law enforcement officers will not be tolerated.”
“Maintaining the public’s trust in elected officials and particularly law enforcement is of the utmost importance,” said FBI Assistant Director-in-Charge Venizelos. “It is our hope that today’s developments bring us closer to renewing confidence and respect for those, particularly in East Haven, who enforce the law.”
On September 21, 2012, Miller pleaded guilty to one count of violating an individual's civil rights by using unreasonable and excessive force during the course of an arrest. On October 21, 2013, after a month-long trial, Spaulding and Cari were found guilty of conspiracy and various other charges related to their violating the civil rights of members of the East Haven community.
Miller, Cari and Spaulding await sentencing.
This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office. The case is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
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(203) 821-3722 [email protected]Delaware Woman Pleads Guilty to $349,000 EmbezzlementRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Kimberly Y. Drummond, age 47, of Middletown, Delaware, pled guilty to one count of embezzlement from a federally insured financial institution. Drummond, who will be sentenced on April 3, 2014, by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, faces a maximum sentence of thirty years in prison, a fine of $1,000,000, and 6 years of supervised release following her prison sentence.
According to statements made at the plea hearing on December 12, 2013, and documents filed in court, Drummond was employed by Discover Financial Services, in New Castle, Delaware, for nearly 20 years. In or around November 2008, Drummond began falsifying entries in Discover’s books and records, resulting in the issuance of duplicate checks from Discover Bank. Drummond deposited the checks into her personal bank accounts and she used the checks to pay her mortgage lender. Drummond embezzled more than $349,000 from Discover from November 2008 through August 2012.U.S. Attorney Oberly lamented, “Yet another breach of trust by someone entrusted to protect financial resources. These cases will be vigorously prosecuted by this office and appropriate punishments will be sought.”
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Lauren Paxton.
Corpus Christi Man Sentenced for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Rex D. McBride, 44, has been ordered to prison for possession of child pornography, announced United States Attorney Kenneth Magidson. McBride pleaded guilty Sept. 18, 2013.
Today, Senior U.S. District Judge John D. Rainey considered the seriousness of the crime and sentenced McBride to a total of 63 months in federal prison to be followed by 10 years of supervised release
On Nov. 12, 2012, Corpus Christi Police Department – Internet Crimes Against Children (CCPD-ICAC) detectives were conducting an undercover investigation into persons trading child pornography on the Gnutella network. At that time, detectives identified an online user, later identified as McBride, who was offering child pornography for distribution. On three occasions in late 2012, detectives successfully downloaded child pornography from McBride.
On March 20, 2013, a search warrant was executed, during which McBride admitted to downloading and viewing child pornography on the Internet through file sharing software. A forensic evaluation of McBride’s computer led to the discovery of nearly 1500 images of child pornography.
Homeland Security Investigations and CCPD-ICAC investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visitwww.usdoj.gov/psc. For more information about internet safety education, please visitwww.usdoj.gov/psc and click on the tab "resources."Connecticut School Teacher Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD DOYLE, 64, of Litchfield, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of receipt and distribution of child pornography. At the time of his arrest in December 2012, DOYLE was employed as a teacher at a private school in Connecticut.
“This defendant received thousands of images portraying the sexual abuse of children,” stated U.S. Attorney Daly. “The fact that this heinous crime was committed by a teacher, whose profession is committed to the well-being of children, makes it especially disturbing. I commend the FBI and the Connecticut Child Exploitation Task Force for investigating this matter, and the work they do every day to investigate these crimes and protect children.”
According to court documents and statements made in court, in late October 2012, a law enforcement agent logged into a publicly available Internet file sharing program and downloaded images of child pornography from shared directories maintained by DOYLE. On December 4, 2012, the FBI executed a search warrant at DOYLE’s Litchfield residence. DOYLE was arrested after he admitted that, for at least two years, he had used the identified peer-to-peer program to obtain and trade child pornography with other individuals over the Internet. DOYLE further admitted that he had been viewing child pornography since the 1970’s, had used other computer programs to trade child pornography, and had purchased magazines containing child pornography.
