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12 December 2013
Manhattan U.S. Attorney Announces Arrest of Indian Consular Officer for Visa Fraud and False Statements in Connection with Household Employee’s Visa ApplicationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the arrest of DEVYANI KHOBRAGADE on charges that KHOBRAGADE allegedly caused a materially false and fraudulent document to be presented, and materially false and fraudulent statements to be made, to the United States Department of State in support of a visa application for an Indian national employed as a babysitter and housekeeper at KHOBRAGADE’s home in New York, New York. KHOBRAGADE is currently employed as the Deputy Consul General for Political, Economic, Commercial and Women’s Affairs at the Consulate General of India in New York, New York.
Manhattan U.S. Attorney Preet Bharara said: “Foreign nationals brought to the United States to serve as domestic workers are entitled to the same protections against exploitation as those afforded to United States citizens. The false statements and fraud alleged to have occurred here were designed to circumvent those protections so that a visa would issue for a domestic worker who was promised far less than a fair wage. This type of fraud on the United States and exploitation of an individual will not be tolerated.”
According to the allegations in the criminal complaint unsealed today in Manhattan federal court:
Diplomats and consular officers may obtain A-3 visas for their personal employees, domestic workers, and servants if they meet the requirements set out in 9 Foreign Affairs Manual (“FAM”) 41.22. As part of the application process, an interview at the embassy or consulate is required. Proof is required that the applicant will receive a fair wage, sufficient to support himself financially, comparable to that being offered in the area of employment in the U.S. To apply for an A-3 visa, the visa applicant must submit an employment contract signed by both the employer and the employee which must include, among other things, a description of duties, hours of work, the hourly wage – which must be the greater of the minimum wage under U.S. federal and state law, or the prevailing wage – for all working hours, overtime work, and payment.
DEVYANI KHOBRAGADE prepared and electronically submitted an application for an A-3 visa (the “Visa Application”) through the website for the U.S. Department of State’s Consular Electronic Application Center for an Indian national (“Witness-1”), who was to be the personal employee of KHOBRAGADE beginning in November 2012 at an address in New York, New York. The Visa Application stated that Witness-1 was to be paid $4,500 per month in U.S. dollars. KHOBRAGADE and Witness-1 also signed an employment contract (the “First Employment Contract”) for Witness-1 to bring to Witness-1’s interview at the U.S. Embassy in India in connection with the Visa Application, which Witness-1 did at KHOBRAGADE’s direction. The First Employment Contract stated, among other things, that KHOBRAGADE would pay Witness-1 the prevailing or minimum wage, whichever is greater, resulting in an hourly salary of $9.75.
KHOBRAGADE knew that the First Employment Contract that KHOBRAGADE caused Witness-1 to submit to the U.S. State Department in connection with Witness-1’s Visa Application contained materially false and fraudulent statements about, among other things, Witness-1’s hourly wage and hours worked. Prior to the signing of the First Employment Contract, KHOBRAGADE and Witness-1 had agreed that KHOBRAGADE would pay 30,000 rupees per month, which at the time was equivalent to $573.07 U.S. At 40 hours per week, with approximately 4.3 weeks in a month, $573.07 equates to a rate of $3.31 per hour. However, KHOBRAGADE instructed Witness-1 to say that she would be paid $9.75 per hour, and not to say anything about being paid 30,000 rupees per month. KHOBRAGADE also instructed Witness-1 to say that Witness-1 would work 40 hours per week, and that Witness-1’s duty hours would be 7 a.m. to 12:30 p.m., and 6:30 p.m. to 8:30 p.m. She told Witness-1 that the First Employment Contract was a formality to get the visa.
After the First Employment Contract was submitted to the United States Department of State, KHOBRAGADE told Witness-1 that Witness-1 needed to sign another employment contract (the “Second Employment Contract”). KHOBRAGADE and Witness-1 signed the Second Employment Contract, which provided that Witness-1’s maximum salary per month including overtime allowance will not exceed 30,000 rupees per month. The Second Employment Contract does not contain any provision about the normal number of working hours per week or month.
Witness-1 worked for KHOBRAGADE as a household employee in New York, New York, from approximately November 2012 through approximately June 2013. Notwithstanding the terms of the First Employment Contract, Witness-1 worked far more than 40 hours per week, and Witness-1 was paid less than $9.75 per hour by KHOBRAGADE. In fact, notwithstanding the terms of the oral agreement between KHOBRAGADE and Witness-1 and the terms of the Second Employment Contract, Witness-1 was paid less than 30,000 rupees per month, or $3.31 per hour.
KHOBRAGADE, 39, was charged with one count of visa fraud and one count of making false statements, which carry maximum sentences of ten years and five years in prison, respectively. She is expected to appear this afternoon before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Bharara thanked the Department of Justice’s Human Trafficking Prosecution Unit for playing an integral role in this investigation, and for providing ongoing support in this prosecution.
The Office’s Organized Crime Unit is handling the case. Assistant U.S. Attorneys Amanda Kramer and Kristy Greenberg are in charge of the prosecution.
The charges contained in the complaint are merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Devyani Khobragade Complaint
Man Sentenced in Wichita Mortgage Fraud CaseRead the Press Release
WICHITA, KAN. - Another man has been sentenced in a mortgage fraud case in Wichita, U.S. Attorney Barry Grissom said today.
Steven Pelz, 40, Wichita, Kan., was sentenced Monday to two years federal probation. Pelz pleaded guilty to one count of wire fraud. In his plea, he admitted he was part of a scheme devised by co-defendant Manjur Alam to fraudulently obtain mortgage loans by falsifying loan applications and supporting documents.
On Aug. 22, 2007, Pelz caused First Home Loans to send a wire payment of $50,246 to Kansas Secured Title for the purchase of a property at 1044 S. Sedgwick in Wichita. On the loan application, Pelz and Alam made false statements including falsely representing Pelz’s income and falsely stating that Pelz planned to occupy the property.
Co-defendants are:
Manjur Alam, 46, Wichita,who pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, is set for sentencing Jan. 27.
Christopher Ginyard, 27, Wichita, who was sentenced to two years supervised release and $40,000.
Henry Pearson, Jr., 29, Wichita, who was sentenced to two years supervised release and $56,000 restitution.
Henry Pearson, Sr., Wichita, who was sentenced to two years supervised release and $55,180 restitution.
Bruce Dykes, 45, Wichita, who was sentenced to two years supervised release and $14,872 restitution.
Janice Young, 27, Wichita, who is awaiting sentencing.Grissom commended the Department of Housing and Urban Development, the Federal Housing Finance Agency - OIG, the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.
Loxahatchee Pair Plead Guilty to Government Benefit Fraud ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Lester Fernandez, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Atlanta Field Division, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture (USDA), Office of Inspector General, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announce that defendants Gloria Nereida Valle-Clas, 48, and Alexander Gonzalez, 40, of Loxahatchee, Florida, pled guilty today in West Palm Beach before U.S. Magistrate Judge James M. Hopkins.
According to the indictment, and as the defendants admitted when pleading guilty, Valle-Clas obtained two social security numbers (SSN), one of which was originally associated with her birth name, “Nereida Valle,” and one of which was originally associated with the name “Gloria Lopes Clas.” From at least December 2003 to January 2013, she used the SSN for “Nereida Valle” to obtain federal housing, social security, food, cash, and medical benefits from HUD, SSA, USDA and HHS. At the same time, she used the SSN for “Gloria Lopes Clas” to buy real estate in both Broward and Palm Beach Counties, including over an acre of property in Loxahatchee, Florida on which she built an approximately 2,700 square foot residence. Her husband, Gonzalez, also bought real estate in Broward County. When applying for federal benefits, she failed to disclose her or her husband’s ownership of property, as well as other assets and income.
Valle-Clas, who formally changed her name from “Nereida Valle” to “Gloria Nereida Valle-Clas” in 2003, used approximately 12 aliases in perpetrating the scheme, most of which were variations on “Nereida Valle” and “Gloria Lopes Clas.”
Valle-Clas pled guilty to one count of conspiracy, in violation of Title 18, United States Code, Section 371, and one count of making a false statement to HUD, in violation of Title 18, United States Code, Section 1001. Gonzalez pled guilty to one count of aiding and abetting Valle-Clas in making a false statement to HUD, in violation of Title 18, United States Code, Section 1001. The maximum penalties for each of the Section 371 conspiracy and Section 1001 HUD false statement counts are five years in prison, up to three years supervised release, and a fine of $250,000 or not more than twice the gross gain or loss form the offense, whichever is greater.
Valle-Clas and Gonzalez are scheduled to be sentenced on February 21, 2014 at 1:30 p.m. in West Palm Beach before U.S. Senior District Judge Kenneth L. Ryskamp.
Mr. Ferrer commended the investigative efforts of HUD-Office of the Inspector General, the Palm Beach County Sheriff’s Office, the SSA-Office of the Inspector General, the USDA-Office of the Inspector General, and the HHS-OIG. This case is being handled by Assistant U.S. Attorney Carolyn Bell.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Longtime Tampa Fraudster Sentenced to More Than 9 Years in Federal PrisonRead the Press Release
Tampa, Florida - Judge Elizabeth A. Kovechevich today sentenced Marterrance Q. Holloway (33, Tampa) to 9 years and 8 months in federal prison for conspiracy to defraud the United States Treasury through committing tax fraud and aggravated identity theft. As part of his sentence, the court entered a forfeiture money judgment in the amount of $238,573.30. Other items purchased with proceeds of the fraud and other substitute assets were also ordered to be forfeited, including two 2010 Chevrolet Camaros, a 2011 Dodge Charger, a 2005 Dodge Charger, a motor scooter, an iPad computer, assorted jewelry and $779 in cash.
Holloway pleaded guilty on July 24, 2013.
On September 23, 2013, Holloway’s co-defendant, Maurice Larry, a/k/a/ “Thirst,” was previously sentenced to 8 years and 5 months in prison for his involvement in this case. The following day, Larry was also sentenced to a concurrent prison term of 14 years, 6 months’ imprisonment in an unrelated tax fraud case with co-defendant, Rashia Wilson.
According to court documents filed in this case, Holloway and Larry were filing fraudulent tax returns from a Tampa hotel room, in September 2010. Inside the hotel room were four computers, which were used to electronically file fraudulent tax returns in the names of deceased individuals, along with website pages, ledgers, and lists of stolen names, dates of birth and social security numbers. Multiple "Turbo Tax" reloadable debit cards were also found in the hotel room, along with ATM receipts for cash withdrawals and approximately $3700 in cash. Larry and his co-defendant admitted to filing fraudulent tax returns on the computers while staying at the hotel.
Further, in August 2011, Holloway used a fraudulent debit card at a local bank ATM machine that had been loaded with the proceeds of a fraudulently filed tax return in the amount of over $9800.
“These individuals have demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims and deserve to be punished to the fullest extent of the law,” said James Robnett, Special Agent in Charge, IRS Criminal Investigation-Tampa Field Office. “IRS Criminal Investigation remains committed to the pursuit of stolen identity refund fraud and, together with our partners at the U.S. Attorney’s Office and the Tampa Bay Identity Theft Alliance, we will hold those who commit the same crimes similarly accountable.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Leader of Poughkeepsie Heroin Ring That Operated Out of A Cellphone Store Sentenced to 15 Years in Prison in White Plains Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SHABARI FISHER was sentenced in White Plains federal court to 15 years in prison for his leadership role in a drug conspiracy that distributed heroin across the City of Poughkeepsie, including out of a cellphone store on Main Street. FISHER pled guilty in October 2013 to one count of conspiracy to distribute heroin. He is one of 11 individuals charged by an Indictment in September 2012, six of whom have pleaded guilty. FISHER is the second defendant to be sentenced in the case by U.S. District Judge Kenneth M. Karas. On December 6, 2013, Shateek Parker, the second-in-command of the heroin conspiracy, was sentenced by Judge Karas to 135 months in prison.
U.S. Attorney Preet Bharara said: “Shabari Fisher and his accomplices should have stuck with cellphones because they made a huge mistake when they decided to enter the grim business of selling heroin. They now know there is no safe front for peddling heroin and destroying lives, families, and communities. Today’s sentence is a clear signal: If you see in our Hudson Valley an opportunity to profit from drugs, then you are leading yourself and your followers to long terms behind bars.”
According to the Indictment and information presented for purposes of Fisher’s guilty plea and sentencing:
From at least January 2011 through September 2012, a drug trafficking organization (the “FISHER Organization” or the “organization”) was operating in Poughkeepsie, New York. The FISHER Organization distributed heroin at several locations in and around Poughkeepsie. The locus of the organization’s heroin distribution was a cellphone store on Main Street in Poughkeepsie. At the cellphone store, members of the conspiracy concealed heroin, sold heroin to customers, and met with heroin customers to direct them to other locations for heroin transactions. On September 27, 2013, during execution of a search warrant, FBI agents recovered a .44 caliber handgun and ammunition concealed in the front of the store.
The FISHER Organization distributed heroin using, among other things, a succession of cellphones that individuals seeking heroin regularly called (the “Dispatch Phones”). Different members of the FISHER Organization held the Dispatch Phones at different times, receiving calls from heroin customers and arranging to meet with the customers at locations in Poughkeepsie to conduct heroin transactions. The bags of heroin distributed by the Fisher Organization were often stamped with brand-like names, such as “True Religion,” “Gucci,” “Rated R,” “Red Bull,” “Coors Light,” “Scarface,” and “Bomb.”
FISHER and Parker, the defendants, were leaders of the FISHER Organization who directed the activity of other members. FISHER and Parker participated in, among other things, obtaining supplies of heroin, providing heroin to other members of the FISHER Organization for further distribution, and steering heroin customers who approached FISHER to other members of the organization to conduct heroin transactions.
In addition to his prison term, FISHER, 34, of Poughkeepsie, New York, was also sentenced to five years of supervised release, and was ordered to pay forfeiture of $100,000.
Mr. Bharara praised the outstanding work of the FBI, the Poughkeepsie Police Department, the Dutchess County Sheriff's Office, the Drug Enforcement Administration, Immigration and Customs Enforcement, the United States Marshal’s Service Fugitive Unit, the New York State Police – CNET, the Orange County Sheriff’s Office, the Newburgh Police Department, the Middletown Police Department, the Beacon Police Department, the Dutchess County Probation Office, the Dutchess County Jail, and the New York Department of Correctional Services.
The charges against the remaining defendants contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee and Michael Gerber are in charge of the prosecution.
