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11 December 2013
Business Owner Indicted for $1.2 Million Tax FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of an Independence, Mo., business has been indicted by a federal grand jury for failing to report more than $1.2 million in business income on her income tax returns.
Peggy Hennon, 55, of Independence, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 10, 2013. That indictment was unsealed and made public today upon Hennon’s arrest and initial court appearance.
Hennon was the owner of Peggy’s Tow. The federal indictment alleges that Hennon under-reported the gross receipts from her business from 2007 to 2009 in order to significantly reduce her income tax liability by approximately $308,368.
Peggy’s Tow purchased vehicles as scrap and sold them to scrap yards in the Kansas City metro area. After the vehicles were sold to the scrap yard, Hennon either deposited the check into one of her checking accounts or cashed the check at a gas station or bank.
According to the indictment, Hennon reported only part of her gross receipts on her 2007, 2008, and 2009 individual income tax returns. Hennon allegedly cashed the majority of checks she received from the sale of scrap vehicles (25 percent of the checks in 2007, 68 percent in 2008 and 98 percent in 2009). Hennon allegedly failed to include approximately $1,232,363 from the cashed checks on her tax returns for the 2007, 2008, and 2009 tax years.
Hennon is charged with three counts of making false statements on income tax returns. Hennon is also charged with attempting to interfere with the administration of internal revenue laws.
According to the indictment, Hennon provided expense records to IRS agents on three separate occasions in 2012 and 2013. Hennon allegedly provided false expense records to the IRS agents that had been altered to reflect higher business costs than the expense records that were used by her accountant to calculate expenses on her tax returns for 2008 and 2009. The majority of the alterations, the indictment says, involve a price which contained a “1” that was changed to a “4.”
The increased expenses of approximately $414,725 for tax years 2008 and 2009 would have reduced the amount of taxes due and owing by Hennon in the amount of approximately $163,857.
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 Roseann Ketchmark. It was investigated by IRS-Criminal Investigation Missouri Dept. of Revenue and the Missouri State Highway Patrol.Bryant Man Pleads Guilty to Bank FraudRead the Press Release
Little Rock - LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Christopher Williams, age 33, of Bryant, plead guilty today to one count of bank fraud before United States District Judge Susan Webber Wright.
A federal grand jury indicted Williams in January 2013, alleging three counts of bank fraud and one count of aggravated identity theft. In pleading guilty to bank fraud, Williams admitted that after losing his job as a financial adviser at Charles Schwab in June 2012, he reestablished contact with a former client. During visits to the client’s Little Rock home, Williams obtained sensitive financial account information that he used to access the client’s online account at Bank of America and also deceived the client into signing personal checks made payable to third-party organizations under Williams’s control. Williams then used the client’s personal identifiers to create an E*TRADE online brokerage account to facilitate the transfer of money out of the client’s Bank of America account and opened credit cards in the client’s name for Williams’s own personal use. The scheme persisted until his arrest in December 2012.
Upon Judge Wright’s acceptance of the guilty plea to the bank fraud alleged in Count One, the United States successfully moved to dismiss the remaining bank fraud and aggravated identity theft charges pursuant to the plea agreement. Williams was not detained. Williams faces a possible sentence of up to thirty years’ imprisonment and a fine of up to $1 million.
The United States Attorney wishes to thank Special Agent Charles M. Briscoe of the Office of the Inspector General for the Social Security Administration, Special Agent Lee Wood of the United States Secret Service, and Special Agent Amy Hoffman of the United States Naval Criminal Investigative Service for their extraordinary work on this investigation. Assistant United States Attorney Alexander D. Morgan is prosecuting the case for the United States.
Brownsville Drug Dealer Gets Four Life SentencesRead the Press Release
BROWNSVILLE, Texas – Julio Cesar Cardenas, 40, has been given four life sentences in federal prison for his involvement in leading a drug trafficking organization for several years out of Brownsville, announced United States Attorney Kenneth Magidson. Cardenas was convicted by a federal jury following a two-week trial on May 31, 2013.
Today, Senior U.S. District Judge Hilda Tagle, who presided over the trial, handed down the sentence, noting her concern for the safety of the community due in part to his extensive criminal history. At the hearing, it was noted that this was the sixth felony conviction for Cardenas. He was further ordered to pay restitution in the amount of $1,700. Cardenas was sentenced on a total of 17 counts in two indictments and given other sentences ranging from five to 40 years to run concurrent with the life sentences. The life sentences imposed were for conspiracy to possess with intent to distribute more than five kilograms of cocaine, conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, possession with intent to distribute approximately 31 kilograms of cocaine and possession with intent to distribute approximately 20 kilograms of cocaine.
Cardenas was convicted at trial on all 17 counts in which he was charged in the two indictments, including the aforementioned charges as well as operating an illegal money remitting business and numerous substantive marijuana and cocaine counts. He was also convicted for being a felon in possession of a firearm.
Cardenas was one of 13 people originally charged in an indictment returned in June 2012. According to the evidence and testimony presented in court, Cardenas led the drug trafficking organization whose aim was to distribute cocaine and marijuana through commercial freight lines to numerous states, including Texas, Florida, Georgia, Tennessee, Kansas, Missouri, Michigan, Ohio, Mississippi, South Carolina, Indiana and Illinois. After the marijuana and cocaine was sold in these states, Cardenas directed the illegal money remitting of the transportation costs and drug proceeds of the narcotics back to the Brownsville area by utilizing cash deposits in bank accounts in the names of other individuals and co-conspirators. Branch banks were utilized in the receiving states with the money to be withdrawn by the co-conspirators here in Brownsville on a regular basis.
Testimony at trial demonstrated that Cardenas engaged in numerous drug trafficking and illegal money remitting conversations in March, April and June 2011. The investigation led law enforcement to four separate seizures of large amounts of marijuana during these months. Cardenas was also convicted of several other historical seizures of cocaine and marijuana.Cardenas was arrested Sept. 13, 2012, at which time a weapon was found at his home. Evidence at trial established that within minutes of approximately 365 pounds of marijuana being seized at the house of co-conspirator, he had commented about the need to get a gun out of his house. Cardenas was convicted in three separate cases of delivery of cocaine in 1995 and is, therefore, prohibited by federal law from possessing a firearm.
The jury also heard that Cardenas had ties to the Gulf Cartel. Evidence established that Cardenas assisted in the possession of approximately 31 kilograms of cocaine in April 2011 that was supplied to a co-conspirator by an individual named “La Tia” from Matamoros. “La Tia” was identified by several cooperating witnesses as an alleged high ranking member of the Gulf Cartel.
Cardenas offered to help store and sell three kilograms of the total load of 31 kilograms. He also provided advice to the co-conspirator on how to deal with “La Tia” during the transportation of the cocaine to Chicago, Ill. The jury heard that Cardenas advised the co-conspirator to employ violence, such as kidnaping and the use of a bomb, in their dispute with “La Tia” regarding the seizure of the 31 kilograms of cocaine by the Cameron County Sheriff’s Office.
Law enforcement has identified “La Tia” as Idalia Ramos Rangel, 58. She is a fugitive and has been charged by the United States Attorney’s Offices in Brownsville and Little Rock, Ark., on separate narcotics trafficking indictments. She is considered innocent until proven guilty through due process of law.
The government also presented evidence that Cardenas received bank deposits in the names of co-conspirators in excess of $841,000. Cardenas was the leader of the co-conspirators in the indictment and, on one occasion, wanted to steal electricity from a neighboring church to power one of the warehouses he was using to ship and package narcotics.
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service-Criminal Investigation, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Cameron Country Sheriff’s Office, Police Departments in Brownsville and Harlingen as well as the Hidalgo and Cameron County High Intensity Drug Trafficking Area Task Forces and the Cameron County District Attorney’s Office.
Cardenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The 11 remaining defendants all pleaded guilty on various dates prior to the Cardenas trial. Emmanuel Leal Mancha, 36, was sentenced to 46 months for illegal money remitting and possession with intent to distribute approximately 82 kilograms of marijuana. Juan Gonzalez, 39, Pablo Torres, 22, and Ronny Robertson, 22, received respective sentences of 60, 37, and 24 months for possession with intent to distribute approximately 166 kilograms of marijuana. For his two convictions of conspiracy to possess with intent to distribute more than five kilograms of cocaine and more than 100 kilograms of marijuana, Byron Green, 33, was handed a 125-month sentence, while Guadalupe Vidaurri, 34, received 48 months for possession with intent to distribute approximately 194 kilograms of marijuana. Alejandro Trevino, 38, received credit for time served for illegal money remitting. Israel Avila was sentenced yesterday to 40 months, while four others - Juan Torres, Pablo Rodriguez and Carlos Lopez - are set for sentencing next year.
The case was prosecuted by Assistant U.S. Attorneys Jody Young and Angel Castro as part of the Organized Crime and Drug Enforcement Task Force Operation “Hips Don’t Lie.”
Brooklyn Man Who Broke into Pharmacy Sentenced to 65 Months in Prison for Conspiracy to Sell Stolen OxycodoneRead the Press Release
TRENTON, N.J. – A Brooklyn, N.Y., man was sentenced today to 65 months in prison for his involvement in a plot to burglarize a pharmacy in Marlboro Township, N.J., and sell the stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.
David Mordukhaev, 22, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Marlboro Township was burglarized shortly after 4:00 a.m. on June 17, 2012. Mordukhaev and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances.
The stock lost by the pharmacy was valued at approximately $335,000.
Mordukhaev admitted that he stole the drugs, and that he did so knowing they would be sold for profit.
In addition to the prison term, Judge Wolfson sentenced Mordukhaev to three years of supervised release and ordered him to pay $334,722 in restitution.
Two of Mordukhaev’s conspirators, James Zarbailov, 23, and Dzheykhun Avshalumov, 24, both of Brooklyn, have previously pleaded guilty to the same charge. Zarbailov was sentenced to 63 months’ imprisonment on Nov. 18, 2013. Avshalumov’s sentencing is scheduled for Dec. 19, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-459
Defense counsel: Lance Lazzaro Esq., Brooklyn, N.Y.Bluefield Pill Dealer Sentenced to More Than 5 Years in Prison as Part of Federal Prescription Drug CrackdownRead the Press Release
Six co-defendants have been convicted and sentenced to prison time in Bluefield Pill Initiative
BLUEFIELD, W.Va. – The lead defendant in a Bluefield pill distribution conspiracy was sentenced yesterday to five years and eleven months in prison after pleading guilty earlier this year to a federal drug charge, announced U.S. Attorney Booth Goodwin. Thirty-four-year-old Carlos R. Ivy, of Bluefield, previously pleaded guilty in August to distribution of oxycodone. On February 22, 2013, Ivy distributed oxycodone to an associate in exchange for cash. Ivy was charged with seven counts contained in a 51-count indictment returned in May.
The May indictment named a total of sixteen defendants who were charged with various drug-related felonies. Ivy, along with six co-defendants, have previously pleaded guilty to federal drug charges and sentenced to federal prison. The following defendants have also received prison terms:
- Elizabeth Ann Stewart, 30, of Matheny, Wyoming County, W.Va., was sentenced on Tuesday to six months in prison. Stewart previously pleaded guilty in August to distribution of oxycodone.
- Tonya Lynn Goode, 35, of Matheny, Wyoming County, W.Va., was sentenced on Tuesday to 2 years in prison. Goode previously pleaded guilty in August to distribution of oxycodone.
- Danny Lee Decker, 42, of Mullens, Wyoming County, was sentenced on Dec. 9 to one year and three months in prison. Decker previously pleaded guilty in July 30 to using a telephone to commit a drug crime.
- Kathy Burchett, 38, of Welch, McDowell County, W.Va., was sentenced on Dec. 3 to 1 ½ years in prison. Burchett previously pleaded guilty in August to using a telephone to commit a drug crime.
- Anthony Lee Madison, 23, of Bluefield, Va., was sentenced on Dec. 3 to 2 years and three months in prison. Madison previously pleaded guilty in July to using a telephone to commit a drug crime.