DOYLE indicated that he had thousands of child pornography images in his collection, with some of boys as young as five, six or seven years old. He directed the FBI to a plastic container hidden under his workbench in the basement of his home, and indicated that the thumb drives in that container comprised his collection of child pornography, with the exception of some magazines that were still in the attic.
DOYLE stated that he only used his home computer system to download and view child pornography and never used his computer at the school where he was employed.
Pursuant to the search warrant, law enforcement seized a desktop computer and seven thumb drives. Examination of the computer and thumb drives revealed in excess of 4,000 image files and approximately six video files of child pornography.
DOYLE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 10, 2014, at which time he faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
This case is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the New Haven Police Department. The Connecticut State Police has assisted the investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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(203) 821-3722 [email protected]Connecticut Correction Officer Who Attempted to Smuggle Drugs into Prison Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARCOLAIN FOUNTAIN, 47, of Hamden, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three years of probation for attempting to smuggle oxycodone into the prison where he was employed. FOUNTAIN was also ordered to perform 300 hours of community service.
According to court documents and statements made in court, FOUNTAIN was a correction officer at Cheshire Correctional Institution in Cheshire. On July 17, 2012, FOUNTAIN met with an undercover officer with the Statewide Narcotics Task Force at a commuter lot off Interstate 84 in Southington to accept what he believed were 90 oxycodone pills. FOUNTAIN was planning to smuggle the oxycodone pills into the Cheshire Correctional Institute and deliver them to an inmate housed there. During the meeting with the undercover officer, FOUNTAIN also accepted $450 in cash and a quantity of Ecstasy pills as payment for delivering the oxycodone to the inmate. FOUNTAIN was arrested at that time.
On December 18, 2012, FOUNTAIN waived his right to indictment and pleaded guilty to one count of attempting to possess with the intent to distribute a controlled substance.
This matter was investigated by the Statewide Narcotics Task Force, the Connecticut Department of Correction and the Cheshire Police Department, with the assistance of the Federal Bureau of Investigation. The case was prosecuted by Special Assistant U.S. Attorney Michael W. Ahearn.
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(203) 821-3722 [email protected]Columbia Man Indicted for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury for illegally possessing a firearm.
Channing Tyler Williams, 20, of Columbia, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, Dec. 11, 2013.
The federal indictment alleges that Williams was in possession of a Ruger .45-caliber semi-automatic pistol on Nov. 21, 2013. Williams, who has a prior felony conviction for unlawful use of a weapon, was charged with being a felon in possession of a firearm. Williams was also charged with being an unlawful user of a controlled substance in possession of a firearm, and with possessing a stolen firearm.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Boone County, Mo., Sheriff’s Department and the Columbia, Mo., Police Department.Citizen of Honduras Sentenced to 38 Months in Prison for Illegally Reentering U.S. After DeportationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIO MEJIA, 38, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 38 months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, MEJIA, a citizen of Honduras last residing in Stamford, has never held legal status in the U.S. In April 2003, he was convicted in Connecticut Superior Court of first degree assault, a conviction that stemmed from an incident that took place outside a restaurant in Stamford in July 2002, when MEJIA struck a victim in the head with what witnesses identified as a rock, causing a skull fracture, internal bleeding and other injuries. After serving more than three years in prison, he was deported to Honduras in October 2006. MEJIA illegally reentered the U.S. in approximately 2009.
MEJIA has been detained since March 6, 2013, when he was arrested by Stamford Police on a larceny charge. He has been detained since his arrest. On July 24, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
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(203) 821-3722 [email protected]Chili Man Sentenced on Child Exploitation ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul announced today that Michael Covello, 43, of Chili, N.Y., who was convicted of the sexual exploitation of children, was sentenced to 15 years in prison and 15 years of supervised release, by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant distributed child pornography, via a peer-to-peer file sharing network, to an undercover FBI agent in May and June 2012. Thereafter, FBI agents executed a search warrant at the Covello’s home in Chili, where they recovered items of digital media. The items seized contained images of children, many of whom were under the age of 12, engaged in sexually explicit conduct, and many of which depicted acts of violence.