Large-Scale Cocaine Trafficking Organization DismantledRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a 58-count indictment on Dec. 3, 2013, against Jesus Hernandez, a.k.a. “Chucho,” 31; Juan Julian Felipe, 26; Alfredo Casteneda, a.k.a. “Boludo,” 20; Faustino Ramirez Ponciano, a.k.a. “El Toño,” 18; Fernando Amayo Gonzalez, a.k.a. “Zeta,” 26; Gonzalo Garcia Gines, a.k.a. “Puebla,” 31; Felipe De Jesus Banales, a.k.a. “Guero,” 29; Elder Vasquez, 34; Johnny Soto-Quintana, a.k.a. “Ponzoña,” a.k.a. “Ponzi,” 23; Nahun Oliva, a.k.a. “El Perro,” 24, Gilberto Fuentes Dominguez, 27, Jesus Amustio Panoja, a.k.a. “Chuy,” 21; Anael Anariba, a.k.a. “Guero,” 35; Geyser Deleon, a.k.a. “Chiquilin,” a.k.a. “Chaparo,” 26; Jose Luis Aguilar, a.k.a. “Diego,” 34; Gelber Deleon, a.k.a. “Tarzan,” a.k.a. “Burro,” 21; Justin Moore, 28; Malcolm Jones, 21; David Lamb, 23; Monty Cooper, 42; and James Handly, a.k.a. “Flaco,” 54; all of whom were residing in Knoxville, Tenn., at the time of their arrests, charging them with conspiracy to distribute cocaine and cocaine base, money laundering, and gun charges.
These individuals appeared in court before U.S. Magistrate Judges this week and entered pleas of not guilty to the charges in the indictment. All of them have been ordered held without bond pending trial, which has been set for Feb. 11, 2013 in U.S. District Court, in Knoxville.
The first count of the indictment alleges that the members of the conspiracy are responsible for distributing in excess of five kilograms of cocaine and more than 280 grams of crack cocaine. If convicted, each faces a mandatory minimum prison term of at least 10 years and up to life and a fine of up to $10,000,000. The indictment alleges that the value of the drugs trafficked by all defendants was at least $17,500,000. One individual, Geyser Deleon, is charged with possessing a firearm in furtherance of a drug trafficking crime, and if convicted, faces a mandatory minimum prison term of at least five years and up to life, to be served consecutively to any other prison term imposed, and a fine of up to $250,000.
This indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Homeland Security – Immigration Customs Enforcement; Drug Enforcement Administration; Federal Bureau of Investigation; Tennessee Bureau of Investigation; Alcoa Police Department; Clinton Police Department; Harriman Police Department; Knoxville Police Department; Maryville Police Department; Oak Ridge Police Department; Anderson County Sheriff’s Office; Blount County Sheriff’s Office; Knox County Sheriff’s Department; Loudon County Sheriff’s Department; Roane County Sheriff’s Department; Fifth Judicial District Drug Task Force; and Ninth Judicial District Drug Task Force. Assistant U.S. Attorneys Tracy L. Stone and Brooklyn Sawyers will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Laredo Jury Convicts “Shrek” in Operation El PatronRead the Press Release
LAREDO, Texas – Oscar De Leon, aka “Shrek,” 38, of Laredo, has been convicted of multiple drug and international money laundering counts resulting from a long-term Organized Crime Drug Enforcement Task Force (OCDETF) investigation, announced United States Attorney Kenneth Magidson. The jury returned its verdict late yesterday following a three-day trial and approximately three hours of deliberation.
DeLeon was a co-conspirator working for a Laredo-based drug trafficking organization. He assisted with a drug conspiracy, existing from 2006 to 2010, that shipped cocaine, marijuana and U.S. currency from Mexico through Laredo to Atlanta, Ga., and throughout the United States. De Leon was convicted on drug and international money laundering conspiracy charges from 2006-2010 as well as possession with intent to distribute more than 100 kilograms of cocaine and more than 300 kilograms marijuana from May 2008 and May 2009, respectively.To date, a total of 38 co-conspirators have been convicted and sentenced as part of this investigation. During the course of the investigation that led to the convictions, federal agents seized more than $7.5 million in drug proceeds and more than 450 kilograms of cocaine. Agents also seized a drug ledger that attributes the movement/distribution of approximately 12,500 kilograms of cocaine and $41. 9 million in drug proceeds by these and other co-conspirators.
U.S. District Gregg Costa, who presided over this trial, has set sentencing for March 2014. At that time, DeLeon faces no less than 20 years and up to life in federal prison.The charges and resulting convictions are the result of OCDETF operations dubbed “Operation El Patron” and “Havoc” involving Homeland Security Investigations, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with the assistance of Webb County District Attorney’s Office, U.S. Border Patrol, Laredo Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorneys Graciela Rodriguez Lindberg and Sanjeev Bhasker prosecuted the case.
LSU Academic Assistance Director, Assistant Director Sentenced for Stealing Federal FundsRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Dr. Marvette J. Thomas, 60, of Grambling, La., and Carra Sergeant, 60, of Ragley, La., were sentenced by U.S. District Judge Elizabeth E. Foote to 14 months and 12 months in prison respectively for theft of government funds. They were also ordered to pay $159,167 in restitution.
According to evidence presented at the guilty plea, Thomas served as Director of the Office of Academic Assistance, and Sergeant served as Assistant Director of Academic Assistance at Louisiana State University at Eunice (LSUE). From September 1, 2008 until February 28, 2012, Thomas and Sergeant used their positions to take funds from federal grants meant for the Upward Bound and Student Support Services projects, which are designed to assist students in their education efforts and goals. They used grant funds for their personal benefit and attempted to cover up their activities by altering receipts and submitting false records.
Thomas and Sergeant admitted to buying clothes, shoes, handbags, cosmetics, jewelry, personal electronic devices, cookware, tools, toys, recreational vehicle parts, pet supplies, household items, outdoor items, exercise equipment, religious books, and gifts for family, friends and co-workers. LSU auditors, U.S. Department of Education/Office of Inspector General, and the FBI estimate that Thomas spent at least $68,464 and Sergeant $74,653. Additionally, they allowed and encouraged subordinate co-workers to make personal purchases as well. The co-workers’ purchases total $16,050. A total of $159,167 was illegally spent under Thomas and Sergeant’s watch.
The Federal Bureau of Investigation, U.S. Department of Education/Office of Inspector General, and Louisiana State University auditors conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Jury Returns Guilty Verdicts Against Former Indian Casino Cashier and her HusbandRead the Press Release
Oklahoma City, Oklahoma – Kimberly Dawn Logsdon, of Chickasha, Oklahoma, was convicted yesterday of embezzling from an Indian casino, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The jury also convicted both her and her husband, William Michael Logsdon, of failing to file federal tax returns.
The Silver Buffalo Casino was an Indian gaming establishment in Anadarko, Oklahoma, operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the casino from July 25, 2007, until her termination on December 3, 2008. The jury heard evidence that from January of 2008 through November of 2008, Ms. Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of $174,472.56. She duplicated payments by treating certain vouchers both as scanned by the computer system and as unscanned vouchers that were not entered into the casino’s computer system. The evidence also showed that neither she nor her husband, William Logsdon, filed federal income tax returns for 2008, in spite of having at least $144,800.00 in gross gambling winnings between May and December of 2008.
Following a five-day trial, the jury deliberated approximately four hours before finding Mrs. Logsdon guilty of embezzlement and both Mr. and Mrs. Logsdon guilty of failing to file federal tax returns. The jury was unable to reach unanimous verdicts on charges that Mr. Logsdon failed to report his wife’s embezzlement to law enforcement and that he committed perjury before a federal grand jury.
As a result of her conviction for casino embezzlement, Ms. Logsdon faces up to 20 years in prison and a $1,000,000 fine, plus mandatory restitution. Both defendants could be sentenced to one year in prison and a fine of $100,000 for failing to file federal tax returns. Reference is made to the second superseding indictment and other public filings for further information.
This case is the result of an investigation by the Bureau of Indian Affairs and the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Travis D. Smith.
Judge Sentences Cambria County Man to Probation for Conspiring to Grow MarijuanaRead the Press Release
JOHNSTOWN, Pa. - A resident of Hastings, Pa., has been sentenced in federal court to two years probation on his conviction of conspiracy to manufacture and possess marijuana plants, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Donald J. Weakland, 58.
According to information presented to the court, in the spring of 2011, Weakland conspired to manufacture and possess with the intent to distribute less than 100 marijuana plants. Evidence presented to the court at the time of Weakland's sentencing reflected that Weakland conspired with George M. Lowmaster and others to grow marijuana plants with the intent to facilitate and promote Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Weakland. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and the Paint Township Police Department.
Houston, Texas, Man Sentenced to 33 Years for April 2011 MurderRead the Press Release
St. Louis, MO - LODGY MICHAEL JACKSON of Houston, TX, was sentenced to 400 months imprisonment for the murder of Jamie Benson, of Houston, TX, on April 22, 2011. In February, Jackson pleaded guilty to three counts: conspiracy to possess with the intent to distribute over 500 grams of cocaine; conspiracy to possess a firearm in furtherance of a drug trafficking crime and discharging a firearm in furtherance of a drug trafficking crime where death resulted. Jackson was sentenced today by United States District Court Judge Audrey G. Fleissig.
According to court documents, in early April 2011, Jackson, co-defendants Scott Compton and Andreus O’Bryant, along with others, joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Benson from Houston to St. Louis. Compton was recruited by O’Bryant to act as an individual interested in purchasing over 500 grams of cocaine from Benson for an inflated price. Compton played that role. In doing so, Compton, along with O’Bryant and Jackson, convinced Mr. Benson that a drug transaction was going to occur when, in reality, O’Bryant, Jackson and others intended to rob Benson of the cocaine and murder him.
Jackson, who was friends with Benson from living in Houston together, was brought to St. Louis, Missouri, by O’Bryant for purposes of carrying out the murder in exchange for compensation from O’Bryant. In the early morning hours of April 22, 2011, Jackson and Benson sat inside O’Bryant’s vehicle that was parked in a St. Louis alley. Benson was in the front passenger seat. Jackson sat directly behind him. To facilitate Benson’s murder, Jackson initiated a heated argument with Benson. As the argument continued, Jackson mouthed the words “watch this” to another passenger inside O’Bryant’s vehicle. Jackson then fired one shot into the back of Benson’s head from a firearm Jackson possessed. Jackson and others abandoned Benson's body in the alley, where it was later discovered by the St. Louis Metropolitan Police Department. Jackson, O’Bryant and others undertook significant efforts to cover up the conspiracy and destroy evidence of the crime, but were ultimately unsuccessful.
Jackson is the second of three defendants to be sentenced in this matter. Compton pleaded guilty for his involvement and has been sentenced to 5 years imprisonment. O’Bryant has also pleaded guilty. He awaits sentencing on February 10, 2014.
This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department and the St. Charles County Police Department.Hogsett Announces Sentencing of Indianapolis Man for Role in Plainfield Bank RobberyRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Demetrius Worley, age 24, of Indianapolis, was sentenced this morning to 126 months (10 years, 6 months) by U.S. District Judge Jane Magnus-Stinson. This follows Worley’s guilty plea to charges related to an armed robbery of the State Bank of Lizton branch in Plainfield.
“Working with our partners on the FBI Safe Streets Task Force, we are cracking down on criminals who arm themselves and target Hoosier homes and businesses,” Hogsett said. “As the seriousness of this sentencing decision makes clear, those who embrace such violence and lawlessness will be caught, and they will be held fully accountable.”
“As a direct result of investigative teamwork by the FBI Safe Streets Task Force, Indianapolis Metropolitan Police Department and Plainfield Police Department, a violent bank robbery crew has been permanently dismantled,” said Robert A. Jones, Special Agent in Charge, FBI Indianapolis Division.
According to court documents, in May of this year members of the Safe Streets Task Force were investigating an armed robbery of a bank branch on Madison Avenue in Indianapolis. As part of that investigation, a vehicle that was believed to have been connected to that crime was being tracked by federal law enforcement.
On May 10, 2013, Task Force members tracked that vehicle from Indianapolis to Plainfield. Task Force members then observed two males, defendant Worley and William McKnight, enter the State Bank of Lizton branch. An alert was issued that an armed robbery might be in progress.
Worley and McKnight were observed leaving the bank and reentering a vehicle, and a pursuit of that vehicle began. The vehicle was next observed pulled over on the side of the road, and McKnight exited the vehicle before it sped away. McKnight was armed and refused to comply with orders to disarm. He was shot by law enforcement and is now deceased.
A pursuit of the vehicle continued, and after a traffic stop, a third individual was brought into custody. That defendant, Lori A. Armstrong, age 44, of Indianapolis, is currently awaiting trial. Defendant Worley, who had exited the vehicle earlier, was later brought into custody after being located in a nearby residential neighborhood. A search of the vehicle revealed clothing consistent with what the robbers were observed wearing, and a search of a nearby neighborhood resulted in the location of a purple bag containing approximately $6,900, consistent with the amount of loss suffered by the State Bank of Lizton.
According to court documents, at the time of the robbery defendant Worley was on parole relating to a conviction for bank robbery. Reviews of prison visitation records show that Worley visited McKnight while McKnight was incarcerated. This prosecution comes as part of the U.S. Attorney's Violent Crime Initiative, and is the result of a collaborative investigation by the Federal Bureau of Investigation, as well as the Indianapolis Metropolitan Police Department, Plainfield Police Department, and Hendricks County law enforcement partners.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. 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 A. Brant Cook who prosecuted the case for the government, Worley was also ordered to serve five years of federally-supervised release at the end of his prison term, and pay a $1,000 fine. Under federal law, Worley must serve a minimum of 85% of his prison term within a federal correctional facility.
A criminal complaint or indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Georgetown Home Builder Sentenced to 69 Months for Bank Fraud, Embezzlement, Aggravated Identity Theft and A False Loan ApplicationRead the Press Release
Defendant used the identity of a five year old to fraudulently obtain loans
FRANKFORT, KY -Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, and John E. Lucas, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General, jointly announced today that a home builder from Georgetown, KY., was sentenced to 69 months in federal prison for fraudulently obtaining more than a million dollars in loans from a Frankfort bank.
On Tuesday, U.S. District Judge Gregory Van Tatenhove sentenced 59 year-old Lee C. Tevis for bank fraud, a false loan application, aiding and abetting bank embezzlement and aggravated identity theft.
