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13 December 2013
Virginia Man Pleads Guilty to Mail Fraud in Scheme That Cost His Employer More Than $100,000-Defendant Sold Unnecessary Software to His Employer-Read the Press Release
WASHINGTON - James R. Revell, 47, of Springfield, Va., pled guilty today to mail fraud for scheming to cheat his employer of more than $100,000, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Revell pled guilty in the U.S. District Court for the District of Columbia. The Honorable Ketanji Brown Jackson scheduled sentencing for March 5, 2014. The charge carries a statutory maximum of 20 years in prison. Under federal sentencing guidelines, the likely range is a sentence of 12 to 18 months in prison and a fine of up to $30,000.
According to the government’s evidence, Revell carried out a scheme between at least November 2011 and January 2012 to defraud his then-employer, the Advisory Board Company. At the time, Revell was the firm’s director for information technology. Without informing any member of the Advisory Board Company’s staff, he incorporated another company, GTM Tech. This company was set up solely to send software to the Advisory Board Company.
From November 2011 through January 2012, Revell initiated three separate and unnecessary purchase orders on behalf of the Advisory Board Company to GTM Tech that totaled $104,642. None of the programs actually provided any service or benefit.
Revell has since paid $104,642 in restitution to the company.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier commended the work of those who investigated the case from the FBI and MPD. They also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo and Assistant U.S. Attorney Phil Selden, who is prosecuting the case.
13-418United States Attorney's Office Says Goodbye to Two Outstanding Assistant U.S. AttorneysRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced the retirement of Assistant U.S. Attorneys Josette L. Cassiere and Robert A. “Bob” Thrall, who served in the Western District of Louisiana with more than 45 years of combined experience. Cassiere and Thrall were honored on November 21, 2013, at a retirement ceremony held at the U.S. Courthouse in Shreveport. Their last day with the office was November 30, 2013.
“We are losing talented, dedicated lawyers and public servants,” Finley stated. “Throughout their careers, Josette and Bob have played integral roles in prosecuting cases with our office. Their years of service and dedication to the Department of Justice are a true testament of their commitment to justice and the citizens of this district. They will be greatly missed, and we wish them the very best as they start the next chapters of their lives. I am grateful for their tireless advocacy on behalf of the Western District.”
Josette Cassiere began her career with the U.S. Attorney’s Office in March of 1989. She served one year in the civil division, concentrating on land condemnation cases for the Red River Waterway project and collections with the Financial Litigation Unit (FLU). From 1990 to 2001, Cassiere was responsible for all of the District’s criminal appeals to the Fifth Circuit. Beginning in 2001, she was primarily responsible for criminal appeals generated by the Shreveport Division of the office. In 23 years of appellate practice, Cassiere has filed approximately 700 briefs and argued more than 100 appeals at the Fifth Circuit, including one en banc rehearing and several cases involving res nova issues.
Cassiere received a Bachelor’s Degree in Music from Alverno College in Milwaukee, Wis., in 1970, and taught in the Elmbrook School District in Wisconsin for four years before attending law school. She received her Juris Doctorate from the Louisiana State University School of Law in 1977. Josette Cassiere and Robert Gillespie Jr., also an assistant U.S. attorney, have been married for 36 years, and have three children, Sarah, Paul and Michael.
“My time at the U.S. Attorney’s Office has been both challenging and extremely satisfying both from the perspective of service to the law and the legal system and from the perspective of service to community and country,” Cassiere stated. “It is with mixed feelings that I leave that office which, in my opinion, is one of the best law firms in this state.”
Bob Thrall began his career with the U.S. Attorney’s Office in 1991, primarily handling bankruptcy, foreclosures, and collection efforts for the FLU. He also handled defensive litigation involving federal programs and complex financial litigation. Since September 2011, Thrall handled the bankruptcy referrals for the entire District. The District has consistently been one of the 10 districts with the greatest number of Chapter 13 filings in the nation and one of the heaviest districts with overall bankruptcy filings. Although his primary clients have been the IRS and the U.S. Department of Agriculture, Thrall has handled cases and bankruptcy matters for federal agencies, to include the Small Business Administration, HUD, Department of Education, FEMA, EPA, the Army Corps of Engineers, ATF, the Federal Bureau of Prisons and the Veterans Administration.
Thrall graduated Magna Cum Laude from Louisiana Tech University with a bachelor’s degree of arts in political science in 1975 and received his Juris Doctorate from the University of Oregon’s School of Law in 1979. Bob Thrall is married to Blair Thrall, an accomplished artist. They have been married more than 17 years and have two sons, Brent and Wesley, and one daughter, Erica.
From left, Assistant U.S. Attorney Robert A. "Bob" Thrall, U.S. Attorney Stephanie A. Finley,
and Assistant U.S. Attorney Josette L. Cassiere
Two Texas-area Individuals Charged with Sex Trafficking of A Minor by Force, Fraud, and Coercion into the New Orleans AreaRead the Press Release
TAUREAN OKEITH JACKSON, a/k/a “Marvelous Rich,” “Richard Jones,” and “Richard Marvelously”, age 24, from Dallas, Texas, and ANDREA BIRDOW, age 22, from Sherman, Texas, were charged today in a five-count Indictment for offenses related to their involvement in the sex trafficking of a minor from the Dallas, Texas-area into the New Orleans area for the purposes of that minor engaging in prostitution, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, in mid-June 2013, JACKSON and BIRDOW met the victim, who was 16 years-old, in the Dallas, Texas-area, and shortly thereafter recruited her to being working for JACKSON as a prostitute. Over the course of the next several weeks, JACKSON and BIRDOW drove the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised and arranged using an online classified advertisement. JACKSON also provided the victim with alcohol and/or illicit drugs to numb her senses, control her behavior, and encourage the victim to continue engaging in prostitution. JACKSON also controlled the victim by violence, including beating her with an extension cord and beating and choking BIRDOW in front of the victim, while telling the victim that he would do the same to her if she tried to leave him. JACKSON was the creator and host of a Dallas-area radio program entitled, “Cheap Hoes Gotta Go.” Ultimately, BIRDOW and the victim were arrested in a Metairie hotel room by undercover law enforcement officers on July 10, 2013. JACKSON was arrested in Dallas, Texas, approximately one week later. The Indictment also provides notice of an enhancement of JACKSON’S sentence upon conviction based on his prior convictions for Compelling Prostitution of an Individual Under the Age of 18and Sexual Assault of a Child lewd and lascivious assault of a minor in Dallas, Texas.
If convicted, BIRDOW faces a maximum sentence of life imprisonment, as well as a life time of supervised release, and a $250,000 fine. JACKSON faces a mandatory minimum term of imprisonment of 15 years and a maximum of life, followed by up to a life term of supervised release, and a $250,000 fine. Both BIRDOW and JACKSON can also be required to register as sex offenders.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was initiated by the Jefferson Parish Sheriff's Office and is being investigated by agents from the Federal Bureau of Investigation, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Indictment )
Two Sentenced for Making False StatementsRead the Press Release
United States Attorney Brendan V. Johnson announced that two people convicted of False Statement were sentenced on December 12, 2013, by U.S. District Judge Karen E. Schreier.
Lynn Barbara Van Laar, age 65, of Worthing, South Dakota, was sentenced to time served and fined $250. Randall Jay Jurgens, age 54, of Sioux Falls, South Dakota, was sentenced to one year of probation.
Van Laar and Jurgens were indicted by a federal grand jury on June 4, 2013, for making a false statement. Van Laar pled guilty on September 9, 2013, and Jurgens pled guilty on September 10, 2013.
Both defendants made false statements to a federal agent during his investigation into a federal crime.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Randy J. Seiler and John E. Haak prosecuted the case.
Two Sentenced for Conspiring to Transport MarijuanaRead the Press Release
LAREDO, Texas - Roberto Garcia, 29, and Juan Javier Reyna, 33, both of Houston, have been sentenced to federal prison for conspiring to possess with the intent to distribute in excess of 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge George P. Kazen handed Garcia a sentence of 100 months, while Reyna received 72 months.
Between September and November 2011, Reyna worked with other co-conspirators including Garcia to transport 100-200 pounds of marijuana from Roma to Houston on at least two occasions.
On Oct. 19, 2011, Reyna was driving in tandem with a vehicle driven by Garcia. His role on that day was to provide an escort vehicle for the load of marijuana. A Department of Public Safety (DPS) trooper attempted to pull Garcia over for traffic violations. However, when the DPS trooper walked up to the vehicle, Garcia sped off and caused a three-car crash on Highway 83 at Pita Magana Road. Garcia abandoned the vehicle, which contained 14 bundles of marijuana, weighing 55.45 kilograms. Garcia then ran through a gas station and was picked up by Reyna. A high-speed chase ensued, during which Garcia opened the passenger door and fled. Reyna bailed out of the vehicle a short time later and was apprehended hiding in the brush nearby.
This case is the result of a two-year investigation led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations. Assistant United States Attorneys Elizabeth Rabe and James Hepburn are prosecuting the case.
Two Men Found Guilty of First-Degree Murder While Armed and Assault Charges for Shooting at Caribbean FestivalDefendants Fired About A Dozen Shots into Crowd, Killing Innocent BystanderRead the Press Release
WASHINGTON – Deonte Bryant, 22, and Terrance Bush, 21, both of Washington, D.C., were found guilty by a jury today of first-degree murder while armed and other charges for shooting and killing a man and wounding two other people during a shoot-out at a street festival in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
In addition to the murder charge, the jury found Bryant and Bush guilty of three counts of assault with intent to kill while armed, one count of aggravated assault while armed, and related gun charges. The verdicts followed a trial in the Superior Court of the District of Columbia. The Honorable John Ramsey Johnson scheduled sentencing for March 7, 2014.
According to the government’s evidence, in the late afternoon of June 25, 2011, Bryant and Bush provoked and then participated in a shootout with a member of a rival neighborhood group, striking and injuring the rival, as well as three innocent bystanders who were hit by gunfire as they tried to run away. The shooting took place in broad daylight, during the Caribbean Festival, in the area of the 700 block of Gresham Place NW.
In total, Bryant and Bush fired about a dozen shots into the crowd. One of the innocent bystanders, Robert Foster, Jr., 43, was killed. Another innocent bystander was gravely wounded but survived. The third innocent bystander was shot in the leg and the side but also survived.
The rival, Terry Jimenez, 22, earlier pled guilty to charges in the case.
In announcing the verdicts, U.S. Attorney Machen praised the work of those who worked on the case from the Metropolitan Police Department (MPD). U.S. Attorney Machen also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney and Mia Beamon; Victim/Witness Advocate Meshall Thomas, and Litigation Technology Specialists Leif Hickling and Anisha Bhatia.
Finally, he commended the work of Assistant U.S. Attorneys Jennifer Kerkhoff and Kate Rakoczy, who tried the case, as well as Assistant U.S. Attorney Steven Snyder and former Assistant U.S. Attorney Bruce Hegyi, who indicted the case.
13-422Two Connecticut Men Plead Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Nelson Areizaga-Rosa, 37, and Ricardo Ortiz-Rosa, 41, both of Connecticut, pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of life in prison, an $8,000,000 fine, or both.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that on March 17, 2011, the defendants were stopped for speeding by a Chautauqua County Sheriff’s deputy on I-86 in the Town of Ellicott. The defendants, who are cousins, were later arrested along with two other individuals.