The defendant was previously convicted of sexual abuse, 1st degree in Monroe County.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Ceo Sentenced to 30 Months in $2.5 Million Securities Fraud Involving Florida Software CompanyRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that John G. Rizzo, the CEO of iTrackr Systems, was sentenced to 30 months in prison by U.S. District Judge Larry Alan Burns for illegally manipulating the stock market in connection with millions of shares of his Florida-based company. Judge Burns also sentenced Rizzo to pay restitution to the victims in the amount of $2,669,353.
As set forth in his Plea Agreement, in early 2006, Rizzo agreed to raise money for a Florida software company called iTrackr, which developed software to track inventory of electronics, such as the Xbox or other gaming systems, at retail stores. Beginning in late 2008, Rizzo and his co-conspirators used the services of offshore “boiler rooms” to solicit investments for the company’s “penny stock.” Unknown to investors, the boiler rooms failed to disclose that only 20% of each investment would go to iTrackr, with the rest being paid to the boiler rooms as commission.
As part of that scheme, Rizzo used a shell company in the British Virgin Islands (“BVI”), and a bank account in Belize. Rizzo sold millions of shares of iTrackr stock through his BVI company in order to avoid U.S. securities registration requirements and disguise the fact that almost all the investor funds were being diverted to the boiler rooms. In addition, Rizzo used a complex array of different entities to conceal the fact that he was the one selling the shares, rather than the shares being sold by independent third party investors. One of the business entities used by Rizzo to transfer funds in furtherance of the scheme was located in San Diego.
During 2009 alone, approximately 120 victims in the United Kingdom invested a total of approximately $2.5 million in iTrackr through Rizzo’s scheme.
Also sentenced today in a related case was Maureen Marant, who worked as Rizzo’s administrative assistant at iTrackr. Marant pleaded guilty to conspiring with Rizzo to commit wire fraud. In her Plea Agreement, she admitted to posing as the director of a fictitious escrow company; and interacting with the victim investors by sending them stock purchase agreements, wiring instructions, and other paperwork. For her role in the scheme, Marant was sentenced to five years of probation, and ordered to pay restitution in the amount of $333,755.
On October 15, 2013, in another related case, Judge Burns imposed sentence on David Bahr, a Rancho Santa Fe consultant who conspired to fraudulently manipulate and artificially inflate iTrackr’s stock. In his Plea Agreement, Bahr admitted that he arranged for the sale to a broker of $2.5 million in shares of iTrackr, and agreed to pay that broker a secret kickback of $750,000. The purpose of the arrangement was to artificially inflate iTrackr stock as part of a “pump and dump” scheme. After pleading guilty to conspiring to commit securities fraud, Bahr was sentenced by Judge Burns to 18 months in prison, and ordered to pay a fine of $65,000.
United States Attorney Laura E. Duffy once again cautioned the public that they need to be vigilant against all forms of illegal stock manipulation, especially in the penny stock markets. Duffy praised the hard work of the agents from the Federal Bureau of Investigation and the Internal Revenue Service for their efforts, and the continuing support of the Securities and Exchange Commission for their expertise and guidance.
FBI Special Agent in Charge Daphne Hearn, commented, “Today's sentencing sends a clear message to those who would defraud the public through deceit and false claims. The FBI and our law enforcement partners will aggressively pursue you and stop you from lining your pockets at the expense of others.” The public can contact the FBI at telephone number (858) 320-1800, to report investment fraud scams and other criminal activity.
DEFENDANT Case No. 13-CR-2823-LAB John G. RizzoConvicted of violating Title 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud. Sentenced to 30 months in prison; three years of supervised release; restitution of $2,669,353; special assessment of $100.
RELATED CASES Case No. 13-CR-2861-LAB Maureen Marant Age: 47 Lantana, FloridaConvicted of violating Title 18, United States Code, Section 1349 - Conspiracy to Commit Securities fraud. Sentenced to five years of probation; restitution of $333,755; special assessment of $100.
Case No. 13-CR-2198-LAB David Bahr Age: 54 Rancho Santa Fe, CaliforniaConvicted of violating Title 18, United States Code, Section 1349 - Conspiracy to Commit Securities fraud. Sentenced to 18 months in prison; three years of supervised release; fine of $65,000; special assessment of $100.