In August of 2013, after a five day trial, a federal jury convicted Tevis of the offenses and acquitted him of an additional conspiracy charge.
Evidence at trial established that, beginning in 2006, Tevis fraudulently obtained loans from American Founders Bank (AFB), by setting up bogus corporations in the names of other people to bypass loan limits, while constructing a house.
The evidence further establshed that Tevis used some of the loan money, which the bank intended to be used to fund a home in Frankfort, to pay off his personal loans and debt on other construction projects.
According to trial testimony, when Tevis reached loan limits established by the Bank, he set up a bogus corporation in the name of his company’s foreman, an illegal alien, in order to obtain more loans. After fraudulently qualifying for the loans, Tevis used the social security number of the foreman’s five year-old son to pass the bank’s credit check.
Tevis fraudulently received $1,095,000 in loans from the bank, according to the evidence at trial. The Bank eventually foreclosed on the home for which Tevis received the loans and suffered a significant financial loss.
Additionally, Jim Tate, the AFB president who approved the loans for Tevis, pleaded guilty to bank fraud and received a sentence of 36 months in prison.
Under federal law, Tevis must serve at least 85 percent of his prison sentence.
The investigation was conducted by the FBI and the FDIC-OIG. Assistant U.S. Attorneys Andrew Sparks and Jim Arehart represented the U.S. Attorney’s Office in this case.
Frederick Walter Schroeder Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on December 10, 2013, before U.S. District Judge Sam E. Haddon, FREDERICK WALTER SCHROEDER, a 52-year-old resident of Livingston, was sentenced to a term of:
- Prison: 50 months
- Special Assessment: $100
- Forfeiture: firearms
- Supervised Release: 3 years
SCHROEDER was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On June 25, 2012, SCHROEDER was convicted of felony assault with a weapon, thereby prohibiting him from possessing firearms.
In the fall of 2012, probation executed a search on SCHROEDER's residence and located several firearms in his home.
A friend of SCHROEDER's indicated that he was in possession of SCHROEDER's firearms during the pendency of the case. However, he indicated that in the fall of 2012, SCHROEDER came to the friend's house and said he could take his firearms back and put them in a storage unit. SCHROEDER then took his firearms from the friend's house.
SCHROEDER's account of the events was that his friend brought several of the firearms to his (SCHROEDER's) house and hid them.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that SCHROEDER will likely serve all of the time imposed by the court. In the federal system, SCHROEDER does have the opportunity to earn a sentence reduction for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Walker Machinery Branch Manager Pleads Guilty to Federal Fraud ChargeRead the Press Release
Mark R. Trump stole $90,000 in rental fees owed to the company
BECKLEY, W.Va. – A former branch manager for heavy equipment distributor Cecil I. Walker Machinery Company (“Walker Machinery”) faces up to 20 years in prison after pleading guilty yesterday in connection with a scheme that bilked a total of more than $90,000 in rental fees from the company, announced United States Attorney Booth Goodwin. Mark Randall Trump, of Cool Ridge, Raleigh County, W.Va., pleaded guilty to wire fraud before United States District Judge Irene C. Berger in Beckley.
In 2009 and continuing up until his dismissal from Walker Machinery in April 2012, Trump, 43, a branch manager at Walker Express, the company’s full-line rental service store based in Crab Orchard, W.Va., began offering certain customers special rates for equipment rentals without the company’s authorization. An investigation revealed that during the scheme, Trump was paid directly, often by cash or personal check, by certain customers for numerous equipment rentals. Trump later deposited the fraudulent payments into his personal checking account. To conceal the scheme from Walker Machinery, Trump entered the customer data into the company’s system and printed a matching rental agreement form. However, upon the return of the equipment, Trump made entries into the company’s records indicating that the rental had been cancelled, deleted from the computer system, or not invoiced at all. Trump also failed to process the receiving paperwork through Walker Machinery’s service department, as required for all company rental transactions.
In total, Trump took approximately $90,000 in rental fees owed to the company for his personal use. As a result of the fraud, the company incurred a loss of approximately $367,000.
Trump is scheduled to be sentenced on April 17, 2014.
The investigation was conducted by the West Virginia State Police and the FBI. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
This case is being prosecuted as part of the United States Attorney’s Office for the Southern District of West Virginia’s Business Protection Initiative. U.S. Attorney Booth Goodwin announced the Business Protection Initiative in November 2010. Business protection is a primary initiative of the U.S. Attorney’s Office that focuses on prosecuting individuals who defraud West Virginia businesses.
Former Union President Sentenced for Misusing Union FundsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that David Kellner, 49, of Delevan, N.Y., the former president of the Transport Workers Local 2020, who was convicted of filing a false financial report with the Secretary of Labor, was sentenced to two years probation, to include six months of home detention, by U.S. Magistrate Judge Jeremiah J. McCarthy. In addition, Kellner was ordered to pay a fine of $2,000 and make restitution in the amount of $12,226 to the Transport Workers union.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that as president of Transport Workers Local 2020 from 2006 through 2009, the defendant filed with the Department of Labor, Labor-Management Standards, form LM-3 for the years 2007 and 2008. The form requires that all payments to officers be disclosed. Kellner failed to disclose that he had filed false invoices with the union. As a result, the defendant was reimbursed over $12,000 for expenses he did not incur or were paid for by the national union or Kellner's employer.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Labor, Office of Labor-Management Standards, under the direction of Acting District Director Mark J. Neylon.Former Telco Federal Credit Union Employee Sentenced for Making False EntriesRead the Press Release
ROCHESTER, N.Y.CU.S. Attorney William J. Hochul, Jr. announced today that Donna Harabin, 61, of Clearwater, Florida, who was convicted of making false credit institution entries, was sentenced to time served by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated between January 2008 and December 2008, Harabin was president and manager of Telco Federal Credit Union in Elmira, N.Y. During that time, the defendant changed the delinquency dates and falsified payment entries on various loan accounts when she knew that the accounts were delinquent and in default. Harabin changed the due dates and payment information in the reports to make the loans appear more current.
The sentencing is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Former Teacher Pleads Guilty to Production of Child Pornography and Other Charges Following Federal InvestigationEric Justin Toth Fled Area Upon Discovery of Crimes; Former FBI Top Ten Fugitive Was Captured This Year in NicaraguaRead the Press Release
WASHINGTON – Eric Justin Toth, 31, a former private school teacher and camp counselor, pled guilty today to three counts of production of child pornography and other felony charges following an investigation that began more than five years ago with the discovery of pornographic images on a school camera that had been in his possession.
The guilty plea was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Rod J. Rosenstein, U.S. Attorney for the District of Maryland; John W. Vaudreuil, U.S. Attorney for the Western District of Wisconsin; Robert L. Pitman, U.S. Attorney for the Western District of Texas; Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; John S. Leonardo, U.S. Attorney for the District of Arizona; John R. Marti, Acting U.S. Attorney for the District of Minnesota; John McCarthy, State’s Attorney for Montgomery, County, Md.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and J. Thomas Manger, Chief of the Montgomery County, Md. Police Department.
Toth pled guilty in the U.S. District Court for the District of Columbia. In addition to the child pornography charges, he pled guilty to one count each of misuse of a Social Security number and identity theft. The plea agreement, which is contingent upon the Court’s approval, calls for Toth to be sentenced to between 22 and 30 years in prison. Following completion of the prison term, the plea agreement calls for Toth to be placed on at least 25 years of supervised release. He also would be required to register as a sex offender for at least 25 years. If he approves the plea, the Honorable Rudolph Contreras is to sentence Toth on March 11, 2014.
The guilty plea resolves charges and potential charges in several jurisdictions, including the District of Columbia, Maryland, Wisconsin, Texas, Minnesota, Arizona, and Florida.
**“Eric Toth is every parent’s worst nightmare: a serial predator who took advantage of his position as a camp counselor and a teacher to sexually exploit children in his care,” said U.S. Attorney Machen. “After five years of eluding justice, Toth was captured in Nicaragua, where he was living under an alias, with more than 1,000 child pornography images on his computer. For all his efforts to run away from his crimes, today Toth faces the justice he deserves: up to 30 years in prison.”
“Today, Eric Toth took responsibility for producing pornographic images of children who were entrusted to his care,” said Assistant Director in Charge Parlave. “The unfortunate reality is that Toth, an audacious and prolific child predator, is representative of many abusers in our communities who prey upon children in places where we believe they are safe. Together as a society, we must be vigilant observers of a child’s behavior and talk to children about how to come forward when they feel in danger.”
“It is important that this defendant be held accountable,” said State’s Attorney McCarthy. “His reprehensible acts scar children for life. By entering a global plea, the victims of this child predator will not be further traumatized. Today is an important first step towards healing for the victims and their families.”
The investigation of Toth began in June 2008 with the discovery of images depicting child pornography on a camera at a private school in the District of Columbia, where he had been teaching. School administrators called the police, and security officers immediately escorted Toth from the school campus. Toth left the area soon thereafter, while the law enforcement investigation was continuing. Federal charges were filed against him in 2008 in the District of Columbia and Maryland. Toth, meanwhile, remained at large, traveling to multiple places.
Toth was placed on the FBI’s Ten Most Wanted Fugitives list in April 2012 and finally apprehended in Nicaragua in April 2013.
The three child pornography charges included in the guilty plea stem from photographs and videos that Toth took of children while working in 2005 as a camp counselor in northwest Wisconsin; as a teacher in 2006 at the private school in the District of Columbia; and at a private home in Maryland in 2007. These photographs and videos were located on a camera and media card found at the school in June 2008 and on a thumb drive found in Toth’s car when it was located at the Minneapolis-St. Paul International Airport in August 2008. Additionally, Toth pled guilty to misuse of a Social Security number for using someone else’s identifying information while working in Texas from 2009 until 2012. The identity theft charge stems from Toth’s use, in Texas, Florida, and elsewhere, of yet another person’s identifying information to obtain and travel with a false passport.
As part of the plea agreement, Toth will not face charges for additional images of child pornography that were found on computers that Toth used. In June 2009, after law enforcement learned that Toth had been living and working at homeless shelter in Phoenix, authorities discovered a laptop computer that Toth had been using that contained images depicting child pornography. Toth had already left Phoenix at the time of this discovery. In addition, after Toth’s arrest, law enforcement discovered images and videos depicting child pornography on a laptop computer that Toth used when he lived in Texas and Nicaragua.
This case was investigated by the FBI’s Washington Field Office; the Metropolitan Police Department; the Montgomery County, Md., Police Department, and other agencies.
This case was prosecuted by Assistant U.S. Attorney Cassidy Kesler Pinegar of the U.S. Attorney’s Office for the District of Columbia, Special Assistant U.S. Attorney Lisa Marie Freitas of the U.S. Attorney’s Office for the District of Maryland, and Assistant State’s Attorney Donna Fenton of the Montgomery County, Md. State’s Attorney’s Office.
Assistance during the investigation was provided by the U.S. Attorney’s Offices from the Western District of Wisconsin; the Western District of Texas; the Southern District of Florida; the District of Arizona, and the District of Minnesota; the Montgomery County, Md. State’s Attorney’s Office; the U.S. Embassy Managua Regional Security Office; the Diplomatic Security Service Criminal Investigative Liaison Branch; U.S. Customs and Border Protection; the U.S. Marshals Service's National Sex Offender Targeting Center; and the National Center for Missing and Exploited Children - Sex Offender Tracking Team.
The Nicaraguan National Police (NNP) Commissioner's Office, the NNP Trafficking in Persons Unit, and the Nicaraguan Immigration Service performed crucial work in securing Toth’s apprehension.
Those assisting from the U.S. Attorney’s Office for the District of Columbia include Assistant U.S. Attorneys Julieanne Himelstein, Catherine K. Connelly, David Johnson and Virginia Cheatham, and former Assistant U.S. Attorneys Angela Schmidt and Michelle Zamarin. Paralegal Specialist Toni Donato also provided assistance.
13-416Former St. Petersburg Resident Indicted for Theft of Boat and Motor from Geological CenterRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment, on December 4, 2013, charging Robert Charles Zeigler (44, formerly of St. Petersburg) with two counts of theft of government property. If convicted, Zeigler faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies Zeigler that the United States intends to forfeit any traceable proceeds of the offense.
According to the indictment, in late 2012 or early 2013, Zeigler stole or converted to his own use a 17-foot Boston Whaler and Evinrude ETEC 75 HP outboard motor from the St. Petersburg Geological Center, which is part of the U.S. Geological Survey, Department of the Interior. Zeigler made his initial appearance in Gulfport, Mississippi today and is scheduled to be arraigned on January 2, 2014, at 10:00 A.M., before U.S. Magistrate Judge Thomas B. McCoun.
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 Federal Protective Services. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Investment Adviser Sentenced for Fraud That Caused over $3 Million in Losses to Retired ClientsRead the Press Release
BOSTON - A Plymouth man was sentenced yesterday for his role in an investment fraud scheme that resulted in the loss of $3 million to retired clients.
Jeffrey A. Liskov, 43, was sentenced by U.S. District Court Judge Denise J. Casper to 36 months in prison, three years of supervised release, and ordered to pay $3 million in restitution. In July 2013, Liskov pleaded guilty to investment adviser fraud.
From November 2008 through August 2010, Liskov defrauded retired advisory clients. In 2008, despite sustaining large personal losses in risky, highly volatile foreign currency exchange trading, Liskov began advising retired clients with conservative investment goals to allow him to engage in such trading with a portion of their retirement money. Liskov received significant performance fees for conducting this volatile trading on behalf of clients based on short-term gains, without regard to the long-term performance of Liskov’s trading in the clients’ accounts.
In late 2009, after sustaining large trading losses for long-time clients, Liskov started liquidating securities in the brokerage accounts of these clients and investing the proceeds in foreign currency exchange trading without the clients’ knowledge or authorization. In order to fund these investments behind his clients’ backs, Liskov used white-out correction fluid and other methods to create fraudulent documents that allowed him to open new foreign currency exchange trading accounts and/or to transfer funds from client brokerage accounts to foreign currency exchange trading accounts. This allowed Liskov to secretly engage in additional foreign currency exchange trading on behalf of long-time clients for whom he had already lost significant amounts of money – additional trading from which, in some instances, Liskov was able to pocket large performance fees. The trading Liskov engaged in with the funds from this fraud caused over $3 million in losses to the long-time clients, but garnered Liskov over $200,000 in performance fees.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Offices expresses appreciation for the significant assistance of the United States Securities and Exchange Commission, and also acknowledges the cooperation of the United States Commodity Futures Trading Commission. The case was prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Former IRS Employees Indicted for Unemployment Benefits FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 former employees of the Internal Revenue Service have been indicted by a federal grand jury for receiving a total of more than $112,000 in unemployment benefits while they worked at the agency.