- Edgar Junior Ponce, 32, of Oceana, Wyoming County, W.Va., was sentenced on Dec. 3 to 2 years in prison. Ponce previously pleaded guilty in July to using a telephone to commit a drug crime.
The sentences were handed down by Senior United States District Judge David A. Faber in Bluefield.
The cases were brought as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation, the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.Bapchule Man Sentenced to 100 Months in Prison for Felon in Possession of A FirearmRead the Press Release
PHOENIX – On Dec.10, 2013, Mario Lee White, 27, a member of the Gila River Indian Community, was sentenced by U.S. District Judge James Carrto 100 months in prison after previously pleading guilty to two counts of felon in possession of a firearm on June 26, 2013.
On Jan. 22, 2013, White was driving a vehicle within the Ak-Chin Indian Community when he was pulled over for a traffic violation. Inside the vehicle officers found a firearm and drug paraphernalia. On March 6, 2013, White was driving a vehicle on the Gila River Indian Community when he fled from police at a high speed with two passengers in the vehicle. He eventually rolled the vehicle off the side of the road. Officers also found another firearm in the vehicle. White had previously been convicted of armed robbery and aid and abet.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Ak-Chin Police Department, and Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00367-PHX-NVW
RELEASE NUMBER: 2013-095_WhiteFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Alabama Shrimper Convicted for Shooting DolphinRead the Press Release
An Alabama man pleaded guilty yesterday in a federal court in Gulfport, Miss., to knowingly shooting a dolphin, the Justice Department announced.
Brent Buchanan, 38, of Bayou La Batre, Ala., pleaded guilty to one misdemeanor count of knowingly taking a protected marine mammal, a federal crime under the Marine Mammal Protection Act. In court documents, Buchanan admitted to knowingly shooting a dolphin with a shotgun while shrimping in the Mississippi Sound in July or August 2012.
A sentencing hearing is set for Feb. 24, 2014. The maximum penalty is one year in prison, a $100,000 fine, and a $25 special assessment.
The Marine Mammal Protection Act is a federal law which makes it illegal to harass, hunt, capture, or kill, or to attempt to harass, hunt, capture, or kill, any marine mammal in waters under the jurisdiction of the United States. The Act protects all species of dolphins, as well as other marine mammals such as whales and seals.
The case was investigated by the National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement, with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Customs and Border Protection Office of Air and Marine, the Alabama Marine Police, and Alabama Department of Conservation and Natural Resources, Marine Resource Division. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Mississippi and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
NOAA Office of Law Enforcement is actively investigating a number of other possible dolphin shootings along the northern Gulf Coast since 2012. Anyone possessing information relating to such an incident is requested to contact NOAA Office of Law Enforcement at 1-800-853-1964 or a state wildlife law enforcement agency.
17-Year Fugitives Voluntarily Surrender and Plead Guilty to Bank FraudRead the Press Release
SAN JOSE – Zahid and Riffat Ali, who have been wanted by federal authorities on bank fraud charges since 1996, surrendered to agents of the FBI at San Francisco International Airport yesterday when their flight from Pakistan arrived. This morning, they pleaded guilty in federal court in San Jose to bank fraud, United States Attorney Melinda Haag announced.
The Alis, husband and wife, were indicted by a federal grand jury in 1996 for bank fraud in violation of 18 U.S.C. § 1344. Before they could be arrested, they departed for their native Pakistan. Efforts to extradite them failed. Recently, in a deal worked out with prosecutors ahead of time, they agreed to voluntarily return.
According to the indictment, the Alis defrauded Home Savings of America of $438,866 by submitting a loan application that contained false statements, and by submitting false back up documents in support of the application. They submitted the application in the name of a third party, or “straw borrower”, to a relative, Mujeebullah Mujahid Khan, who was a loan officer at Home Savings. Khan pleaded guilty to bank fraud in 1997.
Today, the Alis pleaded guilty to bank fraud in front of The Honorable Lucy H. Koh, United States District Court Judge in San Jose. Both defendants were released after they each posted $50,000 bail.
In pleading guilty, both defendants admitted that during the summer of 1994 they owned a residence located at 1560 Bird Avenue in San Jose, California. Between approximately July 2, 1994, and September 9, 1994, they convinced a younger man who was living with them rent free to apply for a loan to purchase the 1560 Bird Avenue house from them. They admitted that they knew that his income and assets would not qualify him for a loan if the loan application had contained a truthful explanation of his circumstances. So they filled out a draft of the loan application that contained several falsehoods, including the following:
- They falsely claimed that Mr. Bhatt was earning $13,000 per month.
- They falsely claimed that he was employed by a company named Reffko, a company created by Mr.Ali.
- They also falsely claimed that Mr. Bhatt had $85,000 worth of stock.
Finally, in order to corroborate the Mr. Bhatt’s alleged income, they deposited $60,000 to $80,000 of their own funds into his bank account, and falsely confirmed his employment and income when Home Savings called to verify his employment at Reffko.
The sentencing hearing is scheduled for March 26, 2014, before The Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for bank fraud, in violation of 18 U.S.C. § 1344, is 30 years in prison, and a fine of $1 million, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gary G. Fry is the Assistant U.S. Attorney who is prosecuting this case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the by the Federal Bureau of Investigation.
(Ali indictment )
10 December 2013
Zeta Cartel Member Convicted in Conspiracy to Smuggle Firearms/Grenades into MexicoRead the Press Release
LAREDO, Texas – Richard John Medina aka “El Guero,” 40, of Laredo, has entered a plea of guilty to being a felon in possession of multiple firearms and grenades, announced United States Attorney Kenneth Magidson.
On Oct. 9, 2013, Medina was arrested at his Laredo residence in possession of five firearms and five grenades. As part of the plea, Medina admitted he attempted to traffic and export these items from the United States into Mexico, exclusively for the Mexican Zeta Cartel.
Medina was hired to export the weapons for $2,500. Medina was to receive half the payment upfront, with the remainder paid upon delivery of the weapons to a Zeta Cartel house in Nuevo Laredo, Mexico. On Oct. 9, 2013, Medina received the weapons and was subsequently arrested in the United States. Investigation revealed Medina was a convicted felon and did not have permission under the International Traffic in Arms Regulations to export these military defense weapons.
U.S. District Judge Diana Saldana will set a date for sentencing in the near future. At the time of the hearing, Medina will face up to 10 years in prison and a possible $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Laredo Police Department. Assistant U.S. Attorneys Sanjeev Bhasker and Homero Ramirez are prosecuting.
Wisconsin Leader of Texas Based Drug Trafficking Organization Sentenced to over 10 Years in PrisonRead the Press Release
United States Attorney James L. Santelle announced today that United States District Judge Rudolf Randa sentenced Randy Martinez a.k.a Robin Lee Martinez, (age:30) of Sheboygan to ten years and four months in prison for his role in the Balderas Organization drug trafficking activities involving kilos of cocaine and marijuana transported from Texas to Wisconsin. Martinez, who pled guilty to these charges, was arrested on May 29, 2012 and detained in federal custody.
According to documents filed in court, beginning in the mid 1990's, the Balderas Drug Organization transported cocaine and marijuana from Texas to Wisconsin, where the price was much higher than in Texas. Instrumental in the Balderas Organization’s ability to sell drugs in Wisconsin was Randy Martinez’s role as leader of the organization in Wisconsin. The Balderas Organization was involved in conspiring to transport over 5 kilograms of cocaine and over 1,000 kilograms of marijuana to Wisconsin, including Sheboygan and Manitowoc Counties and the surrounding areas.
The Balderas Organization used different techniques to transport marijuana and cocaine from Texas to Wisconsin. One of the techniques utilized relied on the use of two cars; one would be filled with the narcotics, and the other would have members of the organization follow behind and make sure nothing went wrong with the load. The Balderas Organization would fill a car with hidden narcotics in Texas and have it driven to Wisconsin by individuals often recruited by Randy Martinez to act as couriers. The individuals recruited were persons they thought would not raise suspicions at the border crossings in Texas, with the hope that they would be able to cross the border and not be stopped by authorities.
With the help of Randy Martinez, the Balderas Organization devised a complex and successful system to conduct their illegal affairs. Members of the Balderas Organization would get vehicles in Texas, either by renting them, buying them, or using vehicles belonging to others and would have them loaded with under 50 pounds of marijuana, (as such loads, if found in Texas, were often just seized, and those involved in the transport were released without charges). The loads were then transported by others (often by individuals Randy Martinez recruited in Wisconsin) and contained marijuana and/or cocaine. The Balderas Organization also used the bus service, postal service and others forms of transportation to bring drugs to Wisconsin. Regardless of the method used, Randy Martinez was instrumental to finding the workers, supervising them, and making sure they did their jobs.
Randy Martinez also shielded some of the members of the Balderas Organization from being linked to the organization; he controlled the Wisconsin distribution of narcotics, and played an integral part in the money laundering of funds for the Balderas Organization. When a load was brought from Texas to Wisconsin, Randy Martinez would cut up the narcotics, and distribute it to customers for the Balderas Organization. In addition, Randy Martinez was involved in recruiting individuals to receive packages mailed from Texas to Wisconsin, and for the distribution in Sheboygan and Milwaukee. He was also in charge of deposits made into various bank accounts controlled by the Balderas Organization from Wisconsin to Texas. Randy Martinez would direct individuals to send payment via wire transfer, bulk cash smuggling, and on their person to various individuals and accounts in Texas so as to help the Balderas Organization receive its profits. Bank records support that through a complex bank account scheme, the Balderas Organization was able to launder, at least $300,000.00 and up to $500,000.00 dollars.
At sentencing Assistant United States Attorney Karine Moreno-Taxman described Randy Martinez as the key participant in Wisconsin and that he was responsible for making sure the Balderas Organization was viable in Wisconsin.
This investigation was successful because of a cooperative effort by the Sheboygan County Metro Drug Enforcement Group, the Manitowoc County Metro Drug Enforcement Group; the Manitowoc District Attorney’s Office, and the Drug Enforcement Administration and the Criminal Division of the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
# # # # #Winston-Salem Man Sentenced for Gun Smuggling and Firearm OffensesRead the Press Release
Lengthy prison term orderedGREENSBORO, N.C. – A Winston-Salem man was sentenced to 157 months in prison for his role as the leader of a smuggling ring funneling firearms and ammunition to Mexico from North Carolina, announced United States Attorney Ripley Rand.
Angel Medel Lorenzo, 56, of Winston-Salem, North Carolina, had pleaded guilty to conspiring to smuggle firearms and firearm accessories to Mexico and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced by Chief United States District Judge William L. Osteen, Jr., to 157 months imprisonment followed by 5 years of supervised release.
During an investigation conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Winston-Salem Police Department (WSPD), officers seized multiple firearms, firearm scopes, and hundreds of rounds of ammunition. As part of a drug investigation by the WSPD’s Special Investigations Division, detectives searched Medel Lorenzo’s residence on October 19, 2011, and found multiple handguns, rifles, ammunition, cocaine, digital scales and rifle scopes. In July 2012, a reliable FBI Confidential Informant (CI) provided information that Medel Lorenzo was organizing a load of firearms to be smuggled into Mexico from Winston-Salem, NC. Thereafter, law enforcement monitored a meeting between Medel Lorenzo, the CI, and other members of the smuggling conspiracy concerning the planned shipment of a 16-gun load of firearms to Guerrero, Mexico.
On July 24, 2012, authorities executed a federal search warrant at the residence of co-defendant Ramiro Alejandro Garcia Roman on East Sprague Street in Winston-Salem and recovered a shipment of 16 firearms, hundreds of rounds of ammunition, and other firearms accessories wrapped in plastic and black electrical tape. The investigation revealed that Medel Lorenzo had been smuggling firearms to Mexico since February of 2011 and that he used his teenage children to assist in packaging the firearms for transport. Co-defendants Ramiro Garcia Roman and Medel Lorenzo’s daughter, Inocensia Medel Banos, were each sentenced in July of 2013 to 46 months in federal prison for their roles in the smuggling conspiracy.