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Internal Revenue ServiceCambridge Pharmacy Robber IndictedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Friday Russell John Thaxton, 48, of Morrisville, was presented in United States District Court for arraignment on an indictment charging him with pharmacy robbery. Thaxton entered a not guilty plea. United States Magistrate Judge John M. Conroy granted the government=s motion to detain Thaxton pending trial.
According to court records, on August 29, 2013, Vermont State Police (VSP) responded to a reported robbery at the Kinney Drug pharmacy in Cambridge. After obtaining statements from store employees and customers, VSP stopped a vehicle matching the description provided by the witnesses and arrested Russell John Thaxton, 48, and Jennifer Stancliff, 30, both of Morrisville, and Amanda Tetreault, 31, of Eden. Lamoille County State=s Attorney charged all three in state court. After further investigation by VSP and the Drug Enforcement Administration (DEA), on December 5, 2013, a federal grand jury indicted Thaxton for robbing the pharmacy of controlled substances valued at more than $500.
If convicted of the crime charged in the indictment, Thaxton faces a potential sentence of up to 20 years in prison. Any actual sentence will be determined by the sentencing court in accordance with the advisory federal sentencing guidelines and federal law. United States Attorney Tristram J. Coffin cautioned that Thaxton is presumed innocent until proven guilty in court.
U.S. Attorney Coffin commended the investigation by VSP and DEA, and thanked State=s Attorney Page for his cooperation. Thaxton is represented by the Office of the Federal Public Defender. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.
Burlington Man to Serve Fourteen Years in Prison for Cocaine Conspiracy and Money LaunderingRead the Press Release
The United States Attorney’s Office announced that on Monday, December 16, 2013, Ramell Holder, 36, of Burlington, Vermont, was sentenced to 168 months, or fourteen years, in prison by the Honorable William K. Sessions III. Holder had previously pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and money laundering. Holder also agreed to forfeit to the government approximately $24,000, a 2004 Land Rover, and a parcel of land in Richford, Vermont.
According to court documents, Holder’s involvement in cocaine started in 1998 and in 2004, when he was involved with distributing drugs with his uncles, Clayton and Edward Sinclair. Clayton and Edward Sinclair were later convicted on federal drug conspiracy charges and sentenced to 151 months in prison. By 2010, the DEA had officially opened a case against Holder for his involvement in cocaine distribution. From November 2011 to February 2012, the DEA, using a confidential source, purchased 442.3 grams of cocaine from Holder at his residence on Calarco Court in Burlington. The DEA investigation later revealed that Holder had trafficked between 15 and 50 kilograms of cocaine to Vermont between 2007 to 2012. Holder also used violence during the offense in a dispute with one of his drug distributors over payment for cocaine.
The grand jury in Burlington returned an indictment against Holder and others in November 2012. Holder was initially released on personal recognizance but later detained after allegations surfaced that he committed fraud against the Home Depot while on release. At sentencing, Holder’s Guidelines were 262-327 months. The government asked the Court for a 20 year sentence and the Court imposed a sentence of 168 months (14 years). One important factor in the Court’s sentencing decision was that Holder had never served any time in jail before the instant offense.
The case was investigated by the DEA, HSI, Border Patrol, U.S. Marshals Service, the Vermont State Police, Burlington PD, South Burlington PD, Colchester PD, Essex PD, Milton PD and the DEA Financial Investigations Team. Assistant United States Attorney Wendy L. Fuller prosecuted the case.
Brothers Sentenced to Prison for Defrauding Churches, Non-Profit Organizations, and Small BusinessesRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Barrett Staton, 36, of Nokomis, Florida and his brother, Matthew Staton, 37, of Perkiomenville, Pennsylvania, were sentenced on December 13, 2013, in federal court for defrauding numerous Pennsylvania and Florida-based churches, non-profit organizations, and small businesses. Barrett Staton was sentenced to 108 months in prison, five years supervised release, and ordered to pay $2,070,529.74 in restitution. Matthew Staton was sentenced to 60 months in prison, three years supervised release, and ordered to pay $1,967,926.10 in restitution. Following a thirteen-day jury trial in July 2012, the defendants were convicted of conspiracy to commit wire fraud, as well as various counts of wire and mail fraud. Barrett Staton was also convicted of making a false statement in a loan document. The defendants, led by Barrett Staton, operated businesses that supplied copy machines to churches, non-profit organizations, and other small businesses throughout Harrisburg, Lancaster, Montgomery, and Philadelphia counties in Pennsylvania, as well as in and around Sarasota, Florida.