Michelle Glavin, 32, Christopher Bair, 50, Tiffani Harding, 26, Christopher Castillo, 33, Brenda Jones, 49, and Jesse Love, 60, all of Kansas City, Mo., Priscillia Smith, 46, and Leisa Hunsel, 38, both of Belton, Mo., Shalonda Bradley, 40, of Grandview, Mo., and Berneta Weedin, 59, of Platte Woods, Mo., were charged in a 20-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 10, 2013. The indictment was unsealed and made public upon the arrests and initial court appearances of several defendants.
The federal indictment alleges that each of the 10 defendants claimed unemployment benefits while they were employed by the IRS. The defendants are no longer employed at the IRS. The amount of state and federal benefits fraudulently received by each defendant ranged from $21,348 to $6,127. The amount of fraudulent benefits totaled $112,609.
Each of the 10 defendants is charged with one count of theft of government property and one count of bank fraud. The indictment also contains a forfeiture allegation, which would require each defendant to forfeit to the government a money judgment for the amount of benefits received.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Treasury Inspector General for Tax Administration and the Missouri Department of Labor and Industrial Relations, Division of Employment Security.Former Chief Administrative Officer for City of Bell Agrees to Plead Guilty to Conspiracy and Tax Charges in Plot to Avoid Income TaxesRead the Press Release
LOS ANGELES -- Robert A. Rizzo, who for years was the top administrator in the City of Bell and who became a symbol of municipal corruption, has agreed to plead guilty to federal charges in a scheme that resulted in hundreds of thousands of dollars in unpaid federal income tax.
In a plea agreement filed today in United States District Court, the 59-year-old Rizzo agreed to plead guilty to two felony charges: conspiracy and filing a false federal income tax return with the Internal Revenue Service. In the plea agreement, the Torrance resident admitted that he created a corporation to fraudulently claim losses on his income tax return, which served to illegally reduce his tax liability on the significant income he was receiving from the City of Bell.
According to the plea agreement and the information, which is the charging document in the case and was also filed this morning, Rizzo, sometime in 2002, created an S Corporation that he called R.A. Rizzo Incorporated (RARI). Rizzo was assisted in the scheme by co-conspirators that included his tax preparer, Robert J. Melcher, who has pleaded guilty to aiding and abetting the filing of a false tax return.
Rizzo used RARI to claim bogus losses in relation to a purported rental property in Auburn, Washington. RARI’s corporate tax return fraudulently deducted more than $409,731 in losses for the years 2006 through 2009.
Rizzo also admitted in his plea agreement that he used a RARI account to pay for more than $80,000 in personal expenses in 2009 and $120,000 in construction work on his residence in Huntington Beach in 2010. RARI’s tax returns falsely claimed that these expenses were related to rental property.
“It is regrettable that some public officials believe they are above the law,” said Richard Weber, Chief, IRS Criminal Investigation. “Instead of filing accurate tax returns, Mr. Rizzo claimed bogus corporate losses on his income tax return to illegally reduce his tax liability. Pursuing public servants who corruptly endeavor to circumvent the tax laws to fund their lavish lifestyles is a top priority for IRS Criminal Investigation.”
As part of his plea agreement Rizzo agreed to file amended individual and S Corporation tax returns for the years 2006 through 2010 that will correctly report all income and expenses. He also agreed to pay all additional taxes and penalties, including the 75 percent fraud penalty.
As a result of their actions, Rizzo and his co-conspirators caused the IRS to suffer losses of more than $300,000 for the 2006 through 2010 years.
Rizzo will be summoned to appear in federal court for an arraignment in this case. Once he pleads guilty to the two felony charges, Rizzo will face a maximum statutory sentence of eight years in federal prison.
Melcher, who as a result of his guilty plea faces a sentence of up to three years in prison, is scheduled to be sentenced next year by United States District Judge George H. King.
The cases against Rizzo and Melcher are part of an ongoing investigation being conducted by special agents with IRS Criminal Investigation and the Federal Bureau of Investigation.
Release No. 13-145a
Former Chapmanville Insurance Agent Pleads Guilty to Federal Charges in Connection with Arson SchemeRead the Press Release
William J. Thompson accepted $50k to help arsonist collect $1 million insurance payment following blaze of Logan office building
CHARLESTON, W.Va. – A former Chapmanville insurance agent who assisted an arsonist in obtaining a fraudulent insurance policy following the February 2012 blaze of a Logan office building pleaded guilty today to federal conspiracy charges, announced U.S. Attorney Booth Goodwin. William Jamey Thompson, 44, entered a guilty plea today to conspiracy to commit mail fraud, wire fraud and aiding and abetting arson before United States District Judge Thomas E. Johnston in Charleston.
In November 2011, James Gregory Glick, 44, of Logan, arranged to have an office building located at 111 Stratton Street in Logan burned to collect more than $1 million in insurance proceeds. In late December 2011, the building was purchased by a known person for $45,000 prior to the scheme. That person, in turn, immediately sold the property to Glick in early January 2012 purportedly for $50,000.
On the night of February 1, 2012, Guy Miller, 39, of Logan, along with Shawn C. Simon, 41, of Charleston and Michael Williams, 44, of Logan, worked together to set the fire to the building by spreading gasoline throughout the main floor.Mr. Glick then paid Thompson approximately $50,000 to obtain a fraudulently-inflated $1 million insurance policy from General Star Indemnity Company (“General Star”) in connection with the scheme.
Mr. Glick and co-defendant Mr. Miller both previously pleaded guilty last month to arson and conspiracy to commit mail and wire fraud. Mr. Glick also pleaded guilty to conducting unlawful monetary transactions, and structuring currency transactions in connection with the scheme. Mr. Simon previously pleaded guilty in November to obstruction of justice for his role in destroying a security camera that captured the arsonists fleeing the scene.
Additionally, Mr. Glick made illegal transactions of more than $10,000 from the Logan Bank & Trust (“LB&T”) on more than nine occasions. Mr. Glick also structured more than $170,000 in monies from accounts at LB&T during the conspiracy. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the Internal Revenue Service (IRS).
Glick faces a minimum of seven years in prison when he is sentenced on February 19, 2014, by United States District Judge Thomas E. Johnston.
Miller, who also previously pleaded guilty in November to a federal drug charge, participated in an oxycodone distribution conspiracy in and around Logan County during the spring of 2011. Miller faces a minimum of seven years in prison when he is sentenced on February 19, 2014.
Simon faces up to 20 years in prison when he is sentenced on February 20, 2014.
An information has been filed in the case involving Williams, but a plea hearing has not yet been scheduled.
Thompson faces up to faces a minimum of seven years in prison when he is sentenced on March 24, 2014.
The IRS, the West Virginia State Police and the West Virginia Insurance Commission conducted the investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecution.Former Beaumont Physician and Office Manager Charged with Health Care FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A former Beaumont physician and office manager have been charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Q. A. Webb, Jr., 74, of Houston, and Kari Mannino, 30, of Woodville, were indicted by a federal grand jury on Dec. 5, 2013, and charged in a 43-count indictment with health care fraud, conspiracy to commit health care fraud, distribution of controlled substances, and conspiracy to distribute controlled substances.
According to the indictment, Webb and Mannino are alleged to have executed various schemes in order to defraud Medicare, Medicaid , Blue Cross Blue Shield and Aetna. Since 2007, Webb owned operated and managed Beaumont Medical Clinic on Eastex Freeway in Beaumont. From about January 2008 through December 2011, Webb and his office manager, Mannino, are alleged to have instructed unlicensed individuals to treat patients and then bill health care providers as if Webb had personally provided the services. Webb and Mannino are also alleged to have conspired with each other to distribute Suboxone, a Schedule III controlled substance, by prescribing the drug not in the usual course of professional practice. To execute the scheme, Webb would allow unlicensed staff to prescribe controlled substances to patients when he was not on the premises and allowed Mannino to distribute the controlled substances directly to patients. It is further alleged that Webb and Mannino failed to conduct adequate or any physical examinations of the individuals in order to diagnose and treat patients. The indictment alleges that Webb and Mannino caused health care benefit programs to be billed in excess of $3,623,749.84, and Webb was paid in excess of $1,106,862.00.
Webb appeared in federal court in Houston on Dec. 11, 2013 for an initial appearance. Mannino appeared in Beaumont on Dec. 11, 2013, for an initial appearance. Both were released on bond.
If convicted, the defendants face up to 10 years in federal prison for each charge.
This case is being investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case is being prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Sentenced in $20 Million Bank FraudRead the Press Release
Defendants Include a Real Estate Developer, a Loan Officer, a Mortgage Broker, and an Escrow Officer in Cases Stemming From the Collapse of Desert Sun Development in Bend, OregonEUGENE, Ore. – Over the past two days, Chief U.S. District Judge Ann Aiken sentenced five defendants, including a real estate developer, a loan officer, a mortgage broker, and an escrow officer for a variety of mortgage and loan fraud charges arising out of the collapse of Desert Sun Development (DSD), a company previously headquartered in Bend, Oregon. From 2004 through 2008, DSD built commercial buildings and residential housing throughout Central Oregon. According to the court records, DSD principals and other defendants caused financial institutions to lose more than $20 million.
Tyler Fitzsimons, 35, of Gold Hill, Oregon, was sentenced to 90 months in prison for spearheading this mortgage-fraud scheme. He was also ordered to pay more than $22 million in restitution. Fitzsimons started DSD in 2004 and was its president. Codefendant Shannon Egeland, 39, of Kuna, Idaho, was DSD’s vice president. Fitzsimons and Egeland orchestrated a commercial and residential real estate scheme. As part of the commercial real estate fraud, Fitzsimons and Egeland submitted fraudulent documents, including false financial statements, tax returns, and leases, to various banks in order to obtain financing to develop and construct many of DSD’s commercial projects. Once the loans were approved, Fitzsimons, Egeland, and others submitted additional false documents, including fictitious contracts and invoices, to the banks to obtain loan proceeds for construction costs that were claimed to be associated with the fraudulent documents. For five commercial construction projects, Fitzsimons, Egeland and others obtained more than $4.2 million in funded draw requests and performed no construction.
Fitzsimons and Egeland committed fraud with DSD’s first commercial construction loan, using the money to buy themselves Dodge Vipers rather than to construct the building as promised.
Fitzsimons and Egeland also developed DSD’s employee house program, a real estate flipping scheme, and they recruited DSD employees, mortgage brokers, a loan officer, and a loan processor to help push through bad loans for participants of the scheme. Under the scheme, Fitzsimons and Egeland promised to build or sell homes at cost, and the participants agreed to flip or sell the homes and split any profit with DSD. Because most of the participants could not qualify for the loans, Fitzsimons and Egeland, among other things, undermined the loan approval process by “seasoning” or falsely inflating participants’ bank accounts through temporary deposits of DSD money. They also provided participants with undisclosed, short-term loans and submitted other fictitious documents, including letters explaining employment, large or recent deposits, and bonuses, to the banks funding the loans. As part of his guilty plea, Egeland admitted that he seasoned his own bank account with DSD money to obtain a $1.9 million construction loan to build a 22,000 square foot home in Powell Butte, Oregon. In the end, most of the homes involved in the flipping scheme were either only partially constructed or not constructed at all. Many of the properties were foreclosed upon or short sold.
Fitzsimons and Egeland used their ill-gotten gains to live an extravagant lifestyle. Among other things, they purchased large homes in Powell Butte, Oregon, Dodge Vipers, a Ferrari, a Hummer, BMWs, Mercedes, and a Malibu Wakesetter boat.
“The illegal actions of these defendants exemplify the conduct that wreaked havoc in the mortgage, financial, and real estate industries for the past several years,” said U.S. Attorney Amanda Marshall. “Banks were not the only losers in this case. Everyone lost. The effects of defendants’ large scale fraud were dramatic—the local housing market crashed, people lost their jobs, communities were littered with partially finished developments and homes, lending markets constricted, and banks suffered millions in losses. Real estate, bank, and financial insiders who commit fraud will be held accountable.” Marshall thanked the Federal Bureau of Investigation, the Internal Revenue Service, and the State of Oregon, Division of Finance and Corporate Securities, for their investigative efforts.
Egeland’s sentencing hearing is set for January 29, 2014, at 11:30 a.m.
Others sentenced for their role in the scheme include Jeremy Kendall, 36, of Camano Island, Washington, Jeffrey Sprague, 50, of Bend, Oregon, Shaun Little, 44, of Bend, Oregon, and Teresa Ausbrooks, 51, of Farmington, New Mexico.
Kendall was sentenced to 18 months in prison and was ordered to pay more than $22 million in restitution for his role in the fraud. Kendall, a DSD employee and officer manager, at Fitzsimons’s and Egeland’s direction, created and submitted fraudulent documents to various financial institutions to gain financing for various DSD projects. Kendall was also involved in seasoning bank accounts, including his own, for individuals involved in DSD’s residential flipping scheme.
Sprague was sentenced to 46 months in prison and was ordered to pay $3.6 million in restitution. Sprague, a former loan officer at West Coast Bank, falsified loan applications for individuals involved in DSD’s flipping scheme by fraudulently inflating their monthly income and falsely claiming that these homes were going to be the employees’ primary residence. Sprague also knew the loan files contained forged or scanned signatures and other material misrepresentations and omissions. West Coast Bank approved and funded the loans based on the loan applications that Sprague falsified and on the other documents that Sprague submitted to the bank that he knew were false.
Shaun Little, 44, of Bend, Oregon, was sentenced to five years of probation with eight months in a halfway house for assisting participants in DSD’s flipping scheme obtain bad loans. He was also ordered to pay $191,171 in restitution. Little, a former mortgage broker, knew DSD was seasoning participants’ bank accounts and submitted a false loan application and supporting documentation to obtain a loan for a participant of DSD’s flipping scheme.
Teresa Ausbrooks, 51, of Farmington, New Mexico, was sentenced to one year and one day in prison and was ordered to pay $184,839.66. Ausbrooks, a former escrow officer, participated in DSD’s flipping scheme and executed a similar, separate scheme. She lied on home loan applications about her income and omitted liabilities, including a side agreement with Fitzsimons.