Law enforcement officers subsequently discovered $60,000 in U.S. currency secreted in the spare tire of the vehicle the defendants were riding in, money that represented the proceeds from the sale of two kilograms of cocaine. Officers also seized more than a kilogram of heroin, a quantity of cocaine, and multiple firearms. An additional four defendants were also arrested. During a search warrant later executed at a residence in Campbell, Ohio, officers recovered another $205,000 in U.S. currency. Five vehicles were also seized during the course of the narcotics investigation.
The defendants entered guilty pleas as a jury trial on the charges was about to begin. They are expected to receive 15 years when sentenced in April 2013. All eight defendants in this heroin trafficking investigation now stand convicted.
The pleas are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff’s Lieutenant David Bentley, the Chautauqua County Sheriff’s Department, under the direction of Sheriff Joseph Gerace, and the Jamestown Police Department, under the direction of Harry Snellings.
Sentencing is scheduled for April 1, 2013 at 9:00 a.m. before Judge Skretny.Two Army National Guard Soldiers Plead Guilty<br /> in Connection with Bribery and Fraud Schemes<br /> to Defraud the U.s. Army National Guard BureauRead the Press Release
Two U.S. Army National Guard soldiers pleaded guilty for their roles in bribery and fraud schemes that caused a total of at least $70,000 in losses to the U.S. Army National Guard Bureau. Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Specialist Edia Antoine, 28, and former Staff Sergeant Ernest Millien, 49, both of Houston, each pleaded guilty to one count of conspiracy and one count of bribery. The cases against both defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 19 of whom have pleaded guilty.
According to court documents filed in both cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Antoine and Millien both admitted they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They used the personal identifying information for these potential soldiers to claim that they were responsible for referring these potential soldiers to join the Army National Guard, when in fact they had not referred them. As a result of these fraudulent representations, Antoine and Millien collected approximately $17,000 and at least $12,500 in fraudulent bonuses, respectively.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Antoine and Millien are scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal of the Southern District of Texas on June 24, 2014.
These cases are being investigated by Special Agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The cases are being prosecuted by Trial Attorneys Sean F. Mulryne, Mark J. Cipolletti and Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.Timber Lake Man Sentenced for Passing A Counterfeit $100 BillRead the Press Release
United States Attorney Brendan V. Johnson announced that a Timber Lake, South Dakota, man convicted of Uttering Counterfeit Obligations of the United States, was sentenced on December 12, 2013, by U.S. District Judge Roberto A. Lange.
Dennis Tyler Gutierrez, a/k/a "Crow Shoe", age 21, was sentenced to one year of probation, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Gutierrez was indicted by a federal grand jury on August 21, 2013. He pled guilty on October 1, 2013.
The conviction arose out of an incident during the Days of 1910 celebration in Timber Lake in July 2013 when Gutierrez used a counterfeit $100 bill to attempt to buy beer at the Coop Bar. The owner of the Coop Bar recognized the bill as counterfeit and called law enforcement.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Secret Service. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Three People Arrested for Crack Dealing Outside Boys & Girls Club in OaklandRead the Press Release
OAKLAND – Three people were indicted on December 10, 2013, by a federal grand jury on charges of drug trafficking within 1,000 feet of McClymonds High School in Oakland, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
The three individuals are:
- Alton Lerand Hirsch
- Charles Edward Moss, Jr.
- Nolan Ronald Jones
The defendants are each charged in separate indictments alleging that they dealt cocaine base in the form of “crack” within 1,000 feet of McClymonds High School, in violation of 21 U.S.C. § 841(a)(1) and 860(a).
This investigation targeted the corner of Mead Ave., Market Street, and 24th Street in Oakland, which is right outside of the Boys & Girls Club of Oakland, and within 1,000 feet of McClymonds High School. This corner has nevertheless been a known open-air crack market in Oakland. The cases are part of an ongoing relationship between the U.S. Attorney’s Office, Drug Enforcement Agency, the Federal Bureau of Investigation, the Oakland Police Department, and the Oakland community.
“This area is one frequented by the children of Oakland,” commented United States Attorney Melinda Haag. “Those children deserve the same chance as children who live in other neighborhoods around the Bay Area: the chance to go to and from school and the Boys & Girls Club without having to navigate through crack deals on the way. That is why I have directed my office to work with the DEA, FBI and the Oakland Police Department to aggressively prosecute drug trafficking in areas around Oakland schools.”
These cases follow on the heels of similar charges targeting crack dealing within school zones in the Tenderloin area of San Francisco. Ms. Haag also previously targeted other crack dealing in Oakland that took place within school zones, such as the area of Sycamore Street, near West Street, in Oakland. Those defendants are currently serving their sentences in prison.
Haag stressed that more charges could be on the way. “Everyone who treats Oakland as an open-air drug market should be on notice: law enforcement is paying attention. You won’t know when the next arrests will be, or which schools or street corners we’ll focus on next, but if you’re caught you will face significant time in federal custody.”
The three defendants were arraigned in federal court in Oakland. They are currently in the custody of the United States Marshal.
The maximum statutory penalty for violating the federal drug-free school zone statute is 40 years in prison, with a minimum mandatory one year in jail, at least six years and up to life on supervised release, and a maximum fine of up to $2,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is the result of an investigation by the FBI and the Oakland Police Department.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Alton Hirsch, Charles Moss, and Nolan Jones must be presumed innocent unless and until proven guilty.
(Mead Ave indictments )
Thirteen Men Indicted in Drug Conspiracy Case, Accused of Distributing Heroin and Cocaine in Washington Area-Charges Follow A Year-Long Investigation-Read the Press Release
WASHINGTON –Eleven men have been arrested on federal charges stemming from an ongoing investigation into a drug trafficking organization that distributed large amounts of heroin and cocaine in the Washington, D.C. metropolitan area. To date, over 3.5 kilograms of cocaine and over two kilograms of heroin have been seized as a result of the investigation, along with more than $68,000 in cash and at least five firearms. Two men remain at large.
The arrests, on Dec. 12, 2013, followed the return of an indictment by a grand jury in the U.S. District Court for the District of Columbia. They were announced today by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The arrests came as authorities executed 26 search warrants on Dec. 12, 2013, in the District of Columbia, Maryland and Virginia. Several firearms, cocaine and heroin, jewelry worth over $60,000 and thousands in cash were seized during the law enforcement activities. Also recovered from within one residence was evidence of an apparent identity theft operation involving hundreds of credit cards, social security cards and driver’s licenses.
The indictment also includes a forfeiture count against all of those now charged in the investigation, which seeks all proceeds from the crimes. All 11 defendants made their first court appearances this week and are being held without bond pending detention hearings.
“This investigation shows our resolve to target organizations that are bringing cocaine, heroin and other dangerous drugs into the District of Columbia,” said U.S. Attorney Machen. “Law enforcement was able to remove guns, drugs and dangerous people from the streets and take another step toward making our community safer.”
“These arrests are a result of the concentrated efforts by Special Agents and Detectives from the FBI Washington, Baltimore and Los Angeles Field Offices, MPD and Prince George's County, Maryland, Police Department who partner together to disrupt and dismantle drug networks that threaten our neighborhoods,” said Assistant Director in Charge Parlave. “Together, we are focused on stopping the movement and sale of drugs on our streets and we will bring those who profit from it to justice.”
“This investigation spanned the region including Washington, D.C., Prince George's County, Md., Baltimore, and Stafford, Va.,” said Police Chief Lanier. “This is a great example of us working with our federal partners to arrest those who supply our neighborhoods with illicit drugs.”
The charges arose from a year-long investigation by the FBI into people suspected of acting as wholesale distributors of heroin and cocaine in the Washington, D.C., metropolitan area. The investigation determined that from at least January 2013 through November 2013, the defendants maintained a drug trafficking organization that supplied distribution amounts of heroin and cocaine to drug dealers in the District of Columbia, Maryland and Virginia. During the course of the investigation, agents seized three separate packages found to contain large quantities of both heroin and cocaine, which had been shipped or were destined to arrive in the Washington, D.C., area from sources located in California.
Those arrested include Lester Pryor, 62, of Washington, D.C., who is alleged to have supplied cocaine and heroin to the other defendants named in the indictment. The others include Patrick Avent, 45, of Stafford, Va.; George Ball, 65, of Washington, D.C.; Brandon Beale, 58, of Washington, D.C.; Aubrey Bennett, 61, of Washington, D.C.; James Burkley, 59, of Washington, D.C; Anthony McDuffie, 50, of Washington, D.C.; Chris Merriweather, 47, of Washington, D.C.; Earl Owens, 56, of Bowie, Md.; Tyrone Payton, 55, of Temple Hills, Md.; and Kevin Whitman, 54, of Washington, D.C.
The prosecution grew out of the efforts of the federal Organized Crime Drug Enforcement Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the nationwide program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier commended the work of the agents at the FBI, Internal Revenue Service-Criminal Investigation, and the U.S. Postal Inspection Service, who investigated the case. They also thanked the U.S. Attorney’s Offices for the District of Maryland, the Eastern District of Virginia and the Central District of California, the FBI’s Baltimore and Los Angeles Divisions, MPD and the Prince George’s County police and sheriff’s departments, which provided assistance.
Finally they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Steven B. Wasserman, Anthony Scarpelli, Jin Park, and former Assistant U.S. Attorney Patricia A. Stewart, as well as Assistant U.S. Attorney Anthony Saler, who assisted with the forfeiture aspects of the investigation.
13-419Teenager Sentenced to 30-Year Prison Term in Slaying at Woodley Park Metro StationDefendant Is Among Six Sentenced Today to at Least 15 Years in Prison for Various Roles in CrimeRead the Press Release
WASHINGTON – Chavez Myers, 18, was sentenced today to 30 years in prison for first-degree murder while armed in the slaying of 18-year-old Olijawon Griffin at the Woodley Park Metro station, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
Five co-defendants were also sentenced today, to prison terms ranging from 15 to 19 years.
Myers, of District Heights, Md., pled guilty in September 2013 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for the 30-year prison sentence for the crime. The Honorable Ronna L. Beck approved the plea this morning and sentenced Myers accordingly.
Myers, who was 17 at the time of the murder, is among numerous defendants to plead guilty to charges in the murder and related crimes. The others include Muquan Cawthorne, 17, of Mount Ranier, Md.; Deon Jefferson, 18, of Landover, Md.; Gary Maye, 18, of Hyattsville, Md.; Immanuel Swann, 18, of Brentwood, Md., and Gary Whittaker, 20, of Hyattsville, Md. Cawthorne, Jefferson, Maye and Swann, like Myers, were under 18 at the time of the murder; the U.S. Attorney’s Office obtained their indictments after deciding to prosecute them as adults.
Cawthorne was sentenced today to 17 years in prison for voluntary manslaughter while armed, armed robbery, and a firearms offense. Jefferson was sentenced to 16 years in prison for voluntary manslaughter while armed and armed robbery. Maye was sentenced to 19 years in prison for voluntary manslaughter while armed, armed robbery, and robbery. Swann was sentenced to 19 years in prison for voluntary manslaughter while armed and two counts of armed robbery. Whittaker was sentenced to 15 years in prison for voluntary manslaughter while armed, assault with a dangerous weapon, conspiracy, and a firearms offense.
All of the defendants have been in custody since their arrests. Upon completion of their prison terms, each defendant will be placed on five years of supervised release.