“The drug cartels of Mexico have shown countless times they have very little regard for human life,” said Special Agent in Charge Brock D. Nicholson, head of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas. “Without question, the defendant was trying to get the weapons and ammunition seized in this case into Mexico to be used by these same cartel members. We are thankful for the help from the FBI, ATF, the Winston-Salem Police Department and the U.S. Attorney’s Office in putting a dangerous man in prison and in stopping this smuggling scheme.”
“This prosecution is a testament to the results that can be achieved through coordinated investigative efforts by the law enforcement community,” said United States Attorney Ripley Rand. “Choking off the illegal export of firearms by prosecuting smugglers is important in reducing the threat that the guns will be used in violent crime. HSI, FBI, ATF and the Winston-Salem Police Department all played critical roles in exposing this gun smuggling network, enabling our office to successfully prosecute this organization.”
This case was prosecuted by Assistant United States Attorney Randall S. Galyon.
West Virginia Man Convicted of Cocaine Trafficking, Operating Dog Fighting VentureRead the Press Release
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MARTINSBURG, WEST VIRGINIA – A Piedmont, West Virginia man has pleaded guilty to three felonies, including one tied to the operation of a dog fighting venture.
United States Attorney William J. Ihlenfeld, II announced that TIMOTHY PAUL STEWART, age 34, of Piedmont, entered pleas of guilty to “Conspiracy to Distribute Crack Cocaine,” “Felon in Possession of a Firearm,” and “Possession of Dogs for Dog Fighting.” U.S. Magistrate Judge James E. Seibert accepted the pleas in Martinsburg federal court.
According to U.S. Attorney Ihlenfeld, in October of this year agents served a federal drug trafficking indictment upon STEWART at his Mineral County home. During this process, officers observed seven firearms in plain view. After securing STEWART, officers then obtained a federal search warrant and returned to seize controlled substances, the seven firearms, and ammunition. During the execution of the search warrant, officers entered the basement of the residence where they observed evidence of an animal fighting venture including dogs, dog pelts, cages, and training equipment for the dogs. A new search warrant was obtained for the residence in order to seize the evidence of the animal fighting operation. Officers also seized approximately 25 grams of cocaine base and $3,968.00 in U.S. Currency.
STEWART, who is in custody pending sentencing, faces up to 45 years in prison. As part of his plea, STEWART must forfeit the firearms and the U.S. currency. The case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
Five other cases were heard by Judge Seibert, as follows:
STACEY L. WILLIAMSON, age 48, of Flintstone, Maryland, entered a plea of guilty to “Theft of Government Funds.” From March of 2013 to July 31, 2013, WILLIAMSON, who was a U.S. Postal Service employee, admitted to converting $1,737.49 to her own use. WILLIAMSON, who is free on bond pending sentencing, faces up to 10 years in prison. This case was investigated by the United States Postal Inspection Service.
The STEWART and WILLIAMSON cases were prosecuted by Assistant United States Attorney Jarod J. Douglas.
CARL CHANEY, age 60, of Springfield, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” CHANEY, who is free on bond pending sentencing, faces up to 10 years in prison.
DONNIE COLLINS, age 28, of Martinsburg, entered a plea of guilty to “Felon in Possession of a Firearm.” COLLINS, who is in custody pending sentencing, faces up to life years in prison due to four prior felony convictions from Baltimore, Maryland.
The CHANEY and COLLINS cases were handled by Assistant United States Attorney Paul T. Camilletti and investigate by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Berkeley County Sheriff’s Office and the West Virginia State Police.
CHARLES F. WADDELL, age 37, entered a plea of guilty to “Failure to Register as a Sex Offender.” WADDELL, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the United States Marshals Service.
Finally, MICHELLE BROWN, age 34, of Martinsburg, West Virginia, entered a plea of guilty to “Distribution of Crack Cocaine.” BROWN, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Assistant United States Attorney David J. Perri and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
Washington State Man Sentenced in Federal Hate Crime for Attack on Sikh ManRead the Press Release
WASHINGTON – The Justice Department announced today that U.S. District Court Judge John C. Coughenour sentenced Jamie Larson in connection with the racially-motivated assault of a 50-year-old Sikh man. Larson, 50, who pled guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, was sentenced to 40 months incarceration. Judge Coughenour said the sentence should send the message that this kind of conduct “is absolutely unacceptable…. Larson used the most disgusting, ugly and racist language that I have heard in 30 years on the bench.”
According to information presented in court, the victim, a taxi driver, drove an intoxicated Larson to a private residence in Federal Way, Washington on October 17, 2012. After arriving at the residence, Larson grabbed the victim by his beard, and struck him in the face and shoulder many times before pushing him to the ground. Larson then repeatedly stomped on the victim’s stomach. During the incident, Larson called the victim a “raghead” and a “towelhead.” He also screamed various comments to the victim, such as “what are you doing here?” and “why did you come to my country?” Larson admitted that he attacked the victim, who is from India and a follower of the Sikh religion, because Larson believed the victim was of Middle Eastern descent or ethnicity.
Larson was arrested at the scene of the attack after a witness called 911. The victim was immediately taken to a hospital and suffered bruising, a loose tooth, sprains and strains to his back and shoulder, and acute kidney failure from the prolonged assault.
“The Department of Justice is fully committed to using all resources at its disposal to thoroughly investigate and vigorously prosecute racially-motivated attacks,” said Acting Assistant Attorney General for the Department’s Civil Rights Division Jocelyn Samuels. “Violence based on a person’s race or ethnicity should be an unfortunate vestige of the past, but when these bias-motivated attacks occur, the Civil Rights Division will stand ready to swiftly bring justice for the victims.”“No one in our community should face hate-based danger. We will use all federal tools to hold defendants accountable,” said U.S. Attorney Jenny A. Durkan, Western District of Washington. “The Pacific Northwest is a diverse community and we will continue to focus our efforts on making sure that diversity is respected and celebrated.”
The Shepard-Byrd law criminalizes acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
In addition to the prison term, Larson was sentenced to three years of supervised release. He also owes restitution to the victim in an amount to be determined at a later date.
The matter was investigated by the Seattle Division of the FBI. The Federal Way Police Department provided significant support in this prosecution. The case is being prosecuted by Assistant U.S. Attorney Bruce F. Miyake of the U.S. Attorney’s office for the Western District of Washington and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division, Criminal Section.
Wanblee Man Pleads Not Guilty to Making False Statements to Obtain Controlled SubstancesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substances by Fraud.
Robert George Quiver, age 22, was indicted on December 3, 2013. Quiver appeared before U.S. Magistrate Judge Veronica L. Duffy on December 4, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund on each charge. Restitution may also be ordered.
The charges relate to Quiver presenting a falsified prescription for Hydrocodone, a Schedule III controlled substance, to the Indian Health Services Pharmacy in Wanblee on July 11, 2013.
The charges are merely accusations and Quiver is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Quiver was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Utah Resident Pleads Guilty to Filing False Claims for Tax Refunds Totaling $653,884Read the Press Release
SALT LAKE CITY - Stanley J. Wardle, 65, of Spanish Fork, Utah, pleaded guilty Monday in U.S. District Court in Salt Lake City to nine counts of filing false claims for income tax refunds, the Justice Department and Internal Revenue Service (IRS) announced. Wardle, who was indicted on Feb. 15, 2012, is scheduled to be sentenced before U.S. District Judge Dee Benson on Feb. 27, 2014.
According to the indictment, on or about Jan. 22, 2009, Wardle prepared and filed a false U.S. Individual Income Tax Return for the year 2008, in which he claimed a tax refund of $32,115. In addition, between Dec. 8, 2008 and May 13, 2009, he caused additional false claims for tax refunds to be made on behalf of others. In total, Wardle was involved in false claims for refunds totaling $653,884.
Wardle faces a statutory maximum sentence of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the defendant for each false claim charge.
Assistant Attorney General Kathryn Keneally for the department’s Tax Division commended the special agents of IRS - Criminal Investigation who investigated the case, and Tax Division Trial Attorneys Michael Romano and Stuart Wexler, who prosecuted the case.
United States Attorney Announces Conviction, Sentencing of Evansville-area Tax PreparerRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Steve W. Pirnat, age 61, of Evansville, has been convicted and sentenced to 37 months in federal prison after admitting that he conspired for three years to submit false tax claims to the Internal Revenue Service. All told, the scheme cost taxpayers more than $222,000 in fraudulent tax refunds.
“This scheme didn’t just target unsuspecting people in the Evansville area – in this case, every Hoosier taxpayer was a victim of fraud,” Hogsett said. “That is why we are working with our law enforcement partners to aggressively combat this culture of corruption. We owe it to those who play by the rules to hold fully accountable those who try and fleece the system.”
From 2009 until 2011, Pirnat provided tax preparation services in Vanderburgh County, charging a fee for his services. According to court documents, Pirnat was not a registered tax preparer with the Internal Revenue Service and did not have an identification number that would allow him to file tax returns on behalf of other people. Instead, Pirnat would file the tax returns he prepared and classify them as self-prepared. In this way, it would appear to the IRS that no tax professional was involved in preparing the returns.
On July 26, 2011, the IRS Criminal Investigation Division received a complaint from a taxpayer who had retained Pirnat to prepare her tax returns for 2009 and 2010. The taxpayer had received an audit notice from the IRS in June of 2011 notifying her that she needed to provide information to support her claim that she had a dependent as listed on her 2010 tax return. The taxpayer did not have any dependents, and was not aware that any dependent had been listed on her tax return. The copy of the return that Pirnat provided to her did not list a dependent.
The taxpayer contacted Pirnat about the audit and the defendant offered to deal with the IRS on her behalf. The taxpayer met with Pirnat in person and decided to record her conversation with him due to her concerns about the situation. At the meeting, the defendant gave the taxpayer an amended 2010 return without a dependent on it for the victim to file, and explained that he had falsified her tax return to “help out a lady he knew.”
IRS records showed that the taxpayer was issued a total refund related to her 2010 return in the amount of $5,633 and that the refund was split up and deposited into more than one account. Only $1,815 was deposited into the taxpayer’s bank account. The $1,815 refund amount was the amount listed on the copy of the tax return that Pirnat gave to the victim. The remaining $3,818 of the refund was electronically deposited into a bank account controlled by Pirnat.
After receiving the taxpayer’s complaint, an investigation by the IRS revealed a pattern of tax filings from Pirnat’s computer that contained fraudulent dependent information. The total amount of fraudulent refunds generated through Pirnat’s scheme was calculated to be $222,740 by IRS auditors.
IRS Criminal Investigation Special Agent in Charge, James Lee stated, “IRS Criminal Investigation focuses on protecting revenue by identifying, investigating, and recommending prosecution of abusive return preparers like Mr. Pirnat. Mr. Pirnat was sentenced to 37 months in prison for his role in conspiring to submit false claims and assisting in the preparation of false tax returns. With tax season quickly approaching, this sentence should send a message to the unscrupulous tax preparers thinking of engaging in such activity, this activity will not be tolerated.” Furthermore, Special Agent in Charge James Lee wanted to warn taxpayers that they should choose carefully when hiring a tax preparer.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Pirnat was ordered to fully repay the loss to taxpayers, and must serve three years of federally-supervised release at the end of his prison term. Under federal law, the defendant is required to serve at least 85% of his prison term within a federal correctional facility.
U.S. Jury Convicts Bolingbrook Man of Sex Trafficking Four Victims, Including A MinorRead the Press Release
CHICAGO — A federal jury today convicted a Bolingbrook man of running a sex trafficking ring between at least late 2009 and November 2010 that forced into prostitution at least four victims, including a minor who was 17 at the time. The defendant, McKENZIE CARSON, was found guilty on one count of sex trafficking a minor by force, fraud, and coercion, and three counts of sex trafficking by force, fraud, and coercion. The jury deliberated less than two hours following a trial that began Dec. 2 in U.S. District Court.
All four victims testified in the trial, which showed that Carson, 41, also known as “Casino” and “Joe Taylor,” was a pimp who chose vulnerable, young victims, including the minor who he knew was only 17, and used violence and threats of violence to exploit them sexually.
“This was not a business relationship, but a relationship between predator and prey,” Assistant U.S. Attorney Bethany Biesenthal said in her closing argument. In her rebuttal argument, Assistant U.S. Attorney Jennie Levin told jurors “the victims bared their souls and told you they were frightened for their lives.”