The defendants engaged in a multifaceted scheme to defraud businesses and organizations by: (1) altering signed lease agreements to include additional copy machines or features that the customers did not order and never received, thus increasing the lump sum payment received from the financing companies; (2) enticing customers into agreeing to a new lease by offering to pay off any old copy machine leases and to provide free maintenance and service, and then failing to either pay off the customer’s old lease or to provide free maintenance or service; and (3) inducing existing customers to complete new leasing applications under the guise of “refinancing” the lease on existing copy machines, and then submitting the new leasing application to an entirely different leasing company, thereby collecting a second lump sum payment and obligating the customer to two separate lease payments on the same copy machine.The court found that there were over fifty institutional victims, mostly churches, non-profit organizations, and other small businesses, with losses exceeding $2 million. Evidence introduced at sentencing showed that the defendants operated a sophisticated scheme that employed sham companies, used fictitious names to conceal the defendants’ identities, and relocated the scheme from Pennsylvania to Florida to avoid law enforcement. In total, the defendants ran this fraudulent scheme for over seven years until law enforcement successfully ended their fraud.
U.S. Attorney Oberly congratulated both the FBI and Assistant United States Attorneys Jaime M. McCall and Mark M. Lee for the complex investigation and prosecution of this case, which took several years and the review of thousands of documents. The Staton brothers preyed upon vulnerable churches and non-profits, as well as small businesses in a particularly devious manner in an attempt to enrich themselves. Now both will have years in prison to contemplate their crimes.
The investigation was handled by the Federal Bureau of Investigation. The prosecution of the case was handled by Assistant United States Attorneys Jamie M. McCall and Mark M. Lee.Brant Lake Man Sentenced to One Year in Jail for Tax EvasionRead the Press Release
ALBANY, NEW YORK – STUART ALAN MEAD (61, of Brant Lake New York) was sentenced on December 12, 2013 by Senior United States District Court Judge Lawrence E. Kahn to 1 year of incarceration, 2 years of supervised release, 200 hours of community service, and a $5,000 fine for evading federal income tax announced United States Attorney Richard S. Hartunian and Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office. MEAD was also ordered to pay $94,601 in restitution to the United States.
As MEAD admitted during his August 29, 2013 guilty plea, between April of 2006 and August of 2010, he attempted to conceal the nature and extent of his assets from the Internal Revenue Service by underreporting the amount of income he earned for rental property he owned in Brant Lake.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation.
Bank Former Branch Manager in Garden City Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. A former branch manager at Landmark National Bank in Garden City, Kan., has been sentenced for embezzling more than $99,000 from the bank, U.S. Attorney Barry Grissom said today.
Sheri L. Green, 52, Garden City, Kan., was sentenced Monday to three years supervised release and ordered to pay $99,060 in restitution.
She pleaded guilty to one count of misapplication of bank funds by a bank employee. In her plea, she admitted that in December 2012 while she was employed as branch manager for Landmark National Bank in Garden City the bank discovered she had embezzled approximately $99,600 from the bank to cover her gambling losses. She took the money by shifting money between customer accounts. Several customers had noticed irregular entries in their bank statements and complained to Green. She corrected the withdrawals by shifting money from other accounts to the complaining customer’s accounts to cover her tracks.
Grissom commended the FBI and Assistant U.S. Attorney Barry Grissom for their work on the case.
Bahamian and Jamaican Nationals Charged with Marijuana ImportationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce the indictment of Quinton Jamal Mitchell, 31, from Sweeting’s Cay Settlement, Green Turtle Cay, Bahamas, and LeRoy Anthony Edwards, 56, from Kingston, Jamaica. Mitchell and Edwards were arraigned on multiple counts before U.S. Magistrate Judge Frank J. Lynch, Jr. Edwards was detained as a risk of flight and a danger to the community.