According to the government’s evidence, Myers and the other defendants were part of a group of 10 people who conspired on Nov. 16, 2012 and Nov. 17, 2012 to commit robberies in the District of Columbia. Plans called for robbing people of their iPhones and other items of value. The group took a Metro train on the night of Nov. 16, 2012, from the West Hyattsville, Md. station to the Gallery Place/Chinatown station in Northwest Washington. From there, they took another train to the Woodley Park Metro station to begin their crimes. Within a matter of hours, Mr. Griffin would become a victim of the group twice: once, during a robbery in the Adams Morgan area, and finally, the attack at the Metro Station that ended with his death.
“Today justice is served on the group of teenagers who murdered Olijawon Griffin for having the audacity to stand up to them after they robbed him of his coat and brutally assaulted his best friend,” said U.S. Attorney Machen. “Chavez Myers, who buried the knife in Mr. Griffin’s chest on a Metro Station platform, will serve 30 years behind bars. Five other participants in this attack, none of whom struck the fatal blow, will each serve at least 15 years in prison. Today’s proceedings should open the eyes of other young people thinking about committing street robberies to the deadly consequences and lengthy prison sentences that can easily result.”
“A young man lost his life, and now the young men who are responsible for that crime must face the consequences of their actions,” said Police Chief Lanier. “The Metropolitan Police Department and our law enforcement partners continue to demonstrate that criminals will be held accountable.”
“I want to commend the work and cooperation of the Metro Transit and Metropolitan Police Departments as well as the D.C. Attorney General and U.S. Attorney’s Office’ in this year-long effort to arrest and prosecute those responsible for the events of Nov. 16 and 17, 2012,” said Metro Transit Police Chief Pavlik. “We continue to send a clear message to those who wish to threaten or bring harm to Metro customers that such activity will be prosecuted to the fullest extent of the law.”
According to the government’s evidence, the group targeted Mr. Griffin shortly after midnight, early Nov. 17, 2012, attacking him near a gas station in the 1800 block of Adams Mill Road NW. Mr. Griffin was robbed of his Helly Hansen coat, hat, and iPhone. The assailants then walked back toward the Woodley Park Metro station, intending to take a train back to West Hyattsville.
Mr. Griffin and his two companions arrived at the Metro station shortly after the assailants. They approached the assailants in an attempt to get Mr. Griffin’s property back. According to the government’s evidence, the various assailants repeatedly punched, kicked and stomped one of Mr. Griffin’s companions while he was lying prone and defenseless on the floor of the station platform. Once this friend rose to his feet, the group again took him to the ground and repeatedly punched, kicked and stomped him.
Shortly after the attack on the friend ended, Myers went up to the mezzanine level of the station, where the kiosk and fare machines are located. Jefferson, Maye, Whittaker and Swann were among those who also went to the mezzanine level. Mr. Griffin had been attempting to draw the defendants to that level in an effort to get them away from his injured friend. As the confrontation continued, Myers came up from behind Mr. Griffin and stabbed Mr. Griffin, who was unarmed, once in the heart. Mr. Griffin died a short time later.
In announcing the sentences, U.S. Attorney Machen, Chief Lanier and Chief Pavlik commended the work of those who investigated the case from the Metropolitan Police Department and the Metro Transit Police Department. They also expressed appreciation to those who worked on the case from the District of Columbia Office of the Attorney General, including Deputy Attorney General Andrew Fois; Jennifer White, Chief of the Juvenile Section; Barbara Chesser and Linda Monroe, Assistant Chiefs of the Juvenile Section; Assistant Attorney General Marybeth Manfreda, and former Assistant Attorney General Anthony Crispino. The District of Columbia Office of the Attorney General handled the part of this case that involved charges against some of the juveniles who were apprehended after the attack.
U.S. Attorney Machen, Chief Lanier and Chief Pavlik also acknowledged the efforts of those who provided assistance from the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews, Kwasi Fields, and Ethel Noble; Criminal Investigator John Marsh; Litigation Technology Specialists Leif Hickling, Will Henderson, and Paul Howell; Victim/Witness Advocate Jennifer Clark, and former interns Ryan Lipes, Flynn Burke, and Lauren Sparks.
Finally, they thanked Assistant U.S. Attorneys Justin Dillon, Kathleen A. Connolly, and Kevin F. Flynn, who investigated and prosecuted the case.
13-421Tampa Man Sentenced to More Than 13 Years in Federal Prison for Transporting Child Pornography over the InternetRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Michael Alan Klevene (62) to 13 years and 7 months in federal prison for transporting child pornography over the Internet. As part of his sentence, Klevene was also ordered to serve a lifetime term of supervised release, following his incarceration, and to register as a sex offender.
Klevene was found guilty on June 4, 2013.
According to court documents, between October and December 2012, Klevene uploaded numerous videos and images of child pornography to the Internet. On January 24, 2013, Klevene e-mailed links to the uploaded child pornography to an undercover agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In February 2013, law enforcement executed a federal search warrant at Klevene’s residence. During an interview, Klevene confessed to possessing, downloading, and transporting child pornography. He stated that he had been collecting images and videos of child pornography for over twenty years. Klevene also admitted to paying a pre-pubescent male, in Tampa, to take photographs of himself and to subsequently posting these photographs to the Internet, in order to meet people interested in child pornography and to obtain more child pornography.
"Distributing child pornography is not a victimless crime," said Susan McCormick, special agent in charge of HSI Tampa. "We cannot repair the damage done to innocent children exploited for perverse pleasure, but we can continue to aggressively pursue and prosecute child predators like Klevene."
This case was investigated by HSI, the Florida Department of Law Enforcement (FDLE), and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rochester Man Sentenced on Drug and Gun ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Herit Melendez, 36, of Rochester, N.Y., who was convicted following a jury trial of possessing heroin with the intent to distribute it, and possessing a firearm in furtherance of a drug trafficking offense, was sentenced to five years in prison and five years supervised release by U.S. District Court Judge Frank P. Geraci.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that Melendez was arrested in a bedroom after members of the Greater Rochester Area Narcotics Enforcement Team executed a search warrant at 27 Glasser Street on May 27, 2011. During the search, officers found and seized cocaine, heroin, marijuana and paraphernalia associated with drug trafficking. Officers also located a .22 caliber handgun and a .22 caliber rifle in the location, as well as $534.00 in U.S. currency.
The sentencing resulted from an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Resident Agent in Charge Scott Heagney, and the Rochester Police Department, under the direction of Chief James M. Sheppard.Rochester Man Pleads Guilty to Possessing Child PornographyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jonathan Lopez-Polo, 25, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to child pornography. The charge is punishable by a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant possessed more than 600 images of child pornography on digital media he owned, including a computer and removable media. The images included prepubescent children, as well as depictions of violence against children.
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 plea 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 and Investigators from the Rochester Police Department, under the direction of Chief James Shephard.
Sentencing is scheduled for March 19, 2014, at 10:00 a.m. before Judge Larimer.Rochester Man Pleads Guilty to Making Bomb Threats Against KodakRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Omer Fadhel Saleh Mohammed, 31, of Rochester, N.Y., pleaded guilty to making false bomb threats before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00 or both.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that on September 24, 2012, the defendant made three phone calls to 911 and told the operator that his acquaintances were terrorists and were going to blow up the Kodak Corporation. Mohammed made a fourth call on January 24, 2013 claiming that an acquaintance had explosives hidden at a location in Rochester and planned to use those explosives to bomb Kodak. The 911 calls resulted in emergency responses by the Rochester Police and Fire Departments and by Kodak security personnel, but searches failed to turn up any bombs or evidence that someone had attempted to plant a bomb at any of Kodak=s facilities.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for April 4, 2014 before Judge Siragusa.Retired Jacksonville Sheriff's Office Corrections Officer Arrested for His Involvement in Stolen Identity Refund Fraud SchemeRead the Press Release
Jacksonville, FL – Acting United States Attorney A. Lee Bentley, III announces the return of an indictment and arrest charging Harold B. Walbey, III (45, Jacksonville) with wire fraud and aggravated identity theft. If convicted on all counts, he faces a maximum penalty of 22 years in federal prison.
Walbey was arraigned in federal court on December 12, 2013. He pleaded not guilty and was released on bond. A status conference hearing is scheduled for January 21, 2014.
According to the indictment, Harold B. Walbey, III worked as a corrections officer with the Jacksonville Sheriff’s Office, at the John E. Goode Pretrial Detention Facility. While working in this capacity, he stole personal identifying information, including the names and social security numbers, of multiple inmates who were housed at the facility. From 2010 through May 2012, Walbey used this information to electronically file numerous fraudulent tax returns and open pre-paid debit card accounts with various financial institutions. The tax refunds were then directly deposited into the pre-paid debit card accounts that were created in specific inmates’ names.
“The Jacksonville Sheriff’s Office investigates all allegations of criminal activity that may involve our employees. In this case our investigators from the Integrity/Special Investigations Unit, working with our federal agency partners, effected two arrests - Mr. Walbey and his daughter, Tianna Walbey, who was arrested in February on federal charges in this same crime,” said Jacksonville Sheriff John Rutherford.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Malisa Chokshi.
Click HERE to view Indictment
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on December 9, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric Ladeaux, age 27, was sentenced to 2 years in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Ladeaux was indicted by a federal grand jury on September 25, 2012. He pled guilty on February 14, 2013.
In September 2012, Ladeaux left the Community Alternatives of the Black Hills where he was serving the remainder of a federal prison sentence, and he did not return as required.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Ladeaux was immediately turned over to the custody of the U.S. Marshals Service.
Ponchatoula Man, Robert Swan, Charged with the Sexual Exploitation of Children, as Well as the Distribution and Receipt of Child PornographyRead the Press Release
ROBERT SWAN, age 51, a resident of Ponchatoula, Louisiana, was charged today in a three-count Indictment with the sexual exploitation of children, as well as receiving and distributing images depicting the sexual victimization of children, announced United States Attorney Kenneth Allen Polite, Jr.
According to the Indictment, between a date unknown and June 25, 2012, SWAN coerced a six-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Additionally, SWAN was charged with knowingly receiving and distributing videos and images of children engaging in sexually explicit conduct. The Indictment also provides notice of an enhancement of SWAN’S sentence upon conviction based on his prior conviction for lewd and lascivious assault of a minor in Escambia County, Florida.
If convicted, SWAN faces a mandatory minimum term of imprisonment of 25 years and a maximum of 50 years as to Count 1, and a mandatory minimum sentence of 15 years and a maximum sentence of 40 years as to each of Counts 2 and 3, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case is being investigated by investigators from the State of Louisiana - Office of the Attorney General. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg.
(Download Indictment )
Pittsburgh Man Sentenced to 5+ Years in Prison for Heroin Trafficking SchemeRead the Press Release
PITTSBURGH – Duane Scott was sentenced in federal court for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Scott, a 23-year-old Pittsburgh resident, was sentenced to serve 63 months in prison followed by four years of supervised release by United States District Judge Arthur J. Schwab. Throughout 2010 and into 2011, Scott conspired with Harold Bacon and others to distribute hundreds of bricks of heroin even though he was on adult probation at the time for an adult conviction for carrying a firearm without a license. Scott was, in fact, under house arrest for much of that time period, but he still stored bricks of heroin and distributed them at Bacon’s direction.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Bureau of Police, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Owners and Managers at Restraurant Chain Indicted for Conspiracy to Hire Undocumented WorkersRead the Press Release
A grand jury returned a 23-count indictment charging six people for their roles in a conspiracy to hire undocumented workers at a chain of restaurants in Stark and Summit counties and pay them less than minimum wage and sometimes only in tips, said Steven M. Dettelbach, United States Attorney for the Northern District.