Carson has remained in federal custody without bond since he was arrested on Jan. 3, 2012. He faces a mandatory minimum sentence of 15 years in prison and a maximum of life imprisonment on each count. No sentencing date was immediately set but U.S. District Judge Elaine Bucklo scheduled a status hearing for May 2, 2014.
The evidence showed that Carson recruited his victims and forced them to engage in commercial sex acts. He used fraud to recruit and groom his victims, sometimes concealing that he was a pimp, and used drugs to control them. He frequently provided them with heroin and exercised control over how much and when each victim was allowed to use drugs.
Carson also used threats and physical beatings to enforce rules that left him with a control over his victims. When they broke the rules or disobeyed him, he threatened them or beat them, or raped them. He required his victims to commit commercial sex acts and to give him the money they made. The evidence included numerous photographs of Carson’s victims that he used to solicit their services on the Internet, as well as the advertisements that he posted to promote his prostitution business.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation. FBI special agents led a multi-agency task force that included the Cook County Sheriff’s Office, the DuPage Metropolitan Enforcement Group, and the Alsip, Bolingbrook, Channahon, Downers Grove, Joliet, Lansing, Marseilles, Naperville, Oswego, Romeoville, Shorewood, and Westmont police departments. The government was represented by Assistant U.S. Attorneys Jennie Levin and Bethany Biesenthal.
Two Top "Hoover Crips" Street Gang Members Indicted for the Murder of A Federal WitnessRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams, Sr., for the Northern District of Oklahoma announced today that a federal grand jury indicted two top members of the “Hoover Crips” street gang for the murder of a federal witness.
The Fourth Superseding Indictment charges, Lorell Antonio Battle, 30, Gaywone Dekeith Blades, 18, Paul Edward Battle, 32 , Thomas Layeffeta Jackson, 28, all of Tulsa, with conspiracy and drug related crimes. Additionally, Lorell Battle and Gaywone Blades are charged with conspiracy to commit murder, murder of federal witness, and the use of a firearm during and in relation to a violent crime in retaliation against a federal witness.
In addition to the drug related charges, the Fourth Superseding Indictment alleges that, in April 2013, Lorell Battle and Gaywone Blades premeditated the murder of a federal witness in retaliation for his being a federal trial witness and providing to law enforcement information about gang activities and other crimes. The indictment alleges Lorell Battle shot the victim thirteen (13) times at close range with a 9mm semi-automatic pistol.
“This indictment reflects our vigorous and unwavering efforts to seek justice for the victim and curb gang violence in the Northern District of Oklahoma,” said U.S. Attorney Williams. “Those who commit acts of violence here will be held accountable to the fullest extent of the law. We will continue to work alongside our law enforcement partners in the fight against drug trafficking and violent gang activities.”
The Superseding Indictment is the result of a two-year investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) into the “Hoover Crips” street gang and its criminal activities of drug dealing, extortion, and violence, including shootings.
The case is being investigated by the Tulsa Police Department’s Special Investigations Division assisted by the Federal Bureau of Investigation, Drug Enforcement Administration, and the Tulsa County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Robert T. Raley, Allen J. Litchfield, and Catherine Depew on behalf of the United States.
A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.
Two Eagle Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that two co-defendants—Samthana Jo Tackitt and Michael Scott Longhi—were sentenced to serve lengthy federal prison sentences for their involvement in a large scale Treasure Valley meth trafficking operation. The defendants appeared this week for sentencing before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Samantha Jo Tackitt, 31, of Eagle, Idaho, was sentenced yesterday to 151 months in prison followed by five years of supervised release for conspiracy to distribute 500 grams or more of methamphetamine. Michael Scott Longhi, 26, also of Eagle, was sentenced today to 188 months in prison followed by five years of supervised release. Judge Winmill ordered Tackitt and Longhi to forfeit $18,400 of seized currency and $100,000 in cash proceeds to the United States.
According to court proceedings, Tackitt was arrested on April 3, 2013, in possession of 1.5 kilograms of pure methamphetamine and $5,062 in U.S. currency. That same day, Longhi was arrested as he was returning from California, where he had just received a large shipment of high-grade methamphetamine. He was found to be in possession of 1.7 kilograms of pure methamphetamine and approximately $3,000 in U.S. currency. The government argued at sentencing that lengthy prison sentences were warranted due to the large amounts of pure methamphetamine that Tackitt and Longhi conspired to distribute in the Treasure Valley. Further, the two were responsible for distributing over 100 pounds of methamphetamine during the conspiracy. The government also noted at sentencing that Tackitt had bragged about wanting to be “the biggest methamphetamine dealer in the Valley.”
In addition to Tackitt and Longhi, three other individuals charged in the federal indictment, pleaded guilty to related drug trafficking offenses. Ausencio Tovar, 48, of Eagle, Idaho, will be sentenced on February 3, 2014, for possession with intent to distribute 500 grams or more of methamphetamine; Darin James Bangham, 40, of Star, Idaho, will be sentenced on January 8, 2014, for conspiracy to distribute 500 grams or more of methamphetamine; and Ashley Marie Armstrong, 27, will be sentenced on January 6, 2014, for conspiracy to distribute methamphetamine.
The case is being investigated by the Ada County Sheriff’s Office, Meridian Police Department, and Drug Enforcement Administration.
Two British Nationals Plead Guilty to Terrorism-related Charges in New Haven Federal CourtRead the Press Release
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NEW HAVEN, Conn. – Babar Ahmad and Syed Talha Ahsan pleaded guilty today in New Haven federal court to conspiring to provide and providing material support, including funds, personnel and physical items, to terrorists. The charges stem from their involvement in, and operation of, “Azzam Publications,” an entity in London that provided material support to the Chechen mujahideen, the Taliban and associated terrorist groups.
Today’s guilty pleas were announced by Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, John Carlin, Acting Assistant Attorney General for National Security, John Sandweg, Acting ICE Director and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.
“Today, Babar Ahmad and Syed Talha Ahsan admitted that they supported terrorists,” said Acting U.S. Attorney Daly. “They acknowledged that they solicited funds, recruited personnel and provided additional support for acts of terror, including efforts based out of the United States and solicitations for support that were specifically targeted at U.S. residents. In doing so, they also admitted that they knew that their efforts could result in the maiming and murder of individuals, including U.S. citizens. This prosecution is a testament to the resolve of our prosecution team and our federal law enforcement partners, notably Homeland Security Investigations and the FBI, as well as our counterparts in the U.K. who have provided crucial assistance to this lengthy international investigation.”
“This is an early example of individuals using the internet not only to radicalize others and spread violent propaganda, but also to further the actions of terrorist groups by soliciting supplies and personnel,” said Acting Assistant Attorney General Carlin. “This case demonstrates that the danger exists and our efforts to stop it are extensive. These pleas are a direct result of the hard work of the prosecutors, agents and analysts who spent countless hours devoted to the case.”
“These guilty pleas deal a significant blow to the financial infrastructure that supports terrorism around the world and underscores Homeland Security Investigations’ vital role in the global law-enforcement community,” said acting ICE Director John Sandweg. “This investigation further demonstrates law enforcement's resolve to bring to justice anyone who supports those who would target American interests at home or abroad. We commend the extraordinary sophistication and collaboration with which our federal partners and British counterparts met and addressed this threat.”
“Today’s guilty pleas are particularly important because the material support of terrorism is the very lifeblood of complex global terrorist networks,” stated FBI Special Agent in Charge Ferrick. “All terrorism investigations involve the identification, disruption and dismantling of material and financial support systems, for without financial support, terrorists and terrorist groups cannot survive or propagate. This far-reaching investigation was worked deliberately and without fanfare, and truly underscores Homeland Security Investigations and the FBI’s lasting commitment to combating terrorism at all phases.”
On October 6, 2004 and June 28, 2006, federal grand juries in Connecticut returned separate indictments charging Ahmad and Ahsan, respectively, with terrorism-related offenses. Ahmad, 39, and Ahsan, 34, both British citizens, have been detained since their arrests by British law enforcement authorities on August 5, 2004, and July 19, 2006, respectively, and both were extradited to Connecticut in October 2012 following lengthy extradition proceedings abroad.
The indictments allege that Ahmad and Ahsan were members of a group that supported the Chechen muhjahideen, the Taliban and associated terrorist groups through various means, including the operation of a series of websites under the name of “Azzam Publications,” including Azzam.com and Qoqaz.net, which promoted violent jihad and solicited support for such groups. During the times relevant to the indictments, the Taliban allowed territory under its control in Afghanistan to be used as a safe haven and base of operations for Usama bin Laden and Al Qaeda, who had committed and threatened to continue to commit acts of violence against the U.S. and its nationals. For a period of time, the Azzam websites were made possible through the unwitting services of a web-hosting company headquartered in Trumbull, Conn.
According to court documents, Ahmad also made efforts to secure GPS devices, Kevlar helmets, night vision goggles, ballistic vests, and camouflage combat suits. In addition, Ahmad and Ahsan recruited and arranged for individuals to travel to Afghanistan to train for violent jihad. According to court documents, a search of Ahmad’s residence in the United Kingdom in December 2003 revealed Ahmad in possession of an electronic document setting forth previously classified plans regarding the makeup, advance movements, and mission of a U.S. naval battle group as it was to transit from California to its deployment in the Middle East. The document discussed the battle group’s perceived vulnerability to terrorist attack. Ahsan was alleged to have possessed, accessed, and modified the electronic battle group document in April 2001.
Today, as part of their guilty pleas, Ahmad and Ahsan admitted that they conspired to provide and did provide material support for terrorism through Azzam.com by soliciting and conspiring to provide funds, personnel and physical items for the Taliban regime in Afghanistan, intending that such support or resources would be used in preparation for or in carrying out a conspiracy to commit murder, kidnaping, or maiming; or an attempt or conspiracy to kill nationals of the U.S. while such nationals were outside the U.S.
Ahmad admitted that he operated the family of websites collectively known as Azzam Publications, and that “the purpose of Azzam Publications [was] to ‘Incite the believers’ and also secondly to raise some money for the brothers.” Ahsan admitted that in 2001, he assisted Ahmad by processing video orders and by providing Ahmad with correspondence sent to Azzam Publications’ post office box in London.
Ahmad and Ahsan further admitted that Azzam Publications posted articles on how to train for and support the jihad and the mujahideen, posted biographies of “martyrs,” and also produced and/or sold a number of audio and video products that were advertised on the websites, including videos containing real combat footage and biographies and images of deceased mujahideen. In 2001, Azzam Publications also posted on its websites an article entitled “What You Can Do to Help the Taliban,” which provided detailed instructions on how to raise, transport and personally deliver amounts over US$ 20,000 in cash to the Taliban government via its consulate in Pakistan. Ahmad and Ahsan also admitted that Azzam Publications solicited personnel and physical items, including military suits and gas masks, for the Taliban.
Ahsan further admitted that, on one occasion, he received an unsolicited document sent to the Azzam post office box that described the makeup, capabilities, vulnerabilities and upcoming movements of a U.S. naval battle group from the U.S. to its deployment in the Middle East. Ahsan admitted that he created and saved an electronic version of the document, and did not dispute that the electronic version of the document was subsequently found in Ahmad’s residence in December 2003. Ahsan also did not dispute that, with the assistance of Ahmad, he traveled to and fought in Afghanistan, and attended terrorist training camps run by Al Qaeda.
Ahmad and Ahsan each pleaded guilty to one count of conspiracy to provide material support to terrorists and one count of providing material support to terrorists. As part of their pleas, Ahmad and Ahsan specifically agreed, in writing, that they pleaded guilty freely and voluntarily, and without intimidation or coercion of any kind, because they are guilty of conspiring to provide and providing material support to terrorists.
Due to the statutory maximum penalties that were in place during the time frame of each defendant’s criminal conduct, Ahmad faces a maximum term of imprisonment of 30 years and Ahsan faces a maximum term of imprisonment of 15 years. Pursuant to a binding plea agreement, if accepted by the court, Ahmad faces a maximum term of imprisonment of 25 years. At sentencing, the government intends to offer additional evidence of both defendants’ conduct.