Several other defendants involved in the DSD investigation have already been sentenced. Del Barber, Jr., 44, of Spokane, Washington, and a former mortgage broker, was sentenced to 15 months in prison for creating and submitting fraudulent loan applications for participants of DSD’s flipping scheme. He was also ordered to pay $119,654 in restitution. Robert Brink, 62, of Junction City, Oregon, a former bank building inspector for Umpqua Bank, was sentenced to 12 months and one day in prison and was ordered to pay $181,276 in restitution for submitting false inspection reports to Umpqua bank for two of DSD’s commercial projects. Brink claimed construction had occurred, when, in reality no construction had occurred and Umpqua Bank had funded more than $700,000 in draw requests.
Michael Wilson, 61, of Merrells Inlet, South Carolina, a former DSD employee, was sentenced to five years of supervised release and community service for participating in DSD’s flipping scheme. He was also ordered to pay $303,114.95 in restitution. Garret Towne, 34, of Eugene, Oregon, a former DSD employee, and Barbara Hotchkiss, 44, of Redmond, Oregon, a former loan processor at West Coast Bank, were sentenced to probation and community service in Deschutes County Court for their roles in the DSD residential flipping scheme. They were ordered to pay $202,415 and $303,069 in restitution, respectively. Kevin Mandlin, 50, of Bend, Oregon, was sentenced to one year of probation for submitting a false document to a bank on behalf of DSD for Egeland’s home in Powell Butte, Oregon.
John Partin, a building material supplier in Bend, Oregon, is scheduled to be sentenced for his role in the fraud on March 12, 2014.
“This bold fraud scheme was born out of the housing bubble long ago, but its effects will be felt by the construction and banking businesses in Central Oregon for many years to come,” said Kevin Rickett, Acting Special Agent in Charge of the FBI in Oregon. “It’s a scam that involved losses in the tens of millions of dollars as the defendants pursued lavish lifestyles. Major mortgage fraud cases such as this one are and will continue to be a high priority for the FBI.”
Mortgage fraud weakens the economic integrity of our communities and our nation, and more significantly, hurts a broad range of people,” said Teri L. Alexander, Acting Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “Criminals who try to line their own pockets through fraudulent schemes should see the prison sentences handed down in this case as proof that the harm mortgage fraud inflicts on our communities will not go unpunished. I am pleased that the IRS was part of the law-enforcement team that worked to dismantle this criminal enterprise and help bring fraudsters to justice.”
These cases were investigated by the FBI, the IRS, and the Oregon Division of Finance and Corporate Securities and are being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
First Deadline Approaches for Participation in the Program for Non-Prosecution Agreements or Non-Target Letters for Swiss BanksRead the Press Release
The Tax Division of the Department of Justice today strongly encouraged Swiss banks that want to seek non-prosecution agreements to resolve past cross-border criminal tax violations to submit letters of intent by the Dec. 31, 2013 deadline required by the Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the Program). The Program was announced on Aug. 29, 2013, in a joint statement signed by Deputy Attorney General James M. Cole and Ambassador Manuel Sager of Switzerland.
“The Program offers Swiss banks a unique opportunity to resolve criminal issues relating to their offshore banking activities that will not be available after the deadline,” said Assistant Attorney General Kathryn Keneally. “Banks that facilitated U.S. tax evasion but do not come forward by the December 31 deadline bear significant risks that information provided by others may cause the bank to be targeted and prosecuted. As the Program and our ongoing investigations provide the U.S. government a wealth of additional information, the risk for those that have engaged in or facilitated U.S. tax evasion grows by the day. The Program offers Swiss banks that engaged in this wrongdoing their best chance to resolve outstanding criminal issues.”
The Program provides a framework that permits every Swiss bank not currently under formal criminal investigation concerning offshore activities to provide the cooperation necessary to resolve potential criminal matters with the department. Currently, the department is actively investigating the Swiss-based activities of 14 banks. Those banks, referred to as Category 1 banks in the Program, are expressly excluded from the Program. The Swiss Federal Department of Finance has released a model order and guidance note that will allow all other Swiss banks to cooperate with the Department of Justice and fulfill the requirements of the Program.
Swiss banks that have committed violations of U.S. tax laws and wish to cooperate and receive a non-prosecution agreement under the Program, known as Category 2 banks, must submit a letter of intent by Dec. 31, 2013. To be eligible for a non-prosecution agreement, Category 2 banks must meet several requirements, which include agreeing to pay penalties based on the amount held in undeclared U.S. accounts, fully disclosing their cross-border activities, and providing detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest. Providing detailed information regarding other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed is also a stipulation for eligibility.
The Tax Division has committed that it will not authorize formal criminal investigations of any additional Swiss banks prior to the Dec. 31, 2013, deadline. However, the Tax Division continues to aggressively pursue those who attempt to evade the law by hiding income and assets outside the United States and those who assist them. In the last six months, the Tax Division has secured two convictions after trial and six guilty pleas of defendants who maintained, or assisted others in maintaining, undeclared bank accounts in foreign countries. Some of those cases include:
· In October 2013, Dr. Patricia Lynn Hough of Englewood, Fla., was convicted by a jury in Fort Myers, Fla., of conspiring to defraud the IRS and of filing false individual income tax returns. According to evidence presented at trial, Hough concealed millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, and filed tax returns that failed to report the existence of those foreign accounts or the income earned in those accounts.
· In October 2013, Ashvin Desai, the owner of a medical device company in San Jose, Calif., was convicted of filing false tax returns, aiding and assisting in the preparation of false tax returns and failing to file Reports of Foreign Bank and Financial Accounts (FBARs) following a three-week trial. According to evidence presented at trial, Desai, his wife and two adult children maintained bank accounts worth more than $7 million with The Hongkong and Shanghai Banking Corporation Ltd. (HSBC) in India. Desai prepared and filed income tax returns for his family members that failed to report the accounts or over $1.1 million in interest generated by them over three years.
· In August 2013, Edgar Paltzer, a former partner at a Swiss law firm, pleaded guilty to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars from the IRS in offshore accounts and to evade U.S. taxes on the income earned in those accounts.
· In August 2013, Henry Seggerman of New York and Los Angeles pleaded guilty to charges related to his participation in a scheme with family members to hide over $12 million in secret Swiss bank accounts inherited upon their father’s death. Seggerman’s siblings Suzanne Seggerman, Yvonne Seggerman and Edmund Seggerman each previously pleaded guilty to one count of conspiracy to defraud the United States and two counts of subscribing to false and fraudulent tax returns.
In addition, in July 2013, Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein, entered into a non-prosecution agreement and agreed to pay more than $23.8 million stemming from its offshore banking activities, and turned over more than 200 account files of U.S. taxpayers who held undeclared accounts at the bank.
The Tax Division is committed to using every tool available to identify, investigate and prosecute those who hide income and assets in offshore bank accounts. Two court orders entered in November 2013 in a New York federal court will further aid these investigations by authorizing the IRS to serve what are known as “John Doe” summonses on five banks to obtain information about possible tax fraud by individuals whose identities are unknown. The John Doe summonses direct the five banks to produce records identifying U.S. taxpayers holding interests in undisclosed accounts at Zurcher Kantonalbank (ZKB) and its affiliates in Switzerland and at The Bank of N.T. Butterfield & Son Limited (Butterfield) and its affiliates in Switzerland, the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta and the United Kingdom. The summonses also direct the five banks to produce information identifying foreign banks that used ZKB’s and Butterfield’s correspondent accounts at the five banks to service U.S. clients.
The Program also provides that Swiss banks that did not engage in wrongful acts with U.S. taxpayers, but nonetheless want a resolution of their status, may apply for a non-target letter. Those banks may not submit a letter of intent until July 1, 2014.
Fifteen Men Charged with Trafficking Drugs in Bernalillo and Santa Fe CountiesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Division announced the indictment of 15 men on federal drug trafficking charges. The 15-count superseding indictment was unsealed today following an early morning multi-agency law enforcement operation resulting in the arrests of 14 of the 15 defendants and the execution of 13 federal search warrants and five seizure warrants. The 15th defendant, who is on conditions of release in a related federal case, is scheduled to appear in court this afternoon.
The superseding indictment is the result of an 18-month investigation by the DEA and New Mexico DEA Region I HIDTA Task Force into a drug trafficking organization allegedly led by David Reynolds, 31, of Albuquerque, N.M., that distributed large quantities of heroin in Bernalillo and Santa Fe Counties. The investigation, code-named “Operation Sand Wedge,” because of Reynolds’ affinity for golf, was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The 15-count superseding indictment charges Reynolds and 14 others with conspiracy to distribute heroin in Bernalillo and Santa Fe Counties from Sept. 2012 to Dec. 2013. It also charges Gene Solis, 19, with distributing heroin on three occasions in fall 2012; Humberto Hernandez, Jr., 37, with distributing methamphetamine on seven occasions between Feb. and Aug. 2013; and Jose Martinez-Encinias, 41, with possession of heroin and cocaine in June 2013 with intent to distribute. Martinez-Encinias also is charged with possessing firearms in furtherance of a drug trafficking crime, and Reynolds is charged with money laundering. The superseding indictment also includes forfeiture provisions that seek a money judgment of at least $1.3 million and property and assets obtained directly or indirectly from the commission of the crimes alleged in the indictment.
The 15 defendants charged in the superseding indictment are scheduled to make their initial appearances in federal court in Albuquerque this afternoon. If convicted on the drug trafficking charges in the superseding indictment, each defendant faces a maximum penalty of a mandatory minimum ten years to a maximum of life in prison. If convicted on the firearms charge, Martinez-Encinias also faces a mandatory five year prison sentence to be served consecutive to any prison sentence imposed on the drug trafficking charges. Reynolds faces up to ten years in prison if convicted on the money laundering charge.
An additional defendant, arrested for being a felon in possession of a firearm during today’s operation, also is scheduled to be in court this afternoon. If convicted, he faces a maximum penalty of ten years in prison on that charge.
Martinez-Encinias was arrested during the course of the investigation on June 4, 2013, after the Bernalillo County Sheriff’s Office executed a state search warrant at his residence in the west side of Albuquerque and seized approximately four pounds of heroin, a kilogram of cocaine, 17 firearms and ammunition, and more than $19,000. In addition, authorities obtained approximately 415 grams of methamphetamine, including 324 grams of pure methamphetamine, and approximately 170 grams of heroin through undercover purchases during the course of the investigation. During today’s law enforcement operation, authorities seized approximately two pounds of heroin, approximately $60,000 in cash, three firearms and eleven vehicles.
“Heroin is an insidious drug that is highly addictive, destroys lives and exacts a tremendous toll on society,” said Acting U.S. Attorney Steven C. Yarbrough. “I commend the DEA and the Region I HIDTA Task Force for their unrelenting commitment to bring to justice individuals who, with total disregard for human life, choose to sell heroin and other drugs in our communities.”
“The arrests and seizures in this investigation have dismantled an organization responsible for distributing large quantities of heroin in the Albuquerque area,” said DEA Special Agent in Charge Joseph M. Arabit. “Because the trafficking and abuse of these drugs seriously impact public health and safety in our communities, DEA and its law enforcement partners will continue to work together to bring traffickers to justice and shut down their operations.”
This case was investigated by the Albuquerque office of the DEA and the New Mexico DEA Region I HIDTA Task Force, with assistance from the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Nicholas J. Ganjei and Joel R. Meyers. The following agencies participated in this morning’s law enforcement operation: U.S. Marshals Service, FBI, IRS Criminal Investigation, ATF, Region III HIDTA Multi-Jurisdictional Task Force and New Mexico State Police.
The New Mexico DEA Region I HIDTA Task Force is comprised of officers from the Albuquerque Police Department, Pueblo of Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Defendants Charged in U.S. v. Reynolds, et al., 13-CR-2225 MV
David Reynolds, 31, Albuquerque
Allen Cameron, 48, Albuquerque
Jose Martinez-Encinias, 41, Albuquerque
Humberto Hernandez, Jr., 37, Albuquerque
Erik Barros, 30, Albuquerque
Gene Solis, 19, Albuquerque
Manuel Griego, 34, Santa Fe
Daniel Jiron, 39, Albuquerque
Robert Herrera, 40, Albuquerque
Miguel Baca, 37, Albuquerque
Joe Sanchez, 21, Albuquerque
Arthur Gallegos, 27, Albuquerque
Christopher Ortega, 41, Albuquerque
Teddy Archuleta, 32, Albuquerque
Zebulun Smith, 31, AlbuquerqueDefendant Arrested for Unlawful Possession of a Firearm
David Ben Reynolds, 25, Albuquerque
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
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Indictment
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Federal Jury Convicts Savannah Man for Transporting A Minor with Intent to Engage in Illicit Sexual Conduct and Child Pornography ChargesRead the Press Release
STATESBORO, GA – Steve Lavon Biggins, 33, of Savannah, Georgia, was convicted Tuesday by a federal jury after a 2-day trial before U. S. District Court Judge B. Avant Edenfield for Transporting a Minor with Intent to Engage in Illicit Sexual Conduct, Production of Child Pornography, and Transportation of Child Pornography.
United States Attorney Edward Tarver said, “This defendant misrepresented his identity and age through his conversations with a girl he met online in order to gain her trust. He developed a relationship with her, transported her across the southeast in a tractor trailer, engaged in illegal sex acts, and took photographs of that activity in violation of numerous federal laws. These acts are deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. Biggins’ arrest rescued one victim, and his conviction will help protect other children from such future predatory acts.”Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated, “This conviction brings with it a strong reminder that there are dangerous individuals out there that will exploit and harm our children. The FBI is not only pleased with the jury’s verdict but also with the combined law enforcement response in getting a dangerous individual such as Mr. Biggins off of our streets.”
Evidence presented during the trial revealed that Biggins, a 33-year-old truck driver posing as a man in his twenties named “Rodney,” engaged in text and telephone communications with a girl under the age of 16 with whom he initiated contact through the mobile application “Tagged.com.” After developing an in-person relationship with the victim, and without the knowledge of the girl’s parents, in July 2013, Biggins took the child on short-haul trips that spanned seven days, and included travel to South Carolina, Tennessee, and North Carolina, before returning to Georgia. While on the trip he engaged in sexual conduct that violated the laws of each state he entered, and photographed the same. Upon his return trip through Millen, Georgia, Biggins was stopped and immediately arrested by law enforcement officers. He has remained in custody since that time.