Prosecutors are also seeking to forfeit more than $16 million generated by the restaurants.
Indicted are owners Miguel Castro, age 44, and Monica Castro, age 43, both of Uniontown, Ohio; and managers Cesar Castro, age 28, of Akron; Aldo Castro, age 42, of Akron; Pedro Cervantes, age 39, of Mexico; and Gustavo Torres, age 45, of Kent, Ohio.
“The owners and managers of these restaurants took advantage of their workers’ immigration status for their own profit,” Dettelbach said.
“Employers have a legal responsibility to protect the integrity of their workforce,” said Marlon Miller, special agent in charge of ICE’s Homeland Security Investigations in Detroit, which covers Michigan and Ohio. “When companies engage in schemes that flout immigration laws, workers are often exploited and businesses that play by the rules are put at a significant disadvantage.”
The defendants face charges including conspiracy to harbor undocumented aliens, aiding and abetting the harboring of undocumented aliens, harboring undocumented aliens, conspiracy to commit mail fraud and mail fraud. Miguel Castro and Monica Castro also are charged with making false statements to federal law enforcement officers.
Since 2002, the defendants owned and/or managed the seven “Mariachi Locos” and “Mariachi Cocos” chain of restaurants with locations in Akron, Stow, Tallmadge and North Canton.
The defendants engaged in the practice of hiring undocumented workers who were illegally present in the United States and conspired to shield these workers from detection by paying them in cash, excluding them from payrolls, leasing housing for the workers, and aiding the workers in obtaining fraudulent work documentation, according to the indictment.
The defendants also used the U.S. mail to submit false wage reports to the state of Ohio. The defendants’ employment practices enabled them to enrich themselves because they paid the undocumented workers less than minimum wage and did not pay these workers for overtime hours worked, according to the indictment.
In some cases, the defendants paid these workers only the tips that the workers received from their customers, according to the indictment.
The indictment seeks the forfeiture of $16,474,870 in gross proceeds that the defendants earned as a result of the offenses.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Lauren Bell and Phillip J. Tripi, following a joint investigation by agents of Department of Homeland Security and the Department of Labor -- Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Owner of Bluegrass Women’s Healthcare in Elizabethtown Ordered to Pay Victims $50,663.31 for MisbrandingRead the Press Release
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky was sentenced yesterday, in United States District Court, by United States District Judge John G. Heyburn, to one year probation for a single charge of misbranding, and the corporation, Bluegrass Women’s Healthcare, was sentenced and ordered to pay a fine of $25,000 announced David J. Hale, United States Attorney for the Western District of Kentucky. The defendant owner, Canh Jeff Vo was also ordered to pay restitution in the amount of $50,663.31 to victims.
Vo, age 45, of Louisville, Kentucky, was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the plea agreement, between March 2008 and September 2009, Vo, purchased and inserted into patients, foreign, non-FDA approved (levonorgesteral-releasing intrauterine device). These intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use. Vo pleaded guilty to the misdemeanor charge of misbranding on September 6, 2013 and agreed to pay jointly and severally with Bluegrass Women’s Healthcare, restitution to the victims.
Also, between March 2008 and September 2009, Bluegrass Women’s Healthcare received, brought, and imported into the United States, IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada. Defendant VO, as president of Bluegrass Women’s Healthcare pleaded guilty, on behalf of the corporation, to the felony charge of smuggling and agreed to pay a $25,000 fine.
This case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and was investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
Oakland Resident Convicted of Trafficking A Minor for Purposes of ProstitutionRead the Press Release
SAN FRANCISCO – Yesterday afternoon a federal jury convicted Roderick Harold Bolds of one charge of Sex Trafficking of Children and another charge of Transportation of a Minor for Purposes of Prostitution, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
The jury found that beginning on or about July 3, 2011, and continuing through July 11, 2011, Bolds recruited a minor from Reno, Nevada, to Oakland, California. Bolds knew or ignored the fact that the minor was not 18 years of age and would be caused to engage in a commercial sex act. The guilty verdict followed a jury trial before the Honorable Charles R. Breyer, United States District Court Judge.
Evidence at trial showed that Bolds, of Oakland, California, met the victim in Reno, Nevada, when she was fifteen years old and convinced her to come to Oakland, where he intended that she engage in prostitution. From July 4, 2011, to July 11, 2011, Bolds prostituted the victim on the streets of San Francisco and Oakland and placed an advertisement for her services online. The victim was arrested in the Mission District of San Francisco on prostitution-related charges by the San Francisco Police Department, who referred the case to the Federal Bureau of Investigation.
Bolds was indicted by a federal grand jury on September 27, 2011. He was charged with one count of Sex Trafficking of Children, in violation of 18 U.S.C. § 1591(a)(1), and one count of Transportation of a Minor for Purpose of Prostitution, 18 U.S.C. § 2423(a). He has been in prison since his arrest. Bold’s sentencing hearing is set for April 16, 2013, at 2:00 p.m. before Judge Charles R. Breyer in San Francisco. Each of the counts for which Bolds was convicted carries a statutory mandatory minimum penalty of ten years in prison. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kevin J. Barry and Laura Vartain Horn are the Assistant United States Attorneys prosecuting the case with the assistance of Alycee Lane and Jacquelyn Lovrin. The prosecution is the result of an investigation of the FBI with assistance from the San Francisco and Oakland Police Departments.
(Bolds indictment )
Northern Arapaho Man Sentenced for Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
United States Attorney Christopher A. Crofts announced today that on December 11, 2013, Jess Theodore Birdshead, a 47-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, appeared in Federal District Court in Casper, Wyoming for sentencing before United States District Judge Scott W. Skavdahl on the charge of assault with a dangerous weapon with intent to do bodily Harm. Birdshead was sentenced to 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay $5,733.00 in restitution. The charge stemmed from an assault which occurred on May 20, 2013, on the Wind River Indian Reservation. This case was investigated by the Bureau of Indian Affairs.
Nine Members of Largest Counterfeit Goods Conspiracy Ever Charged Admit GuiltRead the Press Release
NEWARK, N.J. – Nine members of a massive, international counterfeit goods conspiracy have admitted their roles in the scheme, U.S. Attorney Paul J. Fishman announced.
Hai Dong Jiang, 37, and Fei Ruo Huang, 37, both of Staten Island, N.Y.; Hai Yan Jiang, 34, of Richardson, Texas; Xiance Zhou, 39, and Jian Chun Qu, 33, both of Bayside, N.Y.; and Ming Zheng, 48, of New York, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court. Dong Jiang, Ruo Huang, and Yan Jiang pleaded guilty to informations charging them each with one count of conspiracy to traffic in counterfeit goods. Xiance Zhou and Qu pleaded guilty to informations charging them each with one count of conspiracy to structure money. Zheng pleaded guilty to an information charging him with a conspiracy to launder money.
Wei Qiang Zhou, 38, of Brooklyn, N.Y., pleaded guilty Dec. 3, 2013, Patrick Siu, 41, of Richardson, Texas, pleaded guilty Dec. 4, 2013, and Da Yi Huang, 43, of Staten Island, pleaded guilty Dec. 11, 2013, all before Judge Salas in Newark federal court, to informations charging them each with one count of conspiracy to traffic in counterfeit goods.
According to documents filed in this case and statements made in Court:
From November 2009 through February 2012, the defendants ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods – primarily handbags, and footwear, and perfume – from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
The counterfeit goods were manufactured in China and smuggled into the United States through containers fraudulently associated with legitimate importers, with false and fraudulent shipping paperwork playing a critical role in the smuggling scheme. Some of the conspirators created and managed the flow of false shipping paperwork between China and the United States, and supervised the importation of counterfeit goods, and others controlled the importation of the counterfeit goods into the United States.
Other conspirators managed the distribution of counterfeit goods once those goods arrived in the United States. After importation, the counterfeit goods were delivered to warehouses, and distributed throughout New York, New Jersey, and elsewhere. Certain conspirators paid large amounts of cash to undercover law enforcement officers to assist in the removal of counterfeit goods from the port.Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. Other conspirators were money structurers, who arranged for cash to be wired to China in amounts small enough to avoid applicable financial reporting requirements, to evade detection of the smuggling scheme and related proceeds.
Law enforcement introduced several undercover special agents (collectively, the UCs) to the conspirators. The UCs purported to have unspecified “connections” at the port, which allowed the UCs to release containers that were on hold, and pass them through to the conspirators. The conspirators paid the UCs for these “services.” In total, during the course of this investigation, the conspirators provided the UCs more than $2 million.UCs recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
Roles of the Individual Defendants
- Patrick Siu, a/k/a “Sam Huang,” facilitated the importation and distribution of counterfeit goods, by serving as the “hub” for communications between customs brokers, UCs, and the conspirators. Siu sent false and fraudulent shipping documents to UCs and customs brokers (including by interstate and international faxes and e-mails); engaged in conversations with UCs, customs brokers, and other conspirators in furtherance of the smuggling scheme; and created or caused to be created false and fraudulent identification documents.
- Hai Dong Jiang, a/k/a “Jimmy,” a/k/a “Dong,” served as one of the directors of the smuggling scheme. Dong Jiang ordered counterfeit merchandise from China; negotiated shipments of counterfeit goods from China; arranged for payment for that merchandise; and supervised the distribution of that merchandise in and around the New York/New Jersey area.
- Hai Yan Jiang, a/k/a “Yan,” served as one of the directors of the smuggling scheme. Yan Jiang made decisions regarding what kind of counterfeit goods should be manufactured; arranged for payment for counterfeit merchandise; supervised the distribution of that merchandise in and around the New York/New Jersey area; and interacted with wholesalers of counterfeit goods by arranging payments by the wholesalers to the directors of the scheme.
- Fei Ruo Huang, a/k/a “Emily,” a/k/a “Ah Yue,” was another director of the smuggling scheme. Ruo Huang coordinated the distribution of counterfeit merchandise once it arrived in the New York/New Jersey area. Ruo Huang directed merchandise to warehouses, where it was stored and then delivered to wholesalers.
- Da Yi Huang, a/k/a “Boss,” a/k/a “Da Nian,” was another director of the smuggling scheme. Da Yi negotiated pricing for counterfeit merchandise; made payments for the counterfeit merchandise; and participated in deciding which counterfeit products should be ordered from China.
- Wei Qiang Zhou’s primary role was to assist other conspirators in arranging for transportation of counterfeit merchandise.
- Xiance Zhou and Jian Chun Qu’s primary roles were to wire proceeds obtained from the smuggling scheme to accounts in China. Conspirators in the scheme dropped off large sums of money to Xiance Zhou and Qu and others – sums far in excess of $10,000 at a time. Xiance Zhou and Qu, then divided these large sums into amounts of less than $10,000, deposited them into accounts they controlled to evade reporting requirements, and wired the money – in increments of less than $10,000 – to China and elsewhere.