U.S. District Judge Janet C. Hall scheduled sentencing for March 4, 2014.
This case has been investigated by a Task Force in Connecticut consisting of Special Agents from Homeland Security Investigations; law enforcement agents from the Federal Bureau of Investigation’s Joint Terrorism Task Force; the Internal Revenue Service – Criminal Investigation Division, Electronic Crimes Program; the Defense Criminal Investigative Service and the Naval Criminal Investigative Service.
Acting U.S. Attorney Daly praised the substantial efforts of law enforcement authorities from the Metropolitan Police Service’s Counter Terrorism Command and the Extradition Unit, both within New Scotland Yard, whose efforts and assistance have been essential in the investigation in this case. Acting U.S. Attorney Daly also thanked the U.S. Marshals Service and the HSI, FBI and Justice Department attachés in London for their assistance in the matter.
The case is being prosecuted by a team of federal prosecutors including Assistant U.S. Attorneys Stephen Reynolds and Ray Miller from the U.S. Attorney’s Office for the District of Connecticut, Trial Attorney Alexis Collins from the Counterterrorism Section of the Justice Department’s National Security Division, and Trial Attorney Richard Green from the Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division.
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(203) 821-3722 [email protected]Twenty-Three Defendants Charged in Manhattan Federal Court in Connection with Counterfeit Credit Card SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Steven G. Hughes, the Special Agent-in-Charge of the New York Office of the United States Secret Service, announced today the unsealing of an Indictment and a Complaint charging 23 individuals for their alleged participation in a large-scale counterfeit credit card scheme. As part of the scheme, the defendants allegedly obtained more than 1,000 stolen credit and debit card numbers, created counterfeit credit and debit cards with the stolen account information, and then utilized teams of “shoppers” to make more than $2 million of unauthorized purchases at retail stores located throughout the United States. In a coordinated operation early this morning, agents of the Secret Service and the Drug Enforcement Administration arrested 19 defendants in Flushing, Queens, and one defendant in Los Angeles, California. Agents also executed six search warrants and recovered counterfeit credit card manufacturing equipment and supplies. The defendants arrested in Queens will be presented before U.S. Magistrate Judge Debra Freeman in Manhattan federal court later today, and the defendant arrested in Los Angeles will be presented in federal court in the Central District of California this afternoon. An additional defendant is already in state custody in New York on other charges, and the two remaining defendants, Bing Lin and Ling Fu Shi, are at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants used classic cyber-crime techniques of computer intrusions and accessing carding websites to obtain account numbers and then rake in millions of dollars through shopping sprees funded by counterfeit credit cards created with the stolen personal account numbers. Today’s arrests are a testament to our continued commitment to prosecuting cyber and identity theft crimes and holding the perpetrators of them to account.”
U.S. Secret Service Special Agent-in-Charge Steven G. Hughes said: “Today’s cyber criminals are increasingly targeting the personal and financial information of ordinary citizens, and the proprietary information of companies engaged in e-commerce. In order to combat emerging cyber threats, the U.S. Secret Service has adapted our investigative techniques and implemented a variety of innovative, operational capabilities. The U.S. Secret Service will continue to cooperate with partners from the Drug Enforcement Administration, Homeland Security Investigations, and the U.S. Attorney’s Office in the Southern District of New York in order to prevent further online, criminal activity.”
According to the allegations in the Indictment and Complaint unsealed today in Manhattan federal court:
From at least June 2013 through December 2013, the defendants and their co-conspirators obtained stolen credit/debit card information that had been obtained through computer intrusions and “carding” websites, which are Internet-based forums where users sell and exchange stolen credit and debit card information. Using the stolen account information, they manufactured counterfeit credit/debit cards that were encoded with the stolen account information and embossed with the names of “shoppers”—i.e., co-conspirators responsible for making unauthorized purchases with the counterfeit cards.
Other members of the conspiracy acted as “drivers,” who coordinated teams of “shoppers” and transported them to retail stores located throughout the country, including Texas, North Carolina, Virginia, Pennsylvania, and New Jersey. The “shoppers” were given dozens of counterfeit credit/debit cards and used them to make purchases of retail items, including gift cards, electronics, cosmetics, clothing, and other merchandise worth thousands of dollars. To convert these items to cash, the defendants then transported the goods to New York and California, where they were sold to co-conspirators who, in turn, sold the items or had others exchange them for refunds.
As part of the scheme, the defendants and their co-conspirators obtained stolen account information for more than 1,000 credit/debit card accounts and used that stolen information to make, or attempt to make, more than $2 million in unauthorized purchases.
The defendants, who all reside in Flushing, Queens, are each charged with one count of conspiracy to commit access device fraud, which carries a maximum penalty of seven-and-a-half years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
A chart identifying the defendants’ ages and residences is attached.
Mr. Bharara praised the outstanding investigative work of the Secret Service. He also thanked the Drug Enforcement Administration for its assistance during the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Timothy T. Howard and Andrew C. Adams are in charge of the prosecution.
The charges contained in the Indictment and Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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U.S. v. Ze Xi Qiu, et al. Indictment
U.S. v. Yichao Chen, et al. ComplaintThree Northern Nevada Men Sentenced to Prison for Child Pornography CrimesRead the Press Release
RENO, Nev. – Three men from the northern Nevada area have been sentenced to lengthy prison sentences for their guilty pleas to child pornography crimes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Matthew Kevin Cowee, 41, of Sparks, and Jarrod Allen Pounds, 28, of Gardnerville, were sentenced on Monday, Dec. 10, 2013, to 97 months and 110 months in prison, respectively, and Byron Trent Davis, 48, of Reno, was sentenced today to 63 months in prison.
“As these cases demonstrate, federal and local law enforcement will work together to put child predators behind bars,” said United States Attorney Daniel G. Bogden. “These lengthy prison sentences should serve as a warning to other child predators. We are looking for you, and we will find you, arrest you and ensure that you are prosecuted to the fullest extent of the law.”
Cowee pleaded guilty in August to receipt of child pornography. Cowee possessed over 15,000 images and 200 videos containing child pornography on his computer and computer hard drives. Pounds pleaded guilty in September to possession of child pornography. Pounds possessed approximately 7,500 images and 40 videos of child pornography on his laptop computer and external computer hard drives. Davis pleaded guilty in August to possession by accessing with the intent to view child pornography. Davis accessed and viewed approximately 100 videos and 100 images of child pornography on his desktop computer. The images possessed and or viewed by the defendants included depictions of prepubescent children engaged in sexually explicit conduct, including sadistic and masochistic conduct.
Following release from prison, Cowee and Pounds will be placed on lifetime supervised release. Davis will be placed on supervised release for 15 years. All three will be required to register as convicted sex offenders.
Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.usdoj.gov/psc.
The cases were investigated by the Northern Nevada Internet Crimes Against Children Task Force, which includes the FBI, Homeland Security Investigations, the Nevada Attorney General’s Office, and the Washoe County Sheriff’s Office. The cases were prosecuted by Assistant United States Attorney Carla Higginbotham.
The cases were brought as part of Project Safe Childhood (PSC), 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 CriminalSerial Armed Robber Targeting Taxi Cab and Food Delivery Drivers Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Lionell Sanders, a/k/a “Pistol,” a/k/a “Briscoe,” 19, of Miami, pled guilty yesterday to one count of conspiracy to commit armed robbery, in violation of Title 18, United States Code, Section 1951(a), two counts of armed robbery, in violation of Title 18, United States Code, Section 1951(a), and two counts of possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
Sanders admitted to robbing two Super Yellow Cab, Inc. drivers at gunpoint in August 2013. During both robberies, Sanders pointed a firearm to the victims’ heads, demanded all of their money, and told them that he would kill them if they resisted. Sanders’ fingerprints were found on the driver’s side door of one of the taxis. These robberies were a part of a series of armed robberies of taxi and food delivery drivers that Sanders organized and carried out in the City of Miami during the summer of 2013. In one of the armed robberies, a taxi cab driver was shot in the back as he tried to flee. Sanders not only bragged to his friends about committing these crimes, but also posted photographs of his firearms on his Facebook account, which was aptly named “Pistol.Slidda”.
The defendant faces a mandatory minimum sentence of 32 years in prison and a maximum sentence of up to life. Sanders’ sentencing hearing is scheduled for February 20, 2014 at 2:00 p.m. before U.S. District Judge K. Michael Moore.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of the ATF and the City of Miami Police Department. The case was prosecuted by Assistant U.S. Attorneys Vanessa Singh Johannes and Seth Schlessinger.
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.
Saratoga Man Sentened to Time Served for Failing to Update His Sex Offender Registration InformationRead the Press Release
Moved from Elk City, Oklahoma to Saratoga Springs, New York
ALBANY, NEW YORK – EUGENE PERIARD, age 34, of Saratoga Springs, New York, was sentenced to time served for failing to update his sex offender registration information yesterday in Albany by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and David McNulty, U.S. Marshal for the Northern District of New York. PERIARD, who had entered a guilty plea on August 15, 2013, was also ordered to serve a five year term of supervised release and to register with the New York State Sex Offender Registry Program.
In 2007, PERIARD was convicted of a sex offense in the State of Oklahoma. In early April 2013, PERIARD moved from Elk City, Oklahoma to Saratoga Springs, New York and lived in Saratoga Springs until the time of his arrest on April 30, 2013. Records from the sex offender registries in Oklahoma and New York established that PERIARD did not update his change of address information in Oklahoma and did not register as a sex offender in New York.
This case was investigated by the U.S. Marshals Service and the Saratoga Springs Police Department.
Rockford Man Sentenced to 10 Years in Federal Prison for Illegally Possessing an Assault RifleRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala to illegally possessing a firearm as a convicted felon. ROBERT J. GRAY, 34, was sentenced to 10 years in federal prison, to be followed by 3 years of supervised release. Gray pled guilty on May 3, 2013 admitting that on May 8, 2012, having previously been convicted of a felony, he possessed at his home an SKS Norinco semi-automatic assault rifle with an obliterated serial number and sixteen rounds of ammunition. Gray also possessed at his home $372,993 in U.S. currency, diamond jewelry, six cell phones, a digital scale, a pocket scale, a heat sealer and bags, and plastic grocery bags filled with rubber bands.
The defendant was originally charged in state court and was transferred to federal court where he was charged under tough federal firearms laws as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes. The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders. Additional information about Project Safe Neighborhoods may be found at: www.psn.gov.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Constance Hester, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph Bruscato, Winnebago County State’s Attorney; and Richard Meyers, Winnebago County Sheriff.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Rockford Man Sentenced to 10 Years 3 Months in Federal Prison for Drug Trafficking and Firearm Related ChargesRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala to possessing with the intent to distribute crack cocaine, to illegally possessing a firearm as a convicted felon, and to possessing a firearm in furtherance of a drug trafficking crime. ERIC LAMONT KELLY, 29, was sentenced to a total of 10 years and 3 months in federal prison, to be followed by 5 years of supervised release. Kelly pled guilty on September 5, 2013, admitting that on April 6, 2012, he had possessed 18.4 grams of crack cocaine, with the intent to distribute it, along with a 9 mm pistol after having previously been convicted of a felony. He also admitted that he possessed the pistol in furtherance of his drug trafficking crime.
In his plea agreement, Kelly admitted that on April 6, 2012, when police officers attempted to execute a search warrant at Kelly’s house in Rockford, he tried to hide the crack cocaine and firearm by throwing the items down a heating duct. Police officers recovered the crack cocaine and firearm, along with digital scales, drug packaging materials, and the proceeds from the sale of drugs.
The defendant was originally charged in state court and was transferred to federal court where he was charged under tough federal firearms laws as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes. The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders. Additional information about Project Safe Neighborhoods may be found at: www.psn.gov.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Constance Hester, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph Bruscato, Winnebago County State’s Attorney; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney John G. McKenzie.
Pinellas County Men Sentenced in A joint Federal and State Weapons and Drug InvestigationRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Joseph E. Thornton (34, of Largo) to 15 years in federal prison for being a felon in possession of a firearm. Thornton pleaded guilty on June 27, 2013.