The arrest in this case was accomplished through the combined efforts of Millen Police Department, Jenkins County Sheriff’s Office, Georgia State Patrol, Georgia Bureau of Investigation and the Federal Bureau of Investigation. Tarver commented that this case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Biggins faces a mandatory minimum sentence of 10 years in prison (and a maximum of life), for the Transportation of a Minor charge; 15 to 30 years on the Production of Child Pornography charge; and 5 to 20 years on the Transportation of Child Pornography charge. Each charge also carries a fine of up to $250,000, and between 5 years and life of supervised release. Biggins remains in custody pending his sentencing hearing. A sentencing date will be scheduled following completion of a presentence investigation and report.
FBI Special Agent Marcus Kirkland investigated the case. Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Federal Agents Honored by U.S. Attorney for Their Efforts Against Bank Fraud, Identity TheftRead the Press Release
MINNEAPOLIS—Identity theft is one of the fastest growing crimes in America, and in 2013, 32 members of a large, multi-state, identity theft ring were prosecuted and sentenced. Earlier today, the United States Attorney’s Office for the District of Minnesota recognized the hard work and dedication of the federal investigators who headed the lengthy investigation and prosecution of these individuals.
Special Agent Kelly Petricka, of the Internal Revenue Service’s Criminal Investigations (“IRS-CI”) was presented with the 14th annual U.S. Attorney’s Office Law Enforcement Recognition Award. Agent Petricka, as well as Inspector Barry Bouchie, of the U.S. Postal Inspection Service (“USPIS”) and Russ Wicklund, Assistant Chief of the Baxter Police Department, also received the Office’s Justice Award.
During the ceremony, Acting U.S. Attorney John R. Marti praised the award recipients, saying, “These agents do not seek out awards or medals, but perform their duties because they care deeply about public safety for their neighbors and communities. What they accomplished in this investigation matters and is remarkable.”Marti recognized Agent Petricka’s outstanding career of contributions to public safety in the District of Minnesota, saying “Kelly Petricka is an exemplary public servant, and we should all be grateful for her service.” Criminal Chief Nicole Engisch also praised Special Agent Petricka, saying “Kelly Petricka makes prosecutors and other agents better. She successfully handles the most difficult investigations in a manner that is amazing.”
The U.S. Attorney’s Office Law Enforcement Award is presented annually to a local, state, or federal law enforcement agent or officer who has performed outstanding work on significant federal cases over an extended period. In addition, the recipient of the award must exemplify the cooperative spirit Minnesotans have come to expect from local, state, and federal law enforcement.
The Justice Award recognizes outstanding achievement by investigative teams in individual civil and criminal cases. The investigative team must have performed above and beyond the normal high standards set for these cases and their efforts must be of a distinctive character.
The prosecution of the identity theft ring, dubbed Operation Masquerade, started in 2011 and involved more than 100 individuals participating in a conspiracy to defraud banks, bank customers and businesses during a five-year period. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments, where expensive merchandise was purchased and returned for cash. At banks, the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions in Minnesota and at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole information from their places of employment, from people employed at area banks, from those who stole information from mail, during vehicle break-ins, and through business burglaries, among other sources. Operation Masquerade was prosecuted by Assistant U.S. Attorneys Karen Schommer and Michelle Jones.
Following today’s ceremony, Kelly R. Jackson, Special Agent in Charge of the IRS-CI’s St. Paul Field Office, said, “Special Agent Kelly Petricka embodies all that the public should expect in law enforcement officers and public servants. She is a shining example of what an IRS criminal investigator brings to the table on financial fraud investigations. Her dedication and keen investigative skills exemplify the best in federal law enforcement, and she is truly worthy of being the 2013 federal law enforcement officer of the year.”
Petricka has been with IRS-CI for 18 years, and has worked complex tax fraud, money laundering and identity theft cases.
Following today’s ceremony, Keith Hayden, Mail Fraud Team Leader for the USPIS’s Minnesota office, said, “Inspector Bouchie works tirelessly to protect the U.S. Mail and its customers.”Bouchie has been with the USPIS for 18 years, and has investigated numerous cases involving mail fraud, mail theft, identity theft, revenue fraud and internal crimes.
The award ceremony, which took place at the U.S. Attorney’s Office in Minneapolis, was attended by the award recipients, their families and friends, as well as many law enforcement colleagues.
Eagle Pass Man Sentenced to Federal Prison in Bulk Cash Smuggling SchemeRead the Press Release
In Del Rio, 63-year-old Jose Luis Aguilar of Eagle Pass, TX, was sentenced to 14 months in federal prison for aiding and abetting bulk cash smuggling announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
In addition to the prison term, United States District Judge Alia Moses ordered that Aguilar pay a $1,000 fine and be placed under supervised release for a period of three years after completing his prison term. On March 27, 2013, Aguilar pleaded guilty to the charge admitting that on January 4, 2011, he and co-defendant, David Gelacio, brought a total of $13,000 in U.S. Currency from Mexico through the Eagle Pass Port of Entry without declaring it to federal authorities. Aguilar also admitted that the money represented proceeds from the sale of a truck owned by a former Maverick County commissioner.
On July 8, 2013, Gelacio was sentenced to one year in federal prison with credit for time served followed by three years of supervised release after pleading guilty to the same charge.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Duane Antonio Martell Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on December 11, 2013, before Chief U.S. District Judge Dana L. Christensen, DUANE ANTONIO MARTELL, a 23-year-old resident of Poplar and an enrolled member of a federally-recognized tribe, was sentenced to a term of:
- Prison: 60 months
- Special Assessment: $200
- Supervised Release: 3 years
MARTELL was sentenced in connection with his guilty plea to assault with a dangerous weapon and assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On October 10, 2012, MARTELL was spending time at a house in Poplar and fell asleep in a bedroom that was not his. The rightful occupant of the bedroom, the victim, entered the room and asked MARTELL to leave. He got up, punched her, threw her to the
He eventually stopped when another person intervened. The victim had a shattered nasal bone, two black eyes, fractures in her jaw, and was bleeding from her nose and ears.
The offense occurred within the exterior boundaries of the Fort Peck Indian
Reservation.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that MARTELL will likely serve all of the time imposed by the court. In the federal system, MARTELL does have the opportunity to earn a sentence reduction for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
Drug Traffickers Indicted in “Operation M-Pact,” A Two-year Methamphetamine InvestigationRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – U.S. Attorney John M. Bales and Bowie County District Attorney Jerry Rochelle announced today the culmination of “Operation M-Pact,” a two-year joint federal and state investigation into individuals responsible for mid- and high-level trafficking and distribution of methamphetamine through the Eastern District of Texas as well as to Arkansas, Louisiana, and Tennessee. The investigated individuals were responsible for trafficking and distributing more than 250 kilograms of methamphetamine through the I-30 corridor, to Northeast Texas, Southwest Arkansas, and beyond. Those being prosecuted include:
Calvin Avery, age 41, Texarkana, TX
Darrin Betts, age 34, Texarkana, TX
Robert Clark, age 29, Diaz, AR
Marcus Floyd, age 25, Texarkana, TX
Rodrick Grimes, age 40, Coppell, TX
Keith Harris, age 44, Texarkana, TX
Danny Hill, age 33, Texarkana, TX
Abdul Hopkins, age 40, Texarkana, TX
Sonya Hopkins, age 37, Texarkana, TX
Jamaine Hunt, age 40, Texarkana, TX
Johnny Hunt, age 40, Dallas, TX
William Irby, age 43, Wynne, AR
Ashton Jackson, age 24, Texarkana, TX
Michael Jackson, age 38, Texarkana, TX
Keith Jones, age 32, Texarkana, TX
Lloyd Jones, age 29, Texarkana, TX
Santigie (Fred) Kabia, age 32, Texarkana, TX
Anthony Bryan Krebs, age 34, Texarkana, TX
Jonathan Lee, age 32, St. Louis, MO
Gary Lindsay, age 32, Texarkana, TX
Jason Martin, age 36, Texarkana, TX
Kenneth McCoy, age 43, Dallas, TX
Aaron Meeks, age 35, Texarkana, TX
Everett Moore, age 35, Texarkana, TX
Patrick O’Guinn, age 40, Ashdown, AR
Kelvin Ragland, age 34, Texarkana, TX
Robert Sanders, age 36, Texarkana, TX
Cornell Thomas, age 42, Texarkana, TX
Roderick Thurman, age 34, Texarkana, TX
Kenneth Walker, age 28, Texarkana, TX
Jeremy Wilson, age 26, Texarkana, TX
Clarence Willis, age 41, Texarkana, TXThis case is the result of an extensive two year joint investigation by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, Bi-State Narcotics Task Force, Texarkana, Texas Police Department, and IRS Criminal Investigation, with assistance from the U.S. Marshals Service, U.S. Drug Enforcement Administration, the police departments of Texarkana, Arkansas; Mt. Pleasant, Texas; Nacogdoches, Texas; Ashdown, Arkansas; the Miller and Little River County (Arkansas) and Bowie County (Texas) Sheriff’s Offices; the U.S. Attorney’s Office for the Western District of Arkansas; the District Attorney’s Offices of Bowie County, Texas, Anderson County, Texas, and Little River County, Arkansas. During the course of this operation, agents have successfully arrested approximately 50 individuals and seized approximately 23 pounds of methamphetamine, over 3 pounds of cocaine, large amounts of marijuana, more than $50,000 in U.S. currency, 31 vehicles (recovering 6 stolen vehicles), 45 firearms (recovering 3 stolen firearms), more than 10,000 rounds of ammunition, and 7 properties with an estimated value of over $400,000.
The investigation has led to additional arrests in the Northern District of Texas (Dallas area), including more than 16 additional defendants and the seizure of more than 2 kilograms of methamphetamine.
“Today’s announcement signals the dismantlement of a destructive criminal enterprise,” said Federal Bureau of Investigation Special Agent in Charge Diego Rodriguez. “The cooperation and coordination amongst local, state and federal law enforcement agencies resulted in the shared success of removing significant social and criminal threats to the community.”
These cases are being prosecuted by Assistant U.S. Attorneys Ryan Locker and Mary Ann Cozby and Bowie County District Attorney Jerry Rochelle.The defendant Roderick Thurman is currently a fugitive from justice. We ask that anyone with information regarding his whereabouts contact the U.S. Marshals Service in Texarkana at (903) 793-8782.
Doctor Pleads Guilty to Tax Offense Related to Health Care Fraud Scheme Involving People Recruited from ‘Skid Row’Read the Press Release
LOS ANGELES – In the first case filed in relation to the second major investigation into the illegal recruitment of “Skid Row” denizens for unnecessary medical procedures, a La Mirada doctor pleaded guilty this afternoon to federal tax charges and admitted participating in a large-scale scheme to defraud Medicare and Medi-Cal.
Dr. Ovid Mercene, 61, of La Mirada, pled guilty today to subscribing to a false tax return. Mercene pleaded guilty before United States District Judge R. Gary Klausner, who is scheduled to sentence the defendant on July 21.
From 2008 and 2012, while Mercene worked at a Los Angeles-area hospital, he admitted patients, the vast majority of whom were homeless, who had been referred from a purported “care consortium.” The patients, many of whom did not require hospitalization, were admitted for the purpose of defrauding taxpayer-funded health programs such as Medicare, Mercene admitted in court today.
Mercene admitted the “patients” after watching them being transported by van from Skid Row to the hospital, where they were often kept on a special floor away from the hospital’s “regular” patients. These “patients” also were given smoking breaks while in the hospital, even though many of them supposedly suffered from respiratory diseases. After a short hospital stay where numerous unnecessary tests were typically performed, Mercene discharged the “patients” to skilled nursing facilities, even though they did not require such care.
Mercene billed Medicare and Medi-Cal more than $1.8 million for medically unnecessary services provided to the Skid Row patients while in the hospital or at a skilled nursing facility.
Mercene received nearly $700,000 in cash kickbacks for admitting “patients” to skilled nursing facilities -- income he did not report on his tax returns.
The case against Mercene is part of an ongoing investigation into the recruitment of Skid Row patients being conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; IRS-Criminal Investigation; and the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse.
Release No. 13-145
Dies IndictmentRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Walt Green announced the indictment of another defendant in connection with a wide ranging and ongoing investigation into corruption and fraud involving compliance with federal environmental laws.
A federal grand jury has returned a thirteen-count indictment charging ROGER J. DIES, age 55, of Zachary, Louisiana, with five counts of violating the Clean Water Act, one count of scheming to falsify and conceal material facts, four counts of obstruction through the creation of false documents, one count of witness tampering, one count of obstruction of justice, one count of making false statements to a federal criminal investigator, and a forfeiture allegation. If convicted, DIES faces a maximum sentence up to 127 years in prison and over $2,000,000 in fines.
According to the indictment, DIES owned and operated Baton Rouge Tank Wash (BRTW), a business focused on washing the interior of tanks hauling chemical and food-grade loads aboard trucks. BRTW was permitted to discharge wastewater resulting from the tank washes into the municipal sewer system, subject to certain requirements and limitations.
The indictment alleges that DIES illegally discharged into the municipal sewer system approximately 6,306,660 gallons of wastewater generated by industrial processes at various offsite industrial facilities in exchange for approximately $371,000. The indictment further alleges that DIES discharged wastewater which significantly and regularly exceeded the permitted toxicity and contamination limits. According to the indictment, DIES attempted to conceal his illegal activities by creating false documents, tampering with a witness, obstructing a grand jury proceeding, and making false statements to a federal criminal investigator.
This ongoing operation is being conducted by the United States Attorney’s Office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The matter is being prosecuted by Assistant United States Attorneys Corey R. Amundson and Alan A. Stevens.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Deerfield Beach Resident Charged with Violating the Endangered Species ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce the filing of an information against Robert Jaques, 43, of Deerfield Beach. The information charges that Jaques sold or offered for sale two Largetooth Sawfish (Pristis perotteti) rostrums, an endangered species, in violation of the Endangered Species Act (ESA) of 1973, Title 16, United States Code, Sections 1538(a)(1)(F) and 1540(b)(1). The information also seeks the forfeiture of the Largethooth Sawfish rostrums.
According to the information, on or about June 27, 2013, in Palm Beach County and elsewhere, Jaques sold or offered for sale two Largethooth Sawfish rostrums. The list of species at Title 50, Code of Federal Regulations, Section 224.101 identifies the Largetooth Sawfish as an endangered species subject to the ESA. An endangered species is any species which is in danger of extinction throughout all or a significant portion of its range.