- Ming Zheng, a/k/a “Uncle Mi,” was a money launderer. Other conspirators obtained cash from UCs, which was purportedly the proceeds of gambling and other unlawful activities. These other conspirators then provided the money to Zheng. For every $50,000 in cash the UCs provided, Zheng and others would return approximately $42,500 – via wire transfers from banks in China – into a bank account set up by the UCs. When other conspirators, including Ning Guo, received money from the UCs to be laundered, he would then contact Zheng, who in turn contacted a Chinese-based conspirator, and transferred the money to locations in China. Then the money (less the laundering fee) was transferred from in Fujian, China, to a bank in Guangzho, China, where it was subsequently withdrawn and physically transported via courier to a bank in Hong Kong. The final transfer was from the bank in Hong Kong to the UCs’ bank account. Zheng was therefore instrumental in each of the money laundering transactions – he received the cash from other conspirators and caused it to be transferred overseas in furtherance of the laundering process.
The conspiracy to traffic in counterfeit goods count to which Da Yi Huang, Hai Dong Jiang, Hai Yan Jiang, Fei Ruo Huang, Patrick Siu, and Wei Qiang Zhou pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $2 million. The money laundering count to which Zheng pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $500,000 or twice the gain or loss caused be the offense. The structuring conspiracy to which Zhou and Qu pleaded guilty is punishable by a maximum potential penalty of 5 years in prison and a fine of $250,000. Sentencing for Siu and Qiang Zhou is scheduled for March 17, 2014. Sentencing for Qu, Zhou and Zheng is scheduled for March 24, 2014. Sentencing for Hay Yan Jiang, Hai Dong Jiang and Fei Ruo is scheduled for March 25, 2014.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Qiang Zhou: Jonathan Marks Esq., New York
Siu: Robert Gottlieb Esq., New York
Da Yi Huang: Daniel Kratka Esq., New York
Hai Dong Jiang: Joseph Conway Esq., Mineola, N.Y.
Hai Yan Jiang: Benjamin Herzweig Esq., Patchogue, N.Y.
Fei Ruo Huang: Adam Mehfar Esq., New York
Qu: Alan Liebowitz Esq., Englewood, N.J.
Xiance Zhou: Patrick Brackley Esq., New York
Ming Zheng: Stacey Van Malden Esq., Bronx, N.Y.New York Man Admits to Participating in Three Armed Robberies of Electronics Stores in New Jersey and New YorkRead the Press Release
TRENTON, N.J. – A Brooklyn, N.Y., man admitted today to participating in three armed robberies of electronics stores, including two armed robberies in Woodbridge, N.J., and Linden, N.J., U.S. Attorney Paul J. Fishman announced.
Terrell McQueen, 30, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding information charging him with one count of conspiracy to commit Hobbs Act robberies.
McQueen was arrested on May 22, 2013, and originally charged in an indictment in connection with two armed robberies of electronics stores in Woodbridge and Linden. McQueen has been in custody since his arrest.
According to documents filed in this case and statements made in court:
Between May 30, 2012, and Oct. 2, 2012, McQueen conspired with others to commit a series of gunpoint electronics store robberies in New Jersey and New York during which he and accomplices robbed merchandise for illegal resale. McQueen provided the firearms used in both of the New Jersey robberies, coordinated the resale of the stolen merchandise and distributed the profits from the robberies to the other perpetrators.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Linden and Woodbridge Police Departments in New Jersey, as well as the New York City and Nassau County Police Departments and the Kings County District Attorney’s Office in New York for their excellent work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Anthony J. Pope Esq., Newark, N.J.McQueen Superseding Information
New Orleans Man, Gregory R. Alexander, Sentenced for Attempting to Firebomb His TruckRead the Press Release
GREGORY R. ALEXANDER, 36, a resident of New Orleans, Louisiana, was sentenced yesterday by U. S. District Judge Carl J. Barbier for his involvement in possessing unregistered destructive devices in a failed attempt to destroy his truck in February, announced U. S. Attorney Kenneth Allen Polite, Jr. Judge Barbier imposed a sentence of 18 months imprisonment, to be followed by two years of supervised release.
ALEXANDER pleaded guilty on August 22, 2013, to unlawfully possessing multiple destructive devices. Judge Barbier granted a downward departure citing the defendant’s lack of any meaningful criminal history, his intent to only damage his personal property and the factual circumstances leading up to the criminal activity.
According to court records, ALEXANDER, made and used multiple flammable liquid devices in a failed attempt to burn his truck.
This case was investigated by Special Agents of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department and Bomb Squad. The case was prosecuted by Assistant United States Attorney Tony Gordon Sanders.
Monmouth County, N.J., Casino Owner Pleads Guilty to Evading Nearly $1.3 Million in Income Taxes from Trinidad CasinoRead the Press Release
TRENTON, N.J. – A Monmouth County, N.J., man admitted today to evading taxes on income from his ownership of a casino in Trinidad, resulting in an approximately $1.3 million loss to the United States, U.S. Attorney Paul J. Fishman announced.
David Migliore, 50, of Brielle, N.J., pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to one count of an indictment charging him with evading taxes with respect to his 2011 personal tax return.
According to the documents filed in this case and statements made in court:
Migliore owns several businesses in New Jersey, including Brielle Investment LLC, Brielle Investments & Management Co. LLC and La Soufriere Maritime Inc., as well as Island Club Casino in Trinidad.
From 2009 to 2011, Migliore earned millions of dollars from Island Club Casino, resulting in taxes due of $1,286,657. During that time, Migliore took steps to conceal his income and assets from the IRS. At his guilty plea proceeding, Migliore admitted to using unreported bank accounts in Trinidad to deposit personal income; using U.S. bank accounts in the names of his New Jersey business entities to receive income from Island Club Casino; and using those business entities to pay for personal expenses.
Migliore also admitted to transferring income from Island Club Casino directly to vendors in the U.S. for personal expenses and directing Island Club Casino employees to send his income through Western Union to individuals in New Jersey who collected the cash on his behalf.
The tax evasion count to which Migliore pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss arising out of the offense together with the costs of prosecution. Sentencing is scheduled for March 20, 2014.
Pursuant to the plea agreement, Migliore agreed to pay restitution of $1,286,657 to the IRS.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; law enforcement officers from the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Christopher J. Gramiccioni; police officers from Wall Township Police Department, under the direction of Chief Robert Brice; and international assistance from the Financial Intelligence Unit for Trinidad & Tobago, with the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Robert Weir Esq., Red Bank, N.J.Migliore, David Indictment
Mercer County, N.J., Man Admits His Role in Conspiracy to Extort BribesRead the Press Release
Also Pleads Guilty to Separate Extortion, Narcotics Distribution and Weapons Charges; Co-Defendant Admits Narcotics Distribution
TRENTON, N.J. — A Mercer County, N.J., man admitted today he conspired with the Mayor of Trenton and others to extort bribes and kickbacks in connection with a Trenton parking garage project, U.S. Attorney Paul J. Fishman announced.
Joseph Giorgianni (a/k/a “Jo Jo”), 64, of Ewing Township, N.J., pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment returned in December 2012 charging him with conspiring with Trenton Mayor Tony F. Mack, 47, Ralphiel Mack, 41, (Mayor Mack’s brother) both of Trenton, and others to obstruct interstate commerce by extorting individuals under color of official right by corruptly arranging to obtain, and obtaining, money and things of value in exchange for Tony Mack’s exercise of official authority and influence.
Giorgianni also pleaded guilty to Count Eight in the indictment, charging him with conspiring with City of Trenton employee Charles Hall III, 50, of Trenton, to obstruct interstate commerce by extorting another individual under color of official right by corruptly arranging to obtain, and obtaining, money and things of value from that individual in exchange for Hall’s exercise of official authority and influence in connection with the administration of a power-washing contract.
Giorgianni also pleaded guilty to charges contained in a separate indictment returned in March 2013 which included conspiring with others, including Hall, to distribute and possess with intent to distribute oxycodone (Count One) and to being a felon in possession of a firearm (Count Six).
An associate of Giorgianni, Mary Manfredo, 65, of Lawrenceville, N.J., pleaded guilty to conspiring with Giorgianni, Hall and others to distribute and possess with intent to distribute oxycodone (Count One of the March 2013 indictment).
Hall, a former City of Trenton employee, pleaded guilty in February 2013 to conspiring to obstruct commerce by extortion under color of official right by agreeing with Giorgianni, Tony Mack and Ralphiel Mack to obtain payments from the purported developers of the parking garage project in exchange for Tony Mack’s official assistance on the project. Hall also admitted his involvement in the narcotics distribution conspiracy involving Giorgianni, Manfredo and others in connection with the purchase and sale of oxycodone.
The extortion and narcotics conspiracy counts are punishable by a maximum potential prison term of 20 years in prison per count. The firearms count carries a maximum penalty of 10 years in prison. All offenses except the narcotics offense carry a maximum fine of $250,000; the narcotics offense has a $1 million maximum fine. Sentencing for both defendants has been scheduled for March 19, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
The charges and allegations in the referenced indictments are merely accusations, and all defendants with pending charges are presumed innocent unless and until proven guilty.
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Defense Counsel: Giorgianni: Jerome A. Ballarotto Esq., Trenton
Manfredo: Anthony Simonetti Esq., Hightstown, N.J.Giorgianni, Joseph et al. Indictments
Manhhattan U.S. Attorney Announces Conviction of Richard Chichakli, Co-Conspirator of International Arms Dealer Viktor Bout, on Money Laundering, Wire Fraud, and Conspiracy ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RICHARD AMMAR CHICHAKLI, an associate of international arms dealer Viktor Bout, was found guilty today, by a jury in Manhattan federal court, of conspiring with Bout and others to violate the International Emergency Economic Powers Act (“IEEPA”) by attempting to purchase commercial airplanes from American companies in violation of U.S. sanctions. CHICHAKLI was also found guilty of money laundering conspiracy, wire fraud conspiracy, and several counts of wire fraud, in connection with the attempted aircraft purchases. He was convicted following a four-week jury trial before U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “As the evidence at trial established, Richard Chichakli conspired to violate international sanctions by working to purchase aircraft for and with Viktor Bout, formerly one of the world's most notorious weapons traffickers. But for the intervention of our law enforcement partners, Chichakli would have played a vital role in furthering Bout's objectives.”
According to evidence at trial and documents previously filed in Manhattan federal court:
CHICHAKLI conspired with Viktor Bout and others to violate IEEPA by engaging in prohibited business transactions with companies based in the United States. The focus of these transactions was the purchase of commercial airplanes for a company that Bout and CHICHAKLI controlled, and the ferrying of those aircraft to Tajikistan. At the time of these unlawful transactions, both CHICHAKLI and Bout had been designated by the U.S. Treasury Department as Specially Designated Nationals (“SDNs”), which meant that individuals and businesses in the United States were prohibited from engaging in financial transactions with them. CHICHAKLI sought to evade these SDN sanctions by, among other things, concealing his identity and his SDN listing, and by concealing Viktor Bout’s involvement in the airplane transactions. In connection with this fraudulent scheme, CHICHAKLI helped to make a series of wire transfer payments, totaling more than $1.7 million; these payments were sent from overseas bank accounts into accounts in the United States.
CHICHAKLI was convicted of one count of conspiring to violate the IEEPA one count of money laundering conspiracy, one count of wire fraud conspiracy, and six counts of wire fraud. He faces a maximum sentence of five years in prison on the IEEPA conspiracy count, and a maximum of 20 years in prison on each of the other eight counts. CHICHAKLI is scheduled to be sentenced on March 14, 2014 at 2:00 p.m.