According to court documents, Thornton made a series of gun and cocaine sales to an undercover officer, including selling cocaine and a .40 caliber Hi-Point pistol and ammunition to an officer on January 8, 2013. Following the purchase, law enforcement learned that the pistol had been reported stolen on December 17, 2012, following a residential burglary.
Additionally, two other individuals were separately charged and sentenced federally, as a result of the same joint federal and state investigation. On September 23, 2013, U.S. District Judge Virginia M. Hernandez Covington sentenced Anthony Maurice McSwain (28, Pinellas County) to 5 years and 10 months in federal prison for being a felon in possession of a firearm, in connection with a gun sale to an undercover officer on November 16, 2012. On November 4, 2013, U.S. District Judge James D. Whittemore sentenced Jarvis Antwan Dorsey (22, Pinellas County) to 5 years and 6 months in federal prison for the same offense, in connection with the sale of a gun to an undercover officer on January 15, 2013.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"), the Largo Police Department, and the Clearwater Police Department. The cases arose from a joint federal and state investigation resulting in 28 people being arrested on state and federal violations, and the seizure of 13 firearms, as well as quantities of cocaine, marijuana, hydrocodone and other narcotics. The federal cases arising from the investigation were prosecuted by Assistant United States Attorney Mark E. Bini.
This investigation is part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Paducah, Kentucky, Woman Sentenced to 15 Months in Prison for Mail FraudRead the Press Release
– Judge orders $112,012.44 restitution payment to former employer
PADUCAH, Ky. – A Paducah, Kentucky woman was sentenced today by Senior District Judge Thomas B. Russell, to 15 months in prison, followed by a 1 year term of supervised release and ordered to pay restitution in the amount of $112,012.44, after pleading guilty to stealing from her former employer announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stacie A. Javier, age 37, pleaded guilty to a five count federal indictment charging her with mail fraud, for stealing $112,012.44, from her former employer, Credit Bureau System of Paducah, Inc. (CBS), between November 2008, to January 2012. Javier was employed by CBS, a collection agency for creditors, as a cashier who was responsible for the preparation of bank deposits of cash, checks, and other forms of payments.
In court, Javier admitted to devising a scheme to keep debtor’s cash payments by redepositing debtor’s returned checks (for insufficient funds) in place of an equivalent amount of cash from debtor payments. According to the plea agreement, when debtor checks that had been provided to CBS for payment on creditor accounts were not paid because of insufficient funds (NSF), the checks were returned to CBS by U.S. Bank (Bank). The unopened envelopes with NSF debtor checks were delivered to Javier who would retain certain NSF checks rather than pursue further collection. Debtor payments to CBS for creditor accounts were also made by cash payments. Javier determined that certain NSF checks that she had retained were in amounts equivalent to amounts of debtor cash received for payments on creditor accounts. Javier substituted the returned NSF checks for the equivalent of debtor cash and prepared deposit slips with such NSF checks and other forms of payment to CBS, for deposit with the Bank. Javier kept the cash payments.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the United States Secret Service and the Paducah Police Department.
Oglala Man Sentenced for First Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, man convicted of First Degree Burglary was sentenced on December 4, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tim Two Bulls, age 24, was sentenced to 18 months of imprisonment, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Two Bulls pled guilty to the charge on October 24, 2013. The charge related to Two Bulls unlawfully breaking into the home of a woman on December 16, 2011, in the Red Shirt Table community.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Two Bulls was immediately turned over to the custody of the U.S. Marshals Service.
New Boston, Texas Woman Guilty of Sending Ricin LettersRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 35-year-old New Boston, Texas woman has pleaded guilty to a biological weapons charge in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Acting Assistant Attorney General for National Security. John Carlin.
Shannon Guess Richardson pleaded guilty to an Information charging her with possession of a toxin for use as a weapon today before U.S. Magistrate judge Caroline M. Craven. Richardson was named in an indictment returned by a federal grand jury on June 27, 2013, charging her with threatening the President of the United States, mailing a threatening letter to New York City Mayor Michael Bloomberg, and mailing a threatening letter to Mark Glaze in Washington, D.C.According to the information presented in court, during April-May 2013, Richardson made several online purchases of items for the purpose of producing ricin. These supplies included castor bean seeds and sodium hydroxide (lye.) Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected. There is no known antidote or cure for ricin poisoning.
Richardson subsequently placed ricin onto threat letters addressed to President Barack Obama, Mayor Michael Bloomberg and Mark Glaze. On May 20, 2013, Richardson mailed the three threatening letters from the New Boston, Texas, Post Office. On May 30, 2013, Richardson traveled to the Shreveport, LA, Police Department and reported that her husband was responsible for the ricin-laced letters.
Richardson was arrested on June 7, 2013, in Mt. Pleasant, Texas, and has been detained since that time. She faces up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Texas Department of Public Safety, the New Boston, Texas Police Department, the Shreveport, Louisiana, Police Department and the New York City Police Department. This case is being prosecuted by Assistant U.S. Attorneys Frank Coan, Ryan Locker and Brit Featherston, as well as Trial Attorney Jolie Zimmerman of the Justice Department’s National Security Division.
Navajo Woman Pleads Guilty to Embezzling Money Belonging to the Mescalero Apache NationRead the Press Release
ALBUQUERQUE – Iris Peterson, 65, an enrolled member of the Navajo Nation residing in Mescalero, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to theft from an Indian Tribal Organization.
Peterson entered a guilty plea to a felony information and admitted embezzling $8,695.00 in funds belonging to the Mescalero Apache Nation between Jan. 2007 and Dec. 2011. During that time, Peterson was a supervisory social worker employed by the BIA Mescalero Social Services Program. Peterson admitted cashing checks intended for juvenile clients who were receiving services from the Social Services Program and using the funds for her personal use.
Peterson entered her guilty plea pursuant to a plea agreement that requires her to pay restitution in the amount of $8,695.00. Under the terms of the plea agreement, the United States will not oppose a sentence of probation if Peterson is ordered to pay restitution. Peterson was released under pretrial supervision pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Office of the Inspector General, U.S. Department of the Interior and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Mount Vernon Man Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Donald Ray Keip, 39, of Mount Vernon, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for April 4, 2014, in United States District Court in Benton, Illinois. Keip will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Keip admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Keip admitted to falsely billing the program between June 30, 2012 and January 29, 2013, when he purportedly rendered personal assistant services to an individual, his mother, when he, in fact, did not. As a result, Keip improperly received $24,000.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Mobile County Woman Sentenced for Her Role in Mortgage Fraud CaseRead the Press Release
The United States Attorney, Kenyen Brown announces that Delaine Williams, a 27 year old Satsuma resident was sentenced today for her role in a mortgage fraud scheme conducted at the Midtown Mortgage brokerage house. Williams falsified documents on a mortgage loan application so that it would be approved. Williams was charged by information in May 2013 and later pled guilty pursuant to a plea agreement on June 21, 2013. United States District Judge Kristi Dubose sentenced Williams to five (5) years’ probation and ordered her to pay $45,707.66 in restitution to The Department of Housing and Urban development (HUD) and a monetary assessment of $100.
Special Agents of The Department of Housing and Urban Development’s/Office of Inspector General investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Michael Dwaine Freeman Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on December 9, 2013, before Chief U.S. District Judge Dana L. Christensen, MICHAEL DWAINE FREEMAN, a 64-year-old resident of Anaconda, was sentenced to a term of:
- ison: 210 months
- ecial Assessment: $100
- rfeiture: cell phone
- pervised Release: 10 years
FREEMAN was sentenced in connection with his guilty plea to sexual exploitation of children (production of child pornography).
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In August 2012, Anaconda-Deer Lodge County Law Enforcement investigated complaints against FREEMAN for having inappropriate contact with children.
As part of the investigation, detectives searched FREEMAN's residence in Anaconda. A cell phone was seized during the search. When a detective checked the phone for power, the detective saw a close-up image of a young child's genital area (set as the cell phone's wallpaper or home page).
FREEMAN was arrested and interviewed at the jail. He admitted he took the photograph of the child's genital area that was on his cell phone. The child was born in 2009. FREEMAN explained he took the photo a few days earlier while changing her diaper and said there would be other images of the child on the phone as well.
The cell phone was forensically examined and the examiner found the home screen as described by FREEMAN. The examiner located additional images of the child which also depicted sexually explicit conduct. The images were produced between January 31, 2012, and July 29, 2012.
This case underscores the importance of local, state, and federal law enforcement working together towards a common goal of protecting the community. The efforts of the Anaconda law enforcement identifying a dangerous pedophile and then requesting the assistance of the Montana Internet Crimes Against Children Task Force has protected other children in the community from victimization." said U.S. Attorney Michael C. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FREEMAN will likely serve all of the time imposed by the court. In the federal system, FREEMAN 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 Montana Internet Crimes Against Children Task Force (ICAC), the Montana Department of Criminal Investigation, and the Anaconda-Deer Lodge County Law Enforcement Department.
Mercer Man Sentenced to 4 Years in PrisonRead the Press Release
AS PART OF FEDERAL PRESCRIPTION DRUG CRACKDOWN
BLUEFIELD, W.Va. – A 27-year-old Mercer County man was sentenced today to four years in prison after pleading guilty earlier this year to a federal drug charge, announced U.S. Attorney Booth Goodwin. Matthew M. Pigg, of Montcalm, Mercer County, W.Va., previously pleaded guilty to possession with intent to distribute hydromorphone, a powerful prescription painkiller commonly known as Dilaudid. Pigg’s sentence was handed down by Senior United States District Judge David A. Faber in Bluefield.
On February 12, 2013, police executed a search warrant on the defendant’s Montcalm residence. During the execution of the search warrant, police found a quantity of hydromorphone pills hidden inside of a safe located in the defendant’s bedroom. Pigg told police that he intended to sell the pain pills. At the time Pigg possessed the hydromorphone pills, he also possessed a loaded .38 caliber pistol. The firearm, also located inside of the defendant’s bedroom safe, was seized by police.This case was brought as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation, the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments. Assistant United States Attorney John File handled the prosecution.
This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Man Pleads Guilty to Wire FraudRead the Press Release
BUFFALO, N.Y.— BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nicholas Mussolini, 27, of Williamsville, New York, pleaded guilty to a felony charge of Wire Fraud before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of a term of 20 years imprisonment, a term of supervised release of 3 years and a fine of $250,000.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant pleaded guilty to running fraudulent loan schemes, which resulted in over $1 million dollars in financial losses to six victim companies. The schemes involved the defendant’s company, Preston Waters Corporation, which purported to be in the business of obtaining large loans for other companies. The defendant represented to victim companies that a deposit was required in order to secure loans on their behalf. As part of this scheme, a certain victim company remitted over $400,000 to the defendant, as a deposit for a loan of approximately $11 million. The defendant did not use this money to obtain a loan for the victim company, and instead, used the funds for personal and other expenses, and to repay other victims of his fraud scheme. Other victim companies included film and production companies seeking financing for the production of films, festivals, and other business ventures.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig.
Sentencing is scheduled for April 7, 2014 at 1:00 p.m. in Buffalo, N.Y., in front of U.S. District Court Judge Richard J. Arcara.Luzerne County Man Charged with Drug and Gun OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Kingston resident was indicted by a federal grand jury today for trafficking in illegal drugs and illegally possessing a firearm.
According to United States Attorney Peter J. Smith, the grand jury alleges that James Featherstone, age 33, distributed cocaine and heroin in Luzerne County during March through September of 2013, and illegally possessed a firearm as a convicted felon and in connection with his drug trafficking activities.
The Indictment charges Featherstone with seven counts of drug trafficking, one count of possessing a firearm in furtherance of drug trafficking, and one count of illegally possessing a firearm as a convicted felon.
The charges stem from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Pennsylvania State Police, Kingston Police, and the Luzerne County District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years in prison and a $1 million fine for each of the drug charges; a mandatory five-year prison sentence and possible life sentence if convicted of possessing a firearm in connection with drug trafficking; and a mandatory 15 years in prison and a possible life sentence if convicted of the felon in possession of a firearm charge as an “armed career criminal.”