Mitchell and Edwards are charged with conspiring to and importing 100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952 (a), 963 and 960(b)(2)(G). They are also charged with conspiring to and possessing with intent to distribute 100 kilograms or more of marijuana, in violation of with Title 21, United States Code, Sections 841 (a), 846 and 841(b)(1)(B)(vii). If convicted on either of the conspiracy charges, they face a mandatory minimum of five years in prison and up to a maximum of 40 years in prison, four years to a lifetime of supervised release, and a maximum fine of $5,000,000. Mitchell is also charged with encouraging aliens to come to the United States, causing serious bodily injury, and placing lives in jeopardy in violation of Title 8, United States Code, Sections 1324(a)(1)(A)(iv), 1324(a)(1)(A)(v)(II) and 1324(a)(1)(B)(iii). If convicted, he faces up to a maximum of 20 years in prison, up to three years of supervised release, and a maximum fine of $250,000. Edwards is also charged with being a removed alien after deportation, in violation of Title 8, United States Code Section, 1326(a)(1) and faces up to two years in prison, up to one year of supervised release, and a maximum fine of $250,000.
According to the allegations in the criminal complaint, a vessel capsized in the waters off Jupiter Island, Florida, and three males swam to shore, including Mitchell. Upon arriving to shore, Mitchell ran away from the scene. A second male later identified as LeRoy Anthony Edwards, was rescued from the surf and resuscitated by a good samaritan. Quinton Mitchell was identified as the boat captain. Before running off, Mitchell told the good samaritan that there had been a total of four males on the boat.
Mitchell was later captured by Jupiter Island Police Department Officers and Martin County Sheriff’s Office Deputies, who responded to the area and found the beach littered with white bales and blue gas cans, and the partially submerged boat approximately 200 feet from the shoreline.
Martin County Sheriff’s Office Crime Scene investigators found that the recovered bales contained marijuana, weighing approximately 236 kilograms. Authorities are still searching for the other passengers that were on-board the boat.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, the Jupiter Island Police Department, the Martin County Sheriff’s Office, U.S. Customs and Border Protection, and Florida Fish and Wildlife. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Albuquerque Man Sentenced to Ten Years for Unlawfully Possessing a FirearmRead the Press Release
ALBUQUERQUE – Christian Alexander Sangiovanni, 33, of Albuquerque, N.M., was sentenced to ten years in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition.
Sangiovanni was arrested in Aug. 2012, on an indictment charging him with being a felon in possession of a firearm and ammunition. The indictment alleged that Sangiovanni unlawfully possessed a firearm and ammunition on April 25, 2010, in Bernalillo County, N.M. At the time, Sangiovanni was prohibited from possessing firearms or ammunition because he previously had been convicted of the following three felony offenses in the 12th Judicial District Court for the State of New Mexico: embezzlement in 2000; sexual exploitation of children in 2001; and battery on a police officer in 2003. He also previously had been convicted of possession of heroin with intent to distribute in the 4th Judicial District Court for the State of New Mexico in Guadalupe County in 2005.
Sangiovanni was convicted on March 20, 2013, after a jury trial where the evidence established that on April 25, 2010, Sangiovanni brandished a firearm at a 17-year-old high school student in a car outside a convenience store in the Northeast Heights of Albuquerque. While brandishing the firearm, Sangiovanni threatened to kill first the teenager and then himself. Later that night, Sangiovanni sent the teenager an E-mail in which he threatened her against telling anyone about the violent encounter. Thereafter, Sangiovanni E-mailed the teenager photographs of himself holding a pistol to his head. On April 26, 2010, the teenager and her mother contacted the police and reported Sangiovanni’s threats against the teenager and provided the E-mails containing the threats and photographs of Sangiovanni holding the pistol to his head.
On May 3, 2010, after Sangiovanni continued to send threatening E-mails to the teenager, officers executed an arrest and search operation at a residence where Sangiovanni was staying. After arresting Sangiovanni on state charges, the officers found a Smith & Wesson, model 459, 9mm pistol with an extended magazine that contained rounds of ammunition. The pistol subsequently was identified by the teenager as the weapon that Sangiovanni brandished at her on April 25, 2010.