CHICHAKLI’s co-conspirator, Viktor Bout, is currently serving a 25-year prison term as a result of his November 2011 conviction in this District in connection with his conspiring to sell millions of dollars of weapons to a designated foreign terrorist organization.
Mr. Bharara praised the outstanding investigative efforts of the Special Operations Division of the DEA, and specially thanked the DEA Canberra Country Office, and the DEA Digital Evidence Laboratory. Mr. Bharara also thanked the Australian Federal Police, the Victoria State Police, and the Australian Attorney General’s Department, as well as the U.S. Department of Justice Office of International Affairs and National Security Division, and Interpol.
The case is being handled by the Terrorism and International Narcotics Unit. Assistant United States Attorneys Christian R. Everdell, Ian McGinley, and Jenna M. Dabbs are in charge of the prosecution.
Manhattan U.S. Attorney, FBI, and IRS Announce Charges Against Pharmacy Owner in Multimillion-Dollar Medicare/Medicaid Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that PURNA CHANDRA ARAMALLA was arrested yesterday for engaging in a scheme to defraud Medicaid and Medicare through the sale of illegally diverted prescription drugs. ARAMALLA was also charged with a related money laundering offense. ARAMALLA was arrested yesterday morning and was presented in Manhattan federal court before U.S. Magistrate Judge Debra Freeman yesterday afternoon. A preliminary hearing is scheduled for January 13, 2014.
Manhattan U.S. Attorney Preet Bharara said: “The illegal diversion of prescription medications threatens the health of those induced to sell their medication rather than take it. It threatens the health of those who unwittingly purchase the repackaged drugs believing them to be factory-fresh. And, as alleged here, Purna Aramalla’s diversion scheme defrauded millions of dollars from Medicare and Medicaid, taxpayer-funded programs established to provide health care assistance for the elderly and indigent. This Office is committed not only to punishing and preventing fraud, and safeguarding Medicare and Medicaid, but also to protecting the public.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged in the complaint, Aramalla conspired to defraud our government health care programs and profit from the illness and misfortune of others. Aramalla treated our American health care system as a vehicle to fuel his greed and line his own pockets. The FBI, in conjunction with our law enforcement partners, will continue to investigate and bring to justice criminals who bilk the system and defraud the American taxpayer.”
IRS-CI Special Agent-in-Charge Weirauch said: “The illegal sale of prescription drugs by pharmaceutical professionals is an escalating problem. Not only does it put potentially dangerous medications in the wrong hands, but fraudulent Medicare and Medicaid reimbursements divert resources from the government. The money laundering statutes have always been effective tools in the fight against illegal drugs. We are now applying these same laws to the illegal prescription drug business, tracing the lucrative proceeds that the sales of these drugs generate.”
According to the allegations contained in the Criminal Complaint unsealed today:
ARAMALLA operates A Fair Deal Pharmacy Inc. in Queens, New York, and Quality Health Drug Inc. in Bronx, New York. Using these pharmacies, ARAMALLA allegedly carried out a multimillion-dollar scheme to defraud New York State Medicaid and Medicare programs through the sale of diverted pharmaceutical drugs, that is, drugs not obtained from legitimate sources.
As part of the scheme, ARAMALLA purchased pharmaceuticals, including high-cost medications used to treat HIV, that were obtained from patients who sold the pharmaceuticals rather than use them to treat their illnesses. ARAMALLA then repackaged and resold those pharmaceuticals to his customers, as if the pharmaceuticals were new drugs obtained from legitimate sources. ARAMALLA requested and received reimbursement from Medicaid and Medicare in connection with these sales, even though Medicaid and Medicare would not have been willing to reimburse the cost of second-hand drugs. In addition, in some cases, Medicaid or Medicare had already paid for the pharmaceuticals when they were initially dispensed. In order to make the diverted pharmaceuticals appear to be new pharmaceuticals from legitimate sources, ARAMALLA and his co-conspirators used lighter fluid and other means to dissolve the adhesive on the patient labels on prescription bottles so that they could be removed and replaced with new labels.
ARAMALLA also sought and obtained reimbursement for pharmaceuticals that were never actually dispensed to patients. Instead, customers with prescriptions for pharmaceuticals essentially “sold” their prescriptions to ARAMALLA, agreeing not to take delivery of the pharmaceuticals in exchange for a share of the reimbursed proceeds.
From October 2010 to August 2012, ARAMALLA purchased approximately $1.7 million of certain branded HIV medications from two legitimate, licensed wholesalers that were his primary sources of legitimate drugs. During that same period, he received approximately $4.3 million in reimbursements from Medicare and Medicaid for those same drugs, an amount far in excess of what he would have been entitled to had he only sought reimbursement for the legitimately obtained drugs.
ARAMALLA, 65, of Port Washington, New York, is charged with one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum term of 20 years in prison, and one count of money laundering, which also carries a maximum term of 20 years in prison. He was ordered detained pending satisfaction of bail conditions, including a $2 million personal recognizance bond.
Mr. Bharara praised the outstanding investigative work of the FBI and the IRS. He also thanked the U.S. Department of Health and Human Services, Office of Inspector General, the New York State Office of Medicaid Inspector General, and the New York City Human Resources Administration.
The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the FBI, NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General's Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
If you think you may have purchased second-hand prescription drugs or were otherwise victimized by this scheme, you can call the FBI Hotline at 212-384-3555.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Niketh Velamoor is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Purna Chandra Aramalla Complaint
Major Methamphetamine Dealer Sentenced to 20 Years in Federal PrisonRead the Press Release
Late WV State Police members Corporal Marshall Bailey and Trooper Eric Workman played pivotal role in building case against longtime Clay meth supplier
CHARLESTON, W.Va. – A Clay County man who ran a pipeline that brought large quantities of methamphetamine from North Carolina to West Virginia was sentenced yesterday to 20 years in federal prison, U.S. Attorney Booth Goodwin announced. Raymond Hersman, 47, of Wallback, W.Va., was previously convicted in May for selling methamphetamine. Herman’s sentence was handed down by United States District Court Judge Thomas E. Johnston.
“Raymond Hersman was a significant methamphetamine dealer in and around the Clay County, West Virginia area,” U.S. Attorney Booth Goodwin said. “Today, instead of peddling poison, he’s going to prison.”
Goodwin continued, “This is perhaps the last investigation on which the late Trooper Eric Workman and the late Corporal Marshall Bailey worked. The people of Clay County and of West Virginia are safer because of the brave and skilled work of these two dedicated officers.”
According to evidence revealed during the three-day trial, law enforcement agents began investigating Hersman’s suspected meth distribution scheme in and around Clay County in August 2012. At the time, agents were aided in the investigation by West Virginia State Troopers Cpl. Marshall Bailey and Trooper Eric Workman. Cpl. Bailey and Tpr. Workman, both of whom patrolled the Clay County area, provided essential details to fellow law enforcement agents which outlined Hersman’s methamphetamine operation.
The information provided by Bailey and Workman assisted the investigation and culminated in the criminal conviction of Hersman in May.
Cpl. Marshall Bailey and Tpr. Eric Workman were shot and killed in the line of duty following a traffic stop near Clay County in late August 2012.
Hersman was previously convicted in April 1993 in the United States District Court for the Southern District of West Virginia of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
The West Virginia State Police, the Drug Enforcement Administration, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys Monica D. Coleman and John Frail handled the prosecution.
Lower Brule Man Sentenced for Abusive Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Abusive Sexual Contact with a Minor was sentenced on December 12, 2013, by U.S. District Judge Roberto A. Lange.
Robert Stricker, age 39, was sentenced to 30 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Stricker was indicted for the above charge by a federal grand jury on November 15, 2012. He pled guilty on September 17, 2013.
The conviction stems from an incident that took place in Lower Brule between August 25th and into the early morning hours of August 26, 2012, when Stricker engaged in sexual contact by touching the victim over the clothes. At the time of the offense, the victim was under the age of 16.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Stricker was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Charged with Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation.
Shane Coleman, age 25, was indicted on November 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 10, 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 $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 11, 2013, Coleman assaulted his spouse or intimate partner by strangling and suffocating her.
The charge is merely an accusation and Coleman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Coleman was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for February 11, 2014.
Louisville Man Guilty of Sexual Abuse of A Minor Under the Age of Seven in the Production of Child PornographyRead the Press Release
LOUISVILLE, Ky – A Louisville man pleaded guilty in United States District Court this week to charges of sexually abusing a minor under the age of seven during the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the five count indictment, Thomas Evan Middleton, age 50, sexually abused the minor female during the creation of pornography, while babysitting the minor at his home, between August 2009 and May 2011.
This case was initially brought by the Louisiana Attorney General's Office (LAGO) who contacted law enforcement in Louisville, Kentucky regarding a peer-to-peer investigation into Louisiana resident Robert Swan. The LAGO had previously executed a search warrant on Swan’s residence on January 30, 2013. During the review process of Swan’s electronic storage devices the LAGO discovered images of Swan and a then unknown individual engaged in the sexual exploitation of a minor. The unknown man had a cross tattoo on his right middle finger and was later identified as Thomas Middleton, through identifying information located on Swan’s computer. During the course of their investigation, thousands of digital images of child pornography were recovered, including images with Swan and Middleton sexually abusing a 4 to 5 year old female.
On July 24, 2013, a federal search warrant was executed on Middleton’s residence. Several items in the residence appeared to be the same as items observed in some of the sexual abuse images found on Swan’s computer. During the execution of the search warrant, Middleton identified the child victim depicted in the pictures with him.
Middleton faces a mandatory minimum sentence of 25 years in prison, and a combined maximum term of imprisonment of 250 years, a fine of $1,250,000 and a period of supervised release of at least 5 years and up to any number of years including life.
Middleton is scheduled for sentencing before Senior Judge Thomas B. Russell, on March 18, 2014, at 12:15 in Louisville.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Federal Bureau of Investigation with assistance from the Louisiana Attorney General’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Louisville Internet Tobacco Product Retailer Sentenced to 12 Months and One Day for Role in Contraband Cigarette TradeRead the Press Release
– Agreed restitution in the amount of $2,090,571.00 from $3,214,035.66 forfeited to the United States.
LOUISVILLE, Ky. – The former owner of Cigarettes Direct to You, was sentenced in U.S. District Court yesterday, to one year and one day in prison by U.S. Magistrate Judge Dave Whalin, for running an illegal retail cigarette trafficking business, announced David J. Hale, United States Attorney for the Western District of Kentucky. Prior to sentencing Israel Chavez of Louisville, agreed to pay restitution in the amount of $2,090,571 to the Kentucky Department of Revenue, from $3,214,035.66 he agreed to forfeit to the United States.
Israel Chavez, age 48, previously admitted in court that he conspired and agreed with Pedro, a/k/a Peter Bello, d/b/a, GT Northeast of Indiana/Kentucky, from January 5, 2005 through December 9, 2009, to buy and sell contraband cigarettes through internet websites and telephone call centers. By doing so, Chavez, aided and abetted by Bello, deprived the Kentucky State Department of Revenue of $2,090,571, by not paying taxes on cigarettes bought, sold, and shipped from locations within the Western District of Kentucky.