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Long Island Man Charged with Orchestrating $5 Million Ponzi SchemeRead the Press Release
A fourteen-count indictment was unsealed today in the United States District Court for the Eastern District of New York located in Central Islip, charging Robert Rocco with wire and mail fraud in connection with a series of business ventures that he created. 1 Rocco was arrested earlier today and will be arraigned before the Honorable Leonard D. Wexler in the federal courthouse in Central Islip.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
The indictment alleges that Rocco, while acting as the president of the Dix Hills Soccer Club, solicited club members and volunteers, friends and neighbors, to invest money in a series of businesses that he formed including, Limestone Capital Services (“Limestone”), Advent Merchant Services, LLC and Advent Equity Partners, LLC, that Rocco claimed would earn high rates of return on investments. Rocco allegedly told investors that they would receive returns of up to 18% of their principal investment annually through the companies’ investments in ventures that purportedly included providing loans to finance wholesale cigarette purchases on behalf of the Shinnecock Nation tobacco shop and a credit card processing venture. The indictment charges that Rocco solicited and received approximately $5 million in investor money between 2006 and 2013, which was not invested as promised. Instead Rocco allegedly misappropriated the money and additionally, solicited money from new investors which he used to pay purported profits to earlier investors, thus concealing the earlier misappropriation. Rocco also is alleged to have sent fraudulent account statements to investors that falsely showed that investors’ accounts had earned high rates of return. The indictment further alleges that Rocco controlled the bank accounts and records of the Dix Hills Soccer Club and did not permit others to have access to them. Between January and March 2010, Rocco allegedly deposited $66,915 in checks from the soccer club into Limestone and later distributed the proceeds of the checks to early investors in Limestone, leaving the soccer club with no funds to operate. In April 2010, Rocco allegedly sought and received donations to allow the club to continue operations.
“As alleged in the indictment, Rocco employed fraud and deceit to victimize friends and neighbors and even used his local soccer club to further his schemes. His promises of high returns were illusory, propped up by false account statements,” stated United States Attorney Lynch. “Today’s arrest demonstrates our continuing commitment to investigate and prosecute those who commit financial crimes, particularly those who haven’t gotten the message that we will actively and aggressively pursue those who inflict financial harm on our citizens.” Ms. Lynch thanked the Federal Bureau of Investigation for its work on the investigation.
“As alleged in the indictment, Rocco mastered the role of con artist when he traded upon his relationship with friends and colleagues with empty promises of high financial returns in exchange for their investments. While not physically violent, Rocco’s alleged actions had a significant impact on the lives of his victims who lost their hard earned money to someone they trusted. The FBI will continue to vigorously investigate those who prey upon and defraud members of our community for their own personal gain,” stated Assistant Director-in-Charge Venizelos.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant
ROBERT ROCCO
Age: 48
Dix Hills, New YorkE.D.N.Y. Docket No. 13-CR-664 (LDW)
_____________________________
1 The charges in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.
New Arrest in $5 Million Dollar Ponzi Scheme- Indictment
Idaho Prison Inmate Sentenced for Mail FraudRead the Press Release
BOISE – Today, in United States District Court, U.S. District Judge B. Lynn Winmill, sentenced Mark Anthony Brown, 53, an inmate at the Idaho Correctional Center, on two counts of mail fraud, U.S. Attorney Wendy J. Olson announced. Judge Winmill sentenced Brown to 33 months of prison, three years of supervised release following his confinement, restitution of $59,679.92 and forfeiture of the same amount, which was previously seized from Brown’s accounts. The court also ordered forfeiture of Brown’s typewriter, which he used to commit the crime. Judge Winmill also ordered the prison portion of the sentence to run consecutively to the state prison sentence that Brown is currently serving. Brown was indicted by a federal grand jury in Boise on March 12, 2013. He pleaded guilty to the charges on August 22, 2013.
According to court documents, from September 2007 to February 28, 2013, Brown devised a scheme to fraudulently obtain money from various class action lawsuits and large-scale bankruptcies. According to the plea agreement, Brown submitted numerous claim forms in which he falsely represented himself as a class member or creditor. He then mailed the claim forms to administrators of the settlements in order to receive settlement proceeds, and deposited the proceeds he received into his Idaho Department of Correction trust account, and into several different investment accounts, all through the use of the United States Mail. The plea agreement details 22 different settlements and litigations which Brown defrauded, ranging from $20 to $29,528.50.
The case was investigated by the United States Postal Inspection Service with the cooperation of the Idaho Department of Correction.
Hostage-takers Sentenced to PrisonRead the Press Release
PHOENIX – On Dec. 9, 2013, U.S. District Judge Susan R. Bolton sentenced Abel Doncel de la Torre-Gonzalez, 34, of Mexico D.F., Ed. De Mexico, MX, to seven years in prison for his role in a hostage taking. De la Torre was the last of three hostage takers sentenced to prison in this matter. Espiridion Pablo-Madrigal, 36, of San Juan Carapan, Michoacàn and Luis Bretado-Aragon, 19, of Concordia, Sinaloa, Mexico, were sentenced in November to ten and one-half years and six years imprisonment, respectively. All three had been indicted June 12, 2013, on charges of hostage taking, conspiracy to commit hostage taking, and use, carrying and brandishing a firearm during and in relation to a crime of violence.
U.S. Attorney John S. Leonardo reaffirmed the federal government’s commitment to prosecute human smugglers, especially those who employ violence and stated, “Federal law provides for significantly higher sentences for alien smugglers who engage in violence and use firearms as tools of their trade. We will use the statutory tools available to seek lengthy prison sentences for people who victimize their human cargo.”
The charges in the case stemmed from a human smuggling event in which the defendants raised the smuggling fees, threatened to kill the victims if the higher fees were not paid, and engaged in violent behavior toward the victims, who were in the process of being smuggled into the United States from Mexico.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The prosecution was handled byJoseph E. Koehler, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER : CR-13-835-PHX-SRB
RELEASE NUMBER: 2013-094_Pablo-Madrigal_etal.For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Honduran Man Convicted of High Speed Flight from Border Patrol CheckpointRead the Press Release
LAREDO, Texas – Miguel Angel Chavarria-Martinez, 28, a Honduran national illegally in the United States, has entered a guilty plea to eluding and high speed flight from a Border Patrol (BP) checkpoint, announced United States Attorney Kenneth Magidson.
On Oct. 6, 2013, at approximately 12:30 a.m., Chavarria-Martinez arrived at the BP checkpoint located on U.S. Highway 59 near Farm to Market Road 2050 in East Webb County near Freer as driver and sole occupant of a blue Freightliner semi-tractor. BP agents initiated an immigration inspection, but Chavarria-Martinez did not answer any questions. At the request of agents, Chavarria-Martinez began to exit the cab of his vehicle, but quickly returned to the driver’s seat. He then drove away from the inspection station with the agent standing on the cab’s side deck by the driver’s window. Chavarria-Martinez ignored the agent’s orders to stop the vehicle and departed the checkpoint and headed towards Freer.
BP agents pursued Chavarria-Martinez’s vehicle along with Texas Department of Public Safety (DPS) officers. The vehicle reached speeds of up to 80 miles per hour on Highway 59 as he attempted to flee and as it approached, entered and drove through Freer. The posted speed limit is 45 miles per hour before entering Freer and then drops to 30 miles per hour through the community. The driver finally stopped at a roadblock initiated within the city by the Freer Police Department (FPD). At that time, FPD officers turned Chavarria-Martinez over to Border Patrol agents.
Chavarria-Martinez was determined to be a citizen and national of Honduras illegally in the United States and has been deported at least once before.
U.S. Magistrate Judge Guillermo R. Garcia presided over the plea and a sentencing date will be set in the near future before U.S. District Judge Diana Saldana. At that time, he faces a maximum of five years in federal prison and/or a possible $250,000 fine. Chavarria-Martinez has been in federal custody since his arrest Oct. 6, 2013, where he will remain pending that hearing.
BP investigated in conjunction with DPS and FPD. Assistant United States Attorney Homero Ramirez is prosecuting the case.
Hogsett Announces Sentencing of Terre Haute Man on Child Exploitation ChargesRead the Press Release
TERRE HAUTE – Joseph H. Hogsett, the United States Attorney, announced today that Emery Norton, age 26, of Terre Haute, was sentenced by U.S. District Judge Larry J. McKinney to 135 months (11 years, 3 months) in federal prison after admitting that he received child pornography. Hogsett said the sentencing decision marked the conclusion of another prosecution as part of Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Every time one of these horrific images or videos is viewed, a child is victimized,” Hogsett said. “This type of behavior is disgusting, it is unacceptable, and it is illegal. That is why with the launch of Operation Community Watch last year, we made it clear that this office’s approach to child exploitation is very simple: zero tolerance.”
According to charging documents, an investigation into Norton began in November 2012 when an Indiana State Police detective located an individual online who was sharing thousands of images and video files that depicted child pornography. These activities were traced to a home in Terre Haute, and in late March 2013, a search warrant was executed at the home on Liberty Avenue.
During the search, Norton consented to a search of both a laptop computer and a desktop computer inside the home. A forensic examination of those devices revealed both images and videos depicting child pornography. Later, investigators located a "thumb drive" that contained more pictures and videos depicting child pornography. All told, tens of thousands of exploitative files were found within the home, some of which depicted children as young as age nine.
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, Norton was ordered to serve lifetime federal supervision at the end of his prison term. In addition, the defendant was ordered to pay $3,000 in restitution to three victims who were identified as being depicted in the materials he received.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched "Operation Community Watch," which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by Federal Bureau of Investigation, the Indiana State Police, the Indiana Internet Crimes Against Children Taskforce, along with Terre Haute and Vigo County law enforcement.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Four Pennsylvania Residents Charged in Cocaine Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. - Three residents of Johnstown, Pa., and a resident of Philadelphia, Pa., have been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The six-count indictment named as defendants the following individuals:
George J. Lawrence, IV, 28, of Johnstown, Pa.
Paulette M. Alt, 52, of Johnstown, Pa.
Donna M. Hawk, 48, of Johnstown, Pa.
Paul A. Robinson, Jr., 31, of Philadelphia, Pa.According to the indictment presented to the court, from Jan. 31, to April 23, 2013, the defendants conspired to distribute more than 28 grams of cocaine base, in the form commonly known as "crack," and on separate occasions during that time period the defendants distributed less than 500 grams of cocaine and less than 28 grams of cocaine base. In addition, on April 23, 2013, Lawrence possessed more than 28 grams of cocaine base with the intent to distribute it.
The law provides for a maximum total sentence for Lawrence of 140 years in prison, a fine of $13,000,000 or both; for Alt & Robinson of 80 years in prison, a fine of $7,000,000 or both; and for Hawk of 60 years in prison, a fine of $6,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lawrence, Alt, Hawk and Robinson.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Tucson Business Man Sentenced to Additional Time for Possessing 24 Explosive DevicesRead the Press Release
TUCSON, Ariz. – On Dec. 6, 2013, Todd Russell Fries, 50, of Tucson, was sentenced by U.S. District Judge Cindy K. Jorgenson to 60 months in prison after he was found guilty by a federal jury on Aug. 13, 2013, of two counts of unlawful possession of unregistered destructive devices.Judge Jorgenson ordered that 20 months be served consecutive to the sentence of 151 months Fries previously received for unlawful possession and use of a chemical weapon.
Fries is currently serving a sentence of 151 months after being convicted in October 2012 of unlawful possession and use of a chemical weapon and providing false information to the FBI. The chemical weapon charges stemmed from an incident that occurred on Aug. 2, 2009, when two chlorine chemical devices were placed at the home of Fries’s former clients with whom he had a billing dispute. In that incident, the chlorine devices produced a massive cloud containing chlorine that enveloped a neighborhood on the northwest side of Tucson. As a result of the cloud, the neighborhood had to be evacuated. On May 13, 2011, during the course of the investigation of the chemical devices, the FBI executed a search warrant at Fries’s home in Tucson. During the search, agents discovered 24 explosive devices; three containing added fragmentation, in a bedroom located in Fries’s residence.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Pima County Sheriff’s Department and the Pima Regional Bomb Squad. The prosecution was handled by Beverly K. Anderson, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-01751-TUC-CKJ
RELEASE NUMBER: 2013-093_FriesFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former San Luis Obispo Police Officer Sentenced to 18 Months in Federal Prison in Corruption CaseRead the Press Release
LOS ANGELES -- A former detective with the San Luis Obispo Police Department has been sentenced to 18 months in federal prison for extorting sources he cultivated while working on a narcotics task force.