The 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 was prosecuted by Assistant U.S. Attorney Norman Cairns.
14 December 2013
Antun Lewis Convicted of Arson for Setting Fire That Killed Nine PeopleRead the Press Release
A federal jury found Antun Lewis guilty of setting the May 2005 fire that killed nine people in Cleveland, Ohio, said United States Attorney Steven M. Dettelbach announced today.
Lewis, 29, of Cleveland, is scheduled to be sentenced March 18, 2013. He was convicted of one count of arson in U.S. District Court in Cleveland.
“Justice took a longer time coming, but justice was delivered,” Dettelbach said. “This case came about because of the incredible work and cooperation from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Police and Fire Departments and the prosecutors in the U.S. Attorney’s Office.”
“We hope this verdict brings some small measure of comfort to the families of the deceased,” Dettelbach said.
“This case highlights the fact that arson is a violent crime capable of destroying lives in addition to property,” said Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division. “The ATF agents and prosecutors in this case were unwavering in their dedication to the victims and their pursuit of justice.”
The arson at 1220 East 87th Street on May 21, 2005, killed eight children and one adult, making it the deadliest intentionally set fire in Cleveland’s history. It occurred during a children’s sleepover birthday party, according to trial testimony.
Killed were: Fakih Jones, age 7; Malee’ya Williams, age 12; Shauntavia Mitchell, age 12; Earnest Tate, Jr., age 13; Miles Golden Cockfield, age 13; Antwon Jackson, Jr., age 14; Moses Williams Jr., age 14; Devonte Carter, age 15, and Medeia Carter, 33.
This case is being prosecuted by Assistant U.S. Attorneys David J. Sierleja, Robert W. Corts, Michael L. Collyer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cleveland Police Department and Cleveland Fire Department.
13 December 2013
Wichita Man Charged in PlotTo Explode Car Bomb at AirportRead the Press Release
A Wichita man has been charged in federal court with attempting to explode a car bomb at Wichita Mid Continent Airport, John Carlin, Acting Assistant Attorney General for National Security and U.S. Attorney Barry Grissom announced today. The defendant was arrested as part of an FBI undercover investigation, and the device used by the defendant was, in fact, inert and at no time posed a danger to the public.
Terry Lee Loewen, 58, Wichita, Kan., is charged in a criminal complaint filed today in U.S. District Court in Wichita with one count of attempting to use a weapon of mass destruction, one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to a designated foreign terrorist organization.
“There was no breach of Mid-Continent’s Airport’s security,” said U.S. Attorney Grissom. “At no time was the safety of travelers or members of the public placed in jeopardy.”
Loewen, who works as an avionics technician, is alleged to have spent months developing a plan that involved using his access card to airport grounds to drive a van loaded with explosives to the terminal. He planned to pull the trigger on the explosives himself and die in the explosion.
Agents arrested Loewen about 5:40 a.m. Friday after he attempted to enter the airport tarmac and deliver a vehicle loaded with what he believed were high explosives. Members of the FBI’s Joint Terrorism Task Force (JTTF) took him into custody without incident.
Loewen has been under investigation by the Wichita Joint Terrorism Task Force since early summer 2013. It is alleged that, prior to his attempted attack, he made statements that he was resolved to commit an act of violent jihad against the United States. Over a period of months, he took a series of actions to advance the plot. According to an affidavit filed in support of the criminal complaint, Loewen:- Studied the layout of the airport and took photographs of access points.
- Researched flight schedules.
- Assisted in acquiring components for the car bomb.
- Talked about his commitment to trigger the device and martyr himself.
On Friday, Loewen went to Mid-Continent Airport to detonate the car bomb. He was taken into custody when he attempted to open a security access gate. FBI Evidence Response Teams are executing search warrants related to the case. Although the investigation is ongoing, no additional arrests are anticipated.
FBI SAC Michael Kaste stated “Lone wolves - home grown violent extremists remain a very serious threat to our nation’s security. Today’s arrest emphasizes the continual need for the public to remain vigilant as law enforcement relies on the public’s assistance.”