Chavez was the owner of Chavez, Inc., d/b/a, Cigarettes Direct to You (CD2U), a Kentucky Corporation located in Louisville, Kentucky. Chavez admitted in court to purchasing unstamped cigarettes, valued at $12,500,000 from Bello, for which no Kentucky tax had been paid, in order to significantly undercut the price charged for cigarettes by competing businesses which complied with state laws and paid the required taxes on cigarettes they held for sale. Further, Chavez admitted to knowing that fraudulent invoices had been created to disguise the nature of the cigarette transactions from the Kentucky Department of Revenue. This was accomplished through the creation of fraudulent invoices, which were transmitted by fax between Louisville, Kentucky, and St. Louis, Missouri, to make it appear that the cigarettes were purchased from a wholesaler in St. Louis – when, in fact, Chavez admitted to knowing that the unstamped cigarettes were from Kentucky, and that as a licensed wholesaler, Chavez was required to pay the Kentucky state tax.
According to the civil forfeiture suit, filed by the United States against Chavez, his ex-wife Pam Chavez, and their two companies Pam Chavez, Inc., and Chavez, Inc., Israel Chavez and Pam Chavez agreed to forfeit to the United States, assets including approximately $3,214,305.66 in cash and deposit accounts and approximately 10,824,192 tobacco products. Tax stamps valued at $108,000 will be returned to the Kentucky Department of Revenue.
"This ATF investigation was supported by the Kentucky Attorney General's Office of Criminal Investigations, the U.S. Postal Inspections Service and the Louisville Metro Police Department. In addition, coordination with various State Attorney Generals and their respective revenue/regulatory agencies has led to the collection of over $40 million in lost state excise taxes by states directly impacted by Chavez's illicit operations," stated ATF Louisville Special Agent in Charge Stuart Lowrey.
In a separate, but related case, Bello, age 43, of Miami, pleaded guilty to conspiracy to commit wire fraud and money laundering is scheduled for sentencing before Chief Judge Joseph H. McKinley on February 3, 2014. According to the October 3, 2011 indictment, returned by a grand jury meeting in Louisville, Bello created fraudulent cigarette invoices to circumvent paying Kentucky state excise taxes.
This case was prosecuted by Assistant United States Attorney Randy Ream and the civil forfeiture case was prosecuted by Assistant United States Attorney Amy Sullivan and will result in the payment of restitution to the victim. This case was investigated by the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Law Enforcement Officials Announce Results of Southern W.va. Sex Offender Registration Compliance BlitzRead the Press Release
Operation Lump of Coal found 54 sex offenders out of compliance
BECKLEY, W.Va. – A major four-day law enforcement blitz aimed at verifying compliance of more than 317 registered sex offenders currently residing in five southern West Virginia counties found 54 offenders out of compliance, U.S. Attorney Booth Goodwin, U.S. Marshal John D. Foster, and West Virginia State Police Capt. Brad Mankins announced today during a press conference in Beckley, W.Va.
The initiative, known as Operation Lump of Coal, is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration and Notification Act, also known as SORNA. Led by the U.S. Marshals Service’s Cops United Felony Fugitive Enforcement Division (CUFFED), Operation Lump of Coal targeted 317 registered sex offenders and found 263 to be in compliance. A total of 54 individuals were determined to be out of compliance within the Southern District of West Virginia during checks conducted on Dec. 9-12 of this week.
U.S. Attorney Booth Goodwin said, “Registering as a sex offender is not optional. It’s not something that offenders can simply put on the back burner or casually get around to completing whenever they feel like it. It’s mandatory.” Goodwin continued, “I’ve made prosecuting sex offenders who violate federal registration requirements one of my office’s top priorities. Today I want to reiterate that message: If you are out of compliance, we will track you down and we will bring you to justice.”
Operation Lump of Coal was initiated by members of the West Virginia State Police, in cooperation with the U.S. Marshals Service’s CUFFED Division. The four-day law enforcement sweep covered Mercer, McDowell, Monroe, Summers and Wyoming counties.
“One registered sex offender out of compliance is one too many,” U.S. Marshal John Foster said. “The U.S. Marshals Service is thoroughly committed to tracking down fugitives who attempt to evade the law.”
In August, a similar law enforcement sweep known as Operation Coal Dust was initiated in Boone, Lincoln and Logan counties. Operation Coal Dust conducted compliance checks on 209 registered sex offenders and found a total of 10 individuals out of compliance.Also, in December 2012, a compliance sweep dubbed Operation River Cities, aimed at Cabell, Mingo and Wayne counties, netted 18 arrests after nearly 300 checks were conducted.
As a result of the three regional operations, a combined total of more than 1000 offender compliance checks have been made.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
Las Vegas Physician Charged with Unlawfully Prescribing Large Quantities of OxycodoneRead the Press Release
LAS VEGAS, Nev. – A Las Vegas physician has been indicted by a federal grand jury on charges that he unlawfully prescribed large quantities of Oxycodone and other highly addictive prescription drugs, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Victor Bruce M.D., 48, of Las Vegas, is charged in a criminal indictment dated Dec. 11, 2013, with one count of conspiracy to distribute a controlled substance. Bruce was arrested in Las Vegas this morning and is scheduled to appear before United States Magistrate Judge Nancy J. Koppe, at 3:00 p.m. for an initial appearance and arraignment and plea.
“Our office will continue working aggressively with our federal, state and local law enforcement partners to attack the growing problem of prescription drug abuse,” said U.S. Attorney Bogden. “Our federal and local law enforcement partners will continue to prioritize these unlawful prescription drug distribution cases and continue working to shut down dangerous unlawful “pill mill” operations.”
According to the indictment, Bruce is a physician licensed to practice medicine in Nevada. Bruce maintains a medical practice known as Swan Lake Medical Center at 3330 South Hualapai Way on the west side of Las Vegas, and represents himself to be a specialist in pain management. It is alleged that beginning at a date unknown and continuing to around November 2013, Bruce prescribed large quantities of oxycodone and other highly prescription drugs without medical necessity and knowing that they were going to be illegally diverted. Bruce allegedly conspired with local drug dealers to distribute the drugs in and around Las Vegas to customers who abused them.
If convicted, Dr. Bruce faces up to 20 years in prison and a fine of up to $1 million.
This case is being investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina Silva.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
In order to address the growing problem of prescription drug abuse in Nevada, the Nevada HIDTA, along with the United States Attorney’s Office and other law enforcement partners, are holding a training summit on prescription drug abuse at the South Point Hotel in Las Vegas on Dec. 16 and Dec. 17, 2013. The summit will be a collaboration of professionals from local, state and federal agencies, academia, clinicians, treatment providers, counselors, educators, state and national leaders, and advocates impacted by prescription drug abuse.Kansas Man Charged in Plot to Explode Car Bomb at AirportRead the Press Release
A man has been charged in federal court with attempting to explode a car bomb at Wichita Mid Continent Airport, Acting Assistant Attorney General for National Security, John Carlin 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, of 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;
- and 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.
“Lone wolves - home grown violent extremists remain a very serious threat to our nation’s security, said FBI Special Agent in Charge Michael Kaste. “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, and 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.
John Labee Pleads Guilty to Aiding and Assisting in the Preparation of False Tax Documents, Making False Statements on Income Tax Returns and Lying to A Federal Grand JuryRead the Press Release
JOHN LABEE, age 35, a resident of Slidell, Louisiana plead guilty yesterday before United States District Judge Carl J. Barbier to aiding and assisting in the preparation of false tax documents, lying on personal income tax returns, and making false declarations before the Grand Jury, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, LABEE owned and operated several tax preparation companies, including Millenium Bookkeeping Services (“Millenium” [sic]) and IP Financial Services (“IP”), which prepared the taxes of numerous clients. As a regular part of his business LABEE prepared tax returns that contained false or fraudulent information for his clients, including false W-2s that fabricated the amount of federal income tax that had been withheld and inflated business expenses and deductions. LABEE prepared and filed approximately 460 federal tax returns that falsely claimed, and he charged substantial preparation fees, which he failed to report on his personal income tax returns. LABEE’S conduct resulted in an intended loss to the United States, of approximately $2,242,121 of federal income tax withholdings, and he failed to pay approximately $163,000 in federal taxes personally.
LABEE faces a maximum term of imprisonment of 11 years in prison, followed by up to 3 years of supervised release, and restitution as ordered by the Court. Sentencing has been scheduled for March 20, 2014, at 9:30 am.
The case was investigated by agents with the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
Illegal Re-Entry Defendant SentencedRead the Press Release
The United States Attorney Kenyen R. Brown announces that on 12/10/2013 Saturnino Palomo-Ramirez, was sentenced by Judge William Steele to Time Served, and to a Supervised Release Term (SRT) of one year. It was ordered that the Defendant be delivered to a duly-authorized Immigration official for possible deportation, and a Special Assessment (SA) of $100.00.
The indictment alleged that Palomo-Ramirez was found to be illegally in the United States on June 30, 2013 after he was removed or deported on or about November 9, 2010. Illegal Reentry into the United States is a violation of Title 8, United States Code, and Section 1326. Under the circumstances alleged in the indictment, the charge carried a maximum penalty of 10 years in custody.
Immigration and Customs Enforcement (ICE) conducted the investigation with the assistance of the Baldwin County Sheriff=s Office and presented the case for prosecution to the United States Attorney=s Office. Assistant United States Attorney Vicki M. Davis handled the prosecution of the case on behalf of the United States.
Huntsville Man Must Pay $3.7 Million to IRS for Tax EvasionRead the Press Release
HUNTSVILLE -- A federal judge this week sentenced a Huntsville man to five years' probation for tax evasion but ordered him to pay $3.7 million in restitution to the government, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Abdul K. Kallon sentenced PAUL BRACY JR., 71, on one count of tax evasion. The U.S. Attorney's Office charged Bracy in July. Bracy owned several small businesses: Bracy's Vending and the Green Room Lounge in Madison County and PBS Blues Bar in Macon County. Bracy also owned four pieces of real property, two in Madison County, one in Choctaw County and one in Mobile County.
According to court documents, the IRS was about to determine Bracy was personally responsible for $60,995 in unpaid taxes associated with businesses he owned, when Bracy conveyed the four pieces of real property, via “sham transactions,” to others in order to avoid IRS seizure of the properties to satisfy the outstanding tax amount. As part of his plea agreement, Bracy agreed to pay the $3,747,650 in restitution to the government.
“Most citizens diligently pay their taxes,” Vance said. “The willful failure of others to do so is patently unfair and criminal. We will aggressively seek to investigate and prosecute those individuals.”
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," Hyman-Pillot said. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
The IRS-CI investigated the case, which the U.S. Attorney's Office for the Northern District of Alabama prosecuted.
Honduran Sentenced to 9 Months in Prison for Illegally Re-entering U.S. After RemovalRead the Press Release
PITTSBURGH - An alien found in Pittsburgh, Pa., has been sentenced in federal court to nine months incarceration on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Pastor Gomez-Perez, 32, of Honduras.
According to the information presented to the court, Pastor Gomez-Perez, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on July 28, 2009. Pastor Gomez-Perez was found to be illegally present in Pittsburgh on Sept. 20, 2013.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Custom Enforcement for the investigation leading to the successful prosecution of Gomez-Perez.
Hogsett Announces Sentencing of Local Man as Part of Violent Crime InitiativeRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the sentencing of James I. Bowling, age 41, of Manilla, to 27 months (2 years, 3 months) in federal prison. This follows a September 2013 jury trial, at which Bowling was found guilty of providing false information when purchasing a firearm and of receiving a firearm while under indictment.