Cory Pierce, 40, of Arroyo Grande, was sentenced Monday afternoon by United States District Judge Margaret M. Morrow. In addition to the prison term, Judge Morrow sentenced Pierce to three years of supervised release and ordered him to pay $5,500 in restitution. Pierce was ordered to begin serving his sentence by January 27.
Pierce, who served with the San Luis Obispo Police Department for six years, pleaded guilty in June to a federal extortion charge. When he pleaded guilty, Pierce admitted that while assigned to a narcotics task force, he cultivated as sources an individual who had been arrested for heroin possession, and the man's girlfriend. Pierce obtained painkillers from the sources in exchange for providing them with placebo oxycodone pills that they could sell.
As part of the plea agreement, Pierce admitted to using his position as a police officer to obtain $11,000 from someone who he thought was a drug dealer in exchange for the placebo pills.
The investigation was conducted by the Federal Bureau of Investigation.
Release No. 13-144
Former Nopd Officer, Jason Cross, Pleads Guilty in Federal Court to Drug ChargesRead the Press Release
JASON CROSS, 35, a former New Orleans Police Officer, pled guilty this morning before U.S. District Judge Jane Triche Milazzo to a felony drug violation, announced U.S. Attorney Kenneth Allen Polite, Jr. CROSS was charged by a bill of information, with attempting to possess with the intent to distribute a quantity of cocaine hydrochloride. CROSS pled guilty pursuant to a written plea agreement and signed a factual basis which was placed in the court record.
CROSS faces a sentence of not more than 20 years in prison, a fine of not more than $1,000,000.00, and a three year term of supervised release. Sentencing is scheduled on March 27, 2014 at 10:00 a.m.
This case was investigated by the Federal Bureau of Investigations and was prosecuted by AUSA Jay Quinlan.
(Download Factual Basis )
Former CEO of Miami Lakes Tax Preparation Business Pleads Guilty to Structuring SchemeRead the Press Release
Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Carlos Rodriguez, 40, of Miami Lakes, pled guilty yesterday to one count of structuring financial transactions with the intent to evade currency reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and 5324(d)(2). Rodriguez is the former Chief Executive Officer of Rodri Rodri & Associates (“Rodri”), formerly located in Miami Lakes. Sentencing is scheduled for March 11, 2014 at 9:00 a.m., before U.S. District Judge Kathleen M. Williams. At sentencing, Rodriguez faces up to ten years in prison and the forfeiture of property.
According to court documents and statements, financial institutions are required to report cash transactions in amounts over $10,000.00 to the IRS. From on or about January 4, 2012 through on or about March 22, 2012, Rodriguez was the Chief Executive Officer of Rodri, a tax preparation business. During that time, the defendant cashed or had cashed Rodri business checks in amounts under $10,000.00 at JPMorgan Chase Bank with the intent to evade the currency transaction reporting requirements of Title 31, United States Code, Section 5313(a). Pursuant to the terms of the plea agreement, the amount of money involved in the structuring violations was between $400,000 and $1 million.
According to the evidence, the tax return preparation part of the business was supervised by the defendant’s late wife Jennifer Rodriguez. The defendant was primarily responsible for the day-to-day operations of the business such as paying employees, collecting fees for the preparation of tax returns, paying business expenses, and handling customers with questions, concerns, or complaints. Nonetheless, many of the tax returns prepared by Rodri were fraudulent and contained false credits, such as education and fuel credits that the taxpayers otherwise were not entitled to have. The structured cash was used to provide cash, for a fee, to taxpayer clients in exchange for their inflated tax refunds.
As further stated in court and in court documents, the proceeds generated by the tax preparation business are traceable to the purchase of the properties listed in the indictment, including a couple of parcels of real property. According to the plea agreement, Rodriguez agreed to forfeit said properties to the United States.
As further stated in the plea agreement, Rodriguez agreed to cooperate with the IRS in its civil examination, determination, assessment, and collection of income taxes related to the defendant’s 2009 through 2012 income tax returns and any related corporate tax returns, and further agreed not to conceal, transfer, or dissipate funds or property that could be used to satisfy such taxes, penalties, and interest.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Elijah A. Levitt.
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.
Five Defendants Plead Guilty in Statesboro, Georgia to Tax Fraud and Identity Theft SchemeRead the Press Release
22 Defendants Convicted So Far This Year in Stolen Identity Tax Fraud Schemes
STATESBORO, GA: Five federal defendants – ALECEIA LOVETT, CIERRA JOHNSON, KANDICE WHITE, DANIELLE CLARK, and SIRBRINA BANGS – pled guilty last week before United States District Court Judge B. Avant Edenfield in Statesboro, Georgia for their involvement in a stolen identity tax fraud scheme.
Earlier this year, these five defendants, along with 17 others who were also involved in similar schemes, were charged with federal crimes ranging from conspiracy to defraud the IRS to identity theft from medical records. According to evidence presented during hearings in these cases, the participants in these schemes illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, which they then used to prepare and submit fraudulent tax returns in order to unlawfully obtain tax refunds.
United States Attorney Edward J. Tarver said, “These cases demonstrate the continuing commitment of the United States Attorney’s Office to protecting the privacy of medical records and the hard-earned money of honest taxpayers. This investigation is ongoing. Our law enforcement partners will continue to track down these identity thieves and bring them to justice.”
The five defendants who pled guilty last week are among the 24 defendants federally charged this year as participants in stolen identity tax fraud schemes in the Statesboro, Georgia area. The status of each of these 24 defendants’ cases is listed (in alphabetical order) as follows:
ERICA BALDWIN, 31, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
SIRBRINA BANGS, 26, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 5, 2013 to conspiracy to commit theft of public funds. Her sentencing hearing has not yet been scheduled.
DANIELLE CLARK, 26, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 5, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
TAMEIKA CLARK, 24, of Statesboro, Georgia, was re-indicted on December 3, 2013 with 26 counts of wire fraud conspiracy, wire fraud, aggravated identity theft, and access device fraud. Her trial date has not yet been scheduled.
TRACY DENSON, 44, of Statesboro, Georgia, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
SHAKITA EASON, 30, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 18, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
YOLANDA EDMOND, 36, of Statesboro, Georgia, was charged in April 2013, pled guilty on July 11, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records, and was sentenced on October 8, 2013 to 32 months in prison.
GLORIA EVANS, 44, of Statesboro, Georgia, was charged in April 2013, pled guilty on July 11, 2013 to wire fraud conspiracy and aggravated identity theft, and was sentenced on October 8, 2013 to 39 months in prison.
DEQUILLIA HILL, 43, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to conspiracy to commit theft of public funds and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
CIERRA JOHNSON, 22, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 4, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
ALECEIA LOVETT, 29, of Statesboro, Georgia, was charged in September 2013 and pled guilty on December 4, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
TACARRO MORGAN, 25, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
JOSHUA MINCEY, 20, of Statesboro, Georgia, was charged in April 2013 and pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. His sentencing hearing has not yet been scheduled.
RICHARD PARKER, 60, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to conspiracy to commit theft of public funds. His sentencing hearing has not yet been scheduled.
PORSCHE S. PINKNEY, 19, of Augusta, Georgia, was charged in April 2013 and pled guilty on August 21, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records. Her sentencing hearing has not yet been scheduled.
EULA MAE RODRIGUEZ, 47, of Sylvania, Georgia, was charged in September 2013 and pled guilty on November 19, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
DWAN SCOTT, 32, of Statesboro, Georgia, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
JENNA SCOTT, 28, of Jacksonville, Florida, was charged in April 2013 and pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
DEVANG SHAH, 32, of Sylvania, Georgia, was charged in September 2013 with conspiracy to commit theft of public funds. His guilty plea hearing has not yet been scheduled.
GREGORY F. SMITH, JR., 21, of Stone Mountain, Georgia, was charged in April 2013 and pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft. His sentencing hearing has not yet been scheduled.
ASHA K. SPAULDING, 37, of Claxton, Georgia, was charged in March 2013 and pled guilty on March 12, 2013 to wire fraud conspiracy, aggravated identity theft, and assisting in the preparation of false tax returns and was sentenced on October 8, 2013 to 154 months in prison.
TIDAESHA V. TAYLOR, 27, of College Park, Georgia, was charged in April 2013 and pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
ANDREA WEBB, 31, of Register, Georgia, was charged in April 2013 and pled guilty on June 5, 2013 to wire fraud conspiracy and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
KANDICE WHITE, 25, of Sylvania, Georgia, was charged in September 2013 and pled guilty on December 4, 2013 to conspiracy to commit theft of public funds and aggravated identity theft. Her sentencing hearing has not yet been scheduled.
The defendants not yet sentenced face a maximum penalty of 20 years in prison for the charges of wire fraud conspiracy and wire fraud, 10 years in prison for the charges of access device fraud and misuse of medical records, five years in prison for the charge of conspiracy to commit theft of public funds, and a 2-year mandatory, consecutive prison sentence for aggravated identity theft. Each of these charges also carries a fine of up to $250,000.
FBI Special Agent Marcus Kirkland and IRS-CID Special Agent Gwen Weston are the federal law enforcement officers who have been leading the investigation in these cases, in connection with the Statesboro Police Department and other state and local agencies. Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Fenton Area Woman Pleads Guilty to EmbezzlementRead the Press Release
St. Louis, MO – Elaine Lewis pleaded guilty to embezzling more than $300,000 from a church checking account, between 2009 and August 2013.
According to court documents, Elaine Lewis worked as a bookkeeper for the Lutheran Church of the Resurrection, located in St. Louis County, MO. Between 2009 and August 2013, Lewis used a variety of schemes to embezzle more than $300,000 from the Church’s checking account at Bank of America. Most of the funds were transferred and deposited into a Commerce Bank account associated with her family’s business -- Advanced Lock & Key, Inc. -- which was operated out her residence in Fenton, MO.
ELAINE LEWIS, Fenton, MO, pled guilty to one felony count of mail fraud before United States District Judge Rodney W. Sippel. Sentencing has been set for March 7, 2014.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Lewis will also be required to pay full restitution.
This case was investigated by the United States Postal Inspection Service and the Sunset Hills, MO, Police Department. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.
Federal Jury Convicts Parole Officer for Accepting Bribes from ParoleeRead the Press Release
HOUSTON - Crystal M. Washington, aka Crystal Bureau, 53, has been convicted on three counts as charged by a federal jury sitting in Houston, announced United States Attorney Kenneth Magidson. Washington was employed as a parole officer at the Texas Department of Criminal Justice (TDCJ) office located on Hamilton Street in Houston.
Following a two-day trial, the jury found Washington accepted bribes from a parolee - a suspected heroin dealer - from 2009 to 2012 and that she warned the dealer of a Houston Police Department investigation in 2009. She was convicted of conspiracy to possess with intent to distribute heroin as well as conspiracy to commit extortion under color of official right for accepting money from the dealer. Further evidence was presented which showed Washington accepting money from a cooperating parolee in May 2012.
U.S. District Judge Lee H. Rosenthal, who presided over the trial, has set sentencing for March 25, 2014. At that time, Washington faces up to 20 years in federal prison on each count. In addition, the extortion convictions carry as possible punishment maximum $250,000 fines, while the conspiracy count could result in a $1 million fine.
Washington was relieved of all duties and her employment terminated upon arrest. She was permitted to remain on bond, but the court modified the conditions to include electronic monitoring based upon the jury’s verdict today.
The operation was a combined public corruption task force effort by the FBI, Houston Police Department, TDCJ-Office of Inspector General and the Texas Rangers.
The case is being prosecuted by Assistant United States Attorneys Jim McAlister and Carolyn Ferko.