The case has been assigned to U.S. District Court Judge Kenneth A Marra. If convicted, Jaques faces a possible sentence of up to one year in prison, the forfeiture of the Largethooth Sawfish rostrums, and a fine of up to $50,000.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement and FWC. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
An information is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Convicted Drug Trafficker Sentenced to Nearly Six Years in Federal Prison for Being A Felon in Possession of A Firearm, Violating Terms of Supervised ReleaseRead the Press Release
PROVIDENCE, R.I. – Fernando Santana, 27, of Providence, was sentenced today to 70 months in federal prison for being a felon in possession of a firearm and for violating terms of supervised release imposed at the time of sentencing on a previous federal conviction for drug trafficking, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Santana to serve three years of supervised release upon completion of his prison term. Santana pleaded guilty on September 24, 2013, to one count of being a felon in possession of a firearm.
Santana was arrested by Providence Police on May 22, 2013, following a brief foot pursuit, during which time he stashed a loaded .357 revolver belonging to him in a stack of mattresses. At the time of his arrest, Santana was serving a term of supervised release imposed in 2011, which followed a term of imprisonment of 37 months for drug trafficking.
According to information presented to the court, detectives and officers responded to a dispatch broadcast of an individual or individuals with a gun in a South Side neighborhood. As a Providence detective exited his vehicle to speak with two men who fit the description of the individuals described in the broadcast, Santana fled on foot. An officer in pursuit came upon Santana and noticed him grasping at his waist. As the officer continued the pursuit and came around the corner in a rear yard he noticed Santana retracting his hand from between a pile of mattresses. Santana was apprehended a short distance away. A loaded .357 revolver was retrieved from the pile of mattresses.
The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Richard B. Myrus.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Chinese National Arrested for Conspiring to Steal Trade SecretsRead the Press Release
DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced the arrest of Mo Hailong, also known as Robert Mo, for conspiracy to steal trade secrets. The criminal complaint alleges that from on or about September of 2011, to on or about October of 2012, Mo Hailong and other individuals conspired to steal the trade secrets of several U.S. based seed manufacturing companies, and transport those trade secrets to China for the benefit of their China-based seed company.
Mo Hailong is a Chinese national who became a Lawful Permanent Resident (LPR) in the United States pursuant to an H-1B visa. Mo Hailong is employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, which is part of DBN Group. DBN Group is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.
During the course of the conspiracy, Mo Hailong and others are alleged to have stolen valuable inbred corn seed from production fields in Iowa and Illinois. This “inbred” or “parent” line of seed constitutes valuable intellectual property of a seed producer. After stealing the inbred corn seed, the conspirators attempted to covertly transfer the inbred corn seed to China.
The investigation was initiated when Dupont Pioneer security staff detected suspicious activity, and alerted the Federal Bureau of Investigation (FBI). Dupont Pioneer, Monsanto and their staff have been fully cooperative throughout the investigation, which is being led by the FBI.
In accordance with the Iowa Rules of Professional Conduct, the public is reminded that a criminal complaint constitutes facts supporting probable cause, and that the defendant is presumed innocent until and unless proven guilty.
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Canton Couple Indicted for Defrauding Department of Education Out of $2.3 MillionRead the Press Release
A Canton couple and one of their employees were indicted for engaging in a conspiracy to defraud the United State Department of Education of more than $2.3 million by obtaining fake high school diplomas for prospective students, fraudulently applying for financial aid on their behalf by representing that the students had the necessary educational credentials, and then enrolling them in the college that the couple operated, law enforcement officials said.
Named in the seven-count indictment are: John “Richard” Ceroni, 64, and Adale “Marie” Cernoni, 62, both of Canton, and Tammy Pyle, 43, of Waynesburg, Ohio.
All three are charged with conspiracy to commit mail fraud and wire fraud. The Ceronis are also charged with one count of conspiracy to launder money and four counts of engaging in monetary transactions in property derived from unlawful activity. Richard Ceroni also faces one count of making a false statement.
“These defendants stole millions of dollars that were intended to help students pay for college and insteadblew it on jewelry, lingerie, cruises, and a Vegas vacation,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will continue to root out waste, fraud and abuse of federal programs wherever we find it.”
“These defendants ripped off taxpayers to the tune of more than $2 million,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “They are now being brought to justice thanks to a collaborative effort.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. It is not to be used as a personal slush fund, which today's indictment alleges this couple did,” said Thomas D. Utz Jr. Special Agent in Charge of the U.S. Department of Education Office of Inspector General's North Central Regional Office. “As the law enforcement arm of the U.S. Department of Education, our mission is to ensure that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions.”
"Richard Ceroni and his co-defendants built a house of cards laced with a web of financial lies," said Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "The underlying structure fell apart and exposed these individuals for who they really are.. Operating a not-for-profit college does not give you a license to steal."
The Ceronis were co-founders Carnegie Career College. From at least 2003, Carnegie College held itself out to the public as a private not-for-profit college that offered a select number of associate degrees, as well as various “certificate” programs in areas such as blood drawing.
Around 2002, Richard Ceroni applied with the Department of Education to participate in the federal student financial aid (SFA) program. That application was approved in December 2003, according to the indictment.
Richard Ceroni was dean and director of education at Carnegie College, while Marie Ceroni was the director of Carnegie and was responsible for financial matters at the school. They and Pyle purported to work as volunteers at Carnegie.
Richard Ceroni was also founder of Historical Chapel Ministries (HCM), which was registered as a tax-exempt charitable organization. It had offices in the same building as Carnegie College in Suffield, Ohio. Both Ceronis held themselves out as ministers of HCM, but it did not have regular services or congregants, according to the indictment.
In February 2007, Carnegie College opened a branch “campus” that operated in a single-family home in Canton. In 2010, Carnegie moved its branch campus to a commercial building in North Canton, which also hosted a variety of other Ceroni ventures, including a driving school and a massage service, according to the indictment.
From June 2007 through May 2012, the Ceronis and Pyle fraudulently obtained approximately $2.3 million from the Department of Education by submitting applications for SFA funds that stated students at Carnegie College had obtained valid high school diplomas; they also falsely told prospective students they would earn a valid high school diploma at the same time they attended Carnegie College and that such a diploma would be paid for by a “scholarship from a church” in order to increase enrollment and access to SFA funds, according to the indictment.
The Ceronis recruited students who had not earned high school diplomas or G.E.D. certificates, and thus were not eligible for SFA funds, and submitted fraudulent financial aid documents to the Department of Education. They used online high schools, including Australia-based Adison High School, to purchase fake high school diplomas and coursework transcripts for students who were not required to attend any classes or complete any coursework, according to the indictment.
Pyle took a “high school diploma test” for students, while at other times provided test answers to the students. Marie Ceroni paid Adison High School, which provided diplomas using the graduation date on which the student would have graduated from high school had they completed high school in the normal course. According to the indictment, sometimes those dates predated general public access to the Internet.
The Ceronis comingled fraudulently obtained money in several accounts and used that money to fund personal expenditures and expand Carnegie College. Between February 2011 and February 2012, for example, Marie Ceroni made more than $475,000 in large cash withdrawals from two accounts that operated under the Historical Chapel Ministries name. Money from those accounts was used to make under-the-table cash payments to the defendants and other Carnegie College employees who the Ceronis claimed were unpaid volunteers, according to the indictment.
There were also payments using comingled funds from a several accounts, including: on July 8, 2010, Marie Ceroni wrote a check for $100,038 to pay off a personal line of credit; on Dec. 17, 2010, Marie Ceroni wrote a check for $119,230 to pay off a personal line of credit that was used, among other things, to purchase two Jeep vehicles; in 2012, the Ceronis wrote check to pay credit card balances that included charges for fake Adison High School diplomas and transcripts; in 2010, Marie Ceroni made and caused to be made electronic fund transfers to pay for credit cards that included charges of more than $4,300 from Royal Caribbean Cruises and more than $800 from Airtran; in 2011, similar electronic transfers were made to pay off credit card charges from stores including Victoria’s Secret, Wine & Spirits, Simply Tans and the University of Akron bookstore; on July 11, 2011, Marie Ceroni wrote a check for $15,650 to Jared Jewelers; on Nov. 22, 2011, she wrote a check for $24,808 to Zale’s to pay for wedding bands for the couple’s daughter; on Jan. 12, 2012, she wrote a check for $3,806 to Jared Jewelers and nine days later wrote another check to Jared Jewelers for $9,782, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Rebecca Lutzko and Robert Patton following an investigation by the United States Department of Education – Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
An indictment is only a charge. The defendants are innocent until proven guilty beyond a reasonable doubt.
Boat Insurance Fraud ConspiratorsRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of five indictments charging seven individuals with conspiracy to commit mail and wire fraud in connection with a scheme to defraud Boat U.S. Those charged include: John J. Kurant, Jr. (46, St. Augustine); Christopher E. Labaire (35, Jupiter); Greg Wilson (47, Jupiter); Jerold Wolfe (36, Jupiter); John Grant (47, Jupiter); Scott Coleman (45, Jupiter); and Adam Horvit (34, Parkland). If convicted, each faces a maximum penalty of 20 years in federal prison. The indictments also notify the defendants that the United States intends to forfeit the proceeds of their fraudulent scheme. In total, the indictments of Kurant and Labaire reflect that Boat U.S. paid out $853,758.33 in insurance proceeds based upon the sham and fraudulent marine insurance claims.
According to court documents, Kurant was a claims adjuster for Boat U.S., in its Orange Park, Florida office. It is alleged that he reached an unlawful agreement with Labaire to defraud Boat U.S., in connection with Boat U.S.’s marine insurance program, by creating sham insurance policies and submitting fraudulent marine insurance claims. The indictments allege that Kurant would abuse his position as a claims adjuster by assisting in the procurement of sham boat insurance policies with Boat U.S. In addition, Labaire, a long-time friend of Kurant, submitted fraudulent claims himself and also recruited other individuals in the south Florida area to pose as pleasure boat owners and fraudulently secure sham marine insurance policies with Boat U.S. After making a few premium payments on the sham insurance policy, the co-conspirators would then submit false claims of total boat losses due to theft, accident damage, or reporting that the boat sank. Kurant is alleged to have caused the fraudulent claims to be assigned to him for claims adjudication, which resulted in electronic transfers of claims information from Orange Park, Florida to Alexandria, Virginia. Based upon the fraudulent claims, Boat U.S. issued checks to the sham boat owners, which were sent by a commercial carrier. After receiving the insurance proceeds check(s), they were deposited into bank accounts and the funds were shared with conspirators.
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 Federal Bureau of Investigation and Florida Department of Financial Services, Division of Insurance Fraud. It will be prosecuted by Assistant United States Attorney Mark B. Devereaux.
Atlanta Man Sentenced for Human Trafficking and Production of Child PornographyRead the Press Release
Jackson, Miss - Marco Laquin Rogers, 27, of Atlanta, Georgia, was sentenced in U.S. District Court today to forty years in federal prison for human trafficking of a minor child, and thirty years for production of child pornography, announced U.S. Attorney Gregory K. Davis, Raymond R. Parmer, Jr., Special Agent in Charge of ICE Homeland Security Investigations (“HSI”), and Commissioner Robert C. Haas of the Cambridge, Massachusetts Police Department. Judge David Bramlette III ordered the two sentences to run concurrently for a total of 40 years to serve followed by a lifetime of supervised release.
On September 11, 2013, a jury found Rogers guilty of traveling to Mississippi for the purpose of engaging in sexual intercourse with a child under the age of 10 years old. He was also found guilty of producing videos of himself engaging in sexually explicit conduct with the child.
The investigation of this case began when the Cambridge, Massachusetts Police Department received information about a video tape of illegal sexual activities and the production of videos depicting the sexual assault of a child. The Cambridge Police Department contacted the Department of Homeland Security (“HSI”) in Atlanta and the Georgia Bureau of Investigation who worked with HSI in Jackson to conduct further investigation. The collaborative efforts of HSI agents and investigators in Cambridge, Atlanta, Memphis and Jackson ultimately led to the identification of the minor child in the videos, who is now safe with her family.
“Today’s sentence brings to a close a horrific chapter in the lives of the victim and her family,” said U.S. Attorney Davis. “While nothing can ever undo the abuse the victim endured, we hope that today’s sentence requiring the defendant to spend forty years in prison restores them with some sense of confidence and trust, and satisfaction that justice has been served,” said U.S. Attorney Davis.
“The horrific abuse inflicted upon a defenseless child in this case is unspeakable, and yet this individual went even further by recording and sharing the evidence of his sexual crimes,” said HSI
New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Predators destroy lives, and HSI will continue to do everything it can to protect children by investigating and seeking prosecution wherever these criminals may be found." Parmer oversees a five-state region including Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
U.S. Attorney Davis praised the hard work of Homeland Security Investigations, the Cambridge Police Department, the Georgia Bureau of Investigation, and Assistant U.S. Attorneys Glenda Haynes and Scott Gilbert who prosecuted the case for the government.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 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.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Acoma Pueblo Man Serves Thirteen Months for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Maurice Antonio, 34, a member of Acoma Pueblo who resides in Acomita, N.M., was sentenced yesterday to time-served, a total of 410 days in federal and tribal custody, for failure to update his sex offender registration. Antonio will be on supervised release for five years.
Antonio was arrested on Jan. 25, 2013, on an indictment charging him with failing to update his sex offender registration as required by the Sex Offender Registration and Notification Act (SORNA). Antonio has been in federal custody since that time. SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, and/or where the offender is a student, and that the sex offender maintain current registrations.
"Investigating and assisting with the prosecution of the non-compliant and unregistered sex offenders is a primary responsibility of the United States Marshals Service, which contributes to the overall safety and welfare of New Mexico’s many communities," said U.S. Marshal Conrad E. Candelaria. "The Marshals Service will continue to serve as a facilitator of inter-agency cooperation with local, county, state, tribal and federal law enforcement agencies, working collaboratively so that are children can live and play without fear."
According to court filings, Antonio was convicted of a child sexual abuse offense in the U.S. District Court for the District of New Mexico in 2002, and sentenced to five years of probation. As a condition of his probation, Antonio was required to register as a sex offender in the sheriff’s office in his county of residence and to update his registration every 90 days thereafter.
In Oct. 2012, the Pueblo of Laguna Police Department arrested Antonio for violating SORNA after receiving information that he was residing on the Pueblo of Laguna for an extended period without notifying the Pueblo. Subsequent investigation revealed that Antonio had not registered with Pueblo of Laguna or renewed his registration with the Cibola County Sheriff’s Office. Antonio was transferred from tribal custody to federal custody on Jan. 25, 2013.