If convicted, Loewen would face a maximum penalty of life in federal prison
The investigation was conducted by the Wichita FBI Joint Terrorism Task Force, which includes members from the FBI, Sedgwick County Sheriff’s Office and Kansas Highway Patrol. Assisting with the investigation were the FBI Kansas City Division, the Transportation Security Administration, the Wichita Airport Authority, the Wichita Police Department.
The case is being handled by prosecutors from the United States Attorney’s Office and the Justice Department’s National Security Division.
In all cases, defendants are presumed innocent until and unless proven guilty. The charges merely contain allegations of criminal conduct.Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Decarlo Knighten, 36, of La Porte, Indiana was sentenced by District Judge Jon E. DeGuilio to 57 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, in April 2013, Knighten possessed a Colt Python .357 magnum revolver at his residence. Knighten has two prior felony drug dealing convictions and one misdemeanor conviction.. This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
James Tolson, 39, of Wabash, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, in March 2012, Tolson had in his possession a Hi-Point handgun in Wabash, Indiana.Tolson has previous convictions. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Brandon Jackson, 29, of Hammond, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Percy Spurlock, 59, of Gary, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession with the intent to distribute crack cocaine.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Anthony Cerrillos, 45, of, East Chicago, Indiana, was sentenced by Senior District Judge James Moody to 12 months imprisonment, 2 years of supervised release and restitution of $10,000.00 to Dean Foods after pleading guilty to the felony offense of conspiracy to transport stolen goods that had a value in excess of $5,000.00.According to documents filed in this case, in August of 2011, Cerrillos and his brother, Brian Cerrillos, stole a refrigerated milk trailer from a dairy distributor in Hammond, Indiana. They then traveled to Illinois and sold the milk at different convenience stores for a profit. This case was the result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Miguel Herrera-Torres, 32, of Chicago, Illinois, was sentenced by Senior District Judge Rudy Lozano to 18 months imprisonment after pleading guilty to the felony offense of being found in the United States after having been deported following a conviction for an aggravated felony crime and not having obtained express consent to reapply for admission to the United States.Herrera-Torres will be subject to deportation upon release.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Special Assistant United States Attorney Armando Salinas.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Deangelo Copeland, 35, of Fort Wayne, Indiana pled guilty before Magistrate Judge Roger B. Cosbey to the felony offenses of armed bank robbery and carrying and using a firearm during and in relation to a crime of violence. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Amanda McBride, 31, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of maintaining a drug-involved premise. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Brandon Peters, 25, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of robbery of a controlled substance and use of firearm during and in relation to a crime of violence. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Fort Wayne Police Department and the Allen County Sherriff’s Department.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Contrel Johnson, 23, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of being a convicted felon in possession of a firearm. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Arturo DeLuna, 46, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 37 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiracy to possess with intent to distribute cocaine.According to documents filed in this case, DeLuna was involved in distributing kilograms of cocaine in Fort Wayne, Indiana. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Nicholas Zimmerman, 29, of Fort Wayne, Indiana was sentenced by District Judge Roger B. Cosbey to 3 years of probation and serving 8 months on home detention after pleading guilty to the felony offense of receiving stolen property.According to documents filed in this case, the United States Marine Corps were notified of Zimmerman being in possession of a mortar artillery round. Zimmerman intended to keep the artillery for his own personal possession or for profit via selling. This case was the result of an investigation by the United States Marines and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
John Bennett, 36, of Sturgis, Michigan was sentenced by District Judge Theresa L. Springmann to serve 21 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of conspiracy to distribute and possess with intent to distribute methamphetamine use of a communication facility, telephone, to facilitate in conspiracy to distribute and possess with intent to distribute methamphetamine.According to documents filed in this case, between July, 2011 and February, 2013, a large scale narcotics distribution conspiracy existed and operated in northeastern Indiana and southern lower Michigan.Bennett was obtaining quantities of methamphetamine from individuals within the distributorship for distribution to his customers.This case was the result of an investigation by the Federal Bureau of Investigation and Safe Streets Task Force.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.