“The facts of this case show that Mr. Bowling thought he was above the law, and that recklessness put this community in danger,” Hogsett said. “This case is an example of what our collaborative Violent Crime Initiative aims to accomplish in Hoosier communities. This effort isn’t about making new laws - we are focused on enforcing those laws already on the books.”
An indictment filed last November charged that on July 19, 2012, Bowling was found to have falsely applied to purchase a .357 caliber revolver at a Rushville sporting goods store. In making that purchase, Bowling filed sworn statements with the Bureau of Alcohol, Tobacco, Firearms and Explosives, indicating that he was not under felony indictment or information. In fact, the defendant was aware of felony charges pending against him in Rush County Superior Court. Bowling was also convicted of illegally possessing the weapon in question.
These indictments come as part of the U.S. Attorney's Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police.
Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney's Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew J. Rinka, who prosecuted the case for the government, Bowling was ordered to serve 2 years of federally-supervised release at the end of his prison term, and was fined $2,000. Under federal law, Bowling is required to serve at least 85% of his prison term within a federal correctional facility.
Harrisburg Woman Sentenced for Harboring Illegal AliensRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Nura Ziadeh, age 62, of Harrisburg, Pennsylvania, was sentenced yesterday in Harrisburg by United States Senior District Court Judge William W. Caldwell to 15 months’ imprisonment. Judge Caldwell further ordered that Ziadeh pay $21,300 in restitution.
According to United States Attorney Peter J. Smith, in 2006, the U.S. Department of State, Diplomatic Security Service, began reviewing A-3 Non-Immigrant Visa (NIV) applications submitted at diplomatic facilities in Jakarta and Surabaya, Indonesia, for suspected fraudulent activity.
A-3 NIVs are for personal or domestic employees of foreign government officials who are serving their country in the United States in an official capacity. Recipients of A-3 NIVs are not permitted to work for private employers for any reason.
The investigation revealed that during 2007 through 2010, Ziadeh, formerly of Jakarta, Indonesia, worked in association with some of her family members still residing in Jakarta, to recruit poor, uneducated Indonesian women to come to Jakarta for eventual transportation to the U.S. and other countries under false pretenses to serve as domestic employees.
Once inside the United States, Ziadeh would charge those seeking domestic employees thousands of dollars to employ one of the women for two years. The women would be required to work an average of 12 to 17 hours per day, seven days per week. In turn, the employers would pay the women substandard wages, approximately $250-$400 per month. Some of the women were not paid at all. However, if the women left before the two years, Ziadeh threatened that they would be required to pay a fine. Ziadeh also held the women’s passports and luggage to ensure they would not try to “escape.”
The investigation identified at least 49 female victims.
Ziadeh was indicted in February 2012, along with her husband, Rashid Ziadeh and daughter, Mannatullah Ziadeh. They were charged with Transporting and Harboring Illegal Aliens and Aiding and Abetting. Nura and Rashid Ziadeh pleaded guilty in March 2013. Rashid Ziadeh was sentenced to probation.
This case was investigated by the United States Department of State's Diplomatic Security Service and Office of Inspector General, U.S. Department of Homeland Security Investigations, and Lower Paxton Police Department. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Ft. Pierre Man Sentenced for Bank FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota, man convicted of bank fraud was sentenced on December 12, 2013, by U.S. District Judge Karen E. Schreier.
Wyatt Rasmussen, age 40, was sentenced to 33 months in custody to be followed by 3 years of supervised release. He was also ordered to make restitution of $238,969.59.
Rasmussen was indicted for bank fraud by a federal grand jury on May 8, 2013. He pled guilty on August 1, 2013.
Rasmussen applied for a business line of credit from Dakotaland Federal Credit Union in Huron. In support of his application, he created and submitted fraudulent documents that grossly overstated and misrepresented his income. Rasmussen received the line of credit and used the funds for his own personal purposes.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Rasmussen was immediately turned over to the custody of the U.S. Marshals Service.
Four Time Felon Exiled to over 10 Years in Prison for Illegal Possession of A Gun and Witness TamperingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Gerod Simmons, age 30, of Lancaster, South Carolina, today to 125 months in prison followed by three years of supervised release for being a felon in possession of a firearm, and witness tampering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Teresa Chambers of the U.S. Park Police.
According to his plea agreement, on September 1, 2012, Simmons was arrested in Maryland after police found a loaded .40 caliber pistol under the front passenger seat of a car where Simmons was sitting. Simmons was charged with being a felon in possession of a gun. The car was registered to his mother in Lancaster, South Carolina. The gun had been purchased by his co-defendant, Canyon Nelson, in Lancaster in 2011. Simmons had four previous drug convictions and was prohibited from possessing a gun.
Simmons was detained after his arrest and called Nelson almost every day during September and October, 2012. During a call on September 7, 2012, Simmons suggested that Nelson should say that she had placed the gun under the seat without his knowledge. In that phone call and two subsequent letters mailed to Nelson’s home, Simmons told Nelson to say that they had driven around town running errands on the morning of August 31, 2012, and that she placed the gun under the passenger seat without his knowledge, after he got out of the car at the bank where she cashed her paycheck.
On November 7, 2012, Nelson falsely testified before the grand jury that on August 31, 2012, she and Simmons had driven around town running errands. Nelson said she had paid her light bill and cashed her pay check at the bank. Investigation showed that the power company had no record of any payments made by Nelson or Simmons the morning of August 31, 2012. Video recordings of the bank lobby reveal that neither Nelson nor Simmons went into the building that morning.
Canyon Nelson, age 25, of Lancaster, South Carolina, previously pleaded guilty to making a false statement to the grand jury and was sentenced to five months in prison followed by three years of supervised release.
United States Attorney Rod J. Rosenstein commended the ATF and U.S. Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis R. Weisman, and Special Assistant U.S. Attorney Jonathan Ophardt of the U.S. Justice Department, who prosecuted the case.
Former Bay Area Resident Sentenced to Nearly Three Years for Her Participation in Tax SchemeRead the Press Release
SAN FRANCISCO – Charmetra Urssery was sentenced on December 11, 2013, to 34 months in prison, and ordered to pay restitution of $196,766 for conspiring to file false tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the plea agreement, beginning in June 2008, Urssery helped obtain tax refunds based on false tax returns that were filed with the IRS. As part of the scheme, Urssery spoke with others who then provided their personal information for use in the false returns. She knew the returns were false because the person whose name appeared on the returns often did not supply the information used to support the refund. Urssery also allowed her bank account to be used to receive fraudulent tax refunds, and spoke with others who then provided their bank account information to be used to receive fraudulent refunds. When Urssery withdrew the fraudulently obtained money from her bank account she would split the proceeds with other individuals involved in the scheme. Similarly, when the fraudulent refund was issued to another account holder they would also split the proceeds with others. In her plea, Urssery additionally admitted that she obstructed the investigation of this matter.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge. Urssery was ordered to self-surrender on February 14, 2014.
Urssery, 36, was indicted on July 12, 2012. She was charged with one count of conspiracy to file false claims and pleaded guilty to the charge.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Urssery indictment )
Former Baltimore City Firefighter Sentenced to 15 Years in Prison for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jamar Marvin Simmons, a/k/a “Mar,” age 31, of Baltimore, today to 15 years in prison followed by five years of supervised release for sex trafficking of a minor, in connection with a prostitution business he ran with co-defendant Franklin Coit. Simmons was a Baltimore City firefighter at the time of the offense. Judge Russell ordered that upon his release from prison, Simmons must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, Simmons and Coit operated a brothel in Baltimore City on Madison Avenue. They also rented hotel rooms and a residence in Maryland for prostitution. Simmons and Coit falsely advertised online for exotic dancing and an escort service to recruit females, including at least one minor female, from Maryland and other states. They arranged to transport the women from Delaware, Florida, New York, Pennsylvania, Texas, South Dakota and Virginia to Maryland to engage in prostitution. Many of the women recruited by Simmons and Coit were in financial distress, had no place to live, or were otherwise vulnerable.Simmons and Coit took sexually explicit pictures of the females they recruited, and posted the pictures on the escort section of an online advertising website along with phone numbers to call to schedule a “date,” or sex. Simmons set the pricing for the sex acts, and instructed the females on how to arrange “dates” over the phone and how to avoid detection by law enforcement. Simmons and Coit shared the cash proceeds of the prostitution business, and used a gun to protect the business and its cash proceeds.
Franklin Roosevelt Coit, a/k/a “Frank,” and “Nitty,” age 35, of Baltimore, pleaded guilty to the same charge and is scheduled to be sentenced on December 17, 2013 at 2:30 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and County Police Departments and Baltimore City State’s Attorney’s Office for their work in the investigation, and Baltimore City Assistant State's Attorney Aaliyah Muhammad who assisted in the prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.Fletcher Dairy Company and Owner Plead Guilty to Clean Water Act Violation for Discharging Cow Feces into French Broad RiverRead the Press Release
ASHEVILLE, N.C. – Tap Root Dairy, LLC, one of North Carolina’s largest dairy farms located in Fletcher, N.C., and one of its owners pleaded guilty in federal court today to criminal violations of the Clean Water Act, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office, and Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI).
A criminal bill of information filed in U.S. District Court on November 11, 2013, charged Tap Root Dairy, LLC (Tap Root) and William “Billy” Franklin Johnston, 60, of Mills River, N.C., with one count of violation of the Clean Water Act, in connection with the discharging of cow feces into the French Broad River. According to filed documents and statements made in court, Tap Root maintains several hundred cows and manages hundreds of acres of crop fields in Fletcher. In the annual course of its operations, Tap Root disposes millions of pounds of solid and liquid animal waste, which are considered pollutants under the Clean Water Act.
Court documents indicate that beginning in 2009, Johnson let his certification lapse as Operator in Charge (OIC) of Tap Root’s animal waste management system. Despite receiving repeated warnings and notices, court records show that as of December 4, 2012, Tap Root still had not designated a valid OIC to oversee its waste management system. Furthermore, according to filed documents, from September 3, 2012 to December 4, 2012, for a total of 93 days, Tap Root failed to check and maintain the levels of cow waste in their on-site waste containment lagoons. This resulted in the spillover and discharge of 11,000 gallons of cow feces and other waste into the French Broad River on December 4, 2012.
In addition to pleading guilty to violating the Clean Water Act, Tap Root has also agreed: 1) to pay a fine of $80,000, which will be directed to entities that safeguard the French Broad River and other environmental concerns in the Southeast; 2) to abandon any appeal to a related $13,507.82 North Carolina State civil penalty; 3) to serve a probationary term of four years during which regulators and investigators can inspect their records and facilities without notice and without a warrant; and 4) to design and implement a compliance plan subject to approval by the EPA. At sentencing, Johnston faces a maximum prison term of one year and has agreed to pay an additional fine of $15,000. A sentencing date has not been set yet.
The Clean Water Act is a federal law enacted to prevent, reduce and eliminate pollution, and to restore and maintain the chemical, physical, and biological quality, of the Nation’s waters for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes. The French Broad River supplies drinking water more than one million people and is frequently used for recreational water activities, such as swimming and kayaking. In 2012, North Carolina listed the French Broad River from Mud Creek to NC Highway 146 as impaired for fecal coliform bacteria. Tap Root is located on this impaired section of the French Broad River.
The investigation of this case was conducted by special agents of the EPA’s Criminal Investigation Division, and NC SBI’s Diversion and Environmental Crimes Unit. The prosecution is being handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.