On Aug. 23, 2013, Antonio pled guilty to the indictment and admitted he had failed to update his sex offender registration since Oct. 29, 2012.
The case was investigated by the U.S. Marshal Service and the Pueblo of Laguna Police Department, and was prosecuted by Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb.
11 December 2013
Windgap Man Pleads Guilty in DEA-Led Cocaine Trafficking InvestigationRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Mark Lawson, 39, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from in and around December 2000, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Lawson conspired with others to distribute and possess with the intent to distribute five kilograms or more of cocaine.
Judge Bissoon scheduled sentencing for April 23, 2014, at 10 a.m. The law provides for a total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Attorney General's Office, the Internal Revenue Service - Criminal Investigations, the Pittsburgh Bureau of Police, and the Allegheny County District Attorney's Narcotics Enforcement Team conducted the investigation that led to the prosecution of Mark Lawson.
White Supremacist Charged for Sending Online Threatening Communications to A Florida Judge, State Attorney, and Task Force AgentRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces the return of a federal indictment charging William A. White (36, Roanoke, Virginia) with five counts of making threats in aid of extortion over the Internet and one count of the unlawful use of identification information in furtherance of those offenses. If convicted, he faces a maximum penalty of 20 years in federal prison for each count. The indictment also notifies White that the United States intends to forfeit electronic equipment, which is alleged to have been used in furtherance of the offenses.
According to the indictment, White, a white supremacist based in Roanoke, Virginia, sent a series of five electronic communications demanding the release of fourteen persons charged by state authorities in the Ninth Judicial Circuit of Florida. Those individuals had been charged in relation to their alleged involvement in the American Front, a white supremacist organization with connections to Osceola County, Florida. Four of the threats made by White were directed to Florida’s Ninth Circuit State Attorney Lawson Lamar (who was then the elected state attorney who initiated the prosecution of the alleged American Front members), Florida Circuit Judge Walter G. Komanski (the presiding judge over the case against the group’s alleged members), and an FBI Task Force Agent involved in the state’s prosecution. In addition, one of the threats made by White was directed to the adult son of Lawson Lamar. Each communication identified in the indictment contained a threat to kidnap, torture, rape, and kill those persons and their spouses, children, and grandchildren. The threatening communications also contained the names and home addresses of those threatened.
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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel C. Irick.
West St. Louis Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West St. Louis, Mo., man pleaded guilty in federal court today to robbing First Federal Bank in North Kansas City, Mo.
James A. Yokum, 43, of West St. Louis, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a June 20, 2013, federal indictment.
By pleading guilty today, Yokum admitted that he stole $600 from First Federal Bank, 1200 Armour Road in North Kansas City, on June 11, 2013.
According to an affidavit filed in support of the original criminal complaint, Yokum walked into the bank at approximately 2:45 p.m. and waited in line at a teller window. He leaned over the counter and whispered, “Give me all your hundreds.” The teller handed him six $100 bills and he ran out of the bank.
A relative of Yokum, who was working nearby, told agents that Yokum had been staying at his house temporarily, and that Yokum had told him earlier in the day that he was going to rob a bank.
Yokum was arrested the same day by a Missouri State Highway Patrol trooper who intercepted his vehicle on eastbound Interstate 70 near Columbia, Mo.
Under federal statutes, Yokum is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Christina Y.Tabor. It was investigated by the FBI.Warrensburg Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Warrensburg, Mo., man was indicted by a federal grand jury today for distributing, receiving and possessing child pornography.
Michael J. Craney, 48, of Warrensburg, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Craney distributed child pornography over the Internet between March 21 and 25, 2013. Craney is also charged with two counts of receiving child pornography over the Internet on May 26 and July 7, 2013, and one count of possessing child pornography on Sept. 24, 2013.
The federal indictment also contains a forfeiture allegation, which would require Craney to forfeit to the government any property used to commit the alleged offenses, including a desktop computer, a laptop computer, three hard drives and a thumb drive.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Warrensburg, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Union County Man Charged with Methamphetamine ConspiracyRead the Press Release
On December 3, 2013, Jeffry M. Presutti, Jr., 36, of Pomona, was indicted in a one-count indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between April 2013 and October 2013, in Jackson County. Presutti is scheduled to make his initial appearance in federal court on December 9, 2013, in Benton. The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Union County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team and Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
U.S., U.K. Law Enforcement Launch <br /> Task Force to Counter Online Child ExploitationRead the Press Release
The U.S. Department of Justice today hosted a meeting to launch a joint task force between the United Kingdom and the United States to counter online child exploitation.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.K. Minister for Policing, Criminal Justice and Victims Damian Green made the announcement.
“Sexual predators are using technology to exploit and harm children, and we need to consider whether technology-based solutions can help curb this abuse and give parents the tools they need to keep their children safe,” said Acting Assistant Attorney General Raman. “Law enforcement is committed to protecting children from abuse, but we know that the help and support of the innovators in the tech community are critical to this important effort. We look forward to collaborating with experts throughout the digital industry on the work of this taskforce.”
“Child abuse is a vile crime,” said Minister Green. “ The UK government is working hard with partners in the US to ensure the Internet cannot be used to sexually abuse children or trade child abuse imagery no matter how technically savvy an offender may be. We have set up the US-UK task force to counter online child exploitation and are drawing on the brightest and best minds from across industry, law enforcement and academia to tackle the dark web, catch abusers and make it much more difficult to access child abuse images online. Today experts from the online industry were invited to attend the first task force meeting, and more companies, both large and small, will be invited to join us in the coming months.”
The task force – co-chaired by Acting Assistant Attorney General Raman and Minister Green – was established to find new technological solutions to combat child sexual exploitation crimes on the Internet and to reduce the volume of child sexual exploitation images online. The task force members include the FBI, Homeland Security Investigations of the Department of Homeland Security, and the U.K. National Crime Agency’s Child Exploitation and Online Protection Centre Command.
The growth of crimes involving the sexual exploitation of children on the Internet is a significant law enforcement challenge shared by all countries. An epidemic volume of child sexual exploitation images is stored and transmitted online by offenders whose crimes are increasingly facilitated by evolving and complex technologies. The task force will seek to leverage the intellectual talent and technical resources of the digital industry by forming and collaborating with an Industry Solutions Group, which will include experts from sectors across the industry to help address the varied and complex technical issues and challenges raised by online child exploitation offenses.
The task force will report back to the U.S. Attorney General and U.K. Prime Minister on its achievements in November 2014.Two Gang Members from Hollygrove Area Sentenced on Federal Rico, Drug, and Firearms ChargesRead the Press Release
TYRONNE STEVENSON aka “Duke”, 23, and MARK GLENN, 26, both residents of New Orleans, were sentenced today by U.S. District Judge Stanwood R. Duval, Jr. for violating federal RICO, drug conspiracy, firearms conspiracy, and attempted murder charges, announced U.S. Attorney Kenneth Allen Polite, Jr. Both STEVENSON and GLENN were members of a gang from the Hollygrove area of the city involved in several shootings and murders in recent years. To date, all of the indicted members of this gang have pled guilty. The remaining gang members are awaiting sentencing.
During their previous guilty pleas, both STEVENSON and GLENN admitted that they and the other gang members were street-level dealers of crack cocaine. STEVENSON also pled guilty to the attempted murder of rival drug dealers Jamal Garner and Demarco Henderson that took place on March 17, 2009. During this shooting an eight-year-old boy was also wounded by gunfire. Additionally, STEVENSON pled guilty to the attempted murder of rival drug dealer Glin Butler that took place on April 10, 2009. GLENN also pled guilty to a subsequent attempted murder of Glin Butler that took place on June 13, 2010. Based on this conduct STEVENSON was sentenced to serve 30 years in prison and GLENN was sentenced to serve 25 years in prison.
A thirty-four count second superseding indictment was returned on November 16, 2012, charging Walter Conley, aka “Ike Neezy”, TYRONNE STEVENSON, Theron Golston, aka “Thema”, Bernell Williams aka “Bussy”, aka “A-Boogie”, Norman Ratcliff, aka “Turk”, and MARK GLENN with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Ryan Carroll, aka “Ronnie Boo,” pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. On October 16, 2013, he was sentenced to serve 210 months in federal prison.
Co-defendants Carey Jones, Bernell Williams, and China Stewart also pled guilty to various charges in the indictment and are scheduled to be sentenced on January 22, 2014.
Co-defendants Walter Conley and Norman Ratcliff also pled guilty to various charges in the indictment, including murder, and are scheduled to be sentenced on February 26, 2014.
“These two defendants were responsible for terrorizing the Hollygrove area by using shootings and even murder to protect their illegal drug trafficking enterprise,” stated U.S. Attorney Polite. “The lengthy sentences imposed today are reflective of the fact that our community is making every effort to remove these violent offenders from our streets.”
Mr. Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG UNIT who worked on this case and renewed the USAO’s commitment to assist the MAG UNIT in targeting these types of violent offenders.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from ATF, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
Twenty-two Charged in Alleged Drug Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A year-long investigation into an alleged drug trafficking organization in central Ohio has resulted in a 78-count indictment charging 21 people with conspiracy, drug trafficking and gun crimes. Another individual is charged in a separate eight-count indictment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Robert Corso, Special Agent in Charge, Drug Enforcement Administration, Franklin County Sheriff Zach Scott and Columbus Police Chief Kimberley Jacobs announced the indictments which were unsealed today following early morning efforts to arrest and locate the defendants.
The indictment charges all of the defendants with conspiring to distribute cocaine, oxycodone, crack cocaine and marijuana, a crime punishable by at least ten years and up to life in prison. The indictment also charges defendants with multiple crimes including possession of firearms in furtherance of drug trafficking, possession of firearms by convicted felons, interstate travel to support racketeering enterprises and money laundering.
A list of those charged is attached.
The indictment is a result of a year-long investigation by federal, state and local law enforcement agencies, including the FBI, Columbus Police, Franklin County Sheriff, DEA, ATF, the Ohio Casino Control Commission, and Franklin County Prosecutor Ron O’Brien’s Office.
All defendants will appear before a U.S. Magistrate Judge who will determine whether or not to hold them without bond until trial.
Stewart commended Assistant U.S. Attorneys David DeVillers and Kevin Kelley, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
A list of those charged is below.
U.S. v Fletcher et al
No.
Name
Age
Address
1
JERMONTE M. FLETCHER
31
Columbus, Ohio
2
Antonio m. Harris
28
Columbus, Ohio
3
Freddie K. Johnson jr.
27
Columbus, Ohio
4
Marvin M. dean SpenCer
32
Columbus, Ohio
5
Byron j. Truss
32
Columbus, Ohio
6
Wayne c.Coffman
26
Columbus, Ohio
7
TimOTHY m. Green
34
Columbus, Ohio
8
Asia d. Williams
29
Columbus, Ohio
9
Wayne c. Hamler
29
Bexley, Ohio
10
China m. Hester
31
Bexley, Ohio
11
Latasha r. Madison
29
Columbus, Ohio
12
AlanNa s. Poore
29
Canal Winchester, Ohio
13
Asia a. McCall
18
Columbus, Ohio
14
Lutricia d. Fletcher-rippy
53
Columbus, Ohio
15
Dwayne a. Stewart
29
Columbus, Ohio
16
Jason n. Barns
26
East Liverpool, Ohio
17
Byron l. Banks Jr.
21
Columbus, Ohio
18
Joel j. Brown
26
Columbus, Ohio
19
Gary r. Martin II
39
Sarah Ann, WV
20
Lisa b. Martin
39
Sarah Ann, WV
21
Derrick a. Browning
30
Sarah Ann, WV
22*
DAQUAN M. tYSON
35
Columbus, Ohio
Troy Mcilwain of Philadelphia Sentenced to 57 Months on Firearms ChargeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on
December 12, 2013, Troy McIlwain, 25, of Philadelphia, Pennsylvania and Burlington, Vermont, was sentenced to 57 months in federal prison after his guilty plea to a charge that he possessed two firearms as a convicted felon in June 2012. United States District Judge J. Garvan Murtha, sitting in Brattleboro, also ordered that McIlwain serve two years of supervised release following his prison term.According to court records, McIlwain’s criminal history includes a felony burglary conviction, possession of stolen property, domestic assault, and several probation violations. On June 25, 2012, McIlwain was in absconder status from the Philadelphia County Probation Office and had an active arrest warrant issued by the Chittenden Superior Court in Vermont based on an allegation of aggravated domestic assault. On that day, law enforcement observed McIlwain operating a motor vehicle on North Street in Burlington’s North End. After McIlwain parked the vehicle at 72 Front Street, Burlington Police Officers and Deputy U.S. Marshals approached McIlwain as he stood behind the vehicle. McIlwain ran from law enforcement, scaled a fence, and fled. While chasing McIlwain, law enforcement recovered a loaded Snakeslayer firearm that McIlwain discarded as he fled police. The Snakeslayer is designed to shoot both .45 caliber rounds and .410 gauge shotgun shells. Following McIlwain’s trail, law enforcement observed a bloody t-shirt under one of the windows to 72 Front Street and blood on the window sill. Officers established a secure perimeter around the apartment building, and McIlwain surrendered after an hours-long stand-off with authorities. A subsequent search of the room in which McIlwain was hiding turned up a Heritage Arms .22 caliber revolver and assorted ammunition.
McIlwain was arrested after a series of suspected drug-related shootings in the Burlington area in June 2012, including an incident in which shots rang out in the Farrell Street apartment complex in South Burlington on June 7, 2012. According to court records, McIlwain was involved in this South Burlington incident. According to one witness, McIlwain and an associate, brandishing firearms, confronted two individuals as they stood in the entrance to a Farrell Street apartment building. McIlwain and his associate eventually let the two go. Minutes later, McIlwain and his associate fled the apartment building, guns at their side, and got into a waiting car. As they drove away, several gunshots were fired at them from the Farrell Street apartment building.
United States Attorney Tristram J. Coffin commented that firearms in the hands of convicted felons present a serious threat to public safety. “The prosecution of Troy McIlwain and related individuals in this investigation show a concerted effort by the U.S. Attorney’s Office and our law enforcement partners to pursue those who endanger our community by unlawfully possessing firearms.”
This case was investigated by the Burlington Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, and the Winooski Police Department. U.S. Attorney Coffin commended the efforts of these agencies during this investigation.
This case was prosecuted by Assistant United States Attorney Kevin J. Doyle. McIlwain is represented by Assistant Federal Defender David L. McColgin.